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Mar 20, 2017 · 42m · how-i-built-this

Kendra Scott: Kendra Scott

Kendra Scott · 27m spoken Guy Raz · 8m spoken Joshua Esnard · 1m spoken
0:00 / 0:00

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In this episode of How I Built This, host Guy Raz interviews entrepreneur Kendra Scott on how she overcame early business failure and economic crisis to transform a $500 spare-bedroom startup into a billion-dollar jewelry empire through innovative direct-to-consumer retail and wholesale expansion.

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 24.6% of the talking time here. How this is scored →

Guy as informed peer 2.1 Guest teaching 2.9 Guest disagreement 0.9 Guy pushing back 0.6
05100:0015:0030:000:59–7:02 · Guy as informed peer 2/10 Early Creative Passions and The Hat Box Failure Guy Raz gently prompts Kendra Scott through her early life, dropping out of college, and the eventual failure of her first business, The Hat Box. Scott openly reflects on her early financial struggles and retail lessons in a collaborative tone.7:03–12:36 · Guy as informed peer 2/10 Founding Kendra Scott Jewelry with Five Hundred Dollars Raz asks chronological questions about the founding of Kendra Scott Jewelry with $500. Scott explains her DIY start and going door to door with her newborn baby in a friendly, conversational manner.12:39–16:37 · Guy as informed peer 2/10 Scaling Production and Securing Harold's Milestone Order Scott details landing her milestone $75,000 order from Harold's and having to rapidly figure out overseas manufacturing. The dynamic remains purely supportive as Raz expresses awe at her resourcefulness.17:00–24:31 · Guy as informed peer 3/10 Conquering New York Showrooms and Bootstrapping Growth Raz inquires about her early team and assumes employees were designing jewelry under her supervision. Scott gently corrects him, emphasizing she designed every single piece herself.24:32–31:23 · Guy as informed peer 2/10 The 2008 Recession and the Direct-to-Consumer Pivot Scott recounts the existential threat of the 2008 recession when wholesale accounts collapsed and banks threatened credit lines. She explains how this forced a radical pivot to direct-to-consumer retail on South Congress.31:27–37:02 · Guy as informed peer 3/10 Scaling to National Success and a Billion-Dollar Valuation Raz playful highlights Scott's lack of formal credentials and suggests luck might have played a role. Scott firmly rejects the concept of luck, insisting her grit and the lessons of past business failure were her real education.37:11–41:11 · Guy as informed peer 1/10 How You Built That: Joshua Esnard and The Cut Buddy In this How You Built That segment, Joshua Esnard shares how he invented The Cut Buddy as a teenager and built it into a viral e-commerce business. Raz narrates smoothly with no friction.0:59–7:02 · Guest teaching 2/10 Early Creative Passions and The Hat Box Failure Guy Raz gently prompts Kendra Scott through her early life, dropping out of college, and the eventual failure of her first business, The Hat Box. Scott openly reflects on her early financial struggles and retail lessons in a collaborative tone.7:03–12:36 · Guest teaching 2/10 Founding Kendra Scott Jewelry with Five Hundred Dollars Raz asks chronological questions about the founding of Kendra Scott Jewelry with $500. Scott explains her DIY start and going door to door with her newborn baby in a friendly, conversational manner.12:39–16:37 · Guest teaching 3/10 Scaling Production and Securing Harold's Milestone Order Scott details landing her milestone $75,000 order from Harold's and having to rapidly figure out overseas manufacturing. The dynamic remains purely supportive as Raz expresses awe at her resourcefulness.17:00–24:31 · Guest teaching 4/10 Conquering New York Showrooms and Bootstrapping Growth Raz inquires about her early team and assumes employees were designing jewelry under her supervision. Scott gently corrects him, emphasizing she designed every single piece herself.24:32–31:23 · Guest teaching 3/10 The 2008 Recession and the Direct-to-Consumer Pivot Scott recounts the existential threat of the 2008 recession when wholesale accounts collapsed and banks threatened credit lines. She explains how this forced a radical pivot to direct-to-consumer retail on South Congress.31:27–37:02 · Guest teaching 5/10 Scaling to National Success and a Billion-Dollar Valuation Raz playful highlights Scott's lack of formal credentials and suggests luck might have played a role. Scott firmly rejects the concept of luck, insisting her grit and the lessons of past business failure were her real education.37:11–41:11 · Guest teaching 1/10 How You Built That: Joshua Esnard and The Cut Buddy In this How You Built That segment, Joshua Esnard shares how he invented The Cut Buddy as a teenager and built it into a viral e-commerce business. Raz narrates smoothly with no friction.0:59–7:02 · Guest disagreement 0/10 Early Creative Passions and The Hat Box Failure Guy Raz gently prompts Kendra Scott through her early life, dropping out of college, and the eventual failure of her first business, The Hat Box. Scott openly reflects on her early financial struggles and retail lessons in a collaborative tone.7:03–12:36 · Guest disagreement 0/10 Founding Kendra Scott Jewelry with Five Hundred Dollars Raz asks chronological questions about the founding of Kendra Scott Jewelry with $500. Scott explains her DIY start and going door to door with her newborn baby in a friendly, conversational manner.12:39–16:37 · Guest disagreement 0/10 Scaling Production and Securing Harold's Milestone Order Scott details landing her milestone $75,000 order from Harold's and having to rapidly figure out overseas manufacturing. The dynamic remains purely supportive as Raz expresses awe at her resourcefulness.17:00–24:31 · Guest disagreement 2/10 Conquering New York Showrooms and Bootstrapping Growth Raz inquires about her early team and assumes employees were designing jewelry under her supervision. Scott gently corrects him, emphasizing she designed every single piece herself.24:32–31:23 · Guest disagreement 1/10 The 2008 Recession and the Direct-to-Consumer Pivot Scott recounts the existential threat of the 2008 recession when wholesale accounts collapsed and banks threatened credit lines. She explains how this forced a radical pivot to direct-to-consumer retail on South Congress.31:27–37:02 · Guest disagreement 3/10 Scaling to National Success and a Billion-Dollar Valuation Raz playful highlights Scott's lack of formal credentials and suggests luck might have played a role. Scott firmly rejects the concept of luck, insisting her grit and the lessons of past business failure were her real education.37:11–41:11 · Guest disagreement 0/10 How You Built That: Joshua Esnard and The Cut Buddy In this How You Built That segment, Joshua Esnard shares how he invented The Cut Buddy as a teenager and built it into a viral e-commerce business. Raz narrates smoothly with no friction.0:59–7:02 · Guy pushing back 0/10 Early Creative Passions and The Hat Box Failure Guy Raz gently prompts Kendra Scott through her early life, dropping out of college, and the eventual failure of her first business, The Hat Box. Scott openly reflects on her early financial struggles and retail lessons in a collaborative tone.7:03–12:36 · Guy pushing back 0/10 Founding Kendra Scott Jewelry with Five Hundred Dollars Raz asks chronological questions about the founding of Kendra Scott Jewelry with $500. Scott explains her DIY start and going door to door with her newborn baby in a friendly, conversational manner.12:39–16:37 · Guy pushing back 0/10 Scaling Production and Securing Harold's Milestone Order Scott details landing her milestone $75,000 order from Harold's and having to rapidly figure out overseas manufacturing. The dynamic remains purely supportive as Raz expresses awe at her resourcefulness.17:00–24:31 · Guy pushing back 1/10 Conquering New York Showrooms and Bootstrapping Growth Raz inquires about her early team and assumes employees were designing jewelry under her supervision. Scott gently corrects him, emphasizing she designed every single piece herself.24:32–31:23 · Guy pushing back 1/10 The 2008 Recession and the Direct-to-Consumer Pivot Scott recounts the existential threat of the 2008 recession when wholesale accounts collapsed and banks threatened credit lines. She explains how this forced a radical pivot to direct-to-consumer retail on South Congress.31:27–37:02 · Guy pushing back 2/10 Scaling to National Success and a Billion-Dollar Valuation Raz playful highlights Scott's lack of formal credentials and suggests luck might have played a role. Scott firmly rejects the concept of luck, insisting her grit and the lessons of past business failure were her real education.37:11–41:11 · Guy pushing back 0/10 How You Built That: Joshua Esnard and The Cut Buddy In this How You Built That segment, Joshua Esnard shares how he invented The Cut Buddy as a teenager and built it into a viral e-commerce business. Raz narrates smoothly with no friction.

