Breaking Out in Hives and Being Laid Off Were Blessings in Disguise for This Clean Beauty Founder
We know how daunting it can be to start a new business, especially if you’re disrupting an industry or creating an entirely new one. When there is no path to follow, the biggest question is, where do I start? There is so much to do, but before you get ahead of yourself, let’s start at the beginning. To kick-start the process, and ease some of those first-time founder nerves, we’re asking successful entrepreneurs to share their stories in our series, From Scratch. But this isn’t your typical day-in-the-life feature. We’re getting into the nitty-gritty details of launching a business, from writing a business plan (or not) to sourcing manufacturers and how much founders pay themselves—we’re not holding back.
Photo: Courtesy of Gianne Doherty
Shockingly, the beauty and personal care industry is minimally regulated in the United States. To give you an idea of how we stack up against the rest of the world, only 11 cosmetic ingredients are currently banned by the FDA, whereas over 1,300 ingredients are banned by the European Union. With little government oversight, companies in the U.S. can (and very often do) produce products with potentially harmful ingredients, including known irritants, carcinogens, and hormonal disruptors.
When Gianne Doherty experienced the consequences of this lack of regulation firsthand and broke out in hives after using a common moisturizer, she decided to take matters into her own hands. She created an unscented, non-toxic, not-complicated moisturizer, which became the foundation for her clean body care brand, Organic Bath Co. After being abruptly laid off from her full-time job a few months later, she decided to go all-in on her skincare side-hustle and hasn’t looked back since—and we’re so glad she did.
This month, Los Angeles locals can shop the brand’s coveted Zesty Morning Hand Sanitizer at Create & Cultivate’s Small Biz Pop-Up. Angelenos can visit the IRL pop-up at Platform for a contactless window shopping experience, thanks to Square, or place an order for contactless pick-up or delivery through Postmates. If you’re not located in Los Angeles, of course, you can (and should!) shop the product directly from Organic Bath Co. and put your dollars behind this Black woman-owned brand.
Scroll on to learn more about the award-winning brand and how Doherty leveraged a personal problem into a booming clean beauty business.
On having a “lightbulb moment”…
Back in 2013, I had recently moved from New York to Boston and I started breaking out in hives. After some investigation, I found that my skin was reacting to the lotion I was using at the time. I had no idea how unregulated the U.S. personal care and beauty industry was. My skin needed an unscented, non-toxic, not-complicated moisturizer and that’s what my fiancé and I created. That unscented body butter was the beginning of Organic Bath Co.
On choosing not to write a business plan…
I did not write a business plan. Organic Bath Co. was born out of my own need for non-toxic skin-loving products and has been passion-driven from day one. I’ve learned about the beauty industry and about growing a business as Organic Bath Co. has grown. I’ve invested in myself as a businesswoman by hiring coaches and consultants and in my own network by attending conferences and networking with my peers.
On coming up with the business name…
We knew that organic ingredients were going to be a big point of differentiation for us so we started with that thinking in mind. We tried a few different variations but landed on Organic Bath Co. after reviewing all of our options. Choosing the right name is a combination of factors. You want to make sure that your name is easy to understand and connects with the products that you are selling. You also want to make sure that it fits into the type of brand you want to build and resonates with your target consumer.
On setting up the company logistically…
The immediate things we did when setting up the business were deciding on a name and making sure it was available to use by searching trademarks as well as website and social media. Once we secured those, we incorporated and set up a business bank account.
Make a list of all the names you love, check trademarks, and then make sure you can own your name on all platforms, including a website and social media accounts. I have since started a few other endeavors and have learned not to fall in love with a name unless I can own it across all mediums.
On knowing your customer…
As I started sharing the body butter and body scrubs with friends and family, I learned that others were also looking for cleaner skincare products and had many of the same skincare problems that I had. Do market research about your target customer. Where do they shop? Where do they get their information from? That will help you to target the right media and channels to get your product in front of your target consumer.
On finding a trustworthy manufacturer…
All Organic Bath Co. products are made in our production studio in Charlestown, Massachusetts. We are testing out different manufacturers now for a hand lotion. Depending on the type of products you are making, you could ask other founders in a similar industry or do research into trade organizations that might be able to connect you with a good manufacturer.
My advice to other founders looking for a trustworthy manufacturer in the beauty industry is to find independent testing. We were referred to a manufacturing company by another brand founder and when we sent out the samples for independent testing the product came back as contaminated. It was a $35 charge that saved us thousands of dollars in the long run.
On being a 100% self-funded business…
My partner and I started Organic Bath Co. in our kitchen. We started off small and within our means, so around $1,000 to launch: ingredients, labels, website, etc. We have not taken on any investments (no friends-and-family round, no angel investors,) and remain 100% self-funded, and as we grow, we reinvest into the business as needed.
Your financial needs are highly dependent on the type of business you are starting and how fast you want to grow. If you are comfortable working with friends and family, just make sure that they know the risks involved and that they may never recoup their investment. There are so many avenues for raising capital, from personal savings to debt and equity investment. Ultimately, you have to pick what feels best for you and your goals.
