Mycoskie sold his online driver education company for $500,000 to finance Toms shoes. The company name is derived from the word "tomorrow", and evolved from the original concept, "Shoes for Tomorrow Project". Mycoskie initially commissioned Argentine shoe manufacturers to make 250 pairs of shoes. Sales officially began in May 2006. After an article ran in the Los Angeles Times, the company received order requests for nine times the available stock online, and 10,000 pairs were sold in the first year. The first batch of 10,000 free shoes were distributed in October 2006 to Argentine children.
Author Daniel H. Pink described the company's business model as "expressly built for purpose maximization," whereby Toms is selling both shoes and its ideal. Toms' consumer market are purchasing shoes and also making a purchase that transforms them into benefactors for the company. Another phrase used to try to describe the business model has been "caring capitalism". Part of how Toms has developed this description is by incorporating the giving into its business model before it made a profit, making it as integral to the business model as its revenue generating aspects. Business tycoon and Virgin Group founder Richard Branson wrote of the company's business model in his book Screw Business as Usual, "They look for communities that will benefit most from Toms based on their economic, health and education needs while taking into account local business so as not to create a correlating negative effect." He also commented on Toms' expansion into eyewear in order to help the nearly 300 million people who are visually impaired in developing nations.
In June 2014, the company announced that Mycoskie was looking to sell part of his stake in the company to help it grow faster and meet its long-term goals. On August 20, 2014 Bain Capital acquired 50% of Toms. Reuters reported that the transaction valued the company at $625 million; Mycoskie's personal wealth following the deal was reported at $300 million. Mycoskie retained 50% ownership of Toms, as well as his role as "Chief Shoe Giver". Mycoskie said he would use half of the proceeds from the sale to start a new fund to support socially minded entrepreneurship, and Bain would match his investment and continue the company's one-for-one policy.
Toms markets shoes using an espadrille design and a one for one business model — where with one purchase of a pair of shoes, the company also gives one pair to a child without shoes. With eyewear purchases, part of the profit is used to save or restore eyesight for those in developing countries. The company launched TOMS Roasting Co. in 2014, and with each purchase of TOMS Roasting Co. coffee, the company works with other organizations, referred to as "giving partners", to provide 140 liters of safe water, equal to a one week supply, to a person in need. In 2015, TOMS Bag Collection was launched to help contribute to advancements in maternal health. Purchases of TOMS Bags help provide training for skilled birth attendants and distribute birth kits containing items that help women practice safe childbirth.
On Monday night, we hosted an energizing and emotional rally in Washington, DC as we prepared to hand-deliver 700,000+ postcards to Congress the next morning. One of the most impactful moments of the evening was when Change the Ref created a live art piece using the words his son Joaquin sent to Congress 5 years before he was shot and killed in Parkland in 2018. We were also joined by @vicmensa, @cleowade, MILCK, and our dedicated partners, each using their own unique voice to put out the call to #endgunviolencetogether. Black and Brown Gun Violence Prevention Consortium @everytown Faith in Action Giffords Live Free @marchforourlives @momsdemand #YRK #naomiwadler @ Union Market DC
In July 2011, Toms founder Blake Mycoskie participated in an event sponsored by the group Focus on the Family. After being criticized for supporting a socially conservative non-profit, Mycoskie posted an apology on his website stating that he and his handlers had not heard of Focus on the Family before participating in the event and decided it was a mistake. He also stated that he and the company support equal human and civil rights.