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As the vice-president of sales for a printing company, Sherry Stewart repeatedly saw it gain one account but then lose two due to poor customer service. After unsuccessfully urging the company’s management to change its business practices, Sherry quit, knowing she could do better. In just three weeks, Sherry had her business concept – start a lettershop that ensures the delivery of returned mail for clients such as hospital billing departments, but not charge them for the pieces that aren’t delivered. Ready for a challenge, Sherry launched LetterLogic in 2002 from her basement. Since then, LetterLogic was named one of Entrepreneur Magazine’s 50 Fastest Privately-Owned Women-Led Companies in North America for 2007 and 2008. Inc. Magazine also recognized LetterLogic as an Inc. 5000 Company for those same years. Its 2009 annual revenue is projected to be $18 million.
When pondering her business model, Sherry knew that approximately 10 – 15% of mail is returned. Realizing that companies depend on those letters being delivered to generate revenue, Sherry knew she found her niche. With a company name in mind, and after receiving validation from local hospital billing departments who immediately committed to giving Sherry their business, she launched.
Sherry financed LetterLogic with money from her 401K and by selling everything she owned. With house-flipping as a hobby, Sherry put all three of her homes on the market, sold two and lived in the third. Eventually, she wrote a business plan and sought growth capital from five different entities; however, each offer had “ropes, not strings, attached.” Sherry also approached a bank, but ended up with a venture capitalist that invested and has a 45% growth stake in LetterLogic.
Under Sherry’s innovative leadership, LetterLogic is the gold standard of commitment to the triple bottom line: people, planet, profit.
One of Sherry’s goals is never lose a client due to service. Her philosophy is to take extraordinary care of her 31 employees so they take extraordinary care of LetterLogic’s customers. Sherry’s commitment to her employees is indeed extraordinary, from financial perks to rewarding bicycling to work, and her businesses’ growth reflects it.
Sherry takes care of her people by serving their financial goals, such as giving 10% of each month’s profits back to her associates. The money is divided equally regardless of job class because Sherry believes that no one’s role is more important than another.
LetterLogic also assists every employee with first-time homeownership by contributing to their down payment and closing costs. As a result, the majority of Sherry’s associates own their own homes. In addition, LetterLogic not only offers the highest wages in the industry, but also pays 100% of the employees’ dental, medical, disability and life insurance premiums. Another perk is that associates can bring their children or pets to the office whenever they want.
For Sherry, “going green” isn’t just a trendy motto. Being in the paper business, Sherry is cognizant about LetterLogic’s effect on the environment. She researched the origin of the company’s paper, and found almost all of it was virgin paper from ancient forest growth. Immediately, she began using paper and envelopes that are either 100% post-consumer content or are SFI or FSC Certified. Additionally, the clear windows on LetterLogic’s envelopes are made of corn starch, not plastic.
Alert to opportunities that serve the greater good, Sherry realized that the envelopes and paper were generating waste of 1000 cardboard boxes each week, so she found a business to buy the cardboard, thereby generating “greening income”. Each quarter, this fund is donated to a charity chosen by the employees. Not surprisingly, LetterLogic’s waste costs also dropped dramatically.
Employees are also offered a financial incentive to take public transportation, walk, ride a bike or carpool to and from work. Sherry reimburses 100% of the gas for those who carpool and pays for an employee’s pass to take public transportation. If associates walk or ride a bike, LetterLogic pays them by the mile.
LetterLogic’s fast-paced growth has caused Sherry to twice shut down sales in order for other areas of the company to catch up. By positioning her company for managed growth, Sherry’s ultimate vision for LetterLogic is to reach $100 million in revenue by 2018 with 100% customer retention.
What we learned from Sherry: “Don’t underestimate your talents. My biggest challenge is underestimating my own ability to run LetterLogic. I don’t have a college degree, so I thought hiring an MBA to take the company to the next level was a good idea. I was wrong. I discovered that, despite having a high school education, no one is better qualified to run LetterLogic than me. So, I took on a personal coach and mentor to help me identify and develop my skills, abilities, concepts and ideas. I learned to trust myself and my instincts. Today, I don’t hire based on education and experience, I select my employees based on attitude.”
Recognition Motivates
“Once a month we close the operation for a few hours and order lunch for everyone. We review the company’s recent financials and triumphs. At that meeting, we select the Team Player of the Month. Everyone writes a paragraph about why a person deserves this recognition. I read each nomination aloud and everyone votes. The selected employee receives an on-the-spot award of $100. At year’s end, the person with the most cumulative votes wins an all-expense-paid trip to a resort and $1,000 spending money.”
The Suggestion Box
“At our monthly meeting, I read every suggestion out loud and one is put into action immediately. The associate with the winning suggestion is given $100. Eventually, 75% of the ideas are implemented. Sometimes the suggestions are serious and other times they’re creature comforts, like a vending machine with healthy snacks. One request was to add a shower for those who get sweaty biking to work. Within two weeks it was installed.”
This Featured Lady was profiled by Megan L. Reese, WORDrobe™ Stylist for Her Write Image in West Grove, PA.
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