For Subscribers

The Downside of Popularity: How This Company Dealt With Overnight Success When a menswear rental startup unexpectedly took off and sold out of its entire stock, its founders were forced to tackle a crippling supply-chain issue -- and angry customers.

By Nikita Richardson

This story appears in the May 2017 issue of BIZ Experiences. Subscribe »

Carlos Rice & Laurie Joliet/ The Black Tux
The Black Tux tuxedo is not your average rental rig.

Most new business owners worry about getting customers through the door. Not Andrew Blackmon, co-founder of online tuxedo rental service The Black Tux. He was worried about getting trampled by them.

When The Black Tux launched in June 2013 -- born out of Blackmon's own "terrible" wedding experience with the tuxedo rental industry -- the company was equipped to fulfill roughly a thousand orders per weekend. But then GQ magazine gave The Black Tux a positive mention, triggering a surge in demand. Overnight, they sold out for the entire fall wedding season. And the orders kept coming.

Related: Don't Buckle Under Success: 7 Ways to Survive an Overnight Boom

"I remember my co-founder, Patrick Coyne, and I sitting in his apartment, just looking at each other in horror, wondering what we were going to do next," says Blackmon. "It felt like we had reached the pinnacle -- and then the ship was slowly sinking."

The co-founders decided to approach their problem from two sides: First they personally reached out to any disgruntled customers to explain the situation and set up a waiting list for those who wanted to stay in the loop. About 20,000 signed up.

Then they went looking for more suits. As newcomers, The Black Tux team didn't yet have the pull to speed up their supply chain, which involved fabric makers in Italy and suit makers in factories throughout the world. At the time, their manufacturers could ship new suits only every three months, an eternity in the startup world. Typical wholesale suits might have been faster, but they weren't an option for a company specifically devoted to avoiding their shoddy look.

Related: 3 Keys to Developing a Sustainable Supply Chain

So the co-founders pulled the one ace they had in their pocket: potential investors they'd met before launching but had decided not to work with until they were further along. These investors, encouraged by the booming demand, quickly and enthusiastically filled the startup's coffers with $2.6 million in funding, and The Black Tux bought thousands of new suits. Crisis averted.

Or so they thought. Once the inventory crisis was solved, and stellar reviews rolled in from their earliest customers, they received another wave of positive press -- which, in the fall of 2014, once again wiped out their inventory. But by January 2015, Blackmon and Coyne, now flush with $10 million in Series A funding, were able to respond by tackling their core problem: the supply chain. They set out to negotiate better deals with their manufacturers and shrunk the turnaround time for new product down significantly, to a matter of a few weeks.

"So much of being an BIZ Experiences is proving yourself in little steps to achieve your dream," says Blackmon. "We had to prove ourselves to a factory to get better terms and a better supply chain."

Related: Online Reviews Are the New Social Proof

Looking back, Blackmon says that had he been more knowledgeable about suit manufacturing from the beginning, he would have invested in logistics and inventory earlier. "You're assuming that your problems are going to be marketing, storytelling and getting more customers to the brand," he says. "My advice would be to take more risks on inventory and be ready."

Want to be an BIZ Experiences Leadership Network contributor? Apply now to join.

Science & Technology

OpenAI's Latest Move Is a Game Changer — Here's How Smart Solopreneurs Are Turning It Into Profit

OpenAI's latest AI tool acts like a full-time assistant, helping solopreneurs save time, find leads and grow their business without hiring.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for BIZ Experiencess to pursue in 2025.

Money & Finance

These Are the Expected Retirement Ages By Generation, From Gen Z to Boomers — and the Average Savings Anticipated. How Do Yours Compare?

Many Americans say inflation prevents them from saving enough and fear they won't reach their financial goals.

Side Hustle

This 26-Year-Old's Side Hustle Turned Full-Time Business Led to $100,000 in 2.5 Months and Is On Track for $2.5 Million in 2025

Ross Friedman's successful venture started with a "Teen Night" in Boston, Massachusetts.

Business News

Apple Smashes Expectations With $94 Billion Quarter. Here's How the iPhone Maker Did It.

Apple just reported a significant revenue beat for its latest quarter, exceeding analyst expectations.

Business News

'We Don't Negotiate': Why Anthropic CEO Is Refusing to Match Meta's Massive 9-Figure Pay Offers

Anthropic CEO Dario Amodei laid out his rationale on a recent podcast for why he will not play the competing offer game despite Meta CEO Mark Zuckerberg's attempts to poach AI talent.