business success stories true start-ups

© Rent the Runway

Harvard Business School section mates Jennifer Hymann (Jenn) and Jennifer Fleiss (Jenny) came up with their brilliant business idea for their fashion start-up « Rent the Runway » (= RTR) when Jenn’s fashion savvy sister Becky, an accessories buyer at Bloomingdales, faced the struggle of many young women: what to wear to a wedding and how to afford the designer dress of her dreams without breaking the bank.

If you want to read more about the business success story of the two co-founders that managed to have Diane von Fürstenberg herself coach them, please read our Q&A with Jenny hereafter. Enjoy!

What were you doing before?

Jennifer Carter Fleiss (Jenny): working at Lehman Brothers and Morgan Stanley in their corporate strategy groups.

Jennifer Hyman (Jenn): helping Starwood hotels build new luxury businesses (built a wedding business for Starwood including a priority honeymoon registry system), sales at Wedding Channel.com, and Business Development for the media division at IMG.

Did you always dream of starting a business?

We both always dreamed about starting our own business and always used to have lunch at Harvard Business School and discuss our ideas. Jenn’s idea to start RTR was the first idea that we both gravitated to because we thought there was a huge customer need to have access to the “Carrie Bradshaw closet” and refresh your wardrobe without the guilt of a dress you’ll only wear once.

Did the economic downturn influence your decisions regarding RTR?

Yes – timing was excellent, both from a designer and a customer perspective. Designers were looking to innovate and find new ways to access younger, fashionable customers. Customers are more conscious of cost per wear. RTR enables women to continue to buy the LBD (=Little Black Dress) but experiment with new trends, silhouettes and aspirational designers from RTR.

What was more difficult: funding or winning the first designers for your start-up?

That’s a tough one – they both required a good selling effort and a lot of passion.

How long did it take you from the original idea to the execution and launch?

About 11 months of very hard work.

You had kind of a kick-off meeting for RTR with Diane von Fürstenberg? How did you manage this?

We cold called her and she is an amazing woman and has been very generous with her time.

Currently there is a wait list to become a RTR member. How does it work?

Right now we are members only. The key reason is because we want to make sure that every customer on our site has an incredible customer experience and has a huge selection of available dresses to choose from. We take women off the wait list on a daily basis.

Are there any annual fees or a sign-up fee?

 No. We want to make high fashion accessible to everyone.

Which sizes do you have available?

0-12 – the designers we carry currently don’t carry larger sizes.

How many members do you already have?

About 70,000 members in the last 2 weeks and many more on the wait list.

How many and which designers do you currently offer?

We have about 40 – new designers being added soon include Vena Cava, Prabal Gurung, Bibhu Mohapatra, J Mendel and Haute Hippie.

How large is your inventory for the time being?

160 styles at launch but we are adding new deliveries every week. We have each style in a full size run with multiple copies in each size to satisfy demand.

Which one is your most popular piece so far?

Anything with sequins, studding, asymmetry.

Any surprises so far regarding the members’ demands or preferences?

SO MUCH demand! And customers are really engaged – they love learning more about fashion and experimenting with new brands. We have customers from all over the US and from many different demographics. Our customers are between 16-35 years of age and super fashionable. They love the most fashion forward trendy styles.

Do you also offer emerging labels? You co-operate with one of the Project Runway winners?

Yes – Christian Siriano and many more to come. We are huge supporters of emerging talent.

What are your criteria for choosing certain designers? Is it a team decision?

Everyone gets involved – our team of 7 members has a great diversity of tastes but everything is led by our buyer Derek. He is extremely talented and knows how to cater to a fashion-forward woman.

Are you planning to add some vintage pieces?

YES

Do you plan to offer wedding dresses?

Probably not wedding dresses, but definitely dresses for wedding guests, wedding events, and bridesmaids! Never again an ugly bridesmaid!

Is there a maximum rental fee?

Our rentals start at just $50 and go up to $200 for a 4 day rental. With each rental you receive the dress in two sizes.

Which type accessories will you add?

Definitely jewelry, scarves, belts, clutches – anything and everything to complete the look!

Do you offer the service in the US only or do you also cover Canada?

Only US for now, but there is lots of interest in Canada and we plan to expand there soon!

Which are your experiences with the designers/brands so far?

They love it! They are excited about girls being able to get introduced to brands at a younger age. We are a customer acquisition tool for brands because when a woman rents a dress by a designer she’s been dreaming of wearing there is an opportunity for her to fall in love with the brand. Think if I happen to be wearing a Proenza Schouler dress the night I get engaged or to a New Year’s eve celebration – any night to remember – this is an opportunity to build brand loyalty.

