In this conversation, Chris, the editor of Articles, interviews Matt, the founder of Splish Naturals, a wellness company that focuses on creating high-quality CBD-based topical products. Matt shares the background story of his company, including its history, mission, and values. He explains how his experience in the spa industry and his discovery of the potential of CBD led him to establish Splish Naturals. Matt discusses the challenges faced during the COVID-19 pandemic, the rebranding efforts of the company, and their expansion into offering other wellness products. He emphasizes their commitment to providing natural, holistic products that promote health and well-being. The conversation highlights their dedication to responsible practices, innovation, and making a positive impact.
Chris: Hey Matt, how are you doing?
Matt: I'm doing alright, thanks. How about you?
Chris: I'm great! Thanks for asking. Our focus is on entrepreneurs, particularly eco-friendly ones. We share strategies, industry news, and the stories of successful entrepreneurs. It's all about embracing the entrepreneurial spirit, you know?
Matt: Alright, go ahead and ask your questions.
Chris: Alright, let's start with the first question. Can you share the background story of your company, including its history, mission, and values?
Matt: Sure thing. Our company is called The Splish Network, but operates under the name Splish Naturals. We initially established the company in September 2018 with the aim of creating top-quality CBD-based topical products for the spa industry. With nearly 20 years of experience as a spa director, owner, and industry professional, working for renowned brands like Vail and Rock Resorts, The Ritz Carlton, and even my own ventures, I decided to venture into developing these high-quality products.
Well, my background goes way back. I used to work as a Wall Street trader, but after the tragic events of 9/11, I felt the need to distance myself from that environment. It may sound surprising, but I ended up in the spa industry. It was a bit of an unexpected transition. After that time, in early 2018, I published a book called "Weed! What?," which served as a beginner's guide to investing in marijuana stocks that were becoming publicly traded across North America. While researching for the book, I kept coming across the acronym CBD, which intrigued me. I knew little about it at the time, so I decided to explore its potential by experimenting with CBD products alongside several of my staff from the Ritz Carlton in Half Moon Bay, California. We wanted to see if it had any real effectiveness.
Through our product sampling, we discovered that this natural, plant-based ingredient indeed had efficacy. However, as I delved deeper into the industry, I realized there was a lot of misinformation and dishonesty surrounding CBD. Many companies were making unsubstantiated claims, with so many people entering this industry to make a quick buck. It reminded me of my days as a day trader, where people left their jobs to make a quick fortune but ended up losing everything. With CBD on the brink of potential FDA guidelines and the industry set to explode, many are seeing an opportunity to make a fast buck.
For us, it's not about quick profits. We are genuinely invested in promoting health and addressing issues such as pain, inflammation, muscle cramps, bruising, and swelling. So in September 2018, we began formulating topical products, drawing from my experience in the spa industry. We had an abundance of massage therapists and athletes who willingly tested our products and provided honest feedback. After about 15 months of testing and refining, we finally had our final formulas ready and in late 2019, we started selling our products and gained prominent clients, usually around five or six per month.
However, everything changed in March when the COVID-19 pandemic hit, and all our clients, who were primarily spas, had to shut down. Our business relied entirely on B2B sales, and we faced additional challenges due to the CBD industry's banking and credit card processing complications. Initially, we never intended to adopt a B2C business model because of these obstacles, nor did we want to compete with our spa clients. We already had a solid relationship with spas, which we considered the narrow end of the funnel. But with the pandemic, all our customers closed their doors, and even those who eventually reopened didn't have the financial means to continue purchasing from us. During this time, we focused on two things: finalizing our sports product line and rebranding.
We made the decision to remove CBD from our company name and no longer position ourselves solely as a CBD company. Instead, we repositioned ourselves as a wellness company. Although our products still contain CBD, we don't overly emphasize it. The decision was seen as risky by my board at the time, but we ultimately made the decision that we felt was necessary to avoid being associated with the disreputable CBD companies within the industry. Through this rebranding effort, we managed to establish a significant presence in the Pickleball industry. We became major sponsors, including being the official sponsor of the U.S. Open and Atlantic City Open, as well as sponsoring numerous Pickleball tournaments. We also expanded our sponsorship to events like the World Rugby Showcase and the Lifetime Fitness Leadville Race Series, which features the renowned Leadville 100 trail run.
At one point, people might have heard about Splish or CBD and thought, "Oh God, no, I'll never try that." However, we have expanded our offerings significantly. What truly led us in this direction was the fact that we don't excessively emphasize being a CBD company. Our genuine focus is on athlete and active lifestyle recovery, providing relief from pain without relying on pills. There has been no shortage of health issues and addiction, as we are all aware due to the opioid crisis. Now, what's emerging is the potential NSAID crisis. You can buy bottles of them without any restrictions, but it is now becoming evident that there are severe health effects associated with their prolonged use. I'm not dismissing the role of over-the-counter drugs, but there are concerns regarding their repeated and chronic usage. That's why we produce high-quality, safe, and highly effective products that have brought us to where we are today.
