Heather H. Evans

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 bachelor’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 women’s designer clothing to sell high-priced, high-quality dress-and- jacket combinations to executive women, aged 27 to 45. • Raised $250,000 for 40% of equity from friends and HBS classmates.
• Gave company 3-year royalty free license on her name.
• Gave investors a “put” on their stock at a multiple of earnings in years 3 and 4.
• First line sold well -- She used contacts for “free” publicity, etc.
• First line did not sell through, she could not sell second line.
• She would have been successful if designs had sold!

Heather’s Opportunity
• Appears attractive, good fit between skills, desires and market needs.
• What does Heather have to do to capitalize on opportunity? o Produce designs consumers want o Line up retailers and advertising support o Get items produced and delivered on time
• What are advantages of opportunity? o Little capital needed o Good market niche: Unserved, fragmented, and growing
• What are key factors for success? o Design sense o Ability to sell retailer design
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