Podcast Summary
Running a business with a focus on social good: Implementing a one-for-one business model can lead to global success and providing nearly 90 million pairs of shoes to children since 2006. A great story and holistic approach to business, including giving back and serving others, are crucial.
Running a business with a focus on social good can lead to significant success. Blake Mykoski, the founder of Tom's shoes, shares his experience of implementing the one-for-one business model, which has provided nearly 90 million pairs of shoes to children since 2006. This model has not only grown into a global movement but also helped Tom's shoes deal with negative backlash and criticism with empathy. Mykoski emphasizes the importance of having a great story and a holistic approach to business, including giving back and serving others. He also discusses the challenges entrepreneurs face and the need to adapt to changing times. Overall, this interview highlights the importance of making a positive impact on the world as a key component of building a successful business.
Inspired by children in need in Argentina, Toms Shoes created a sustainable business model: one for one: By addressing social issues through a sustainable business model, Toms Shoes has donated over 88 million pairs of shoes and inspired consumers with their simple and transparent approach.
The Toms Shoes model of business, which involves giving a pair of shoes to a child in need for every pair sold, was inspired by the founder's experience in Argentina where he saw children unable to attend school due to the lack of affordable school uniforms, specifically shoes. The founder, Blake Mycoskie, initially saw this as a one-time volunteering project, but his polo teacher challenged him to create a sustainable business model. This led to the concept of "one for one," where every purchase results in a donation of a pair of shoes. The simplicity and transparency of this model have resonated with consumers and led to the company's success, with over 88 million pairs of shoes donated to date. This story illustrates the potential for businesses to address social issues in a meaningful way while also creating a profitable enterprise.
Toms Shoes' One-for-One Business Model: Helping Millions with Every Purchase: Toms Shoes' one-for-one business model gained popularity through social media, helping millions while reaching $500 million in sales with no investors. Its success inspired other brands and remains a significant trend in business culture.
Toms Shoes' one-for-one business model, which offers a product to consumers while helping those in need, has become a successful and influential business strategy. This model gained popularity during the rise of social media, enabling authentic storytelling and allowing customers to become marketers and heroes for the cause. Toms Shoes grew rapidly from 2006 to 2011, reaching $500 million in sales with no investors, and has helped millions of children receive new shoes. The model's success led to its emulation by other brands, making it a significant trend in business culture. However, Toms Shoes' growth has slowed in recent years due to the saturation of the market and the challenge of maintaining a fresh and engaging story. Despite this, the company continues to sell a large number of shoes and fulfill its mission of helping children in need.
Maintaining Customer Base but Finding New Ways to Inspire Growth: Successful businesses must adapt and find new ways to engage customers for continuous growth, even after a decade.
While maintaining a successful business is important, continuous growth often requires engaging customers with new stories or initiatives. The example of Toms Shoes, which became popular due to its one-for-one giving model, shows that even after a decade, a business can maintain its customer base but may need to find new ways to inspire growth. The founder, Blake Mycoskie, shares that his inspiration has shifted from being the face of the company to becoming a coach and investor in other social enterprises. Companies like Apple, Patagonia, and Vans have also experienced peaks and valleys, highlighting the importance of adapting and finding new ways to connect with customers.
Connecting social good to business model: Businesses that authentically integrate social purpose into their model can attract, retain customers and thrive, examples include Artlifting and Everlane.
Modern businesses, especially those targeting Gen Z and millennial customers, need to have a clear and authentic social purpose beyond just making a profit. This was highlighted in the story of the entrepreneur who founded Artlifting, an art gallery that empowers homeless artists. By connecting social good with their business model, Artlifting has thrived and inspired many other entrepreneurs. Transparency in the supply chain, like Everlane, is another way for businesses to demonstrate their social purpose. While it's not necessary for businesses to have a one-for-one giving model, they must be clear on why they exist and how they make a positive impact on the world. By doing so, they can attract and retain customers who want to support causes they care about. In today's market, having a purpose bigger than just making money is essential for businesses to thrive.
Investing in giving and transparency as marketing tools: Prioritizing deeper connections with customers through giving and transparency initiatives can lead to increased intimacy, authenticity, and customer loyalty. In the clean energy sector, addressing pressing health and environmental issues by providing affordable clean energy to communities can create a win-win situation for businesses and communities.
Creating a social impact business involves unique financial challenges, but the cost of giving or transparency initiatives should not be seen as mere expenses, but as investments in marketing and customer loyalty. Brands that prioritize deeper connections with their customers often find that giving or transparency initiatives provide a level of intimacy and authenticity that goes beyond surface-level advertising. For entrepreneurs starting a business from scratch, the clean energy sector presents a significant opportunity due to its rapid technological advancements, societal relevance, and potential for positive social impact. By providing affordable clean energy to communities in need, entrepreneurs can address pressing health and environmental issues, creating a win-win situation for both the business and the communities it serves. However, it's important to note that the road to creating a successful social impact business is not without challenges. Early on, Toms faced criticism and backlash, but the company persevered and continued to innovate and adapt. Today, the company is a shining example of how businesses can create positive change while also generating profits. For entrepreneurs looking to make a difference, the clean energy sector offers numerous opportunities to capitalize on the latest technologies, cater to the concerns of younger generations, and address pressing global issues.
