Maybe there is something to the theory of infantile memories. In the case of Susan Lyon, who was named the Small Business Person of the Year by both the San Diego and California offices of the U.S. Small Business Administration, there’s plenty of evidence to support this theory. “I was born at the University of Pennsylvania hospital while my father was attending Wharton Business School,” says Lyon, president and managing director of Lyon & Associates Creative Services Inc. “So my first 18 months of life were spent surrounded by business school students. I can’t remember a time when I didn’t know I would get an MBA.”

That’s exactly what Lyon did. After earning her undergraduate degree from UCLS, she landed an MBA from USC in 1987. She then worked for a series of businesses in San Diego. Amazed at their poor management, she dreamed of starting her own business.

“But I didn’t have a widget to sell,” says Lyon, 37. “Then I met Mark at one of these companies and he was constantly doing graphic work for people for free. When we got married, we started Lyon & Associates out of our garage. We didn’t go into it thinking it would be a big business. We just wanted something to pay for vacations and my husband’s love of the latest computers.”

Each of them took turns “jumping ships” from employers and eventually the Encinitas-based Lyon & Associates grew into the company it is today with 15 employees and a revenue of almost $4 million in 2000 (up from $15,000 when the company started in 1991). Clients include 3Com Corp., Sharp Healthcare, IBM Microelectronics and Com21.

Lyon & Associates is an advertising and design firm that specializes in Internet, print and broadcast work. Part of the company’s success is how the couple divides the business management pie. While her husband serves as the creative director, Lyon handles the business end, a business model rarely found in design firms.

“It works for us because we have totally different spheres of influence and there’s not much crossover,” says Lyon. “Usually the art director is the president, but this works pretty well for us. I have enough respect for the creative side not to interfere with it.”

But her ability to balance the creative and business sides has proven instrumental in the company’s growth and reputation.

“Susan makes sure that customers are taken care of, and that’s what made Lyon & Associates what it is today,” says Brigitte Engel, director of marketing for Del Mar-based Magis Networks, a client of Lyon & Associates since it opened. “It’s not just a design firm. Susan understands the process of reaching customers and increasing revenue. She’s quite a Renaissance woman.”

Her ability to see past the narrow boundaries of each company’s input and communicate the ultimate goal is essential for success, reports Scott Booth, a sales rep for Neyenesch Printers in San Diego. “She’s a very thorough business person. For instance, the work we did for them on the 3Com project was very complicated. She included us on the planning process and welcomed our feedback and that made the job go more smoothly. The end result is better for the client. I’ve enjoyed seeing her diligence pay off with the growth of the company.”

Indeed, the company has built a reputation for its business savvy. For instance, Lyon & Associates has an innovative profit sharing program for its employees. “That came out of the brutal reality of starting up,” says Lyon. “Mark and I had just begun taking paychecks and we couldn’t afford our first employee. So we offered a $20,000 base salary and we all divided 20 percent of the revenue equally. And that’s still the plan today.”

Another business tack is the initiative to hire mothers with young children, giving them flexible, part-time hours. “This is the world’s best secret on how to get employees who stay for a long time,” reveals Lyon, who just moved to Solana Beach. “They’re not going job hunting because where are they going to find another job with these hours? They’re not going to be tempted by a small jump in salary. Plus, we don’t have to pay for their health insurance and they’re very loyal.”

Keeping employees happy is a priority to the company for three reasons. First, it maintains a consistent quality of work, keeps down retraining expenses and allows the Lyons to have normal hours so they can be home with their two young children.

As with any small company, debt always is a major concern. But Lyon has a policy of little or no long-term debt. This is especially critical when it comes to computer equipment. Graphics demand the latest in technology and having high-tech equipment gives Lyon & Associates the edge in the marketplace. So the company reserves 15 percent of its revenue for constant technology updates rather than taking loans.

While these business strategies are Lyon’s ideas, she believes that taking care of the staff and watching out for the company is as much an extension of her own personality as it is of her business expertise. “I’m such a mom,” she says. “I take care of everyone, which I think is a little unusual in this day and age. But I want everyone to be happy.”

That philosophy is reflected in the couple’s two new business ventures — Mighty Max Films Inc. and Benighted Capitalists Inc. The latter oversees their property assets and the former is for their expansion into film and television. Each is broken out into a separate company to protect Lyon & Associates.

“Our goal in 2000 with Mighty Max was to break even, which we did, but we could have lost money too,” she explains. “That wouldn’t have been fair to Lyon & Associates because it would have affected profit sharing. But it was clearly a creative direction Mark wanted to go in. We’re filling the niche in TV commercials, but we hope to make enough money for an independent film.”

For many years, Lyon dreamed of making the “Inc.” 500 list of fastest-growing companies, a goal that the company has come close to reaching a few times. “But now I realize that it’s not about being big,” she said. “I like what we’re doing. I can’t imagine anything that would make me happier.” She is so happy that she can’t imagine herself ever retiring. But if she ever did switch careers, one option that appeals to her is teaching in an MBA program. After working with a young entrepreneurs’ organization, she is inspired by their belief that anything is possible.

Now she’ll be inspiring others as she travels to Washington, D.C., to receive her statewide honor from President Bush (the national winner has not been named yet from the pool of state winners). What does her father, now a business consultant, think of this recognition? “He is thrilled,” she says. “He needs a Web link to tell all his friends. But I knew he’d ask me one question when he heard the news, so I had my answer ready. ‘No, Dad,’ I said. ‘There’s no money involved.’”