Real-life entrepreneurship at discounted fashion prices
Will Lewis, Joe Rogers, Billal Sikander, Jon Stern, Ahin Thomas, WG'07
Issue date: 3/26/07 Section: Insider
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Hickey Freeman, a luxury men's apparel company, decided about 15 years ago to try and attract a new, younger customer base. They formulated a strategy to give MBA students the opportunity to run their own franchise on campus in order to introduce the brand to students early in their careers. Hickey Freeman sells custom and "off-the-rack" suits, tuxedos, shirts, overcoats and Bobby Jones golf wear, all made in the United States. Wharton's franchise has been in existence for a number of years.
Last year's Hickey Freeman crew wanted to share some of their experiences of running the franchise with their classmates and they did so in a Wharton Journal interview (Entrepreneurs Corner; Demetris Tsingis, WG'06 Issue date: 11/21/05 Section: Insider).
This year's group decided to continue the tradition and share our responses to similar interview questions.
1) Why did you take over the Hickey Freeman venture? Did you have any previous entrepreneurial or retail experience?
Billal - We viewed this venture to be one of the few opportunities at Wharton where a team has a chance to own a business and run it. In fact, it might be the only such opportunity at Wharton.
For us, running the Hickey Freeman franchise was an entrepreneurial challenge which would add to our experiential activities at Wharton, provide us insights into operating a business, enhance our marketing and retailing skills, and make us better team players. After doing our diligence on the brand and the business model we were convinced of the upside potential in the business. Additionally, it was clear that, in the worst-case scenario, we should be able to recover our original investment. Given the risk/reward profile of the investment and the experiential benefits associated with operating a business, we were convinced that this venture would be one of our best experiences at Wharton. Most of us had no entrepreneurial experience but all of us share the same entrepreneurial spirit which got us excited about this venture.
2) Are there any challenges you have faced since taking on the brand and how did you overcome them?
Jon - I have found running a sales business that targets my classmates to be challenging at times. While I am obviously interested in making the business as profitable as possible, an overly aggressive approach to sales could alienate our friends and colleagues and damage the reputations of myself and fellow franchisees. My belief in the quality of our products and the discount opportunity that we offer has helped me overcome this challenge. When I sense one of my classmates has an interest in our product line, I feel that I am helping him by suggesting that he should at least stop by one of our shows. I think the fact that I was a customer last year and purchased a Hickey Freeman suit (before I had given any thought to owning and operating the franchise) makes my claims more convincing.
3) You are all full time students, which for most people at Wharton means little spare time. How do you cope with more work?
Will - I knew this would be a big time commitment from the moment my teammates and I started discussing the opportunity. One of the things that helped us manage time was that we created functional roles similar to a small business organizational structure soon after forming the LLC. We had a head of finance, business development, customer relations/service, operations, and logistics. Dividing the work made it manageable. At times, our responsibilities would overlap, especially as exams and recruiting picked up. But I would say that ahead of each show we would resort back to our roles and make sure there was clear direction in our strategy.
4) What advice do you have for students who may be considering an entrepreneurial career or even the WG 08's that may want to take over the Wharton Hickey Freeman franchise next year?
Joe - My general advice to entrepreneurs would be to never underestimate the importance of marketing. Along these lines, my advice for the team taking over next year is to spend time planning the marketing strategy for Hickey Freeman shows. We waited a bit too long and scheduled some shows at unfortunate times (e.g. day after spring break) and that hurt sales. I would also urge the incoming owners to tap into new markets (e.g. law school, undergrads and faculty). We did not spend much time trying to expand the markets for the business, but I think it has good potential to expand if the new team invests the effort.
5) Do you have any entrepreneurial plans after Wharton?
Ahin - While I have been, and remain, invested in a few real estate ventures in South Carolina, I did not consider myself as an "entrepreneur" prior to Wharton. The single, most salient lesson I have learned from being part of the Hickey Freeman franchise is that "side investments" are true entrepreneurial ventures.
