Don’t underestimate an ambitious southern woman in seersucker. At least, that’s what entrepreneurs Jolie Bensen and Sarah Elizabeth Dewey, founders of the southern-based clothing line Jolie and Elizabeth, have taught me. That, and not to wear seersucker after Labor Day.
Taking advantage of the region’s entrepreneurial spirit and creative energy, the two southern belles founded their clothing line in New Orleans, after moving back from New York, as a means of creating new opportunities for themselves when jobs in the fashion industry were scarce. However, in almost three years, the duo has initiated a new apparel design and manufacturing industry in the south, made a significant economic impact in New Orleans, and did it all by following their own trajectory.
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At the company’s second year mark, the designers reached fascinating milestones, including nationwide recognition and a 65% revenue increase with $250,000 of it going back into New Orleans’ economy. Their story is not one of luck or overnight success, but one of lessons learned, hard work, and patience.
The ladies first conceptualized their new venture over lunch in September of 2009, agreeing that their brand should reflect their vision by including both of their names in the company’s identity, and that they would focus on keeping their company vertically integrated and manufacture all their clothing in the USA – a valuable concept they picked up while working together at BCBG’s corporate office in New York. Bensen and Dewey also decided that they would initially seek financial help from an investor to get the ball rolling on their project. They both saw that the biggest value in attaining an investor would be the financial guidance they would receive, as well as the security of starting their business without getting into serious financial problems.
Their search began online, creating profiles on various funding platforms that offer matchmaking opportunities for startups and investors. After reviewing the responses and meeting with several candidates, they landed on a locally based investor from New York, who, after making it big in the dot com boom, had moved to New Orleans to help finance up-and-coming startups.
“We thought it was a perfect match because he got New Orleans, had invested in other companies run by young owners, and understood the urgency of New York and the fashion industry,” said Bensen, and, with their views aligned, they started working with their new investor that November.
According to Bensen and Dewey, the mutually beneficial relationship with their investor started out smoothly. He helped them finalize their business plan, advised them on their accounting and budget projections, and registered Jolie and Elizabeth, LLC, of which he owned a 40% stake. However, within months, the designers started to realize that the easy access to funding came at the expense of losing control of their vision. Recalling that their investor continuously devalued their abilities and challenged their creative decisions, the tension increasingly heightened until April when the designers decided to buy him out for three times the amount he had invested into the company. At this point, not even one dress had been produced.
“We found ourselves sending him daily, long threaded emails that justified certain aspects of our business that should not be justifiable,” said Bensen, explaining that, with fashion and trends constantly fluctuating, there is often no right or wrong decision. Having to validate every creative choice ultimately became inefficient and redundant, and the disagreements put a strain on their ability to produce their first collection.
The tipping point came when the investor, and self proclaimed graphic designer, presented Bensen and Dewey with the company’s website. It was a one page static site, delivered to them months behind schedule, skewed from their original vision, and modeled after that of another company, a restaurant, that he was also funding. Besides misrepresenting the brand, the investor included himself in the company bio, taking a large amount of creative and financial responsibility for the brand and its mission.
“After that point, it really made us realize how much we loved and valued our company, and how much potential we saw in this,” explained Bensen.
The purchase of the investor’s share of the company reimbursed him for two sets of business cards, the company logo, a shoddy website, gas money that partially covered Bensen’s trip to meet with a factory in Dallas, and a 300 percent interest rate that he appointed. Covering the cost with money they borrowed from their families, it was a price they were happy to pay.
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