At 23-Years-Old She Started a Biz With Her Mom, Now It Sells One Product Every Minute: Rachael Wilde, tbh Skincare

0:00Welcome back to the Female Founder World Podcast.

0:30birthday. And the business has only been around a few years. They're already stocked in some of the biggest stores in Australia. They did$800 ,000 worth of sales in the first 18 months. And honestly, I'm just so impressed by how she's building this business. So I had to get her in to speak IRL and learn all about how she's doing it. Rach, welcome to the show. You are now entering female founder world with your host, Jasmine Grinsworthy. Thank you for having me. Let's start right at the beginning where did the idea for tbh come from and you guys are focused on acne skincare you're not the first brand to do it but you've been able to get so much traction so quickly what's different so i never planned on creating a business i all came from my previous experience which was actually in the medical devices industry so i working in that industry i came across a technology that was patented being used in the hospital space to treat infections.

1:25And essentially, the medical research and development company who created that found out that it had an application in skincare, specifically within acne. So in terms of, I guess, the category and the product and everything, it was something that was completely new, unlike anything else on the market. It's not a benzoyl peroxide product or a salicylic acid product or anything like that. So finding out about the technology excited me, but mainly because I was someone who'd had a really long personal experience with acne. So I always felt like the acne category was quite clinical and dry and unemotive and just not very caring for the actual customer.

2:05And having known what it was like to experience really severe acne, I think that was something that I was really passionate about. So it was like these two worlds collided where I found this really cool technology, but then I was like really passionate about the cause that, you know, essentially that product could have such a big impact in someone's life. And I have a background in marketing. So the idea of being able to build a brand like this from scratch was just really exciting to me. So long story short, at the age of 23, I actually pitched the licensing rights to that product. Wow. and then was lucky enough to win them and launched that Hero product, which we still have to this day, that is patented.

2:46I launched that to market within six months of sort of winning those rights. How do you know how to do that when you're 23? I think that when I was 23, if I had seen something like that, I would have been like, oh, that's a cool idea. But I don't think I would have known how to do it. Yeah, I don't think I knew how to do it either. Like, you know, I think you just like stumble forward and figure it out. I think obviously I had been privy to how like what the model was I guess in that industry of how they worked and you know people could license technology I guess like I was aware that that was a possibility and then really yeah I was lucky enough to like be connected to that CEO via like a mutual family connection and so I actually ended up in a meeting with the CEO and was able to pitch for what I would do with a product like that and I was really lucky to co-found it with someone who has complementary skill sets to what I do also doubles as my mum which is a very interesting obviously dynamic when you go into business but I think she's an accountant and like analyst sort of by trade and so on the numbers and operational side of things was really helpful and I was obviously the other side of the brain which was marketing and all the creative brand building and stuff but neither of us had ever built a business before neither of us had ever worked in like retail ever in beauty like nothing.

4:04We were so green. So it was really, yeah, it was quite scary. I think we were just very ambitious to start out. And I was very naive, which I actually think really helped me at the beginning. I love that you started this with your mum. I think that there's so much trust you need to have when you're starting a business with someone and who are you going to trust more than your own mum? Yes. In saying that, like, I think I completely agree. Like as you have that close relationship, which I think, because it's really tough to start a business that I think it's amazing to have a close relationship but also when you have a personal relationship and then you go into business with something like someone it just changes the dynamic so much like and to navigate okay what's work and what's personal was like really difficult but you know I'm so glad we've done it and we've come so far from like you know back then when it was just the two of us yeah you really have I want to still talk about the launch we'll get to all the traction and amazing things you've done recently in a sec, but you had a$4 ,000 launch day, which just isn't something that people just do.

5:05Like that's actually very, very hard to do. And we were talking last night at our like female founder world pop-up event in Bondi. And, you know, you've obviously done so much since then that I think you kind of can easily just forget that that is such a great milestone. And I really want to dig into what it was that you were doing pre-launch that when you dropped this product you were able to sell through so much yeah I think if you can if you have the ability to create demand prior to launching a product is the smartest thing you can do because then you sort of have the demand before you have the stock and if I was doing anything again I would definitely almost like ramp that up as much as I could it was all very organic for TBH in the early days so it was literally me creating an Instagram page and then driving people to that Instagram page to educate them, bring them behind the scenes on like what was going on and what I was like creating.