Our unique product marketing approach also caught the attention of TMG International, an international PR firm known for providing luxury beauty box products for prestigious events like the Grammy Awards, Academy Awards, and Emmy Awards. Due to our branding and how we position ourselves, we became one of their preferred companies for providing products to A-List celebrities.
Anyway, because of our branding efforts, we were selected to feature in the TMG International Luxury Beauty Box for all these major award shows. Our products cater to a diverse demographic, and due to the impact of COVID-19, our B2C business has grown significantly. We are now placing more emphasis on that aspect since spas continue to face challenges in terms of hiring therapists, sustaining business operations, and spending limitations. However, we have also expanded our company beyond CBD products. We now offer customized Kinesiology tapes, specifically designed for athletes, as well as personalized copper compression socks, to assist individuals with foot issues like plantar fasciitis and Achilles tendon problems. Additionally, we have a Rejuvenation mat that combines pulse electromagnetic field technology (PEMF), far infrared heating, and negative ion generation. It's quite remarkable. To give you an idea, at the U.S. Open, we sold all our mats within the first five hours of the tournament. However, something interesting happened. People approached me and asked, "What's wrong with your mat? It's too cheap." Our mats retail for $1500, but at events, we sell them for $1200. I reassured them that there was nothing wrong with our product. We have a philosophy in our company that just because we can charge more doesn't mean we should. Our goal is to help as many people as possible by providing them with natural, holistic products that alleviate their pains, discomforts, and sleepless nights. Whether it's CBD, mats, or any other product, we believe in offering fair prices instead of maximizing profits.
Although we don’t put CBD front and foremost in our marketing, we don’t hide the fact that they contain CBD. What you will see is that our CBD products state that we have no detectable THC or 0.0% THC. Those who are knowledgeable will immediately recognize that we are a CBD brand. On our website and through QR codes, we provide testing certificates to maintain transparency. Further, we also disclose all the ingredients, including the amount of CBD in each product. We take labeling seriously and adhere to industry standards, particularly those set by the insurance sector, which is the primary standard in place. However, from a marketing perspective, you need to be cautious about what you share with the public in general. Additionally, credit card processing and banking can pose certain challenges. Fortunately, being located in Colorado gives us access to banks that are willing to support us with money transactions and deposits.
It did take some time for us to find a credit card company that would work with us. While the situation is evolving, major players like Stripe, PayPal, and Apple tend to avoid working with CBD businesses. We have established relationships with two credit card processing organizations, one of which is more obscure, but we have found a satisfactory solution. However, we still pay higher rates compared to selling ordinary merchandise like T-shirts.
Chris: I understand.
Matt: Additionally, everything related to this product line comes at a higher cost. Liability insurance, directors and officers insurance—all of it is more costly due to a widespread lack of understanding about CBD and its properties. We include a cautionary note on our labels to test for skin sensitivity, not because of CBD itself, but because of the other ingredients we use. Our products are intricately formulated, not solely for fragrance purposes, although they do smell good. Each ingredient serves a purpose in reducing inflammation, alleviating pain, minimizing bruising and swelling, and in some cases, relieving muscle cramps.
So, yes, there are ongoing challenges, but I believe we have successfully navigated through them, allowing us to now focus on expanding our B2C business. And like every other CBD company, we eagerly await clear guidance from the FDA to establish concrete regulations. This would not only provide clarity for us but also help eliminate disreputable companies that fail to adhere to any standards.
Chris: That's great, man. By the way, I really like your website.
Matt: Thank you! We recently relaunched it, but we still have improvements to make. Our goal is to create a comprehensive platform that serves our customers' needs.
Chris: It looks incredibly elegant, and the Formula #3 Sport Balm products are truly impressive.
Matt: Absolutely, Formula #3 is our top-selling product across the board. It works wonders for sore knees and joints—anywhere you need relief. It's versatile and effective. Now, some people ask why we offer Formula #3 as a balm while Formula #6 is a spray. Well, it comes down to being responsible. A spray will cover a much larger area, say your lower back, all the while using much less product than you might applying a balm. As for efficacy, let me give you an analogy: If I sold you a bottle of shampoo that didn't clean your hair, that wouldn't be right, would it? Similarly, we carefully consider the best application method and overall efficacy for each product. As I said, if someone tells me their back is bothering them, using a balm alone would require a large amount to cover the entire area. This not only wastes the product but can lead to dissatisfaction. That's why we have Formula #6 in spray form.
Why? With just one or half a spray, you can easily cover a significant portion of your body—your quads, hamstrings, lower back, and more. The effectiveness remains the same, but you use less product and ultimately get better value for your money. Now, as a business, we're here to make a profit—that's Business 101, however, we refuse to take shortcuts and will never disenfranchise our customers.
Chris: I understand the importance of profitability. However, what sets you apart is your commitment to helping people and ensuring responsible practices.
Matt: Thank you, I appreciate that. Our mission is simple and meaningful: everyone deserves wellness. And we genuinely live by that motto.
Chris: I see. We're down to our final three questions. Can you share the biggest risk you've taken in your life, career, or current business?
