Ian Rosenberger is used to the word “no.” Early in his business, Thread International, the founder and CEO would pitch to people the idea of taking trash from the world’s poorest neighborhoods and turning it into fabric for big brands and would be laughed out of rooms.
But like other entrepreneurs, Rosenberger is tenacious. He doesn’t let “no” become emotional.
“You just have to get good at shrugging off the doubters. It really is about seeing where you want to go and putting one foot in front of the other,” he says.
While Thread is still in startup mode, recent victories are confirming what Rosenberger calls a business case for good. This past spring, Timberland debuted a major line of boots and bags that use Thread fabric.
Rosenberger didn’t set out to run a business in 2010 in the wake of the Haiti earthquake. He wanted to end poverty, but realized he could use business to solve issues. The more successful Thread is with its financial bottom line, the more impact it can have.
Today, Thread — and accompanying nonprofit Team Tassy — partners with entrepreneurs in Haiti and Honduras who collect bottles that are ground into plastic flakes. (The company also started a microloan program for its suppliers.) The flakes are then turned into yarn and fabric in North and South Carolina.
“The trick with that is to prove to companies that it’s within their best business interest to use your product. When you use materials that are good for people and the planet, it’s not just a nice-to-have; you’re literally making your product more valuable,” Rosenberger says.
Proving value
Rosenberger likes talking about value, more than price, but he realizes you need both in business.
“You have to compete on price. It’s there. It’s in front of you, and if you’re not in the ballpark, then you’re not even going to get the meeting,” he says.
If he can deliver Thread material at 10 percent more than other material, Rosenberger can prove the additional value. If brands use a material that’s better for the planet where the supply chain is transparent, people spend more time on the website, the e-commerce bounce rate decreases and customers will be more loyal.
“There’s a 15-second window at the end of the buying process, where if you can show a customer — after they’ve decided that it looks good and it’s the right price — that they can do it guilt free, just by buying that product they’re doing something good for somebody else, that’s the competitive differentiator,” he says.