5:59And each step of the way, I was like, you know, sharing little updates. So organic. Obviously, I felt so awkward, like getting on camera. I remember those days. It's so foreign to me now because I am so used to it. But like I recall feeling like very self-conscious about getting on camera, but that's all it was. And the page didn't have like thousands of followers. We had maybe like like 800 followers that, you know, when we launched, it wasn't big. But I think organically connecting with people and then obviously having that really core like brand purpose where I had a personal, like, you know, I could personally relate to the problem and sharing how important it was to me personally on that page.

6:37It just made a lot of sense for me to be doing that, but also terrifying at the start because, you know, it's like a small Instagram page and just a gal with a dream and this is 2020 right 2020 were you on TikTok in the beginning no I literally downloaded TikTok after I started the business and TikTok's only really been a platform that has come about more for us now but if I was launching a business now it wouldn't have been Instagram that I started with it would be TikTok and I think TikTok's such a powerful tool for finding a community and like building a business and a community online. Like I think it's way more powerful actually than Instagram.

7:18Totally. How were you funding this in the beginning? I did a small private round with family and friends. So obviously myself and mum poured in a lot of money that we could to setting it up. And then we raised the rest with family and friends. The total was about 250 ,000 that we raised to get us going in a product-based business. Heaps of that went to stock. And then we also were able to essentially budget quite well for marketing for like a brand new, you know, startup business. And so we were able to get some runs on the board early on with like ambassadors and things like that. And we, you know, turned on meta ads and I was doing all the Facebook buying and ad creation and content creation and everything back in the day.

8:01Did you learn how to do that or did you know it all from previous? I had a little bit of like previous knowledge and insight, but very like not on the tools whatsoever. Like it was just some insight. So then I ended up doing a masterclass actually in Facebook ad buying. Oh, where did you do that? Founder. Actually, I did the founder masterclass and went through like, there was a few things in that masterclass, but I think I mainly just did like the Facebook ad buying stuff. And that gave me a really good foundation. And then I think from there, I sort of upskilled as I went just, you know, here and there talking to people, reading certain things.

8:35I love when people can give me like a tactical thing to go into. And it's not just like, oh, I just like organically picked it up as the business built. It's like, no, no, no, go tell me the exact resources that you had and what you read and what you did. Okay, that's really cool to hear. I'm very curious about this licensing thing. So if you find a patented piece of technology, do you buy the license? Is it like an arrangement where it's like they own part of the business? Like I don't know how much you can speak to that, but I am curious. The way that we set it up was basically like we purchased product almost from them.

9:07Yeah. So that's more along the lines of like a distribution agreement. And then, but now we license it. So essentially it's like we pay royalties on any of the products that, yeah, contain the patented technology in them. Amazing. Yeah. Very cool. Okay, so moving forward a little bit, you are now in 402 Priceline stores, which is one of Australia's largest retailers. For most of our community are in the US, so I would probably compare that to like a CVS or something, maybe a little bit more beauty focused. And you're also in more than 800 Coles supermarkets. So there are two big supermarkets in Australia, Coles is one of them, and you're there as well.

9:47How did those partnerships come about? That is just such a dream for people who are building consumer brands. Oh, yeah. So we were pure play online e-commerce for the first three years. Some of that worked really well in our favour because we were going through COVID. And so there was no really retail presence at all during COVID. But I think for us, it was really important for us to expand to retail and that physical store presence so that we could introduce people to the brand, you know, in person. I think for brand awareness, it's quite important and just establishing the brand in the category, it's important.

