These three rule breakers launched innovative, family-friendly companies that make millions. Here’s how they did it.

Tess Coody-Anders, 37 Mother of Aidan, 11, Brendan, 9, and Kieran, 6
Cofounder: Guerra Deberry Coody A marketing and communications firm san Antonio, TX Full-time employees: 70 Part-time employees: 5 Years to profitability: 1 Gross income (2007): $65 million

Winning idea Running a marketing and communications firm with a progressive work/life stance.
Early inspiration Her working parents’ struggles made her vow to launch a family-friendly firm.
Why we love her She helped rewrite laws to bring child care to the small-business workplace. When she was a girl, Tess Coody-Anders once found herself searching through her family’s kitchen cupboards and finding nothing but pickles and potato pancakes. She and her brother were at home alone-—both hungry—but her hardworking parents, trapped in the grind of low-wage jobs, had no time to shop for food. Tess still remembers the promise that she made to herself that day: “I will never have to choose between my paycheck and my kids.” She’s worked hard to keep her word. In 1995, the then-24-year-old quit a thankless public relations job to open her own advertising, media and PR firm with colleagues Trish DeBerry and Frank Guerra. “We wanted to call the shots,” says Tess. The trio commandeered a 100-year-old San Antonio house and began cold-calling potential clients. They constantly worried about whether they would make enough to pay their own salaries. But the risk paid off: In one year, they landed enough high-profile clients to bring in $350,000. The following year, they had a staff of eight—and receipts of $1.5 million. That year, Tess became pregnant with her first child. When other staffers also became pregnant, she decided to assume responsibility for the company’s work/life initiatives. Her first act was to implement a generous paid maternity leave of eight to ten weeks and a paid paternity leave of two weeks. Tele-commuting and compressed schedules, as well as part-time and flextime work, soon followed. Because of its explosive growth, the firm encountered a steep learning curve. (One early lesson: Keep timesheets when billing clients!) Soon, however, its promotional acumen would start attracting companies like Sprint and Procter & Gamble, while its benefits package drew hordes of job applicants. It’s no wonder seven of the firm’s eight directors are women: “Creating a family-friendly work environment is just as important to us as the bottom line,” Tess explains. And what a bottom line it is. The agency, which pulls in $65 million annually, is housed in a three-story building on San Antonio’s poshest street. Tess even opened an on-site day care for infants, toddlers and preschoolers, which costs staffers just $300 per month. In 2006, when the state tried to shut it down for lack of a day-care license, Tess and her employees pressured legislators to exempt small businesses from such rules. “We lobbied for our right to care for our own kids—and we were successful,” she says. These days, turnover at the firm is almost nonexistent: It loses only about two or three of its 75 employees each year. “We’re proof that you can be successful and still do right by women in the workplace,” declares Tess, who takes great pride in knowing that her firm makes life easier for employees. “If the people my parents worked for had been a little more flexible, it could have made such a difference for our family. I’m happy we can do those things.” top tip “Don’t stake everything on a product. You have to invest in employees. Taking care of your top talent will reap big rewards in terms of retention and loyalty.”

Linda Byerline, 36 Mother of Michael, 11, Jacob, 9, and Sarah Grace, 7
Founder: Happy Heiny’s A dioxin-free-diaper manufacturer EL Cajon, CA Full-time employees: 13 Part-time employees: 2 Years to profitability: Less than 1 (6 months) Gross income (2007): $1 million

