The Ethical Sourcing Guide Every Founder Needs

0:00I'm the first one to tell you that there is no plan B. Like, f***ing plan B. It's always plan A. Like, just go for it. Like, your life depends on it. Hey, everyone. Thanks for tuning in to Shopify Masters. I'm your host, Shuang Esther Shan, and this is your companion for starting and scaling a business. From handwritten notes to fighting greenwashing across industries, their jewelry is setting the bar high for sustainably and thoughtfully crafted heirloom pieces. Founders Lauren and Alexander Lutwig are committed to more than just beautiful designs, as they are the first company to partner with the Artisanal Gold Council in order to protect their gold miners.

0:45A little over two years into the business, and one thing is clear, honesty and sustainability wins. Lauren and Alexander, welcome to the show. Thanks for having us. Thank you, Schweng. Thank you so much. I am so happy both of you are here. Would love to chat about the journey of building their jewelry. Lauren, why don't we start with you? Because there are so many jewelry brands out there. The industry is quite saturated, but you had this idea of creating affordable heirloom pieces using recycled materials. What sparked this idea? Yeah. So personally, I have a metal allergy to anything copper or brass or anything.

1:31And so many jewelry companies, that's the base metal that they use. So I wanted to create a line that shied away from using those type of metals and things that are a common allergy to so many people. So our goal was to create a versatile quality jewelry brand that people could access without breaking the bank that worked with really good metals. So all of our space metals are sterling silver, and then we played it with a thick layer of 14 karat gold. Alexander and I share so many things, whether it be clothes or jewelry or wallets, anything. So we kind of wanted to create a brand that was genderless so people could swap and share pieces and really pass them on to whoever was interested.

2:23Yeah, like I'm wearing her underwear right now. We share everything. Well, love it. Love the closeness. Love the life and business partnership. Well, why don't we go to you, Alexander? Because this idea is so unique. pieces that anyone could wear, focus on using really great recycled materials. Obviously, you had to validate this idea to see if other people are also excited by this concept. What did you do to make sure that there's demand for this idea? Candidly, I mean, whenever I've been approached about starting a ton of different businesses in the past, and I've learned that I feel like the most oversaturated thing is the word oversaturated.

3:11I think if you're trying to create anything, there are so many people and entrepreneurs across the world, all incredibly talented, all incredibly driven. And I can only express from my own personal journey as an actor, first and foremost, that obviously there's a lot of elements of luck involved in everything that you do. But often it's just persistence. I've always believed that it's not if you win, it's when you win. And I believe that across every field, every business. So in terms of demand for the market, of course, you have to be reasonable and understand that obviously there's a lot of competition.

3:53But Jeff Bezos once said this, and I couldn't agree more. It's don't focus on your competition. Just focus on yourself and your company and what you're doing. And I do believe that your values will shine through. And if you're doing something interesting and unique that is true and honest to you, that will resonate more often than not with other people like yourself. So for us, the inception of this company, I wish I could take more credit, but I really can't. It was truly all Lauren. We wanted to find something that we could do together. My job takes me and our family all over the world, and her having a normal nine to five is just unsustainable.

4:36And she always had this belief in herself, and I'll let her speak more to this, that she wanted to have something that was hers and her own and express her own, what I believe to be creative genius. And I was just there to support her along the way. And I would never recommend anybody just dive into something and just quit their job. We were in a very fortunate position where we could test the waters with this company while I had my other job. And I think more often than not, that's what a lot of successful entrepreneurs do. It is sort of like a side hustle for them until it becomes their main hustle.

5:12And, you know, it is a slow and arduous process. And, you know, watching Lauren go through this from literally ensuring that every single customer felt her love for the pieces come through from, you know, whether it be a written note that she still continues to do to this day or literally her shipping these things by herself before we had anybody employed. It was the most inspiring thing I've ever witnessed. Amazing. Well, I love the fact that you touched on, you know, you validate the idea. A lot of the times it is a side hustle, but you stay true to the values that you want to instill in this brand.