10:21But I was really glad that we had the three years actually under our belt before we did that. So I reached out to Priceline because they are a pharmacy, but also a beauty destination. So when it came to sort of identifying a retailer, Priceline was really, I think, one that we loved because it has that pharmacy element, but also it's a beauty destination. So being an acne product, it was like, okay, they've got a healthcare professional in store, but they've also got this really beautiful like beauty destination feel to them and it was an accessible buying experience so we could have gone into you know like we're looking at okay do we want to be mecca sephora those kind of destinations but when you're experiencing acne your confidence is like really challenged and i think when you're going to shop for a product and find a solution you don't want to feel walk into an environment where you potentially feel like intimidated or overwhelmed.

11:11So the process for that was really going and pitching to, you know, like we had to reach out to them somehow, you know, being Priceline and being the one that we wanted to work with. So I actually ended up getting an email of one of the buyers and like found them on LinkedIn and stuff. So I started reaching out, but it wasn't like a really quick process at all. It was actually really hard. And I think because I didn't have any retail experience, I didn't even realize that the range of reviews for like the skincare category only happened like twice a year. So there's only going to be like two short periods in the year where the buyers are even looking at new brands to potentially like entertain bringing them into store.

11:46But when you're reaching out to them, like, I didn't know the timings of that. Maybe I was reaching out and then like, okay, I wouldn't get a reply after like three months. I'm like, damn, like, you know. And so it felt like this really long process, even though maybe if I'd been a bit more clued in as to when the range reviews were happening, it would have been like easier to understand. Right. It's like actually the system is designed that they don't respond to your email for most of the year. Yes, literally. so I wish I had known that but I think um so what ended up happening was I hounded sort of didn't get replies for a long time then I actually found a connection who could intro me to one of the buyers and so they ended up doing that for us which was absolutely incredible um we ended up then with a pitch meeting to the skincare category buyer and I think from there we had like the momentum, but I really wouldn't undersell how hard it is to get like those meetings.

12:37So if there is, you know, if you're that person that you're struggling, just like keep pressing on and finding different ways to sort of get in the room. And then once you get into a retailer like that, how are you just moving stock off the shelves? Because this is the other part of it, right? It's like once you're in there, they're not responsible necessarily for moving that stock. You are. What were you doing? Or what are you doing? I think there's a common misconception that if you get a retail partner, it's like, great, it's on shelf, it will sell. And that isn't the case at all. And you can put yourself in an extremely stressful situation if you partner with a retailer and they buy the stock and it doesn't sell through.

13:14Because in the contracts, you're probably liable to buy that stock back if it doesn't sell. And so you can end up putting yourself in a really stressful situation where you've got a retail partner who's essentially relying on you to make sure that stock sells. For us, because we had the three years under our belt with e-com and this is where I'm saying I'm very, very grateful for that. We'd been able to build a very loyal community on mainly organic social channels. But even just because we had this really clear purpose with the brand, I think it was like people really aligned to the brand emotionally.

13:44They were invested and they were really loyal supporters. So when we went into Priceline, it was our first retail partner and we entered into 400 stores. The stock flew because they really supported it. Not only that, I think because we saw it as such a monumental thing for our business, we just heroed it so much. And I think a lot of people feel like retail is a channel that if they're an e-com business, they've got to compete with. And that's, I think the wrong way to see it. We really saw it as like a brand partner and a way to build the business together. And so our approach was like, scream it from the rooftops.

14:19Don't try and like compete with the channel because everything you do has to have like that omni-channel approach. So when we went into Priceline, we found an ambassador to become the face of that campaign, someone who really believed in the brand, had used the products. That was Olivia Molly Rogers. She was already a Priceline ambassador, so very closely linked in with the Priceline brand. We shot like a beautiful campaign with her. She hosted like our event in Melbourne, like with media and influencers. So we created like a really beautiful launch moment that heroed the brand and really spoke to why it was Priceline.

