Heather Evans Case Study Essay

3878 Words Dec 18th, 2010 16 Pages
Heather Evans Case Study

FNGB 7499

Venture Capital Financing

Yun Pei


Niyi Oyeleke

1) Heather Evans is a smart, hard-working individual with a great business sense, and she has a keen understanding of the fashion industry from working as a model and as an assistant to the president of a woman’s clothing company. Combining these talents, Heather Evans was able to spot an underserved market estimated at $5 billion annually with significant growth prospects. Subsequently, Heather Evans is hoping to raise enough capital to launch a line of clothing to serve the 4.3 million women in a professional environments who would be primes candidates for a fashion label that is both functional and stylish. While
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Moreover, the prospect of the licensing the Heather Evans brand is another sizeable revenue stream. Finally, a recent IPO of a comparable company obtained a sizeable valuation demonstrating the great potential in the fashion business. On the flip side, fashion design is very subjective. There is no telling how people will respond to Heather Evans’ first collection. Even if the collection is a hit, there is a concern that the design trends will be copied by other manufactures. Fashion is a very fickle industry and the barriers to entry are fairly low so competition can be fierce even if Heather Evans’ brand is considered first to market. Then there is the threat from other well-known brands, which could easily pursue this particular market segment if Heather Evans’ company sees some initial success.

2) To date, Heather Evans’ entrepreneurial efforts have shown promise but there have also been some missteps along the way. With a background in the fashion industry and exposure to the business world at Morgan Stanley and Harvard, Heather Evans is well prepared for the challenges of starting a new business. Unfortunately, Heather Evans also lacks experience and some of her actions are indicative of a first-time entrepreneur with much to learn about starting a company. Heather Evans invests a large portion of time to researching her new venture and formulating a business plan. By sticking to a well mapped out schedule and

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