Picked up an awesome paperback this weekend. Start Something That Matters, written by the founder of TOMS shoes.
His name is Blake, and his business model is a bit unconventional: He gives away a new pair of shoes to needy child for every pair he sells.
In the first chapter, Blake talks about the importance of story. Naturally, that got my attention.
TOMS' story
In 2006, when Blake was 29, he took a vacation in Argentina. He noted that poor kids there went barefoot, and not by choice. No shoes --> blisters --> sores--> entry points for life-threatening disease... you get the idea.
Blake wanted to give away shoes to needy kids for free. Instead of relying solely on donations, (pardon the pun), he posited that maybe it made more sense to create a for-profit shoe company, with a twist: For every pair of shoes he sold, he would give away a pair for free.
People told him he was crazy... he didn't know anything about designing shoes or selling shoes or the shoe business. But with the help of his friend Alojo, he went ahead and did it anyway. Starting out, all they had to start was an idea and a name... TOMS... which is short for "Tomorrow's Shoes."
With the help of a local shoemaker, they adapted native Argentinian shoes, called alpargatas, for the American market.
Supporters: Those other crazy people.
Months later, Blake was flying home from NY, where he'd met with the big shoe dogs (industry veterans, as they're called). His mood was cloudy, not sunny and bright like usual because, despite putting his best foot forward, he still didn't sell any shoes to the NY bigwigs.
As he stood at the ticket counter, he was surprised to find a woman wearing a pair of TOMS, in red. He complimented her shoes. She told him all about TOMS - their mission, and their story, and how wonderful they were. Blake was blown away.
That was the day that Blake realized that his story mattered as much as his product. He also realized something else: This woman was more than a customer. She was an enthusiastic supporter, one who told the TOMS story - his story- to a total stranger in an airport. Blake writes: Customers and employees come and go. Supporters are with you for the long haul.
Crazy like a... millionaire?
That first summer, TOMS sold 10,000 pairs of shoes. Blake returned to Argentina, where he rented a bus and drove from village to village.
He and his team personally gave away 10,000 pairs of shoes.
Oh, and to the folks who said he was crazy?
The company's 2010 earnings: $100 million. (Up from about $90,000 in 2001.)
Blake says: What we found is TOMS has succeeded precisely because we created a new model. We're just one example of a new breed of companies that are succeeding in this volatile moment in capitalism.
Who says you can't make money doing work that you love, work that matters?
Let's go crazy... :)
cheers,
Al
