How I Built This with Guy Raz

Today’s callers: Tony in Michigan is considering bringing on partners to run different parts of his brew pub and theater business. Then Monica in London is exploring the best way to reach style-conscious parents with her line of children’s clothes. And Sandy in Colorado is seeking the ideal pricing strategy to bring his adaptive test prep platform to schools nationwide.
Thank you to the founders of Hearsay Brewing and Theater, Tres London and Brain Buffs for being a part of our show.

If you’d like to be featured on a future Advice Line episode—where Guy and former show guests take questions from early-stage founders—leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to hibt@id.wondery.com or call 1-800-433-1298.

And be sure to listen to our Advice Line episodes with Jeffrey Hollender of Seventh Generation, Sarah LaFleur of M.M LaFleur and Shazi Visram of Happy Family Organics.

This episode was produced by Kerry Thompson with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Jimmy Keeley.

You can follow HIBT on X & Instagram and sign up for Guy’s free newsletter at guyraz.com or on Substack.
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Many founders think the hardest thing about business is finding customers.
It's not.
It's surviving success.
When Lily Kanter and Serena Dugan launched a luxury baby linen business, they had no manufacturing experience, no inventory, and barely any capital. But after their first catalog landed just as a major competitor left the market, orders flooded in almost overnight.
The problem? They hadn’t made the products yet.
Today, Serena and Lily has grown into one of the best known luxury home goods brands in the country. But getting there was a grind.
This is one of the most revealing conversations we've ever had about unplanned opportunities, and the hidden cost of taking outside investment. From financing their first inventory with customer deposits... to walking away from a disastrous investment deal... to nearly losing control of the company they built, this episode is a masterclass in what happens when rapid growth collides with the realities of cash flow.

You Will Learn:
The clever way Serena & Lily financed its first production run
How one perfectly timed opportunity launched the business
Why "smart money" isn't always smart
How investor and founder incentives can be completely misaligned
The warning signs hidden inside a term sheet

Timestamps:
06:11 – Lily's years at Microsoft, and the money that helped launch a business
11:55 – Serena repaints an old table and discovers people will pay for her designs
24:21 – “No bunnies, ducks or choo choo trains.” Lily and Serena meet, and decide to sell high-end baby linen:
36:01 – $100,000 in orders... for products that didn't exist yet
37:38 – The cash-flow hack that kept the company afloat
46:14 – “They patted us on the head.” Patronizing investors, and a predatory term sheet
51:28 – The financial crisis forces a complete reinvention of the business
58:47 – The lawsuit, the boardroom battle, and the investor who nearly brought Serena & Lily down
1:03:26 – Why acquisition offers couldn't save the company—and the lesson every founder should hear

This episode was produced by J.C. Howard, with music by Ramtin Arablouei.
Edited by Neva Grant, with research help from Katherine Sypher.

Follow How I Built This:
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Instagram → @guy.raz
Youtube → guy_raz
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Website → guyraz.com

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Today’s callers: Adrian from California wants to grow his apparel company to complete with big-name athletic brands. Then, Preet from the Rockies looks for strategies to reach seniors and their children with his daily check-in app. And Derek from Virginia considers social media and professional partnerships to advertise his hockey equipment brand.

Plus, Chris talks about launching a new athletic apparel brand while continuing to grow UNTUCKit.

Thank you to the founders of Eras Shorts, Snug Safety, and Hockey Ninja for being a part of our show.

If you’d like to be featured on a future Advice Line episode—where Guy and former show guests take questions from early-stage founders—leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to hibt@id.wondery.com or call 1-800-433-1298.

And be sure to listen to UNTUCKit’s founding story as told by Steve on the show in 2017.

This episode was produced by Chris Maccini with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Annlie Huang.

You can follow HIBT on X & Instagram and sign up for Guy's free newsletter at guyraz.com and on Substack.
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chuck Surack never planned to build one of America's largest online retailers. He just wanted to be a musician. So right after high school, he took his sax and drove off in his old VW van to play gigs around the country.
It didn’t work out. But with the audio and mixing skills Chuck learned gigging, he decided to convert his van into a mobile recording studio - and started making money fast by making recordings of local bands, businesses, and schools.
The game-changer came as a one-two-three punch: first, he created a new product - digitized sound libraries - to sell nationally; second, he started selling high end pro audio gear; third, he instituted a sales culture hyper-focused on customers and relationship-building that resulted in Sweetwater’s enormous and super loyal online customer base.
In this episode, Chuck shares how he built a retail giant from his garage, why customer service became his greatest competitive advantage, and why, even in the age of AI, human relationships remain one of the most valuable assets any business can build.
What you'll learn
The hiring philosophy that transformed customer service into a competitive moat and has helped Sweetwater fend off much larger competitors
Why under-cutting competitor prices and offering discounts isn’t always the answer to fuel sales and growth
Why the best salespeople aren’t always don’t think of themselves as salespeople - and don’t have to come from sales or marketing backgrounds
Why training people—not technology—may be the biggest, best investment a company can make
How saying "no" to bad products strengthened customer trust
The leadership principle: empowering employees to solve problems without asking permission

Timestamps
05:39 — The saxophone player who never meant to build a billion-dollar company
09:11 — How turning his VW van into a mobile recording studio was the first step in building a business
14:37 — The $20,000 keyboard synthesizer that changed his life forever
21:27 — Chuck gets into retail - almost in spite of himself
34:39 — Why Sweetwater refused to compete on price
37:51 — How Chuck and his early team started to learn the power of customer service
44:45 — Inside "Sweetwater University" and being a Sales Engineer: 13 weeks of training before an employee answers the phone
46:55 — Leadership rule for employees: Never ask permission to do the right thing
1:03:19 — Why Amazon hasn’t stopped him

This episode was produced by Casey Herman with music by Ramtin Arablouei, and edited by Andrea Bruce with research help from Carla Esteves.

Follow How I Built This:
Instagram → @howibuiltthis
X → @HowIBuiltThis
Facebook → How I Built This

Follow Guy Raz:
Instagram → @guy.raz
Youtube → guy_raz
X → @guyraz
Substack → guyraz.substack.com
Website → guyraz.com
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Today’s callers: Andy from Sarasota weighs whether the path to scalability for his live game show business is through personality or product. Then, Marissa from Tampa wants to recapture sales for her fairy tale-inspired teas after taking a hiatus to focus on her family. And Vince from New Jersey wonders how to allocate marketing dollars for his sustainable baby gear company..

Plus, Curt reflects on the importance of focus in sustaining OtterBox as a leading tech accessories brand over 30 years.

Thank you to the founders of Mr GameShow, Gilded Coach Teas, and Evrloop for being a part of our show.

If you’d like to be featured on a future Advice Line episode—where Guy and former show guests take questions from early-stage founders—leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to hibt@id.wondery.com or call 1-800-433-1298.

And be sure to listen to OtterBox's founding story as told by Curt on the show in 2019.

This episode was produced by Carla Esteves with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Robert Rodriguez.

You can follow HIBT on X & Instagram and sign up for Guy's free newsletter at guyraz.com and on Substack.
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.