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

0:00 · Guy 40.2% · guest 59.8%0:00 · Guy 40.2% · guest 59.8%3:00 · Guy 14.5% · guest 85.5%3:00 · Guy 14.5% · guest 85.5%6:00 · Guy 6.8% · guest 93.2%6:00 · Guy 6.8% · guest 93.2%9:00 · Guy 10.4% · guest 89.6%9:00 · Guy 10.4% · guest 89.6%12:00 · Guy 8.7% · guest 91.3%12:00 · Guy 8.7% · guest 91.3%15:00 · Guy 32.7% · guest 67.3%15:00 · Guy 32.7% · guest 67.3%18:00 · Guy 11.6% · guest 88.4%18:00 · Guy 11.6% · guest 88.4%21:00 · Guy 15.9% · guest 84.1%21:00 · Guy 15.9% · guest 84.1%24:00 · Guy 13% · guest 87%24:00 · Guy 13% · guest 87%27:00 · Guy 11.2% · guest 88.8%27:00 · Guy 11.2% · guest 88.8%30:00 · Guy 4.6% · guest 95.4%30:00 · Guy 4.6% · guest 95.4%33:00 · Guy 34.9% · guest 65.1%33:00 · Guy 34.9% · guest 65.1%36:00 · Guy 49.5% · guest 50.5%36:00 · Guy 49.5% · guest 50.5%39:00 · Guy 70.1% · guest 29.9%39:00 · Guy 70.1% · guest 29.9%42:00 · Guy 100% · guest 0%42:00 · Guy 100% · guest 0%
Sharpest disagreement ▶ 35:04 Kendra dismisses the role of luck

When Guy Raz asks how much of her success was luck, Kendra Scott firmly objects, stating there is no luck and attributing everything to hard work and determination.

