Entrepreneurship at Yale has a reputation for innovation and sustainability. This is clearly demonstrated in Hugo & Hoby, a custom furniture company founded by Yale School of Management graduates Ben and Fred.
Yale School of Management (SOM) is a hub for innovation, providing a conducive environment for aspiring entrepreneurs to meet like-minded individuals and gain valuable skills to start a business. That was certainly the case for Ben Young and Fred Kukelhaus, Hugo & Hoby co-founders and former roommates.
Fred says of Ben, “I think one of the first things I said to you as a joke was, ‘Hey, do you wanna start a business together?’ And we’re still at it.” (01:01)
The diverse and talented student body at Yale SOM offers a wealth of opportunities for collaboration, fostering a culture of creativity and innovation. As an example, Fred had eight years of consultancy experience before enrolling. He believes that it takes a certain kind of entrepreneur to choose Yale SOM.
“I think the type of person that is attracted to SOM is not just thinking about business as revenues and profits,” Fred says. “It’s also thinking more about their place in society or their impact.” (00:22)
Ben was a high school math teacher, a starkly different professional background, with the urge to launch a business. “I actually applied to SOM because I thought it might be a great opportunity to both meet amazing people and also be in an environment which is really well suited to gain the skills to actually start a company,” Ben says. (00:08)
Yale SOM prides itself on appealing to the most diverse, ambitious applicants for its courses. To maintain its reputation, Yale’s stringent application process considers each candidate’s character and reactions to certain situations, not just their academic record.
When they launched Hugo & Hoby, Ben and Fred envisioned creating a sort of “sustainable IKEA”, focusing on eco-friendly and accessible furniture for the masses.
However, as the company evolved, Ben and Fred identified a significant market opportunity in the B2B sector. Ben recalls the early days of the business, “We were doing B2C, and things were going relatively well. We actually started getting folks saying, ‘Hey, I have this restaurant, I need a bunch of tables. Do you guys do custom?’” (01:12)
Hugo & Hoby balanced both B2C and their ever-growing B2B markets to cater to their new requests. However, when it became clear the B2B efforts brought in a higher ROI than B2C, it was time to refocus.
Ben says, “We slowly turned down the online e-commerce sales, and we focused all of our energy on commercial sales, which we do entirely now.” (01:52)
The switch in tactic has paid off, and Hugo & Hoby now boasts a long, diverse track record of projects. The founders gave back to their alma mater by fitting out the new residential hall at Yale Law School. Further afield, they have supplied Patagonia, Sam Adams, Flying Dog Brewery, Boston Consulting Group, and HMSHost.
Through all of their growth, Ben and Fred never lost sight of their initial mission. Now a certified B Corp, they credit Yale SOM with helping them develop their vision, network, and values. As Ben reflects, “Because Yale has created a belief system and a value system around that, you see a lot of companies that are formed with that kind of mission-driven attitude.” (03:21)
Hugo & Hoby maintain the highest standards of social and environmental impact. The most notable area for sustainability is having used 75,000 board feet of salvaged or reclaimed materials. By bringing used wood back into the supply chain, clients get unique pieces with a minimal impact on the planet.
The company has also planted 65,000 trees in at-risk domestic forests to give back to the planet. Similarly, by sourcing locally, Hugo & Hoby also helps to reduce the environmental footprint associated with long-distance shipping.
However, Hugo & Hoby also contributes to a better world by supporting local manufacturing communities. Fred explains, “We’ve created something like 40,000 plus hours of local manufacturing labor along the east coast.” (02:10)
The result is a business that balances social responsibility with eco-friendly practices. “You get these beautiful pieces in really cool spaces for really cool customers,” Fred says, “and you do it in a way that is building local community and also helping the environment thrive.” (02:16)
The story of Hugo & Hoby exemplifies how businesses can balance commercial success with social responsibility. The spirit of entrepreneurship at Yale clearly played a part in the value system, network, and skillset that Ben and Fred personify.
Now well into their entrepreneurial journey, Fred assesses their current situation. “We’re really at a point where we’re really just trying to figure out how to continue to run successfully.” Part of their longevity is in adapting to changing realities — such as the switch from B2C to B2B — and not trying to move too quickly.
“It’s a one-foot-after-the-other type of situation where every day you just try to get a little bit better than the day before. And I think that’s always been our strategy, and over time it really makes a big difference, just a little bit at a time is what gets you there.” (04:32)
Hugo & Hoby’s journey serves as a testament to the power of a vision that marries success with social responsibility. The key lessons from their story, valuing persistence, embracing change, and prioritizing sustainability, can be powerful guiding principles for aspiring entrepreneurs at Yale and beyond.
To connect with other graduates leading their own businesses, head to the MASTERGRADSCHOOLS Ambassador page.