5:51And therefore, customers will recognize that and see that. So I want to bring up sustainability is such a core value to their jewelry. And especially for the supply chain within this industry, it's not often transparent. So what were some of the challenges you worked through to establish and find good partners that you can work with? Yeah, initially the focus on using existing materials to avoid further mining and waste. That's why we obviously chose to go with recycled materials. But from there, the sustainability efforts expanded to include our eco-friendly packaging, ensuring it could either be recycled or made from recycled materials or reused.

6:37and after about a year we kind of started hearing this phrase greenwashing and that people were just saying oh we're recycled and um trying to to show that they're achieving sustainability when that wasn't that's not really the case um sure it's it's much better than using like newly mined gold but it just wasn't enough to be considered sustainable so we we kind of had a goal to shift and expand our sustainability initiatives. So over the past year, we have obtained certifications from 1 % for the planet and we became climate neutral. We have partnerships with One Tree Planted and Artisanal Gold Council.

7:26Artisanal Gold Council is a company that works to help small-scale miners. A lot of people don't know, but 20 % of the world's gold is mined by artisanal and small-scale miners. And without the support of these companies, the miners rely on mercury to refine the gold. And mercury can contaminate the air, the water, the soil, and obviously it exposes the miners to very hazardous conditions. So by partnering with AGC, We are working to create environmentally sound practices, enhancing the health of the miners and the safety and support of the mining communities. So obviously, sustainability is a it's a journey.

8:19We are ever changing and trying to just changing with what comes our way. And we always want to continue to evolve our efforts and just do the right thing for the planet. and our customers. And off on what Lauren said there, I just wanted to say that, you know, one thing that was really important to us is that sustainability wasn't ever meant to be a selling point. You know what I mean? Like if you go to our website, there's not like some big header that goes, this is all recycled. And, you know, this is all that we've done. It's just a part of our story. And, you know, we're going to make mistakes like anybody else.

8:56But I always believe that transparency is key with your customers. And as long as you're open and honest and like, here's where we're at right now and here's where we're trying to go. I've always felt that that is the best way to move forward in anything that you do in your life. Our partnership with AGC was really important to us because we recognized that just because we're operating in recycled gold doesn't mean that mining just suddenly doesn't exist anymore. You know, like we are a small company and we have to be very aware of the fact that this isn't going away anytime soon in a lot of ways, nor should it.

9:33But certainly, you know, our foundation is and always will be that we want to operate as sustainably as possible. And in the meantime, be cognizant of the fact that there are people across the globe whose lives are being terribly impacted by mercury and small scale mining, and we want to do everything we can to help them as well. I mean, just for myself personally, researching your company, understanding all of the different processes and certifications, I've learned so much. Lauren, you have so many creative ideas and you have a team that helps you execute on those designs. What was your process to find the right partners that's able to take your ideas and turn them into actual pieces?

10:19Yeah, I think just research, research, research. In the day and age we live in, obviously you can find just about anything online. And if you don't know about something, try to learn it. And that's kind of what I did. I was lucky enough to find a company operating out of New York City, and they kind of worked as the middleman between me and the manufacturer. I wouldn't be where we are today without the help of them. They were so amazing, so patient with me, answered any questions that I had. And that's the other thing, like, don't be afraid to ask questions because, you know, you may think you're going to sound stupid asking something, but, you know, you have to ask in order to learn the answers.

11:12After about six or nine months of working with this company, I did more research and found different manufacturers that were a part of the Responsible Jewelry Council. And that's something that just ensures that these materials are sourced from good places and that follow like a strict set of protocols. I just felt that with cutting out the middleman, I would be able to offer our customers a better price. And that's always been really important to me is to make sure that we are, I wouldn't say affordable because I don't know what people's situations look like. but that is accessible. It's not good.

11:55It's not thousands of dollars. I just believe everybody should have access to beautiful things without, you know, saving up all year to buy something. The current manufacturer that we're at now, they're so amazing at everything from sampling to ensuring the timelines are always adhered to. So yeah, I would just, the long answer to your question is just, you know, do the research and never be afraid to ask the questions. And it sounds like you're also constantly iterating those relationships, finding the best partner so that you can bring the best value to the customers. And I also want to highlight that, you know, the business model you build is sustainable.

