Heather Evans
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Heather H. Evans (H.E.) graduated from Harvard Business School in June, 1983. She showed considerable interest in the fashion industry, having some background in this area. She was a fashion model from 1975 through 1979 and, in the summer of 1982, she worked for Jackie Hayman, Inc., as an assistant to the President of this young firm that manufactured designer clothing. An additional valuable asset was that she worked as a financial analyst for Morgan Stanley & Co, Inc. from 1979 through 1981 dealing with mergers, acquisitions and corporate finance. Her father is an attorney with a Wall Street firm. H.E. graduated from Harvard College in 1979, earning her bachelorÐŽ¦s degree in Philosophy. Her previous career as a model gave her a taste of running her own business, experiencing independence, the ability to travel and the opportunity to meet people. She was confident that she could run a dress company and her goal was to create a company to manufacture womenÐŽ¦s designer clothing to sell high-priced, high-quality dress-and- jacket combinations to executive women,
aged 27 to 45.
The final determination to set up her own company came in the fall of 1982 after she worked with Robert Vin, an assistant designer in New York, in an attempt to transfer her concepts into finished sketches and patterns.
By November, it was clear to Heather that this arrangement was not going to work out and she decided that she would be both the chief designer and operating manager of her own firm. She started her business plan preparation and, in January, 1983, she met with buyers. In February she began consulting with lawyers and CPAs. On March 9, 1983, she registered HEATHER EVANS INCORPORATED in New York.
H.E. conceived a style of clothing, primarily focusing on dresses, which better fits the lifestyle and demands of businesswomen than the suits and other looks offered by existing clothing manufacturers. H.E.ÐŽ¦s lack of technical training and experience led her to hire an assistant Belinda Hughes. H.E. was unable to find an acceptable pattern maker, the highly- recommended Barbara Tarpe had not been hired based on the ÐŽ§negativeÐŽÐ advice of one of H.E.ÐŽ¦s old friends. By February 1983, H.E. decided to lease 1,500 square feet of space in a less-than-desirable location (with low buyer traffic) beginning on May 1. In March she decided to lease a space in the building at 550 Seventh Avenue, the most prestigious building in the garment center, housing some world-known designers.
H.E. tried unsuccessfully to attract potential investors, approaching friends at school, former colleagues, investment banks and others. Considering Arden & Co. as a lead investor, she hoped to gain more credibility for the plan and be able to have just one party to negotiate terms. She desperately needed $250,000 as financing, but it was not to be found. During April 1983, the business began requiring more cash and H.E. realized that financing was not going to come as easily as she had hoped.
H.E.ÐŽ¦s Strengths and Opportunities
Personal independence and taste of running of her own business. Passion for fashion industry, self-motivation and some knowledge in this industry.
HBS MBA graduated ÐŽV good fundamental background. Good organizational skills and some financial experience.
Right time and right marketing target. The 80s: the next step of womenÐŽ¦s emancipation and self-affirmation in menÐŽ¦s business world and the era when women became more independent and began earning more money. This definitely influenced the fashion industry (e.g., wide-shoulder jackets). H.E. was right to target ÐŽ§formalÐŽÐ professional womenÐŽ¦s fashion niche.
She lived the lifestyle of these women and she knew their needs.
She opened an office in the center of the garment design industry.
H.E.ÐŽ¦s Weaknesses
Business plan does not have good marketing component. It does not say anything of potential buyers – department stores or retail stores with whom she needs to have contracts beforehand.
H.E. did not use a good chance to attract investment.
Not enough professional experience in the fashion industry (professional immaturity). (Pierre Cardin opened his own salon at 31 years of age, having gained working experience at Vichy and Christian Dior. Nina Ricci worked 20 years for Raffin and then decided to open her own house when she was 50 years old. Georgio Armani was 40 years old when he introduced his own menswear collection after long working experience at Nino CerrutiÐŽ¦s.)
No technical training in fashion design.
Lack of human resource experience.