Podcast Summary: The Unshakeables – Don Haney’s Journey with Nerdwax and Jinkies
Introduction
In the episode titled "You Might Also Like: The Unshakeables," host Ben Walter, CEO of Chase for Business, delves into the entrepreneurial journey of Don Haney, the founder of Nerdwax and Jinkies. Joined by Kathleen Griffith, the conversation navigates through Don's challenges, triumphs, and the insightful lessons he gleaned while building his businesses.
Don Haney’s Origin Story
Don Haney’s venture into entrepreneurship began with a personal problem: his glasses constantly slipping due to sweat during his extensive touring as an audio engineer. Frustrated with existing solutions like hooks and straps, Don sought a more aesthetic and effective fix.
Don Haney [00:26]: “I wanted something that wouldn't change the look or feel of my glasses. I just realized like, hey, if I could make something that would be hydrophobic, so it would block the sweat on your glasses and would stick to your nose pads.”
Inspired by surf wax used to provide friction on surfboards, Don attempted to adapt this concept into a cosmetic-grade product for glasses, leading to the creation of Nerdwax.
The Birth of Nerdwax and Initial Challenges
After three years of product testing and raising $60,000 through a successful Kickstarter campaign, Don faced his first major setback. The initial production run of 5,000 Nerdwax units delivered from the manufacturer was plagued with defects, with every tube breaking upon opening.
Don Haney [00:39]: “I open up the box, and every tube is breaking. Like, you go to twist the Nerdwax out of the tube, and every single tube is just breaking.”
Undeterred, Don continued refining the product, eventually arriving at a successful formula consisting of beeswax, coconut oil, and gum rosin. Despite this progress, personal circumstances forced Don to prioritize his family over his burgeoning side hustle, leading him to take a job with Dave Ramsey in Nashville.
Scaling Up: Kickstarter Success and Shark Tank Exposure
While working at Dave Ramsey, Don revisited his idea and launched a second Kickstarter campaign in 2014 with the goal of raising $5,000 for labeling his product. The campaign surpassed expectations, raising over $60,000 within 30 days.
Don Haney [07:05]: “By noon on the first day of the campaign, we'd reached our $5,000 goal. And then by the end of the 30 day campaign, we had raised over $60,000.”
This financial boost allowed Don to move forward with production, albeit with persistent manufacturing challenges. His breakthrough came when he appeared on Shark Tank, leading to a surge in orders and the necessity to scale operations rapidly.
Don Haney [13:15]: “We sold all of it in a single month. And I was like, oh, boy, we're in way over our heads here.”
Navigating Setbacks: Natural Disasters and Pandemic Impact
Just as Nerdwax began to stabilize, Don faced a series of unforeseen challenges. A tornado struck Nashville in March 2020, followed by the onset of the COVID-19 pandemic, severely impacting his business operations.
Don Haney [16:32]: “So we go from tornado to Covid. I am like sending my people home and not knowing if we're going to have a business in the next six months.”
Additionally, the release of iOS 14 disrupted his digital marketing strategy, causing a drastic decline in sales and forcing the company to pare back significantly.
Don Haney [18:10]: “We were spending about $70,000 a month on ads. I am bleeding money and I'm watching the sales just Decline.”
Pivot to Jinkies: Embracing Flexibility and Innovation
In response to dwindling sales, Don revisited a previously unsuccessful product: microfiber cloths designed to clean glasses, whimsically named Jinkies. Initially launched in 2017 but poorly received, Don reintroduced them in 2022 with enhanced marketing strategies centered around video content, aligning with modern social media trends. This pivot proved highly successful, leading to the creation of Jinkies as a significant revenue stream.
Don Haney [21:08]: “With video and Instagram reels, you could actually see that, hey, this is what looks like a slice of pizza becomes a cleaning cloth. And it cleans glasses.”
Jinkies not only revitalized the business but also allowed Don to expand his product lineup creatively, garnering a loyal customer base and significant social media growth.
Lessons Learned and Marketing Insights
Kathleen Griffith highlights the importance of balancing paid advertising with brand building, emphasizing that over-reliance on performance marketing can be precarious, as seen with Don’s experience post-iOS 14 update.
Ben Walter [26:49]: “You can use [performance marketing] as a way to sort of feed the top of the funnel, but you have to nurture that funnel and you have to plant the seeds to finish the analogy on your own ground.”
Don echoed the necessity of resilience and adaptability, continually testing product-market fit and remaining open to innovation to sustain and grow his business.
Conclusion and Final Advice
As the discussion wraps up, Don offers invaluable advice to aspiring and current business owners:
Don Haney [30:40]: “Work harder. Work smarter. ... Working hard is where you start. ... But that will only get you so far. ... Then you have to work smarter and you get more efficient and you learn as you go and you make less mistakes.”
The episode concludes with affirmations of Don’s positive business culture, highlighting his focus on family, employee happiness, and sustainable growth over chasing high returns.
Ben Walter [33:26]: “When you run a business, it helps to have a full service banking solution ...”
Kathleen Griffith praises Don’s spirit and strategic mindset, underscoring the importance of brand resilience and the ability to pivot in the face of adversity.
Key Takeaways
- Resilience: Persisting through manufacturing failures and personal setbacks is crucial for entrepreneurial success.
- Adaptability: Pivoting product strategies in response to market feedback can rejuvenate a struggling business.
- Balanced Marketing: Combining performance marketing with brand-building efforts ensures long-term sustainability.
- Customer Engagement: Actively involving customers in product development enhances market fit and loyalty.
- Work Ethic: Balancing hard work with smart strategies drives efficiency and sustained growth.
Don Haney’s journey with Nerdwax and Jinkies exemplifies the trials and triumphs of small business ownership, offering a blueprint for resilience, innovation, and strategic marketing.