12:40And also you incorporate, in addition to using recycled and sustainable materials, you also plant a tree for products that are sold. So how did you also incorporate that element to make sure that it's thoughtful and profitable and built into the business model from the start? I think because it was built in from the start, that's how we were kind of able to do it. We didn't have to adjust our pricing so that, you know, we could plant a tree or anything like that. That was always so important to us from the beginning. And so we priced accordingly and we just wanted to make sure we were able to make the appropriate amount of money in order to give back and in order to do our part.

13:24So all of the pieces have such a timeless quality. Lauren, what is your design philosophy when it comes to balancing something that feels current and while making it not feel dated in the future? Yeah. I just always try to create pieces first and foremost that I would wear because I feel like if I like something, we're going to find people that also like it. And I have a very simple style and I love wearing jewelry just to elevate that simple everyday look, whether it be sweatpants or jeans or a dress for a night out. To be fair, Lauren is like, and all of her friends say this, like one of the most stylish people ever.

14:10Like, I feel like you have an incredible, you have incredible style and you have a really, really great eye. But that's kind of why I chose to design the pieces that felt timeless to me. And that's kind of, you know, we want these pieces to be something that you can pass down or pass on to your partner. And no matter what your style is, you can find a place for these pieces in your everyday. And quality jewelry is something, if you do want to spend the money on it, know that you can wear it for so many years to come. And I feel like that's why people are really loving our pieces. Yeah. Well, Alexander, maybe talk to us about how the two of you work through some of the design process and how you contribute to give suggestions so that these pieces are truly, you know, gender neutral and appeals to any and every customer.

15:01No, that's a really good question. So, you know, when, especially when it came, gender neutral is a really interesting word as well. Like, obviously, there will be pieces that that women are more drawn to or men are or pieces that men are more drawn to. But I've always believed that the majority of what we create can be worn by by either men or women. And I, I, I love that about the company. I will say, you know, truly that from the design process, I've left that pretty much to my incredibly talented wife. You know, they always say if you're not – if you're the smartest and most talented person in the room, you're probably in the wrong room.

15:42And I'm lucky that I'm certainly not the smartest or the most talented in the room. Lauren is incredible and she blows me away every day by the designs that she creates. What I will say, though, is that, you know, we may be in bed late at night and she'll one of the cats that she created will come in and and she'll go, what do you think of this? And then I'll kind of give my opinion. And one thing that I think is, you know, here I'm wearing this one. I had a big hand in creating. I told Lauren, I was like, we need a St. Christopher's necklace. It's something that I used to wear my entire life because I travel so much and he's the protector of travel.

16:21And surfers back in the day used to wear that when they were big wave surfing. So I loved it. And Lauren was so cool with what she did. She ended up making it like with these really cool edges, which I'd never seen before. And it just flew off the shelf. So that was amazing. But more often than not, I would say I'm just there kind of for moral support and here to be like, I like this piece or I'm not as crazy about this one, you know? Yeah. Yeah. And then Lauren, for you, there's also a process of finding the right team, right? That's able to take your ideas to execute, to communicate with designers and bring them to life.

17:03What's your process there to find the right talents to complement the skills that you have? Yeah. So the middleman that I worked with originally, they had everything from you could work with a designer to sketch out the pieces you could. And then from there, they take the sketches and make them into CADs, which is a computer aided design. And then you do need a CAD for that's how they make the mold of the jewelry. So I had a really easy time kind of learning that process. And then when I decided to kind of move away from that company, I actually had a super easy time finding another CAD designer.