What are your plans for the coming five years?

We are considering all sorts of things – from international expansion, social community features, expanding to new marketing – stay tuned!

What has been the most exciting moment so far?

There have been so many exciting moments – getting funded by Bain Capital, our first order from Ashley Hinchman, our New York Times article. Every day provides more exciting moments!

Any lessons learned so far?

In house tech team and tech help is hard to find on the East Coast and super important! Learn about coding so you can be in the know before hiring. Hiring a lawyer (even an expensive one) is worth it.

Do you have any role models?

Our families and loved ones. They have been so supportive and encouraging of us following our dreams.

Do you have a favorite quote?

“Be a woman, wear a dress!” - DVF
“You’re never fully dressed without a smile!” – Annie

In hindsight, would you do certain things differently?

Order more inventory! Hire tech team in house from day 1.

What does it take to become an entrepreneur from your point of view?

Lots of sales skills and confidence. An idea that you love and you genuinely think is fun!

Any advice for other aspiring entrepreneurs?

Go for it!

Isn't this another truly inspiring story?

NB: You might also like to read our entries on new fashion websites or the truly inspiring business success story of Christine Marchuska respectively her true fashion start-up CMARCHUSKA, her eco fashion label made in the US. If you like fashion, you should also have a look at the new fashion brands for women that we cover such as great fashion accessories for women by emerging jewelry designers from Europe, hip concept scarves from the Middle East and cute fashion jewelry from North America, awesome handmade bags, great footwear for women, beautiful bridal fashion, cute kids fashion and up-and-coming fashion labels for women's wear.

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© Handcrafted by Moms

Handcrafted by Moms’ Owner and Founder Josiane Sawaya decided to offer creative stay-at-home moms like herself a place to sell their handmade designs when she launched her business start-up « Handcrafted by Moms ».

Although Josiane already had the idea on her mind for some time she only recently made her dream a reality. Due to the demand and in an attempt to expand her reach beyond the local markets they are currently visiting Josiane recently launched a website including e-shop.

Because Josiane is in start-up mode we have asked her a few questions to learn more about her business success story and her experiences running a true start-up. This is what she has told us. Enjoy!

What were you doing before?

My education and professional background are design related. I studied graphic design in Lebanon, my home country. After graduating from University, I worked as a publisher for a Lebanese magazine. I then diverged from graphic design into website design.

Did you always have a "creative" gene"?

I have always enjoyed tapping into my creative side! Growing up, I loved art and crafts and worked on many projects with my mother, who helped to nurture my creative talents. Incidentally, my mother is one of the designers I represent. My mom designs and crochets hats and accessories as well as designs jewelry. So yes, I guess I do have a creative gene that probably came from my mom!

What made you start designing and handcrafting?

I have noticed that many of the mass produced items that I purchase in large chain stores are of inferior quality. I knew that I as well as my other creative mom friends could create higher quality items.

Why do you design hair clips?

I guess I began with hair clips because my daughter (6 years old) and I enjoy accessorizing! I began by making clips and clip holders for my daughter and soon we began giving them as gifts to her friends. The feedback I received was so encouraging that I slowly began to form my idea for a business.

What inspires you?

Just about everywhere. I am sometimes influenced by the colors in my garden. Sometimes, I see a picture or a piece of fabric and I am struck by an idea. I can even be doing something as mundane as cooking or cleaning when I suddenly come up with an idea for a design!

What made you finally decide to pursue your true calling and act upon your idea?

I always seem to have some crafting projects in the works. But it was only recently that I recognized my organizational capabilities however! Last year, I was elected president of the parent association at my children's preschool. This role required a lot of project management/organization, communication, and public speaking. I discovered that I had some leadership qualities that I was not aware of. I think this role gave me the confidence required to start my own business.

Why did you opt for moms and where do you see Handcrafted by Moms niche compared to etsy and other communities for handcrafted items?

I opted for moms because I am a mom and enjoy being creative. Through my children’s preschool and on play dates, I discovered many moms like me that enjoyed doing crafts and being creative after a long day of running errands and taking care of their children. I began to feel strongly that there was a market for some of these creations and I decided to create my business.

Etsy is very different from what I do. My business is more personal. I handpick the designers and ensure that the quality of all the products offered on my site. Also, my business has a mission to give stay-at-home moms an outlet to sell their handcrafted items that is flexible and fits with their schedule.

How do you make money?

I am the sole proprietor of Handcrafted by Moms. One of the reasons that my business model is working so well is that I deal with all the administrative and marketing of the business so that the designers can concentrate on their creations. I sell the items the Moms create on my site and in markets and charge a nominal commission.