14:55Yes. And I think that purpose of like we're not just putting it on a shelf somewhere, like it was like really meaningful, that partnership, and I think that is really why the product flew. I think that's just such a thing to talk about and such an important thing to double click on because it comes back to like everything that you do, like come back to the why you're doing it and then have that as the pillar of like all of the communication around every decision that you're doing in the business, because that's how you get people to buy in and support you. Yes. Yeah. And I think too often retail or wholesale business partnerships are seen as dollars and what drives dollars is purpose.

15:40So if you lead with purpose and you stay true to the core of the brand mission and you align your retail partners that way, and you hear the messaging that way. The dollars come later, but when you chase partnerships because you think that they're going to bring money, you end up, I think, in a more sticky situation where you find you're actually not aligned or you're not in the right place and the customers aren't there. Like, think about your customer, think about why you're doing what you're doing. You spoke about a big influencer partnership before. That sounds like it would have been a big investment, like a big campaign.

16:11Have you done more in the influencer space? What lessons you have about like what's working, what you're like, that flopped, not doing that again. So people don't make that mistake and do the things that are working instead. I really think it's about finding the influencers or creators that genuinely like are obsessed with your brand and your product. For us, we never worked with anyone unless they like had a result with the product. And if they didn't believe in it, it was like, okay, well, we don't want to work with you. Again, when you're a small business, that could be so tricky because you're like, I need a dollar in the door and so you're wanting to work with people fast and it's like a quick hit like you're chasing a quick hit I think for us we always looked at building long-term partnerships so working with an influencer and maybe yes okay we work with them as like a one-off to see how their like audience responds and whether they love the product as much as we think that they will whether they like you know relate to it you know really well once that's tested though we want to work with that, you know, partnership, like we want an ongoing partnership.

17:12So we like to build it across channels, like maybe the influencers doing content for our own channels, maybe they're doing a takeover, maybe they're also posting on their page, maybe they're attending an event, maybe they're available for media interviews. And we almost integrate them as like a part of the team and the brand. And that's meaningful, because I think they show up in a lot of different places and endorse the brand, and it builds a lot of trust. Whereas, you know, you might have like you pay someone for one story and you're expecting this big hit and it doesn't come. How do you incentivize that kind of relationship that's longer term?

17:45Are they incentivized by like affiliate and every time they mentioned you put people on like year-long contracts? How does that work? We usually just opt for longer term contracts so it's like six to twelve months and we'll agree you know sort of high level deliverables for that period of time and a fee but then we're quite flexible so it's like allowing also the creator to work the way that they want to and how they know best because they know their channel and their audiences and everything so it's actually better to give them the freedom to interpret the brief that they want to and almost just say look we want to work with you here's like a year-long contract do it in your own way this is sort of what we're looking for yeah um but I think people can be very prescriptive with it and actually takes the creativity and and like the genuine sort of component out of it when you don't allow creators to just like operate in the way that works best for them are you transparent with them about like this is what we expect in terms of roi this is what we're hoping for so that they get that ballpark or is that something that you don't want to put that pressure on them you want them to be creative yes i wouldn't really ever um push an roi return on a creator.

18:55Interesting. Okay. Let's talk about team building now, because you have mentioned all of these different pieces of the business and I want to know who is doing all of this. And when did you start kind of bringing people in and how? Yes. It's a bit of a complicated story. Back probably. So when we started the business, it was just myself and mom. And then we had sort of like part-time people joined the business, but I would say like our first proper hire would have been the end of 2021. So we had like a part-time marketing coordinator. We just moved into a co-working space with like a shared office and warehousing and warehousing facility.

19:33And so that was really like step one of like having the first hire. And then we sort of stayed with part time like marketing coordinator for, I would say the next 12 months. And then when things started to pick up, it was like, okay, we were hiring more casuals to pack, but then there was like, we actually felt the need for like more senior like advisory skill set as well so we ended up hiring in like an advisory board um with people that we already knew but we just wanted in a more formal capacity to help us and you pay these people or it's like they have a piece of the business um they had a small piece of the business that was like sort of set up so that it was like based on milestones sort of thing um and we were really lucky to have amazing people that we were able to work with through that period of time.

