Business Startup Changing How Men Rent Tuxedos
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Business Formation & Planning on Sunday, April 5, 2015.
Any man who has been married or who has been a part of a wedding will know what a hassle obtaining a tuxedo can be. Buying a tuxedo is expensive, while renting is not exactly cheap. This is why one California entrepreneur decided to provide a solution to this problem for men. His new business startup is designed to harness the power of the Internet to provide men with a new way to rent a tuxedo.
The new company, The Black Tux, has been in business for about 18 months and has raised $15 million in funding capital. This includes $10 million obtained during a Series A funding round. The Black Tux provides a simple website for men to personalize a trimmer and more stylish tuxedo. The company has quickly integrated vertically.
The website, which was launched last summer, offers men the choice between a midnight blue and a black tuxedo. Men can then choose between three types of lapels: notched, shawl or peaked. The Black Tux also offers traditional tuxedos in dark colors, such as navy, charcoal and gray. The company boasts being able to offer prices significantly lower than its main competitors in the tuxedo market.
Other new companies looking to obtain significant business startup funding in California will need to have solid business plans in place to convince investors that they will be able to receive returns on their investments. This will require solid marketing plans, efficient business processes and strong management teams. However, it is also important to have comprehensive compliance plans as well. This can help entrepreneurs to avoid unnecessary legal conflicts that can prove to be very costly.
Source: Forbes, "The Tuxedo Startup Cutting Men's Wearhouse Down A Size", Abram Brown, March 30, 2015