Matt: In life, both my wife and I made the bold decision to leave our successful Wall Street careers behind. We were living in Chicago at the time—I worked on the Chicago Stock Exchange—and our children were very young. Our son was two and a half, and our daughter was only ten weeks old. Despite not having any job prospects or clear paths ahead, we chose to pack up our belongings and move to Colorado. Our motivation was simple: we didn't want to raise our kids in Chicago; we wanted them to grow up surrounded by the beauty of the Colorado mountains. So, from a risk perspective, some people may have viewed our decision as courageous, while others might have considered it foolish. However, our choice wasn't driven by financial concerns but rather by the desire for a higher quality of life.
When it comes to my current business, I was aware that there would be challenges from the start. While I couldn't predict specific economic difficulties like the COVID pandemic, recession, or inflation, I knew that the CBD industry would present its own set of obstacles. I relied on my background and expertise to navigate the challenges of promoting and marketing CBD products. As part of our journey, we decided to rebrand ourselves from "Splish CBD" to "Splish Naturals" to better encompass our broader mission. This rebranding involved a certain level of risk, as customers searching specifically for CBD might not immediately associate us with that single product. However, over time, it has proven to be the right decision, and I believe more companies in our industry will follow suit.
Chris: I understand. Reputable companies are already embracing the CBD market, as we've recently interviewed two entrepreneurs in that field.
Matt: CBD is definitely gaining traction. If we consider the industry projections, it reached around 6 billion in the US last year and is expected to grow to approximately 50 billion by 2029, depending on the research report you consult. However, many individuals who are eager to jump on the CBD trend might be influenced by misleading information. They see the potential for profits and think they can simply brew something in their kitchen and make a quick buck. But we take a different approach. We prioritize intelligence, conscientiousness, and care in our business practices. For instance, instead of using basic ingredients like coconut oil and adding a hint of peppermint or lavender to improve the scent, we go above and beyond.
Chris: I understand your commitment to quality and responsible business practices.
Matt: Exactly. What I love most about my job is the opportunity to innovate. I consider myself a serial entrepreneur, even though I have held corporate positions in the past, such as working for The Ritz Carlton and Vail Resorts in various roles. As an entrepreneur, I excel at building strong, committed, and loyal teams rather than managing upward. Running my own company allows me to indulge in my passion for innovation. We are currently in the process of launching an exciting new product line called "Heal a Hero." It consists of two products: a pain relief balm and a relaxation product. We aim to support first responders, veterans, and frontline workers with these offerings. We're partnering with a nonprofit organization that shares our values and supports these individuals. This new line embodies our commitment to making a positive impact.
Chris: That's fantastic! Your dedication to doing good and making a difference is truly inspiring.
Matt: We are committed to maintaining the momentum we have established. That's why we are thrilled to announce our upcoming crowdfunding campaign. This initiative aims to raise capital for our continuous growth and the expansion of our sales channels.
However, our crowdfunding program goes beyond mere financial gain. It is aligned with our "Heal the Hero" mission. When individuals invest in our company, we will donate our products to a hero of their choosing, whether it's a first responder or even their own grandmother. We firmly believe in the power of giving back and promoting wellness. While this initiative also benefits us by reaching more people with our products, it is rooted in our overarching philosophy that everyone deserves wellness. To the best of our knowledge, no similar program has been implemented before, further underscoring our dedication to our core values.
Chris: Lastly, what advice would you offer someone starting their entrepreneurial journey?
Matt: I've been asked this question countless times, and my advice is to embrace patience and perseverance. Avoid becoming overly possessive of your ideas and remain open to opinions and feedback from others. One common pitfall for entrepreneurs is thinking they have stumbled upon a golden opportunity, without considering that others may not fully grasp or understand it as they do. It's crucial to share your ideas with people outside of your own perspective, whether it's friends, family, or mentors, to gain valuable external insights. Stay adaptable and be willing to pivot when necessary. As we have witnessed during the COVID pandemic, businesses had to adapt or face the risk of closure. Acknowledge that there are external forces beyond our control and be prepared to adjust accordingly. Adaptability is a crucial trait for any entrepreneur. Above all, ensure that your motivations are genuine and focused on helping others. I constantly remind my team that if we are not making a positive impact and serving others, we are simply wasting our time.
Chris: That's invaluable advice. Thank you for sharing your insights.
Matt: You're welcome. It was a pleasure discussing these topics with you.
Chris: Likewise. Thank you, and have a great day.
Matt: Goodbye.
Conclusion
In conclusion, the conversation between Chris and Matt sheds light on the inspiring journey of Splish Naturals and its commitment to creating top-quality CBD-based products for wellness. Matt's passion for natural remedies, combined with his expertise in the spa industry, has shaped the company's values and mission. Despite the challenges posed by the pandemic, Splish Naturals has persevered, adapting and expanding its product line to cater to a wider audience. Through responsible practices and a dedication to innovation, Splish Naturals aims to make a positive impact on the well-being of its customers.
