The Minority Business Development Agency (MBDA) Western region will honor five outstanding Hispanic Minority Business Enterprises (MBE’s) at an awards ceremony in San Francisco on August 15. One of the nominees, Lydia Work, President of American Paper Converting, Inc. talks to us about how she turned her two person venture into a 70 employee 15 million dollar company.

Her journey actually began thirty years ago when she came to the US to learn English. As she was about to return to her native Nicaragua a devastating earthquake hit there which forced her to extend her visit by six months. During that time she met her husband and despite wanting to return to her country agreed to stay until her husband learned to speak Spanish. That was thirty years and two sons ago. Today this entrepreneurial Latina calls Woodland Washington home and her business has shaped not only her life but her family and employees who she considers her extended family. As for her husband, well, he's still trying to learn Spanish.

Paula: How did you finance your business in the beginning?

Lydia : In two ways, one was personal savings the other was through a bank loan. The state of Washington has a program called Link Deposit where you can obtain a lower interest rate than the market rate.

Paula: Tell us about American Paper Converting Inc.

Lydia : We are manufacturer and suppliers of paper towel and tissues to janitorial and food service distributors. American paper specializes in private labels and we also make environmentally friendly papers. What attracted me to this line of business is that the products are recession proof: People will always need paper products!

Paula: What are some challenges you overcame in the early stages of your business?

Lydia : One was hiring and developing the right people. We pride ourselves in hiring and training people from diverse backgrounds. That goes beyond just ethnic to include disabled and family assisted. Another challenge was penetrating the market. In our industry there where a lot of mergers so it created an opportunity for us to make custom made products. For example, packaging of a product that fits dispensers customized for a specific distributor. This was something we could be unique in offering.

Paula: What challenges do you face today?

Lydia : One challenge is growing without increasing working capital. Also, we are very focused on retaining our employees as this allows us to keep a steady growth. Lastly, we always are innovative and have solid marketing to attract customers.

Paula: When it comes to growth strategies, where do you seek guidance?

Lydia : Initially I attended a seminar at SCORE and as I grew I formed an advisory board. I have 3 people that help me see the forest from the trees.

Paula: How do you balance your work and life?

Lydia : In the beginning it’s hard; you have to have an understanding partner that knows that the company and the customers need you. My family understands and for that I’m grateful. Now that my kids are grown and I’ve asked them if they’ve missed out on me being there and they say no. The company has helped them too. The good thing is that they have been a part of the business; they know how to run a business. One is about to graduate from the University he studied business the other is in engineering. He probably won't go into the business.

Paula: What books have you read recently that helped you and you can recommend to us?

Lydia : Stephen Covey, Seven Habits of Highly Effective people; I attended a seminar that he gave that was very helpful. I practice the Habits and share them with my people.

Also The One Minute Manager by Kenneth Blanchard.

Paula: Who do you admire most?

Lydia : My mother was a very entrepreneurial person and she taught me a lot. She was in Nicaragua in a business selling cookware she started by herself and recruited people and became the national manager.

Paula: What is you advice for a woman wanting to start her own business?

Lydia : Identify a business you are knowledgeable in and from there be persistent in networking. Join an association to stay on top of industry trends and be flexible about your customers. Do research on the community resources you have available to help you develop your business, the plan, etc.