Episode Summary: She Went From $0 to $100M Selling Coffee Scrubs | Jessica Hatzis (Best of Foundr)

In Episode 557 of The Foundr Podcast with Nathan Chan, host Nathan Chan sits down with Jessica Hatzis, founder of the renowned skincare brand, Frank Body. This insightful conversation delves into Jessica's entrepreneurial journey, from humble beginnings to building a $100 million skincare empire. They explore the strategies behind Frank Body's viral success, the challenges of brand differentiation, team dynamics, leadership evolution, and balancing personal life with business growth.

1. Origins of Frank Body: From Willow and Blake to a Skincare Powerhouse

Jessica Hatzis shares the inception of Frank Body, which evolved from her earlier venture, Willow and Blake, a creative and branding agency launched in 2010. Initially, the agency thrived by offering a youthful and irreverent voice, but the need to demonstrate their expertise led Jessica and her co-founders to pivot towards product development.

"Once you start diluting a bold idea, you kind of end up in no man's land when it comes to developing a really unique and memorable brand." (01:00) – Jessica Hatzis

The breakthrough came with the introduction of the iconic Coffee Scrub, Jessica's first product at Frank Body. With a modest investment of $10,000, the team handcrafted the scrub, laying the foundation for what would become a cult favorite in the skincare industry.

2. Viral Marketing and the Frank Effect

A pivotal moment in Frank Body's journey was its viral success on Instagram, coined the Frank Effect. Jessica attributes this to their innovative marketing approach and leveraging user-generated content to build a community.

"We knew the power of word of mouth, so we sent product out to anyone and everyone that would take it because we need everybody talking about this to build that groundswell." (04:28) – Jessica Hatzis

By creating authentic connections and avoiding corporate language, Frank Body resonated with a vast audience, leading to over 30 million products sold in 179 countries. The strategy of blending in as a friend rather than a seller fostered genuine engagement and loyalty among customers.

3. Navigating Challenges: When Ariana Grande Copied Frank Body

Despite their success, Frank Body faced significant challenges, including being copied by high-profile celebrities. Jessica recounts an instance where Ariana Grande released a similar coffee scrub at Ulta, which initially seemed like a potential end for Frank Body.

"I thought, we're done." (00:48) – Jessica Hatzis

However, the brand's strong identity and loyal customer base proved resilient. Jessica emphasized the importance of quality and brand authenticity, which ultimately helped Frank Body withstand competition and maintain its market position.

4. Evolving the Brand: From Instagram to Retail Partnerships

Recognizing the need to diversify and solidify their position in the beauty industry, Frank Body strategically shifted focus from the original Coffee Scrub to more sophisticated skincare products. This evolution involved forming key partnerships with major retailers like Mecca, Ulta, and Target in the US and UK.

"We need to build our credibility as a skincare and beauty brand and no longer be talked about as that Instagram brand." (22:47) – Jessica Hatzis

These partnerships not only expanded their distribution channels but also enhanced brand credibility, distinguishing Frank Body from merely being an Instagram sensation to a serious contender in the beauty and skincare market.

5. Team Dynamics and Leadership Evolution

Frank Body's growth necessitated clear role definitions among co-founders. Jessica discusses the initial challenges of overlapping responsibilities and the eventual clarification of roles: Steve as CEO, Alex as COO, herself as CMO, and Bri as Head of New Revenue and Growth.

"Now we're much better at that. So Steve is CEO, Alex is COO, I'm CMO, and Bri is Head of New Revenue and Growth." (12:30) – Jessica Hatzis

Jessica highlights her leadership style, emphasizing vulnerability and honesty to create a psychologically safe workspace, fostering trust and high performance within the team.

"I like to lead from a place of vulnerability and honesty... So that's my leadership style." (17:14) – Jessica Hatzis

6. Balancing Personal Life and Entrepreneurship

A significant portion of the conversation revolves around Jessica's personal challenges, particularly balancing motherhood with her role as a founder. She candidly shares the emotional and logistical struggles of stepping away from daily operations during maternity leave.

"I found myself at a loss." (34:18) – Jessica Hatzis

Jessica advises working mothers to seek supportive teams and embrace the fluctuating demands of both personal and professional life, acknowledging the perennial feeling of letting someone down but emphasizing the importance of understanding and support.

"Make sure you work with people that understand that..." (35:57) – Jessica Hatzis

7. Advice for Aspiring Founders

Throughout the episode, Jessica imparts valuable lessons for entrepreneurs:

• Branding:

  "You have to make a strong statement as a brand. You have to stand for something. You have to be unique." (38:27) – Jessica Hatzis

• Retail Partnerships:

  "Do your due diligence and understand the upside and potential downside of moving into retailers." (25:06) – Jessica Hatzis

• Copywriting Fundamentals:

  "Get a professional to do it. Maybe in your early days, I get it, you don't have budget... invest in an expert to do it." (37:50) – Jessica Hatzis

Jessica underscores the importance of investing in expertise, maintaining brand integrity, and making informed strategic decisions to sustain long-term growth.

8. Embracing Risks: The Heart of Frank Body

Risk-taking is deeply ingrained in Frank Body's ethos, encapsulated by their motto, "Risk it for the biscuit." Jessica explains how this philosophy encourages the team to embrace uncertainty and push boundaries, fueling innovation and growth.

"If we never take a risk, you never get the reward." (26:40) – Jessica Hatzis

This mantra serves as a daily reminder to the team to pursue bold ideas and not shy away from challenges, fostering a culture of courage and creativity.

9. Concluding Thoughts: Sustaining Success in a Competitive Industry

In wrapping up, Jessica reflects on the dynamic beauty industry, noting that while it may seem saturated, there is ample room for innovative and diverse brands to thrive. She remains optimistic about the future, emphasizing the shift towards more inclusive and customer-centric products.

"I'm really, really thrilled to see how many women and people of color are launching brands now and seeing the success that they deserve." (37:00) – Jessica Hatzis

Jessica's journey with Frank Body epitomizes the blend of creativity, strategic thinking, resilience, and authentic leadership required to build and sustain a successful brand in the modern marketplace.

Notable Quotes

• "You have to make a strong statement as a brand. You have to stand for something. You have to be unique." – Jessica Hatzis (01:00)

• "We knew the power of word of mouth, so we sent product out to anyone and everyone that would take it because we need everybody talking about this to build that groundswell." – Jessica Hatzis (04:28)

• "I thought, we're done." – Jessica Hatzis (00:48)

• "We need to build our credibility as a skincare and beauty brand and no longer be talked about as that Instagram brand." – Jessica Hatzis (22:47)

• "I like to lead from a place of vulnerability and honesty... So that's my leadership style." – Jessica Hatzis (17:14)

• "Make sure you work with people that understand that..." – Jessica Hatzis (35:57)

• "Get a professional to do it. Maybe in your early days, I get it, you don't have budget... invest in an expert to do it." – Jessica Hatzis (37:50)

• "If we never take a risk, you never get the reward." – Jessica Hatzis (26:40)

• "I'm really, really thrilled to see how many women and people of color are launching brands now and seeing the success that they deserve." – Jessica Hatzis (37:00)

This episode provides a comprehensive look into the making of Frank Body, offering invaluable lessons for entrepreneurs aiming to build authentic, resilient, and impactful brands. Jessica Hatzis's transparency and experience serve as a beacon for aspiring founders navigating the complexities of scaling a business while maintaining personal integrity and passion.