What's your five-year vision for Handcrafted by Moms?

In five years, I hope to have expanded internationally with a loyal base of customers. I hope to specialize in the Lebanese and Saudi Arabian markets initially as I have an extensive knowledge of these markets as well as business and personal connections. Currently, I am exploring franchising as an option for expanding my business. I hope to expand slowly in order to maintain the personal feel of my business.

How can interested moms apply? Do you have any specific criteria?

Currently, I am working with a group of Moms that I know. These people and their creations inspired me to begin my business.

If any mom is interested in participating, I would encourage her to contact me. I am always looking for new designers with original creations. However, I want to keep my product offering unique, so I must ensure that all new products do not duplicate products already offered.

Any plans to expand beyond kids’ fashion?

I am always on the lookout for designers who offer unique high-quality products. Currently, I am exploring fashion designs for men and women.

What has been the most challenging moment so far?

I have had a few days where I have been extremely busy with my family life but have had pressing work to do for my business also. It has been a challenge to balance the two. Needless to say, the solution usually ends up being late nights and long days!

What has been the most exciting moment so far?

I cannot describe how happy it makes me feel to see customers wearing Handcrafted by Moms items!

Any recommendations for other aspiring entrepreneurs?

My only advice to aspiring entrepreneurs is to know your market. Always elicit feedback from your customers and pay as much attention to the constructive criticism as you would from the positive feedback!

What does it take to become an entrepreneur - in your view?

There is no doubt about it in my mind; it takes much perseverance to be an entrepreneur! It also helps if you have a sense of humor…for those moments when things do not go according to plan.

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© Joobili

If you have had a look at our travel section you might have read about the travel website Joobili, a cool web 2.0 start-up that introduces the art of « timely travel ».

Because we like Joobili's unique approach to traveling, we have contacted Jared Salter, one of the Founders to share this inspiring business success story with you.

If you are interested to learn more on Jared’s entrepreneurial journey so far, please have a look at the Questions & Answers with him hereafter. Enjoy!

Please provide us with some more information regarding your background and why you came up with the idea for the interactive database.

I am originally from San Francisco California where I worked as a brand consultant for Interbrand. I liked my job and I worked with some great brands, but I could feel myself getting sucked into a long career trying to climb the corporate ladder and I decided to get out.

My wife and I decided to move to Budapest in 2006 to enter an MBA program. Before starting the school we used the money from selling our car to do a lot of traveling.

During my studies I met Tamas Gabor and together we started talking about various ideas, and the concept of "timely travel" is one that kept coming up. We both felt like when you go is more important than where you go and we were surprised nobody had created a calendar-based travel resource.

The original idea was actually for a book, but eventually we agreed the web offered so many more opportunities.

How long did it take you to realize the idea and to launch the website?

It took about 6 months from writing the business plan to getting some seed funding, then another 1 year until we launched the site.

How did you get to deal with the technical aspects of your database - assuming neither you nor Tomas has a technical background?

We hired a great team of local programmers here in Budapest to build the site.

What is the advantage of being an entrepreneur from your point of view?

It's important for me to feel passionate about my work, and when you are working for yourself you really put everything into it.

What has been the biggest challenge so far?

The biggest challenge is not getting too carried away by the high points and not getting too down on yourself during the low points.

In hindsight, would you do certain things differently?

I would do a lot of things differently. I think this is why there are so many serial entrepreneurs out there. You learn something new every time.

What has been the most exciting moment so far?

We were pretty excited about winning Mini Seedcamp and being selected by PC magazine as one of the top 100 websites of 2009. But I still would say the most exciting moment was launching the site and seeing all this stuff that's been in your head for so long actually go live.

What are your plans for the coming five years? Where do you see Joobili in the future?

In this business it is difficult to think five years ahead. Just think of how different the web environment was 5 years ago. What I can say is that in the coming months we are launching some exciting new features that improve our time-sensitive travel inspirations. We will also be offering some cool promotion features on the site so I'm hoping the future holds a little revenue as well :)

Anything else that might be interesting for other aspiring entrepreneurs?

The whole entrepreneurial process is a real roller coaster. It's hard not being able to plan more than a few weeks in advance, but I still think it's the best job you could have.

There is nothing left to say. What an inspiring story! We hope you have enjoyed it as well.

NB: You might also like our articles on Shanghai highlights or culinary travel services.

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© Klewfoto.com

Eco fashion label CMARCHUSKA's story is another truly inspiring business success story of a true start-up.

Founder Christine Marchuska summarizes her label’s mission to provide some stylish yet affordable fashion made in the US for modern eco conscious girls and ladies like her.

