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Martha Stewart's next big challenge
She turned homemaking into a multimillion-dollar franchise. Now the domestic diva answers readers' questions - and a few of our own - about investing, prison, and how to boil an egg.
Now's your chance to ask Stewart about launching your own company, how the market turmoil has impacted her empire, and what’s next for the titan of homemaking?
(Fortune Magazine) -- Stoic and indestructible, Martha Stewart has survived prison and public humiliation. But with the economy in turmoil, her eponymous empire, Martha Stewart Living Omnimedia, may be facing its greatest challenge yet; the company derives more than half its revenues from the hard-hit publishing and retail industries.
Stewart, 67, relinquished her CEO title shortly before she was indicted in 2003 (co-CEOs Robin Marino and Wenda Harris Millard now run the day-to-day). But Stewart, whose home-entertaining enterprises started with a catering business in 1976, remains actively involved in MSLO (MSO), which now spans print, web, television, and retail ventures. Stewart answered readers' questions -and offered up some money-saving housekeeping tips (hint: Pomegranates are the fruit to buy).
Are you still in contact with the women at the Alderson, W.Va., federal prison? DOMEDA JONES, OMAHA
Some of the women who became my friends while I was incarcerated have visited with me. There are some very interesting women there of great value to society, and I keep in contact with them. We have some broken systems in this country - one is the prison system.
Is there a category Martha Stewart Omnimedia is not a part of that you would like it to be in? SHERRY QUINONES, FREDERICK, MD.
We'd like to be more involved in the health sector. I started that with my Martha Stewart Center for Living at Mount Sinai Hospital [in New York City]. It's devoted to living longer and better. Pets are another area that we haven't approached other than in television segments. The world of pets is so important to our viewers that we are considering entry into [the pet-care] field.
How will the economic crisis impact home entertaining and how will your company remain competitive? MARY MURPHY, JUPITER, FLA.
We're making a conscious effort to provide budget-friendly ideas. Many of the things we show on the pages of our magazine and in our television show are do-it-yourself ideas that look more expensive than they cost.
What did you learn while working on Wall Street early in your career, and how did you apply it to running a megabusiness? LIZA COBO, CHINO, CALIF.
I was an institutional salesperson, and I learned what made a good company and what made a bad company. I think I put that learning to use in building the company. We have a good business plan, and we're synergistic in our approach to business. For instance, we have a 360-degree sales program that we do with our advertisers that allows us to cross-sell among properties. And the reason I called our first magazine Martha Stewart Living is that it's a limitless subject matter that wouldn't confine us. Also, we run our company virtually debt-free with money in the bank and a clean balance sheet.
Are you investing in this market or waiting it out? KEVIN CALDERBANK, PHILADELPHIA
Personally, I'm on the sidelines. I want to invest. I have some ideas. But I'm waiting for time to think it all through. My schedule is very hectic right now. I'm on a tour to promote my new cookbook, "Martha Stewart's Cooking School," and I film my daily TV show. It's a lot to juggle. But I feel that with a little bit of stabilization in the markets we can start investing again.
Do you have any tips on how to stretch our dollars a bit further? KEITH PREBLE, RALEIGH
Look for specials in the grocery store. If pomegranates are on sale, buy a bunch, because they'll last.
What are some modest investments people can make in their homes in a downturn? LAURA HADDEN, PAOLI, PA.
You probably won't be adding a new media room. Instead, fix up a bathroom. You can do a lot [of it] yourself. My sister just retiled hers, made window treatments, and painted the walls. She increased the value of her home. You can also outfit a closet for more storage.
How long should I hard-boil an egg? KEVIN KUDER, OMAHA
Place eggs in cold water; bring to a boil, then remove from heat, cover, and let stand 13 minutes. Use a slotted spoon to transfer eggs to an ice-water bath to stop the cooking. I have a whole chapter on eggs in my new cookbook.
Many companies are pulling back in the face of the economic downturn. What's your strategy?
In these times, our how-to content is relevant more than ever. We plan to be aggressive and take advantage of opportunities when they present themselves. We are getting deeper into our exploration of international opportunities, and we are excited by what we see. Of course, we are also closely monitoring the broader economic climate.
What's the thinking behind your recent investment in Pingg (an online event-planning site and Evite competitor)?
It builds on our strategy to invest in technologies and tools our consumers want. Following on our investment in [wedding website] WeddingWire, Pingg will enable our users to manage their events online and send customized invitations, as well as save-the-date cards and thank-you notes.
This is your fourth season of The Martha Stewart Show, and ratings for daytime TV are down across the board. What is the future of the show?
Viewers need our show now more than ever. Our goal is to help provide the kind of expertise that isn't available anywhere else on television. For example, we are teaching them how to use every bit of a chicken so that nothing goes to waste, or giving them instruction on how to make beautiful homemade crafts for the holidays. Daytime TV is very competitive, but I think there is room for all of us. We fully expect to be on the air for years to come.
What holiday would you dispense with and why?
I don't think I could dispense with any one holiday. I love gatherings with family and friends. Between my show and working with the magazine, I probably celebrate every holiday multiple times each year.
What's your favorite hostess gift?
I love to bring something I've made or grown in the garden - honey from my beehives or preserves made from the fruit I grow on my farm or something I've made or cooked. Personal gifts are always so special.
Do you ever order takeout?
Actually, I don't take out much, but I have some special spots where I can run in to get a quick bite. I love Momofuku Noodle Bar [in New York City's East Village]. Their meals are simple and delicious. 
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