Dec 20, 2018 · 19m · how-i-built-this

Lisa Price Of Carol's Daughter At The HIBT Summit

Lisa Price · 11m spoken Guy Raz · 5m spoken Life Kit Excerpt Speaker 1 · 3s spoken Life Kit Excerpt Speaker 2 · 2s spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

Recorded live at the How I Built This Summit, Guy Raz interviews Carol's Daughter founder Lisa Price about scaling her grassroots beauty brand from a kitchen stovetop into a national enterprise. Price shares candid insights on managing rapid growth, trusting founder intuition amidst corporate pressures, and navigating the financial realities of a major acquisition by L'Oreal.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Guy holds 30.3% of the talking time here. How this is scored →

Guy as informed peer 3.8 Guest teaching 2.8 Guest disagreement 0.5 Guy pushing back 0.5
05100:0010:001:00–4:46 · Guy as informed peer 4/10 Fragrance Origins, Prince's Influence, and First Flea Market Guy Raz sets a comfortable stage, referencing previous background knowledge of Lisa's kitchen beginnings and side hustle. Lisa collaboratively recounts the Prince inspiration and her husband's job loss during early growth.4:46–7:17 · Guy as informed peer 3/10 Early Vision and Expectations of a Garage Business Guy asks if the Oprah Winfrey feature caused a crazy spike. Lisa gently dispels the common myth that meeting Oprah results in an instant wire transfer, detailing the actual steady build and website crash.7:17–9:21 · Guy as informed peer 3/10 Managing Rapid Growth and Developing Leadership Skills Guy prompts Lisa to reflect on shifting from kitchen production to managing over 40 employees. Lisa humorously shares the reality check of learning management skills and realizing employees may not always agree with the boss.9:23–11:35 · Guy as informed peer 4/10 Investor Pressures and Reclaiming Brand Leadership Guy recalls a past quote about the brand slipping away from her. Lisa openly explains how yielding the head of the table to industry veterans was misinterpreted as weakness, and how she eventually regained her voice.11:35–15:37 · Guy as informed peer 4/10 Founders as Brand Parents: Trusting Your Gut Guy probes into what founders should do when outside experts arrive to take over. Lisa reframes the premise by clarifying takeover happens quietly rather than overtly, using the metaphor of a tutor versus a parent.15:38–17:09 · Guy as informed peer 5/10 Addressing Customer Backlash Over the L'Oreal Sale Guy directly raises the difficult subject of customer backlash and 'sellout' criticism regarding the L'Oreal acquisition. Lisa addresses it head-on, explaining the business necessities of investor exits and acquisition criteria.1:00–4:46 · Guest teaching 1/10 Fragrance Origins, Prince's Influence, and First Flea Market Guy Raz sets a comfortable stage, referencing previous background knowledge of Lisa's kitchen beginnings and side hustle. Lisa collaboratively recounts the Prince inspiration and her husband's job loss during early growth.4:46–7:17 · Guest teaching 3/10 Early Vision and Expectations of a Garage Business Guy asks if the Oprah Winfrey feature caused a crazy spike. Lisa gently dispels the common myth that meeting Oprah results in an instant wire transfer, detailing the actual steady build and website crash.7:17–9:21 · Guest teaching 2/10 Managing Rapid Growth and Developing Leadership Skills Guy prompts Lisa to reflect on shifting from kitchen production to managing over 40 employees. Lisa humorously shares the reality check of learning management skills and realizing employees may not always agree with the boss.9:23–11:35 · Guest teaching 3/10 Investor Pressures and Reclaiming Brand Leadership Guy recalls a past quote about the brand slipping away from her. Lisa openly explains how yielding the head of the table to industry veterans was misinterpreted as weakness, and how she eventually regained her voice.11:35–15:37 · Guest teaching 4/10 Founders as Brand Parents: Trusting Your Gut Guy probes into what founders should do when outside experts arrive to take over. Lisa reframes the premise by clarifying takeover happens quietly rather than overtly, using the metaphor of a tutor versus a parent.15:38–17:09 · Guest teaching 4/10 Addressing Customer Backlash Over the L'Oreal Sale Guy directly raises the difficult subject of customer backlash and 'sellout' criticism regarding the L'Oreal acquisition. Lisa addresses it head-on, explaining