20:18What ended up happening though was we ended up when we were raising our next round of capital, we actually came into contact with another founder and they had a business called Boost Lab Serums. And what we could see was all of the skill sets, they were still a founder led business as well, like, you know, founded in 2020, had a very small team. And so their skill sets were completely like opposite to ours. And we had like all of these really complimentary sort of overlaps where it was like, okay, we could be doing this for your business. You could be doing this for ours. And it was like, hang on, we were actually wanting to build the same thing.

20:57Let's just build it together. That's so interesting. So when it came to team building, it was like, we identified that through that conversation of, we wanted to build the exact same in-house team let's just come in join hands and like build everyone under the one roof so we co-founded York Street Brands together which now own TBH Skincare and Boost Lab and everyone works across that so I'm now CMO for Boost Lab and TBH so I'm CMO for York Street and everyone sort of took on their roles which was really interesting so when it comes to hiring a team it was like when the minute I had team members I was able to step into the role that really I was like very, very good at doing and focus on the things where, yeah, my value is there for the business rather than wearing a hundred hats, which you do as a founder.

21:43So I think that was a really important part of team building was finding out where the gaps are and filling them, not hiring like a replica of you. And so now when we joined and merged, we officially merged in March, 2023. We had eight people across like the entire business and we now have 21. Oh my goodness. So it's been crazy. Yeah. Crazy growth. What's that like for you coming from, you know, it's you and your mom and then now you're managing a big team and like your role would be so different. So different. Is it better? Is it worse? Is it harder? Is it easier? I would say it's better, but probably it's harder.

22:20Um, so I am doing more of the stuff that I really enjoy and I'm seeing so much more returns for my work because like I said, I'm in the places where I can add the biggest amount of value. And both of the businesses have thrived under that model. Like it was so interesting seeing retail become such a big part of TBH skincare's business and e-com became a massive part of Boost Lab. So they actually did like a flip. But I would say the team building component, you know, like as a founder, you know, I was a young founder. I wouldn't say that I had a whole lot of management experience. And then you go through like building the business and doing everything yourself and then you get thrown in a massive growth trajectory and all of a sudden you become a manager of a team of 10 overnight basically and I don't think anyone could be well trained essentially to to just shift like that and also put on like more of a c-suite hat rather than a founder hat like it was very very different so I actually got an executive coach on board to coach me through that and I still have that coach and I yeah I basically would say that the reason I've been able to do that successfully and build the team successfully is because I've had him.

23:29Is that a coach that anyone can like hire? Is it a recommendation? Is it something that you can share? Yeah. So his name's Michael and his business is Candor Coaching. Okay. So Sydney based, but yeah, he's really incredible. Because there are so many business coaches out there and a lot of them are really shit. And so I just think you have to get a recommendation for someone who has actually been able to move their business forward based on that. because it's an investment of like your time and also it's expensive oh it is and yeah it's like I think I've had one hour sessions every week for the last six months yeah amazing yeah it's intense yeah that is intense yeah and it requires a lot of personal work yeah I was gonna ask that what kind of stuff does he teach you I think it's just about getting like the the number one place was starting with like my own values and understanding who I was and how I wanted to lead more and actually getting a clearer picture of like what that looked like so that I knew like what values to lean into during that leadership experience but also having really practical tools for how to empower the team for how to let go for how to listen better support people better like understand people better like I think I think the main thing would be learning how to communicate effectively in order to understand other people that you work with better what are some of those tools that like what's something maybe a little bit specific that you've learned through that process yeah I think uh one of the key like it's just a quick tip like a practical tip is basically um there's a quadrant and it's like ask and tell on one axis and then like uh it's and then I think it's how and why on the other and it's basically like if you are telling how or telling why you're operating in the wrong side of the quadrant you need to be asking how and asking why and so I felt like I wasn't really operating in that side so it was a massive shift for me to be like actually instead of going into meetings being like okay guys this is what we're doing this is why we're doing it I'm gonna like excite you and tell you all about it it was like actually what do you think we should be doing why is that like you know how are we going to get there because what you're essentially doing is letting people have autonomy over their work and make the decisions and you can guide them in a certain direction, but you're giving them ownership and listening to them.