17:49She's based out of California and we just kind of, I shoot her ideas of or inspo or something like that. And she, and kind of tell her what type of changes I want to see. And she is incredible and so quick. And she just understands almost every time what I'm kind of the vision that I'm having and sends it back. And then from there, I send that CAD to the manufacturer. So it's a really simple process. But I was lucky enough to find such a talented CAD designer and we just vibe really well. And it's been amazing. Yeah, it's so great to hear. And it's also such an important relationship as well. When you are going through and looking for different talents, is there like certain tips you have for building a great culture with a creative team or things that you would advise founders do when they are in the process of finding that important partner who's essential for your creative process?

18:58Yeah, we're still such a small team. So I kind of oversee all of the creative aspects to the company. I've had kind of an issue with letting go some of the control because I kind of, this brand is my baby and I want to make sure that every touch point of the brand is how I want it to be. And whether it be from customer service or design or the Instagram, I just like to oversee any everything and I feel like when you bring somebody on you can oversee for x amount of time until you feel comfortable to let control go and that's kind of what I've done with um our creative director she she runs all of our social media and stuff now um of course still with input but you just have to if you're struggling like me to let go of control just do it slowly like it doesn't have to be one day you hire this person and you never give your input again.

20:04It's just something that you should make sure you're comfortable with and find the right person. I feel like you just, if you vibe with somebody and you're open with them and you communicate with them, communication hands down is the most important thing. Just making sure that You guys are – everyone's on the same page. And if you're not happy with something, communicate why. Or if you are happy with something, communicate that you are happy. So I think at the end of the day, it's communication is the best part. Yeah. Like any relationship, we got to say the things that we feel so that we can work through the different challenges.

20:45And I guess like, you know, speaking to challenges, I think any new founders, you have to figure out demand, figure out how to basically link the pieces to the desired customer, hopefully working through any sort of like logistical delays or challenges. What are some things for the two of you that has really worked to kind of push through any kind of the hurdles that come up when you're dealing with not just like the creative side, but the fulfillment side and the logistic side as well? Well, we got very lucky with, and this goes kind of back to culture as well, like with the team that we've assembled over time.

21:24You know, I think it's a big common mistake that some founders can make is, you know, they work for me. Well, that's true. to an extent, but you also work for them. This is a family and a team, and their ability to provide for their families is solely based on your ability to deliver what you can as a founder. Now, obviously, there's going to be things that are out of our control, like demand, for example. But I think just pressing on and pressing forward and being strategic, trying to find these ways to maximize impact while at the same time keeping your boat afloat. I mean, I love this quote so much because I couldn't agree more with it, that entrepreneurship is jumping off of a cliff and building a plane on the way down.

22:17And it truly is. To anybody listening to this, whether or not you're ready to start a company, my answer to you is you are. It's not about making the right decision. It's about making the decision right. So once you've gone on this journey of entrepreneurship, you are going to learn so much. And even just listening to my wife, Lauren, talk right now is just like, I feel this immense amount of pride because I was there three or four years ago when she knew nothing about jewelry. And now it's like, I've watched her build this business, learn so much about, she's become an expert in this field, like an expert.

22:57I mean, she understands design and she understands what we didn't even know what a CAD was, you know? And I think the new, the new thing that we're, that we're, we're struggling with now is, is, is managing a team and then, and then, and scaling, because that's a totally different beast is, is scaling a company. Um, you know, we have an incredible customer base. This company has been growing 177 % year over year, which is unbelievable, but, uh, these numbers sound very sexy and great, but the truth is it's all just a math thing. And you're trying to make sure that the money in can produce more out, you know, so that you can continue to reinvest it in the company.

23:39I mean, to this day, Lauren and I have taken a total of no money or a total of negative a lot of money right now for the company. And we don't plan to take anything out because this is about building something that's going to stand the test of time as opposed to just having a quick win. And honestly, that's, you know, that is where I've become a little bit more helpful in this company is, is kind of the overall kind of vision of how to get to where we're going to go and what we can do. You know, I helped raise some money at the beginning of the company as well to, to really kind of just, and of course, invested myself and Lauren did as well to, to help give this kind of a headstart.