On not being blinded by shiny objects…
I love to say, don’t be blinded by shiny objects, and really make sure that the dollars and cents make sense!
This is especially important when you’re bootstrapped. We used to get excited about working with certain influencers with large followings, but we realized that, while we may get pretty pictures in return, the amount of money spent with them did not always equate to an equal amount in sales.
Focus on the things that you can do to generate a positive return on investment over the long term and spend money on things that provide value to your customer. Retaining a customer is much cheaper than finding a new one, so make sure that as you bring on new customers, you are spending more on customer retention. If you are spending dollars on advertising, make sure that you can generate a positive return over time.
Know your numbers and your margin and make sure that you aren’t overspending on things that won’t make a difference to your bottom line.
On going all-in on Organic Bath Co. …
I was working full time for the first few months of Organic Bath Co., before being laid off after landing the biggest account in my sales career. After being laid off, I decided to invest in myself and go all-in on Organic Bath Co. At different times, in tough moments, I’ve questioned that move, but today, I am so glad I am able to devote 100% of my time to growing my business.
On cutting herself a paycheck…
When we started Organic Bath Co., I was not taking a paycheck, and I was not working in the business full time. You may not make enough revenue to support your paycheck at first, so keep that in mind when you start your business. Have money saved to get you through the first year and know your breakeven number and at what you need to take home. Build a salary into your financial projections, even if you aren’t taking it at first.
On building a dream team…
We are currently a team of five. It’s important to me that all of our team members are passionate about the clean beauty and wellness industry. You spend more time at work than you do anywhere else, so it has always been important to us to build a positive and collaborative work environment. As we grow our team, we keep that front of mind to make sure no personalities disrupt what we’re building. It is also really important that Organic Bath Co. is a good work environment for everyone who works here. My partner and I can teach different skill sets, but we can’t teach how to have a positive attitude.
On hiring an accountant…
When we first started the business, it was a side project and we didn’t seek professional help until later on. When you are figuring out how to structure your business and financials, talking to a business attorney and an accountant will help you to make the right decisions. Getting started setting up a business and making good financial decisions can be a daunting task. The U.S. Small Business Administration (SBA) has some great resources on planning and starting a business. You can also ask other business owners and get referrals to professionals who might be a good fit for your business.
On learning how to take on challenges…
One of the biggest things I had to work on was my mentality. When you are moving quickly and learning as you grow, you are going to face numerous challenges. Mentally, I’ve had to really work on being positive and training myself to make the pivot from problem to solution. I can’t afford to have problems stop me in my tracks, so instead of getting hung up on the problem (challenge!) of the week, I need to ask myself and my team: How can we fix this? How can we avoid this same problem (challenge!) happening again? What is the learning lesson and takeaway?
On hiring business coaches and reaching out to mentors…
I have hired different business coaches as well as reached out to fellow beauty founders for advice. It’s important to me that any business coach I hire or anyone I get advice from has achieved goals that I want to achieve. Be clear on what you want to achieve by working with a business coach or mentor and make sure your expectations match up with what they can deliver. Also, ask for references!
On growing through word-of-mouth marketing…
We have grown word of mouth. I have always been a big believer in networking and growing my own company has been no different. Organic Bath Co. has also exhibited at women’s conferences, local events, as well as partnered with similar brands. Cross-promotion has been key for us to get our message to similar customers without spending a lot of money on advertising. We have also spent quite a bit of time developing our wholesale accounts which have helped us to grow our business.
I don’t have a PR team or a PR budget so a challenge has been getting press coverage that I see other brands getting. A lot of the female founders I’ve noticed on different lists, receiving awards, own buzzy brands. And a lot of the buzziest brands tend to have the most money. They have a team working on behalf of the founder and brand.
On the importance of thinking strategically about your business from the beginning…
We didn’t start with a business plan, and while I still don’t feel like a full 50-page business plan is necessary, there is some planning that you can do that will go a long way toward helping you become successful with your business. Using something like the Business Model Canvas, which is a one-page sheet to define your business, can help you to think strategically about your value proposition, customers, channels, and revenue streams, as well as costs associated with running your business. Building financial projections can also help guide you as you get started.
On setting a new business up for success…
Know your customer and who you are selling to and focus relentlessly on that customer. It's easy to get distracted and shift your attention and focus to different areas. If you know who your customer is and what problem you are trying to solve, you can focus your effort on marketing and selling to grow faster. It will help to inform a lot of your decision making. Also, test your assumptions. Don't assume you know your customer. Ask questions of people in your target audience and take that feedback and bring it back to your product.
On giving financial advice to new business owners…
Make sure that you have enough savings to sustain yourself for the first six to twelve months of being in business, and if you are taking investment, make sure that you agree with your investors on taking a paycheck that can sustain you. Starting a business can be draining and not having enough savings or financial resources can mean the difference between a good idea that you can turn into a business and stopping before you gain traction.
On sharing words of wisdom with her younger self…
I would tell myself: DREAM BIGGER! You can and will achieve every single thing you are dreaming about right now, so dream even bigger. YOU CAN DO THIS!