Transforming Criticism into Opportunities for Growth: When facing criticism, try to understand the root cause and look for opportunities to transform it into positive change for your business and the communities you serve.
When facing criticism or backlash for trying to do good, it's important to develop thick skin but also try to understand the root of the criticism. Critics often come from an idealized perspective and are not directly involved in the situation. Instead of engaging in debates, look for ways to transform the criticism into opportunities for growth and positive impact. In the case of Toms Shoes, criticism about job creation led to the company sourcing and making shoes locally, creating jobs, and reducing costs. By understanding the critics' perspective, Toms was able to address their concerns and improve their business model. This approach not only helped the company but also demonstrated empathy and a commitment to making a positive impact on the communities they serve.
Aligning new endeavors with business goals: To ensure success, consider the business's needs when starting new projects and prioritize time effectively for a balance between personal and professional commitments.
While striving to make a positive impact, it's crucial to ensure any new endeavors align with the business's sustainability and long-term goals. The speaker shared an experience of attempting to open a factory in Haiti, which ultimately failed due to a lack of consideration for the business's needs. Instead, they found success in partnering with factories in India, creating jobs, and making sustainable products. On a personal note, the speaker currently faces the challenge of managing time effectively while balancing family and work commitments, especially with the launch of a new campaign. He's revisiting the principles of essentialism to prioritize tasks and focus on communicating with engaged individuals. Overall, the discussion emphasizes the importance of thoughtful decision-making and time management in both personal and professional pursuits.
Focus on essential tasks and delegate/eliminate non-essentials: Entrepreneurs should focus on their unique tasks, delegate or eliminate non-essentials, launch and learn, and create value for customers, rather than wasting time and resources on unproductive ventures.
Entrepreneurs should focus on the essential tasks they can uniquely do, and delegate or eliminate non-essential tasks. Additionally, entrepreneurs need to be cautious about access to excessive capital, as it can lead to wasting valuable time on mediocre ideas and potentially disappointing investors. Entrepreneurship is about progress, not perfection. It's essential to launch and learn, even if it's not perfect, and focus on creating value for customers. The risk of letting people down and failing to pay back investors is less daunting than the regret of wasting time and resources on unproductive ventures.
Focusing on executing ideas and generating revenue is key for entrepreneurs: Entrepreneurs should prioritize making a profit and launching their business over media attention and investment, as the latter can be fleeting. Gun violence is a pervasive issue in the US, with over 300 mass shootings in 2018, and it can happen to anyone, anywhere.
Raising money for a business is often celebrated in the media, but actually making a profit and launching the business is where the real challenge lies. Entrepreneurs should focus on executing their ideas and generating revenue as soon as possible, as the media attention and investment can be fleeting. Additionally, gun violence is a pervasive issue in the United States, with over 300 mass shootings (defined as four or more people killed) in 2018 alone. It's easy to become numb to the constant stream of violence in the news, but it's important to remember that it can happen to anyone, anywhere. The shooting in Thousand Oaks, California, which is considered one of the safest cities in America, serves as a reminder of this harsh reality.
Executive takes action against gun violence: Individuals and organizations have the power to make a difference in their communities by taking action on social issues, despite potential backlash.
When faced with a social issue, it's important for individuals and organizations to take action and use their resources to make a difference. In this story, a business executive was inspired by a personal experience to push for his company to address gun violence in their community. Despite concerns about potential backlash, he was able to rally support from his team and make a commitment to taking a stand on the issue. This moment served as a reminder that everyone has the power to make an impact, and that inaction in the face of social issues can lead to more of the same problems. It's crucial for individuals and organizations to consider their role in creating positive change and to take bold steps when the opportunity arises.
Taking a bold stand for a cause: When a company believes in a cause, its leadership must be assertive and risk-taking, even if it goes against the status quo, to make a significant impact and resonate with customers.
When a company believes in a cause and has the opportunity to make a significant impact, its leadership must be bold and assertive, even if it means taking risks and going against the status quo. This was the case for Toms, a company built on the belief that business can contribute to a better tomorrow. The CEO, who had been quiet on certain decisions in the past, spoke out strongly in favor of using the company's platform to urge for universal background checks, despite concerns about timing and potential backlash. This required convincing the team and implementing a simple technology on the homepage to help customers send postcards to their representatives. The success of this initiative hinged on everyone at Toms being there for the right reason, with a shared commitment to making a difference in people's lives. The outcome was a powerful display of corporate activism that resonated with customers and aligned with the company's mission.