But, it is also the story behind CMARCHUSKA that makes it so unique. After being laid-off from a well-paid finance job on Wall Street in May 2008 Christine literally turned her life around and established her green fashion label only six months later. This is quite impressive and made us decide to interview Christine. We want to share her story, early struggles, lessons learned and her advice to other start-ups with you. So, please have a look at what she has told us to see if you will get inspired. Enjoy!

How did it all start and was it really that easy to find a niche and just go for it?

Christine says that she really liked her previous job. But that thinking about it now she - as many other entrepreneurs report as well - kind of always felt the desire deep inside her to someday become an entrepreneur. A wish that might in her case have been influenced by her entrepreneurial family background. So when the going got tough end of 2007 she started discussing fallback options with Justin, one of her elder brothers. And when she was finally laid-off in May 2008 she pursued the organic fashion brand idea to move forward and start her own business.

But why fashion and what was her industry specific knowledge on day 1?

Christine said she simply tried to combine her passion for the environment and fashion and make it a business. She had realized that there was not much affordable eco-friendly fashion for women like her. You either had to sacrifice on money or style so she saw a niche to be filled by her brand. Of course, it is not that easy to simply identify a need and come up with an answer. You need to take action. Realizing she had some homework to do, Christine signed up for some sewing classes and bought many books as well as other materials to learn all about the garment industry. She literally started from scratch. But asked if she would do things differently looking back she says no. It is a learning by doing exercise to become an entrepreneur and one thing leads to the other. Maybe sometimes things weren’t always handled the optimal way but she made no major mistakes. And finally she is running a one-woman show, thus there are so many things to think of.

What was the biggest challenge and how important was the establishment of contacts and networks for her work?

To have a network of insiders to occasionally pick their brains is very important. In such context the sewing classes also proved very helpful in so far she was able to meet like-minded people that were willing to share and exchange their knowledge. Apart from that she had a key contact back from Cornell University that helped her a lot in finding her way into the fashion industry, which is very closed off. It is not so easy to walk straight in and network as people don’t want to share for various reasons. But once you have established your network it feels great as you can share your experiences and provide temporary uplift to one another, pick other brains etc.

What does she like best about her new job?

To meet so many inspiring people with a diverse background is a pure plus of her new life. You meet so many talented individuals and amazing people. To be able to work in such a diverse and broadminded environment is very refreshing and creative.

What has been the most exciting moment so far?

Besides being picked by the Green Fashion Showroom in New York, she says she was really proud of her first fashion show in April this year. But every win, every single step and milestone gets you excited as you put so much of yourself into your work.

Would she like to go back into finance once the job market gets better again?

Christine says that she would rather get a second job to earn her living than going back into finance. She says it is kind of tough to run a one-woman show. But she has so much fun running the show from A to Z. The great press as such doesn’t pay your bills and the income needs to flow. On the other hand it is still so exciting. Every day brings something new and you just see what’s up next and do it. Thus, she would rather opt for continuing her entrepreneurial adventure.

What’s her plan for CMARCHUSKA’s future?

In five years from now Christine would love to own her own manufacturing facilities and to move the jobs to upstate New York to give back to the local community and create new employment up there.

What's her recommendation for other young entrepreneurs and their ups and downs?

« Try not to quit before the miracle happens » - her favorite quote.

Isn’t that a great and inspiring story of young entrepreneurship at its best? If you were recently laid-off and struggle with what to do next why not ask yourself what you truly want in life? We particularly like Christine’s entrepreneurial spirit as she says she has never been afraid of failure, but afraid of not living out her dreams.

But go and see for yourself.

Enjoy!

NB: You might also like to read our entries on new fashion websites such as mygreenlipstick, which is dedicated to eco fashion or the truly inspiring fashion business success story of web start-up Rent the Runway from New York City.
If you like fashion, you should also have a look at the new fashion brands for women that we cover such as great fashion accessories for women by emerging jewelry designers from Europe, hip concept scarves from the Middle East and cute fashion jewelry from North America, awesome handmade bags, great footwear for women, beautiful bridal fashion, cute kids fashion and up-and-coming fashion labels for women's wear.

If you are into environmentally friendly products and services, you should also have a look at Blushless vegan bridal fashion, olsenHaus vegan footwear, vegetarian restaurants Hiltl and Tibits or our eco friendly gift ideas. Or, would you like to read inspiring success stories of accidental entrepreneurs?

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© Bucklette

Bucklette is the name of another inspiring business success story of a US start-up and another synonym for young entrepreneurship at its best.