the business necessities of investor exits and acquisition criteria.1:00–4:46 · Guest disagreement 0/10 Fragrance Origins, Prince's Influence, and First Flea Market Guy Raz sets a comfortable stage, referencing previous background knowledge of Lisa's kitchen beginnings and side hustle. Lisa collaboratively recounts the Prince inspiration and her husband's job loss during early growth.4:46–7:17 · Guest disagreement 1/10 Early Vision and Expectations of a Garage Business Guy asks if the Oprah Winfrey feature caused a crazy spike. Lisa gently dispels the common myth that meeting Oprah results in an instant wire transfer, detailing the actual steady build and website crash.7:17–9:21 · Guest disagreement 0/10 Managing Rapid Growth and Developing Leadership Skills Guy prompts Lisa to reflect on shifting from kitchen production to managing over 40 employees. Lisa humorously shares the reality check of learning management skills and realizing employees may not always agree with the boss.9:23–11:35 · Guest disagreement 0/10 Investor Pressures and Reclaiming Brand Leadership Guy recalls a past quote about the brand slipping away from her. Lisa openly explains how yielding the head of the table to industry veterans was misinterpreted as weakness, and how she eventually regained her voice.11:35–15:37 · Guest disagreement 1/10 Founders as Brand Parents: Trusting Your Gut Guy probes into what founders should do when outside experts arrive to take over. Lisa reframes the premise by clarifying takeover happens quietly rather than overtly, using the metaphor of a tutor versus a parent.15:38–17:09 · Guest disagreement 1/10 Addressing Customer Backlash Over the L'Oreal Sale Guy directly raises the difficult subject of customer backlash and 'sellout' criticism regarding the L'Oreal acquisition. Lisa addresses it head-on, explaining the business necessities of investor exits and acquisition criteria.1:00–4:46 · Guy pushing back 0/10 Fragrance Origins, Prince's Influence, and First Flea Market Guy Raz sets a comfortable stage, referencing previous background knowledge of Lisa's kitchen beginnings and side hustle. Lisa collaboratively recounts the Prince inspiration and her husband's job loss during early growth.4:46–7:17 · Guy pushing back 0/10 Early Vision and Expectations of a Garage Business Guy asks if the Oprah Winfrey feature caused a crazy spike. Lisa gently dispels the common myth that meeting Oprah results in an instant wire transfer, detailing the actual steady build and website crash.7:17–9:21 · Guy pushing back 0/10 Managing Rapid Growth and Developing Leadership Skills Guy prompts Lisa to reflect on shifting from kitchen production to managing over 40 employees. Lisa humorously shares the reality check of learning management skills and realizing employees may not always agree with the boss.9:23–11:35 · Guy pushing back 0/10 Investor Pressures and Reclaiming Brand Leadership Guy recalls a past quote about the brand slipping away from her. Lisa openly explains how yielding the head of the table to industry veterans was misinterpreted as weakness, and how she eventually regained her voice.11:35–15:37 · Guy pushing back 1/10 Founders as Brand Parents: Trusting Your Gut Guy probes into what founders should do when outside experts arrive to take over. Lisa reframes the premise by clarifying takeover happens quietly rather than overtly, using the metaphor of a tutor versus a parent.15:38–17:09 · Guy pushing back 2/10 Addressing Customer Backlash Over the L'Oreal Sale Guy directly raises the difficult subject of customer backlash and 'sellout' criticism regarding the L'Oreal acquisition. Lisa addresses it head-on, explaining the business necessities of investor exits and acquisition criteria.

speaking balance: gold is Guy, purple is the guest (3 minute bins)

0:00 · Guy 60.5% · guest 39.5%0:00 · Guy 60.5% · guest 39.5%3:00 · Guy 27.4% · guest 72.6%3:00 · Guy 27.4% · guest 72.6%6:00 · Guy 25% · guest 75%6:00 · Guy 25% · guest 75%9:00 · Guy 22.9% · guest 77.1%9:00 · Guy 22.9% · guest 77.1%12:00 · Guy 19.5% · guest 80.5%12:00 · Guy 19.5% · guest 80.5%15:00 · Guy 21.2% · guest 78.8%15:00 · Guy 21.2% · guest 78.8%18:00 · Guy 40.8% · guest 59.2%18:00 · Guy 40.8% · guest 59.2%
Sharpest disagreement ▶ 13:56 Reframing corporate takeover dynamics

Lisa directly counters Guy's hypothetical scenario by explaining that outside experts never overtly ask to take over, but rather undermine authority subtly.