Americans support universal background checks but political will is lacking: Despite widespread support for universal background checks, the political climate has hindered their implementation. Gun violence prevention organizations, including some gun owners, are advocating for stronger measures to ensure guns don't fall into the wrong hands.
While there is strong support among Americans for universal background checks on gun purchases, the political will to enact such legislation has been lacking. The issue has become highly politicized, with some people fearing it will infringe on their Second Amendment rights. However, as the speaker emphasizes, the goal is not to take away guns but to ensure they don't fall into the wrong hands. Organizations working on gun violence prevention have received significant support through corporate donations and public engagement campaigns, such as Toms' postcard initiative, which has already garnered almost 700,000 signatures in just a few weeks. Surprisingly, some of the most vocal supporters have been gun owners themselves, who recognize the need for stronger gun control measures to protect their families and communities.
Using business as a force for good: Identifying and addressing a social issue can lead to business success and positive change
Identifying and addressing a pressing social issue can lead to significant success for a business. The Toms Shoes campaign for gun violence awareness is a prime example of this. With the help of influential figures and social media, the campaign went viral, resulting in increased sales and potential legislation. For entrepreneurs, finding a cause to fight for can be the driving force behind a successful business. Resistance and challenges can even lead to more careful execution and better results. The Toms Shoes campaign demonstrates the power of using business as a force for good, and the potential for positive change when people come together around a common cause.
Attracting new customer bases to fuel growth: Effectively marketing the right product to the right audience is crucial for business growth, as demonstrated by Toms Shoes' success in attracting male customers with new product lines and celebrity endorsements.
Expanding product offerings and reaching new customer bases can significantly impact a business's growth. The Toms Shoes example illustrates this concept well. For years, the company had a popular product primarily favored by women, but they recognized the need to attract male customers to achieve the next level of growth. Despite having great men's products, they struggled to gain attention due to their marketing budget being heavily invested in their social mission. By hiring Tom Brady and creating more masculine product lines, they successfully attracted male customers and saw a significant increase in sales, with men now accounting for 40% of sales. This demonstrates that having the right product is essential, but effectively marketing it to the right audience is equally important for business growth.
Seize the day and love what you do with the right people: Entrepreneurs should embrace each day and passionately pursue their work, surrounded by supportive and challenging individuals.
Entrepreneurs live with the constant pressure of being remembered as either a genius or an idiot, but the potential impact they can make on the world through business and technology is worth the risk. Blake Mycoski, the founder of TOMS, shared his experiences of being both a genius and an idiot in his career, but emphasized the renewed hope and purpose his team feels in making a difference. If given the chance, Blake would leave behind three truths or lessons for the world. The first truth is to seize the day and live every day as if it's your last. The second truth was given to him by entrepreneur Bob Deadman: "The only way to do great work is to love what you do." The third truth is to surround yourself with people who challenge and support you, as they have played a crucial role in his success.
The importance of giving and being present: Giving brings joy and fulfillment, being present creates lasting memories, prioritize relationships to live fully.
Giving and being present are key to living a meaningful and fulfilling life. Bob Deadman, a successful billionaire and philanthropist, shared this advice with the speaker during their encounter. Giving, especially when it's outside of one's comfort zone, brings joy and fulfillment. Being present, on the other hand, allows us to fully engage in the moment and create lasting memories with loved ones. The speaker's wife has been instrumental in teaching him these valuable lessons, and he strives to prioritize their relationship by making time for it. In essence, the more we give and the more present we are, the more we truly live.
Living authentically and being present are keys to greatness: By living authentically and being present, we can prioritize what's truly important, challenge the status quo, and make a positive impact on the world.
Living authentically, being present, and fully engaging in each moment are key components of greatness, according to Blake Mikoski. He expressed gratitude for the influence of Heather, who helps him prioritize what's truly important and speaks out against injustice. Blake's dedication to challenging the status quo and making a difference in the world, particularly in the area of gun legislation, is an inspiring example of greatness. By living authentically and being present, we can all strive to achieve our best lives and make a positive impact on the world. Don't forget to visit toms.com and take the challenge to make a difference.
Focus on significance for success: Reflect on your successes, connect with others, and focus on making a difference for a fulfilling and successful year
It's important to focus on making a significant impact in the world through business, rather than just striving for success. The hosts, Blake and Tom, shared their experiences and encouraged listeners to reflect on their own successes and lessons from the year. They also emphasized the importance of connecting with others and sharing valuable information. As Oprah Winfrey once said, focusing on significance will lead to success. Take care of yourself during the holiday season, and stay tuned for a recap episode of the biggest lessons and successes from 2018. Don't forget to subscribe and leave a review on your favorite podcast platform. Let's all strive to make a difference and pay it forward.
