The Foundr Podcast Summary: HighSmile's Journey to a $1 Billion Brand

Podcast Information:

• Title: The Foundr Podcast with Nathan Chan
• Host/Author: Foundr Media
• Episode: 540: In Retrospect - They Made $1 BILLION Selling Toothpaste | HiSmile
• Release Date: November 29, 2024

Introduction

In Episode 540 of The Foundr Podcast, host Nathan Chan delves into the remarkable journey of Australian entrepreneurs Nick Mirkovich and Alex Tomic, the dynamic duo behind HighSmile. Starting their venture at the tender ages of 19 and 20 on Australia’s Gold Coast, Nick and Alex transformed a simple teeth whitening idea into a global powerhouse poised to achieve $1 billion in annual revenue. The episode explores their strategic decisions, relentless drive, and the lessons they've learned while scaling HighSmile into a category disruptor.

Founders' Story: From Idea to Launch

Nick and Alex recount their early days, highlighting how their youthful naivety and hunger for entrepreneurship led them to identify a significant pain point in the teeth whitening market—pain and sensitivity associated with existing products.

Nick Mirkovich [03:22]: "Being young, naive, seeing a small opportunity and then taking heaps of learnings to get us to where we are now."

They spent a year meticulously researching and testing formulations, ultimately partnering with chemists and pharmacists to develop a unique product that addressed the widespread issue of sensitivity. Their initial launch, though fraught with technical mishaps like uncollected sales due to payment gateway errors, provided invaluable lessons that shaped their future strategies.

Nick Mirkovich [06:55]: "We had to contact those people, hoping they would come back and buy... but we just had to start from scratch."

Building the Brand: Differentiation and R&D Focus

HighSmile's ascent was fueled by a strategic pivot from solely influencer marketing to heavy investment in research and development. This move was crucial in differentiating their product from competitors like Colgate and Crest.

Alex Tomic [10:29]: "We had to completely break ourselves. We brought our R&D in house about four years ago and that took the product and the business to another level."

By establishing an in-house R&D team, HighSmile could innovate rapidly, transitioning from concept to market-ready products in months rather than years. This commitment to quality and innovation allowed them to create a moat around their business, making it difficult for competitors to replicate their success.

Alex Tomic [13:14]: "Working and engaging with Kim to launch a product... it taps into a customer that we want to get the attention of."

Marketing Strategies: Balancing Influencers and Product Excellence

Initially, HighSmile levered influencer marketing to gain traction, relying on organic shares from satisfied customers rather than paid promotions. Over time, they refined their approach, reducing the emphasis on influencers to about 5% of their strategy, focusing instead on product excellence and holistic business growth.

Nick Mirkovich [30:22]: "Influencers went from something that was such a huge part of our business to now probably where it should be, around 5% of what we do."

Their partnership with high-profile influencers, including Kim Kardashian, wasn't just about sales but also about storytelling and brand positioning. These collaborations elevated HighSmile’s reputation, aligning the brand with aspirational figures and enhancing its market presence.

Nick Mirkovich [30:43]: "Working with someone like Kim elevates a brand, positions us above a lot of the competitors."

Overcoming Challenges: Technical Hurdles and Strategic Shifts

HighSmile's journey wasn’t without its hurdles. Early technical issues with their website during high traffic periods taught them the importance of scalable infrastructure—prompting their shift to platforms like Shopify.

Nick Mirkovich [08:37]: "Looking back, we wouldn’t change a single thing. We took those learnings on ourselves and we felt those pain points."

A significant challenge was transitioning from a single-product focus to a diverse oral care portfolio. This pivot required immense financial risk, which they managed through bootstrapping, emphasizing sustainability over rapid, unsustainable growth.

Alex Tomic [36:31]: "It's the challenge of taking on the biggest brands in oral care that have been there for hundreds of years... we've carved our own thing."