Winning idea Developing comfortable, dioxin-free diapers for infants and toddlers.
Early inspiration Her daughter’s allergies decreased when she switched her to cloth diapers. Why we love her She keeps manufacturing local to provide jobs for area moms. As a busy mom who spent five years at home raising her children, Linda Byerline never imagined she’d one day create a $1 million business patronized by major celebrities. In fact, the former registered nurse had no intention of ever going back to work. “I wanted to be the PTA mom,” she says. “Becoming the leader of a successful company never crossed my mind.” But everything changed after Linda’s third child was born prematurely in March 2001. Diagnosed with chronic lung disease, little Sarah Grace was beset by allergies and breathing problems that saw her in and out of hospitals. Linda was deeply worried about her daughter’s health—so when a friend suggested switching Sarah to cloth diapers to avoid possibly irritating chemicals, she didn’t think twice. The result? “Sarah Grace’s need for medications and hospitalizations dropped by half,” Linda recalls. Linda was thrilled. Problem was, the new diapers never fit properly and left red marks on her baby’s bottom. So Linda, who’d never sewn before, designed her own versions from custom-milled fleece, a nonallergenic fabric she chose for its softness and ability to keep skin cool and dry. Her earliest diapers, lopsided and with crooked seams, weren’t exactly haute couture. But one day, she auctioned some extras on eBay, and the reaction amazed her. Not only did people send her orders, but the diapers starting selling for as much as $250 each. Linda was astounded. She plunked down $3,000 on an industrial sewing machine, handed the kids to her husband and started churning out diapers 14 hours a day. “All I did was sew,” she remembers. That year, she earned $8,000. Before long, a friend was cutting her patterns, and her sister-in-law was doing extra stitching. The line grew to include diaper covers, totes and postpregnancy pads. Happy Heiny’s now employs 15 staffers and sells to more than 300 retailers worldwide. With few competitors, Linda’s product is in demand. “Each week, I get five to ten requests,” she says. In November, she opened her own boutique in El Cajon, where she offers breastfeeding classes and Moms’ Nights Out. Celebrity mothers like Brooke Shields, Marcia Cross and Jaime Pressly clamor for her creations. Linda derives tremendous satisfaction from helping moms care for their babies and from giving them flexible jobs. Her staff includes five local mothers who sew diapers at home and five who sew at the company’s 4,000-square-foot manufacturing and shipping facility in El Cajon, where there’s a children’s room with cribs, toys, desks and a television set. Clients frequently tell her how much they appreciate her product. “I’ll get calls from moms whose babies just left intensive care,” she relates. “They’ll say ‘The rash is gone,’ or ‘We didn’t need breathing treatments today.’ That’s the best feeling.” Today, Linda’s kids pitch in at the company they inspired. When school is out, they help stack diaper inserts, pack boxes and flip finished diapers right side out. “This is a family affair,” Linda says. “We haven’t forgotten where we started.” top tip “Respond to retailers’ concerns personally. I give them my cell phone number and send them cards on their birthdays. Nurture those relationships; they’re your company’s lifeblood.”

Sarah Stevens, 31 Mother of Cassie, 9, Ardy, 6, Nate, 4, and Adelaide, 2
Founder: Stevens Technologies Inc. An information technology security business Charlotte, NC Full-time employees: 25 Part-time employees: 0 Years to profitability: 1.5 Gross income (2007): $3 million

Winning idea Launching an IT securitybusiness run almost entirely by women.
Early inspiration Work and family stress led to high blo0d pressure—and a flexible firm.
Why we love her When banks refused to give her loans, she depleted her savings to fund her idea. It all started the moment that Sarah Stevens found herself facing a gut-wrenching decision: She could either leave her sick child alone in the hospital or leave work for several hours and antagonize her boss. As an information analyst for a large advertising firm, Sarah was struggling to care for her firstborn, Cassie, who suffers from a rare form of steroid-resistant asthma. She was also seven months pregnant with her second child. Oh, and her nanny had just quit. “I constantly had this feeling of guilt,” she remembers. “If I chose to be with my daughter, I would end up going back to my job and working halfway through the night to compensate for the hours I had missed. It felt like I had to choose between my child and providing a life for her.” When she was 26, Sarah’s blood pressure began to skyrocket, and her doctor told her she needed to make some major life changes. It was the wake-up call she’d been waiting for. As a self-described “technology geek,” Sarah had long fantasized about starting her own firm, one that used security software to safeguard data for scientific, corporate and government clients. She quietly began devising a business plan. “It’s now or never,” she told herself. Sarah yearned to build a firm where all staffers would telecommute, using email and video- and Web-conferencing to connect. It would keep costs down and productivity high, she reasoned. Not everyone saw it her way. “Banks didn’t believe in my business model,” she admits. “But I knew I had something.” She cashed in her 401(k), drained her savings and maxed out her credit cards. In 2002, she hired her first employee. The early days were nerve-racking. Instead of making six figures, Sarah suddenly had virtually no income, the result of a small client base and huge expenses. Yet her determination never wavered. She networked furiously at IT conferences, and her customers spread the word about her business. Within a year, she had five staffers and $200,000 in sales. Her deft handling of workplace challenges proved crucial when she was offered a large last-minute contract. Given 48 hours to find eight additional employees, she called industry contacts to drum up the necessary help. “I didn’t want to lose the opportunity,” she says. As her firm grew, so did her brood: She now has four children, all with asthma, a fact that makes her grateful she can set her own schedule. Because she understands the challenges of being a working mom, she offers her staff, largely female, family health insurance and paid child care for business trips. Best of all, every one of her 25 employees telecommutes. In six years, Sarah has created a $3 million business. Sometimes that means she attends meetings with a baby on her hip or brings kids to work dinners. “I’ve had children spill on clients,” she admits. “But they’re usually parents, too.” Above all, she’s learned the value of navigating her own path. “I may never really find balance, but I’m comfortable with who I am and what I do,” she says. “And I have quit feeling guilty that I’m a mom first.” top tip “No contract is too small. Make clients happy one at a time and you’ll end up with lots of them. Word of mouth is the most powerful way to build a clientele.”