In helping out with the franchise this year, I have had the unique opportunity to participate in all aspects of a small business: finance, marketing, sales, and operations. Looking forward to next year, and beyond, I realize that the ability to understand a business from a variety of perspectives will prove to be valuable not only in a corporate setting but also in any entrepreneurial ventures I may take part in.
Last year's Hickey Freeman crew wanted to share some of their experiences of running the franchise with their classmates and they did so in a Wharton Journal interview (Entrepreneurs Corner; Demetris Tsingis, WG'06 Issue date: 11/21/05 Section: Insider).
This year's group decided to continue the tradition and share our responses to similar interview questions.
1) Why did you take over the Hickey Freeman venture? Did you have any previous entrepreneurial or retail experience?
Billal - We viewed this venture to be one of the few opportunities at Wharton where a team has a chance to own a business and run it. In fact, it might be the only such opportunity at Wharton.
For us, running the Hickey Freeman franchise was an entrepreneurial challenge which would add to our experiential activities at Wharton, provide us insights into operating a business, enhance our marketing and retailing skills, and make us better team players. After doing our diligence on the brand and the business model we were convinced of the upside potential in the business. Additionally, it was clear that, in the worst-case scenario, we should be able to recover our original investment. Given the risk/reward profile of the investment and the experiential benefits associated with operating a business, we were convinced that this venture would be one of our best experiences at Wharton. Most of us had no entrepreneurial experience but all of us share the same entrepreneurial spirit which got us excited about this venture.
2) Are there any challenges you have faced since taking on the brand and how did you overcome them?
Jon - I have found running a sales business that targets my classmates to be challenging at times. While I am obviously interested in making the business as profitable as possible, an overly aggressive approach to sales could alienate our friends and colleagues and damage the reputations of myself and fellow franchisees. My belief in the quality of our products and the discount opportunity that we offer has helped me overcome this challenge. When I sense one of my classmates has an interest in our product line, I feel that I am helping him by suggesting that he should at least stop by one of our shows. I think the fact that I was a customer last year and purchased a Hickey Freeman suit (before I had given any thought to owning and operating the franchise) makes my claims more convincing.
3) You are all full time students, which for most people at Wharton means little spare time. How do you cope with more work?
Will - I knew this would be a big time commitment from the moment my teammates and I started discussing the opportunity. One of the things that helped us manage time was that we created functional roles similar to a small business organizational structure soon after forming the LLC. We had a head of finance, business development, customer relations/service, operations, and logistics. Dividing the work made it manageable. At times, our responsibilities would overlap, especially as exams and recruiting picked up. But I would say that ahead of each show we would resort back to our roles and make sure there was clear direction in our strategy.
4) What advice do you have for students who may be considering an entrepreneurial career or even the WG 08's that may want to take over the Wharton Hickey Freeman franchise next year?
Joe - My general advice to entrepreneurs would be to never underestimate the importance of marketing. Along these lines, my advice for the team taking over next year is to spend time planning the marketing strategy for Hickey Freeman shows. We waited a bit too long and scheduled some shows at unfortunate times (e.g. day after spring break) and that hurt sales. I would also urge the incoming owners to tap into new markets (e.g. law school, undergrads and faculty). We did not spend much time trying to expand the markets for the business, but I think it has good potential to expand if the new team invests the effort.
5) Do you have any entrepreneurial plans after Wharton?
Ahin - While I have been, and remain, invested in a few real estate ventures in South Carolina, I did not consider myself as an "entrepreneur" prior to Wharton. The single, most salient lesson I have learned from being part of the Hickey Freeman franchise is that "side investments" are true entrepreneurial ventures.
In helping out with the franchise this year, I have had the unique opportunity to participate in all aspects of a small business: finance, marketing, sales, and operations. Looking forward to next year, and beyond, I realize that the ability to understand a business from a variety of perspectives will prove to be valuable not only in a corporate setting but also in any entrepreneurial ventures I may take part in.
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