25:47Yeah. And you've also like brought these people into your ecosystem and into your team because you value their expertise. And so it's like, let them, let them use that expertise. Exactly. Yeah. And I think founders do struggle to do that because they've, you know, had such a like very close hold on so many areas of the business for so long. But I've really enjoyed stepping out of that. Yeah. It's been super rewarding. Very cool. Okay. And I want to talk about funding again. So you mentioned that kind of smaller private friends and family round. A lot has shifted in the business since then. You're bigger, you've merged, all the stuff's happening.

26:22Have you continued to fundraise? What's kind of fueling the growth? Yeah. So no, we're not continuing to fundraise at the moment because we were able to get the businesses to a really nice profitable position. So essentially the businesses are growing themselves at this stage. the number one like challenge though is obviously the stock and cash flow management when it comes to growing a product-based business you're having to invest so much in stock that essentially it's like this chicken and egg thing because if you grow too fast you don't have the stock and that's the position that we were in all of last year was we never had enough stock we were air freighting out like you know packaging constantly like there was all these extra costs in the business that we could yes like run with but it's not like it's not where you want to be long term to really drive the most amount of profit in the business possible but you're like chasing down this growth that's just like there which is an amazing problem to have but then at the same time it's like okay well now we want to like get the business into a nice healthy rhythm so we want to invest in a lot of stock so that we've got safety stock there in order to grow but hang on now our cash is tied up in stock yeah so now we don't now the cash is in stock and it's not in growth so it's like it's that constant balance and I think you know for us if we do decide okay we want to aggressively chase down another opportunity there could potentially be like a fundraise on the table for that because it is that scenario of well sometimes you're going to have to invest in that growth ahead of the curve and there's just no other way to do it than to raise but yeah it's interesting because now we're getting more into a place of okay well what do we finance with debt because the business is in a healthy position where you've got POs coming in from retailers and whatever else so you can actually fund the business pretty well with debt and then okay where do we need to actually raise in order to chase down growth who do you get to advise you on this kind of stuff and um because this is a very specific skill set and you probably want people who have done it before maybe yeah i mean our ceo is incredible so um craig who is the ceo in york straight he has exited like brands before and run other businesses so i would say that he's our real guiding compass on things like that and very talented when it comes to navigating us through that.

28:37Amazing. Okay. The last thing I want to ask you, Rach, is for a recommendation. So anything that's been helping you as you've been up-leveling as a leader and as a founder or just a very tactical thing in the business? Yes. So I would say my number one recommendation is a book. I read it at the start of, you know, creating TBH and it really focuses on how to create brands and businesses that are purpose-led and how crafting that mission essentially like catapults you to success when you really know your why but it's a very practical book in terms of like each chapter has an exercise and it's like really easy to read like so you're not going to be bogged down in like research and detail like it's so fast to read I just yeah it was really great so it's called Cult Status by Tim Duggan and I can't recommend it enough and I'm about to reread it as well because I just feel like I need the refresh now moving forward.

29:30So I would say that book has like just been so beneficial for me. And then, yeah, the coach in terms of leadership has been really, really helpful. And I think just networking along the way and talking to people and finding, getting fresh perspectives is always a good idea. But yeah, that book is gold. Great recommendation. We'll put a link in the show notes. And on the networking piece, we also have a free group chat that anyone can come and join. It's all consumer-based business owners. So if you don't have a network directly around you, come and get one. It's going to cost you nothing. Rach, thank you so much for coming on the Female Founder World pod.

30:05It's been so much fun chatting with you and I am so impressed. I think what you're building is incredible. Thank you so much. Thanks for having me. Quick shout out to all of our business besties subscribers. If you are loving this show and you are building a consumer, CPG or e-commerce business, or you're about to build one, This membership will give you access to the people, experiences, and the tools that you really need to build your dream business. Head to femalefounderworld.com forward slash subscriber for more.