Jenn Hyman, co-founder and CEO of Rent the Runway, shares her entrepreneurial wisdom while advising early-stage business owners. She tackles the importance of valuing artisan craftsmanship for local apparel, and emphasizes how letting go of ego can enhance leadership effectiveness. Conversations include strategies for raising capital in sustainable fashion and achieving significant revenue for beauty brands. Hyman offers insights on the evolution of fashion rentals and the emotional resilience needed in entrepreneurship, inspiring listeners on their journeys.
Jenn Hyman emphasizes the importance of maintaining humility and a low ego as essential traits for enduring success in leadership and entrepreneurship.
Emerging entrepreneurs are encouraged to understand customer needs and leverage partnerships, as collaborations can provide vital resources for scaling their businesses.
Deep dives
The Evolution of Rent the Runway
Rent the Runway began as a platform for renting high-fashion clothing, allowing customers access to designer items without the significant costs associated with purchasing them. Over time, the company pivoted its business model, integrating subscription services that catered not only to special events but also to everyday casual wear. This shift highlights the growing normalization of clothing rental among consumers, who now readily rent items like denim for casual outings. As the brand seeks to expand, it collaborates with designers through revenue-sharing models, which allows for a diverse inventory that serves as a marketing channel for partner brands.
Challenges and Lessons in Leadership
Navigating the public company landscape presents numerous challenges, particularly for a founder like Jen Hyman, who has experienced a decline in stock value despite strong business fundamentals. The importance of maintaining a low ego as a leader is emphasized, as it allows for a greater focus on the company's performance rather than public perception. Hyman reflects on her competitive advantage stemming from her humility, driving her to persist in leading the company despite external pressures. This perspective suggests that resilience and adaptability are crucial traits for long-term success in entrepreneurship.
Advice for Emerging Entrepreneurs
In discussing the challenges faced by emerging entrepreneurs, the importance of understanding customer needs and market demands is stressed. Founders are encouraged to leverage feedback and data from existing customers to ensure that their offerings resonate effectively within the market. Alive discussion about the necessity of partnerships and collaborations arises, particularly in industries like apparel, where financing can be challenging. Entrepreneurs are reminded that identifying potential partnerships or licensing opportunities with reputable brands can provide the resources theneeded to scale effectively.
The Role of Innovation and Community in Business Growth
Innovative products must also align with consumer lifestyles, and businesses should identify specific scenarios where their offerings provide value. For example, a new hair care product designed for active individuals found its niche by addressing the need for quick solutions post-workout, illustrating how targeted marketing and community engagement can lead to success. Building partnerships within relevant communities is identified as a key strategy for growth, as connecting with local fitness centers can enhance product visibility and reach. Furthermore, utilizing social media effectively can amplify brand presence and capitalize on viral trends, turning innovative products into market successes.
Rent the Runway co-founder and CEO Jenn Hyman joins Guy on the Advice Line to answer questions from three early-stage entrepreneurs. Plus, Jenn’s take on how letting go of ego helps business leaders stay in the game.
First, we meet Sara near Cape Cod, who’s wondering how much her customers actually value local artisans making her apparel. Then Carrie from New York, who’s trying to unlock seven-figure revenue to attract investors to her active haircare brand. And finally, fellow New Yorker Chabella talks with Jenn about raising capital for her sustainable fashion brand.
Thank you to the founders of Easkey Right, Swair Hair, and Chabella for being a part of our show.
If you’d like to be featured on a future Advice Line episode, leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to hibt@id.wondery.com or call 1-800-433-1298.
And be sure to listen to Jenn tell the story of how Rent the Runway was founded during her first visit to the show back in 2017.
This episode was produced by J.C. Howard with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Cena Loffredo.