Hardest push from Guy ▶ 15:38 Probing the 'sellout' backlash

Guy presses Lisa on the sharp criticism and accusations of selling out that she received from core fans after selling to L'Oreal.

Biggest teaching moment ▶ 12:15 The parent versus tutor brand analogy

Lisa educates the audience and host on brand guardianship, illustrating that outside experts may teach well but can never replace the founder's parental instinct.

Guy holds their own ▶ 9:15 Connecting previous interviews to corporate drift

Guy synthesizes past interview material to challenge Lisa on the exact inflection point where she lost control to private equity investors.

the scores for every segment, with the reasoning behind each
ChapterTopicGuy as informed peerGuest teachingGuest disagreementGuy pushing backWhy
Fragrance Origins, Prince's Influence, and First Flea Market 4100 Guy Raz sets a comfortable stage, referencing previous background knowledge of Lisa's kitchen beginnings and side hustle. Lisa collaboratively recounts the Prince inspiration and her husband's job loss during early growth.
Early Vision and Expectations of a Garage Business 3310 Guy asks if the Oprah Winfrey feature caused a crazy spike. Lisa gently dispels the common myth that meeting Oprah results in an instant wire transfer, detailing the actual steady build and website crash.
Managing Rapid Growth and Developing Leadership Skills 3200 Guy prompts Lisa to reflect on shifting from kitchen production to managing over 40 employees. Lisa humorously shares the reality check of learning management skills and realizing employees may not always agree with the boss.
Investor Pressures and Reclaiming Brand Leadership 4300 Guy recalls a past quote about the brand slipping away from her. Lisa openly explains how yielding the head of the table to industry veterans was misinterpreted as weakness, and how she eventually regained her voice.
Founders as Brand Parents: Trusting Your Gut 4411 Guy probes into what founders should do when outside experts arrive to take over. Lisa reframes the premise by clarifying takeover happens quietly rather than overtly, using the metaphor of a tutor versus a parent.
Addressing Customer Backlash Over the L'Oreal Sale 5412 Guy directly raises the difficult subject of customer backlash and 'sellout' criticism regarding the L'Oreal acquisition. Lisa addresses it head-on, explaining the business necessities of investor exits and acquisition criteria.

Statements from this episode (5)

Disclosure
Lisa Price committed to Carol's Daughter full-time due to childcare costs
“In 1996, I was, ah, pregnant with my first son, Forrest. He's now 22, but he was born in March of 96, and I basically looked at my schedule and figured out that if I tried to continue working along with trying to take care of a newborn, I would basically have …”
Lisa Price Dec 20, 2018 ▶ 3:03
Assertion Not checkable as stated
Carol's Daughter website crashed following appearance on The Oprah Winfrey Show
“Our website actually crashed. We told the people that were hosting it, it's gonna be a lot of traffic. Oh, we're ready. They weren't ready. But we were still able to capture a lot of orders, capture a lot of email addresses, and it was a good build, but like a…”
Lisa Price Dec 20, 2018 ▶ 6:14
Assertion Partly supported
Price: Carol's Daughter had about 42 employees when acquired by L'Oréal
“By the time we were acquired by L'Oreal, we had about 42 employees.”
Lisa Price Dec 20, 2018 ▶ 8:26
Insight
Deferring to veteran executives was perceived as founder weakness by Lisa Price
“I decided that I was going to take the position of, I'm not gonna sit at the head of the table, I'm gonna sit at the table with everyone Because there's so much that I need to learn, and unfortunately, that was perceived as a weakness, and it was perceived as …”
Lisa Price Dec 20, 2018 ▶ 9:51
Insight
Big acquirers buy profitable businesses with strong margins, not struggling ones
“A lot of people think that you know, you're not doing so well, so they pick you up for a song, and it doesn't work that way. You have to be profitable, you have to be doing well, you have to have good profit margins, and they have to see growth coming from you…”
Lisa Price Dec 20, 2018 ▶ 16:42
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