Bootstrapping until the business finds a home with Beatrice Dixon from The Honey Pot

The Honey Pot's Origin and Success

• Beatrice Dixon, co-founder and CEO of The Honey Pot, created a plant-based personal care system for vaginal wellness after suffering from recurring bacterial vaginosis (BV) and finding no effective solutions in conventional medicine.
• In a dream, her grandmother gave her a list of ingredients that became the foundation for The Honey Pot's products.
• The company started by giving away products to test their effectiveness and received positive feedback from customers.
• The Honey Pot officially launched after customers expressed a desire to purchase the products.
• Dixon emphasizes the importance of using natural, plant-derived ingredients for vaginal health and the power of herbs as healing agents.
• The founders launched their products at the Bronner Brothers Hair Show and sold 600 bottles of wash within three days, realizing they had a successful product.
• They continued to market at hair shows, meeting thousands of people in a few days, and eventually launched a website and got into Whole Foods, gaining recognition.
• The founder left Whole Foods to become a broker and used this opportunity to sell Honeypot products to stores.
• The company grew through iteration and learning from mistakes, and Dixon didn't quit her full-time job until Honeypot was able to pay her salary and provide more.

The Honey Pot's Growth and Partnerships

• Honeypot's founder, Bea Dixon, explains the company's journey from struggling to make ends meet to raising multiple rounds of funding, including a recent partnership with Compass Diversified.
• Target reached out to Honeypot after the company's hair care products caught the attention of a Target employee at a hair show.
• The partnership with Target has been instrumental in Honeypot's growth, with Target providing valuable support and investment.
• Honeypot's recent partnership with Compass Diversified is not an acquisition, but rather a strategic partnership that will eventually lead to a full acquisition or IPO.
• When looking for a partner, Honeypot prioritized finding one that respected the company's business, team, leadership, vision, and customers.
• Honeypot's founder emphasizes the importance of finding a partner that understands and respects the company's unique values and customer base.
• The partnership with Compass Diversified ensures that Honeypot's team is taken care of, respected, and able to share in the company's equity.
• The decision to partner with Cody was not solely based on financial gain but also on shared values such as transparency, diversity, and sustainability.

Challenges and Learnings

• Honeypot experienced a consumer backlash when they changed an ingredient without proper communication, leading to negative reactions and unkind comments on social media.
• The company learned from this experience that transparency is key in maintaining a strong relationship with customers.
• Despite the challenges, the incident also highlighted the deep connection and loyalty of their customers.
• The founder's personal journey from starting the company based on a dream to partnering with large private equity firms and expanding into major retailers like Target has been a result of hard work, dedication, and a commitment to excellence.
• The founder believes that success is not a surprise but rather the result of consistent effort and a deep commitment to providing high-quality products and serving their customers.
• The company's success is attributed to their dedication to excellence, innovation, and a strong team.
• The founder emphasizes the importance of taking responsibility for the products they create, considering the potential impact on consumers' health and well-being.

Podcast Discussion Highlights

• Beatrice Dixon, the founder of The Honey Pot, was praised for her positive energy and down-to-earth demeanor, which contrasted with the stereotype of aggressive and cold entrepreneurs.
• Beatrice Dixon shared an interesting anecdote about how her grandmother came to her in a dream, which added a spiritual element to the conversation.
• The hosts discussed the challenges of pitching a product like The Honey Pot to investors, especially in the wellness category, where investors often lack understanding of the market potential.
• They highlighted the importance of bootstrapping a company and the significance of companies taking a responsible approach to product development, ensuring the safety and quality of their products before scaling up.
• The hosts also addressed the controversy surrounding The Honey Pot when it changed some of its ingredients or labeling, which sparked backlash from loyal customers who feared that the product would no longer be effective for them.
• The discussion emphasized the importance of consumer loyalty and attention to detail, as evidenced by the swift and intense reaction to the changes made by The Honey Pot.
• The hosts concluded by acknowledging the need for greater scrutiny and awareness of the ingredients used in personal care products, particularly those marketed towards women's health and wellness.