Team Building: Cultivating Leadership and Culture

Scaling HighSmile to over 100 employees required a unique approach to team building. Nick and Alex prioritized character and competency over traditional qualifications, fostering a culture where leaders are empowered to take initiative and support their teams actively.

Nick Mirkovich [20:51]: "Character over everything. Competencies and then just willing to pick up things and a good personality to work with other people to make things happen."

They also emphasized developing leaders who are generalists with open minds, ensuring a cohesive strategy across specialized departments.

Alex Tomic [22:39]: "We recruited a head of science from one of our local universities... someone willing to get stuck into the micro details and think as broadly as possible."

Future Plans: Sustaining Growth and Innovation

Looking ahead, HighSmile aims to dominate the oral care category by constantly innovating and expanding their product range. They plan to maintain their bootstrap strategy, avoiding external funding to ensure they remain agile and true to their vision.

Alex Tomic [56:20]: "If you're a product business that is finding it hard, there's questions that need to be asked... this is going to shift a lot over the next year or two years."

Nick and Alex are committed to continuous improvement, ensuring that HighSmile remains a leader by prioritizing product quality, team development, and strategic independence.

Nick Mirkovich [55:26]: "It's about taking those steps all the way through the business and obsessing. Don't try to be HighSmile from day one. Start that company with yourself and touch every single part of that business."

Lessons Learned: Persistence, Adaptability, and Focus

Throughout their journey, Nick and Alex underscored the importance of persistence, adaptability, and maintaining focus on their core mission. They advise aspiring entrepreneurs to embrace challenges, invest in R&D, and build strong leadership teams.

Alex Tomic [47:56]: "Find something that you absolutely love... just put it out there and start the process. You don't have to start big and put crazy amount of dollars in there."

Their experiences highlight that building a billion-dollar brand requires more than just great marketing—it's about relentless product innovation, strategic pivots, and nurturing a dedicated team.

Nick Mirkovich [52:36]: "You don't have to spend money and you can't jump into all the retailers we're in today. That would have sunk our ship."

Notable Quotes:

• Nathan Chan [02:08]: "How did you find yourself doing the work you do? How this thing start?"

• Nick Mirkovich [03:22]: "Being young, naive, seeing a small opportunity and then taking heaps of learnings to get us to where we are now."

• Alex Tomic [10:29]: "We had to completely break ourselves. We have to transform ourselves over the next three, four years."

• Alex Tomic [13:14]: "If you have that idea as fast as you can to create the concept that you have in mind, put it out there, don't wait, don't overthink."

• Nick Mirkovich [20:51]: "Character over everything."

• Alex Tomic [22:39]: "We recruited a head of science from one of our local universities on the Gold Coast."

• Nick Mirkovich [30:43]: "Working with someone like Kim elevates a brand, positions us above a lot of the competitors."

• Alex Tomic [36:31]: "Transforming to R&D led, building products that cost more... it was a tough year and a half."

• Alex Tomic [43:20]: "I haven't experienced burnout... nothing excites me more than seeing my kid."

• Alex Tomic [47:56]: "Find something that you absolutely love... just put it out there and start the process."

• Nick Mirkovich [52:36]: "You don't have to spend money and you can't jump into all the retailers we're in today. That would have sunk our ship."

• Alex Tomic [56:20]: "If you're a product business that is finding it hard, there's questions that need to be asked."

• Nick Mirkovich [58:06]: "Why Steve Jobs?"

Conclusion

Nick Mirkovich and Alex Tomic’s journey with HighSmile is a testament to the power of strategic focus, relentless innovation, and adaptive leadership. By prioritizing product excellence and cultivating a strong, empowered team, they have built a brand that not only challenges industry giants but also sets new standards in oral care. Their story offers invaluable lessons for entrepreneurs aiming to create sustainable, impactful businesses in competitive landscapes.

This detailed summary captures the essence of Episode 540, highlighting the key discussions, insights, and philosophies that drove HighSmile's success. For aspiring entrepreneurs, Nick and Alex's experiences provide a roadmap for building a resilient, innovative, and customer-centric business.