24:16But I do believe it's never been easier to start a company. I also believe it's never been harder to scale. So it's really every company is on its own journey, and there's no right or wrong way to do anything. But I stand by this. It is not if you win, it is when you win, if you truly believe in it, and you love it, and this is something that you would use, and you live in consultation with yourself, like, would I actually like this? Do I actually like this? Or is this just about making money? Like, do I actually like this thing that I've created. And if that answer is yes, then don't quit ever.

24:53Be responsible, have another job if you need another job in the meantime. But you got to do it because you don't want to look back on your life when you're 80 wishing that you had. I was going to say we were or are in a very fortunate position where we can afford not to take money from the company. However, with that being said, like, if you need to work a nine to five job to pay the bills and then do this, you know, from six to 10 every night, like, don't let that stop you. Don't let, like, work your job and then work this as your second job, you know? Don't let that stop you from, you know, doing what you want to do because one day you will get to the point where you don't have to work that nine-to-five job anymore and you will see all of the success that you ever dreamed of from the company that you worked as your second job.

25:53I always believe that too. like your nine to five is your income and your life. And then your six to 10 is your exit. You know, like you're fully, you know, just planning your escape, you know, from all of it. You're investing into your future and also building some sort of legacy behind with what you're doing. Lauren, for you, is there any hurdles that you've worked past that you feel like would be helpful for listeners to hear because I know that we touched on so many of the new learnings you've gathered and how much you've really upskilled yourself through this process. But yeah, any early days where you're kind of like, oh, wow, I can't believe I've gotten myself into this situation, but yet somehow you've gotten yourself out of it as well.

26:39Yeah, I would say the main issue and hurdle that we faced was kind of making sure we found the right manufacturer that could produce the level of quality that we wanted. Of course, like any company, we've had a few customers who aren't completely satisfied and we make it right, whether that be a refund or a replacement. Sometimes there is that one-off piece that isn't as great as the rest of the batch and that's okay. And I truly believe the customer comes first. So as long as you, you know, like I said, communicate with them and everybody understands if they are seen and heard and just communicated with and just make sure I truly think hands down, that's the number one thing every business needs is to make sure the customer is happy.

27:36because, you know, one bad review can ruin every single good one that you have. And just, you know, take whatever hurdles you may face, just take them one day at a time. I also want to just mention, like, just again, just with the audience in mind, like, who are thinking about starting a company, like, you know, you hear so often these people on, you know, a lot of them are friends of mine who had insane first years, you know. But there are so many more companies that are built slowly and steadily over time. It's not like your first year is supposed to be this, I've hit the jackpot and this is like, we've got it.

28:18I will say from my experience, we had a great first year, but it wasn't nearly as great as I thought it would be. But the year after that was better than I thought. And the year after that's been better. It's a slow – it really is a slow kind of journey, and I think you just have to stick with it. But comparison is truly the thief of joy in everything. Don't look around at other companies and how they've done. Obviously, you can obviously do as much research as you can and learn about how companies have scaled or got to where they want to get to in your respective field. But don't compare yourself and just focus on you and your own journey.

28:58The thing that Alexander also always reminds me about is, you know, sometimes obviously you have weak moments where you do compare yourself to other companies and all that. But he'll be like, OK, well, how long has that company been around for? And I'll be like, look it up. OK, well, like 15 years. And he's like, exactly. You didn't hear about this company within the first 10 years. Like you're just hearing about them now. So like just hold on. You just need to hold on and you will get there. Yeah. I also want to circle back to the mention of how you're running this business and the fact that both of you have not taken money from the business.

29:40And there was a period that you bootstrapped before getting small amounts of investments. Just with cash flow in mind, especially in this economic climate, a lot of founders are trying to create a good financial foundation for their business. What is your advice there to actually, you know, be able to withstand bootstrapping to also make sure that the business is financially stable as well? Yeah, I think you just have to be really selective and smart with obviously what you spend your money on. The one thing I do think that has made all the difference for us is getting out in front of people. You know, and you use your connections to do that as cost effectively as you can, you know, put it, throw a little trunk show at a friend's house or an invite all of your network, you know, it doesn't cost anything to set up a table and sell whatever it is that you're selling.