Bucklette's success may be summarized as follows: identify a need for or lack of something and be the answer to it! Find your niche. Well, it’s never that simple or straight forward but it truly is what unifies all successful start-ups. It doesn’t suffice to have a great idea, you need to get started and take action!

In Sandy Alexander’s case it is also the story of changing her corporate life where she gathered valuable marketing experience and business insights to starting her very own company to pursue her dreams.

While being single and living the busy life of a modern woman Sandy often experienced the need for a hands-free storage device. Something like a sleek clutch to store your essential valuables securely away on a night out while leaving your hands free. This need became particularly evident to her while being out with a friend whose purse was stolen. This was the triggering event for Sandy to develop what is now available as « Bucklette » - a stylish, versatile alternative to purses for occasions / situations where you might need a hands-free alternative to your beloved clutch.

And she for sure hit a nerve, as the success is evident. Even men have asked her when she will finally offer a men’s version! The small, easy to carry around Bucklette case is big enough to carry a lipstick, money, ID and a house key. But it also works as a great day-to-day accessory if you are sick of searching for your keys, some small money or lipstick in your huge shopper, which you like so much.

Right now you can purchase two types of Bucklette’s: a belt or a clip-on. Unfortunately, there is no waterproof case yet but we hope there will be one in the future! Currently, Sandy is working on new models to be added to her collection.

But go and see for yourself.

Enjoy!

NB: You might like to read our entry on Hambone Design's bike pouches.

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© Bagnesia

Bagnesia is the brand and great business idea of Pam Eatrides and Caprice Ericson. It all started with a shopping trip of two long time friends and a short car ride.

Pam whose 2008 new year’s resolution had been to use reusable bags instead of plastic bags realized once more that she suffers from what they call « bag-ne-sia, a person's forgetfulness to grab their reusable bags ».

While discussing the benefit of a steering wheel reminder Pam and Caprice suddenly realized a need for various sorts of reminders to put an end to their bag-ne-sia. What started as an effort to cure their own bag-ne-sia was not meant to become a real business. But, as Pam and Caprice saw more people using reusable bags and read about several cities, including San Francisco, who banned plastic bags they considered making it a business and developed a bag-ne-sia reminder kit comprising of various cool « grab your bags reminders » and a reusable shopping bag.

As they wanted a reusable bag large enough to hold up to two to three times what a standard plastic grocery bag holds but small enough that you can roll her up to fit into a purse, this was quite some undertaking. But they succeed in their search for the perfect bag, and we dare to say it was worth the effort. Doesn’t it look great?

We think the Bagnesia reminder kit makes a great gift and is an environmentally friendly alternative to post-its and plastic bags. Remember: Using even one less plastic or paper bag can make a difference in the future of our world, starting today.

Isn’t this an inspiring story about entrepreneurship at its best? See what great ideas you can come up while being on a car ride with your best friend? Just make it happen!

But go and see for yourself. And, please don't hesitate to share your story with us if you are an entrepreneur and want to share your story with us. Enjoy!

NB: You might like our entries on eco friendly gift ideas.

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© TapeSwell

Stylist and start-up TAPESWELL's owner Eileen Eisele came up with the great business idea for decorative tapes when she realized that « tape » needed a modern makeover.

As Eileen's tapes are one of the coolest things we have on our directory so far we have asked her for some more background information on why and how things started at TapeSwell to share those insights with you. Please read what Eileen told us about her business success story as a young entrepreneur and her experiences with running a start-up.

Why tape?

I use it all the time at work because it truly is a stylists best friend.

How and why did you come up with this idea?

I read many design blogs and saw how like minded people were all coveting
decorative tapes they found in Japan and South Korea.

Also, one of my daughters favorite craft supplies are primary colored tapes I got at an online office supply site.

Everything seemed to be pointing in the same direction. I started thinking how hard could it be to have it printed with cool designs.

Was it that easy?

Well 7 printers and a lot of lessons in technical specifications of tape
later I realized why it is so difficult and coveted.

The process isn't easy and good printers are few and far between. I have learned a lot along the way and officially launched at the NY International Gift Show in January
o9'. The response was great.

Anything you like in particular about your products?

Tape just seems to bring out the kid in everyone, it isn't some precious thing that you have to use sparingly it. At 30 yards a roll you can go crazy and not feel guilty about the expense.

I love the tacky ideas section of my website because the uses people come up with for tape often go beyond even my wildest imagination, and that isn't easy.

Enough inspiration to follow Eileen's model? Curious to have a look at her products?

No matter what you are up for next: Enjoy and have fun! And, please don't hesitate to share your story with us!

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