#2 Seastone

   Good things come in small packages. And for Seastone, gift cards are very good things. The powerful plastic is actually the No. 1 requested gift in the United States, and Seastone, which is a gift card packaging company, is its No. 1 wrapping. “We’re the window dressing,” says founder Warren Osborn. “We turn gift cards into real gifts.” They also turn them into real profits. Seastone sold more than 100 million gift card packages in 2007 and even signed a significant license agreement for the use of Peanuts by Charles M. Schultz. You’re a good sign, Charlie Brown.

We started by looking for a market where we could apply creative manufacturing. We assessed seven or eight different markets, and gift card packaging was the clear leader. We moved our resources in that direction, and as with the other businesses I’ve built, the company was founded upon education, know-how and experience. 

There wasn’t a lot of competition when we began. The space was open territory, and we pioneered it. In my past companies, we’ve been the second string — the No. 2 or No. 3 company that focuses on ways to differentiate itself from the market leader. But that wasn’t the case with Seastone. Others are trying to differentiate themselves from us. 

The culture here at Seastone is unique. We have an incessant need for two major things: innovation and speed. We’re constantly pushing the envelope on both factors. We have moved our product in a way that’s similar to the fashion industry — customers get samples for the new season, and there are dramatic changes in colors and trends. That method has given us an enormous advantage over our competition. It satisfies the customer, who wants to be on the cutting edge, and it keeps us in that first-page position. 

Our advantage comes in our ability to adapt. Many of my past companies had significant industry shifts after the business had been doing extremely well. And if you don’t adapt, you face going out of business. That example is typical of growing, young companies, and it’s been one of the most significant reasons for Seastone’s success. As we’ve been hit with industry changes, the adaptation makes us dramatically stronger than we were before. 

It’s very challenging to maintain a high-growth rate year to year. It only works because we have phenomenal people who are able to expand their minds and abilities. I’m a big proponent of bringing together A-plus teams.  

I’ve seen a lot of entrepreneurs make the mistake, as I have in the past, of looking at an industry that’s exploding with success and jumping into it because it seems to be the hottest thing. I’d offer caution in that regard. Take an inventory of your connections, education, skill sets and what you’re passionate about, and align the business opportunity with your personal tool chest. The companies where I have been true to that have been the most successful.

My personal motto is if you do what you love, the difference between play and work is not significant. If I were forced to work five days in a row or play golf five days in a row, I’d choose work. I like my work that much. 

We love being located inUtah County. The talent here is amazing, as well as the universities and expertise. It’s a phenomenal place for our company, and if we could choose any place in the country, this is where we’d be. Q