Vital stats: Gale Epstein, 58, and Lida Orzeck, 58, co-founders of Hanky Panky LLC
Company: A specialty lingerie and apparel manufacturing company in New York City 2007
Projected sales: Approaching $50 million

Gift set: Working for another company as a designer in the late 1970s, Epstein collected hand-embroidered handkerchiefs as a hobby. She gave good friend Orzeck a homemade bikini set fashioned out of those handkerchiefs for her 30th birthday. Orzeck loved the gift and knew other women would, too, so the pair set out to create a line of similar lingerie to peddle to local New York City merchants in 1977. "It was something different ... whimsical," says Epstein.

Boutique nation: Though their first big customers were department-store retailers in the '70s and early '80s, the changing corporate tides in retail inspired Epstein and Orzeck to take their Hanky Panky line to smaller, independent boutiques nationwide. That strategy has been the backbone of their business. And, says Orzeck, "It makes our banker very happy, because our risk is spread out." Today, the company also has a presence with online retailers like NeimanMarcus.com, Nordstrom.com and Herroom.com.

Thong couture: The pair designed one of Hanky Panky's flagship products, a stretch lace thong, in 1986. Word-of-mouth buzz spread slowly--it took a good 10 years for the thong to catch on with the mainstream. But as pants grew tighter and waistlines moved lower, customers embraced the Hanky Panky design, and many a beauty editor hailed it as one of the most comfortable thong panties around.

Feminine magic: As women, these entrepreneurs have an advantage in growing and marketing their Hanky Panky brand of lingerie, sleepwear and lingerie-inspired sportswear: They can tap into their own experiences for inspiration. "When [we started], the industry was dominated by men," says Orzeck. "We understood what women want and how it should feel ... this was what we really wanted to wear."