 Hardest push from Guy ▶ 34:45 Guy Raz probes Kendra's lack of credentials and role of luck

Raz presses Kendra on her lack of formal business education and past failures, directly questioning whether talent, luck, or something else drove her success.

 Biggest teaching moment ▶ 35:13 Kendra explains failure as her true business education

Scott educates Raz on how hands-on failure with The Hat Box taught her practical business lessons that cannot be learned in a classroom or from books.

 Guy holds their own ▶ 22:34 Guy drills into design responsibilities

Raz digs into the division of labor within Kendra's early team, prompting a specific clarification about her hands-on role in creating every single design.
the scores for every segment, with the reasoning behind each
ChapterTopicGuy as informed peerGuest teachingGuest disagreementGuy pushing backWhy
Early Creative Passions and The Hat Box Failure 2200 Guy Raz gently prompts Kendra Scott through her early life, dropping out of college, and the eventual failure of her first business, The Hat Box. Scott openly reflects on her early financial struggles and retail lessons in a collaborative tone.
Founding Kendra Scott Jewelry with Five Hundred Dollars 2200 Raz asks chronological questions about the founding of Kendra Scott Jewelry with $500. Scott explains her DIY start and going door to door with her newborn baby in a friendly, conversational manner.
Scaling Production and Securing Harold's Milestone Order 2300 Scott details landing her milestone $75,000 order from Harold's and having to rapidly figure out overseas manufacturing. The dynamic remains purely supportive as Raz expresses awe at her resourcefulness.
Conquering New York Showrooms and Bootstrapping Growth 3421 Raz inquires about her early team and assumes employees were designing jewelry under her supervision. Scott gently corrects him, emphasizing she designed every single piece herself.
The 2008 Recession and the Direct-to-Consumer Pivot 2311 Scott recounts the existential threat of the 2008 recession when wholesale accounts collapsed and banks threatened credit lines. She explains how this forced a radical pivot to direct-to-consumer retail on South Congress.
Scaling to National Success and a Billion-Dollar Valuation 3532 Raz playful highlights Scott's lack of formal credentials and suggests luck might have played a role. Scott firmly rejects the concept of luck, insisting her grit and the lessons of past business failure were her real education.
How You Built That: Joshua Esnard and The Cut Buddy 1100 In this How You Built That segment, Joshua Esnard shares how he invented The Cut Buddy as a teenager and built it into a viral e-commerce business. Raz narrates smoothly with no friction.

Statements from this episode (12)

Disclosure
Kendra Scott launched her first business with $20,000 in college savings.
“I remember it being like 20,000 dollars. That I bought my first inventory and signed a lease and all that kind of stuff.”
Kendra Scott Mar 20, 2017 ▶ 4:30
Assertion Supported
Scott's first retail business failed and shut down after five years.
“I mean, five years after eating Top Ramen and, like, struggling and working seven days a week and open to close, and I couldn't really afford to have anybody, I had to shut it down, and I mean, I failed.”
Kendra Scott Mar 20, 2017 ▶ 5:52
Disclosure
Kendra Scott started her billion-dollar jewelry empire with just $500.
“I literally took 500 dollars to get all the supplies I needed to create this collection, which was a big deal for us.”
Kendra Scott Mar 20, 2017 ▶ 10:25
Disclosure
Kendra Scott funded her first orders by selling her $1,200 sample set.
“Literally the last store I went to that day, I had to sell my entire sample set. So that I would have enough money to buy the materials I needed to produce the orders I wrote that day, and I came home with a check for 1200 dollars”
Kendra Scott Mar 20, 2017 ▶ 12:14
Assertion Not checkable as stated
Retailer Harold's placed a $75,000 initial wholesale order with Kendra Scott.
“And sure enough, I got a call, and it was a 75,000 dollar order.”
Kendra Scott Mar 20, 2017 ▶ 14:52
Assertion Not checkable as stated
Kendra Scott bootstrapped her growth using inventory-backed bank lines of credit.
“And I bootstrapped it. I mean, at this point, I did, I didn't bring any investment capital in, so I had a line of credit with the bank against my inventory and my purchase orders.”
Kendra Scott Mar 20, 2017 ▶ 23:47
Assertion Not checkable as stated
Kendra Scott reached $1.5 million in wholesale revenue before the 2008 crash.
“We were at about a million, 1,000,005 a year.”
Kendra Scott Mar 20, 2017 ▶ 25:00
Opinion
Kendra Scott calls the 2008 financial crisis her company's greatest gift.
“This amazing, wonderful thing happens called the recession which turns out to be the greatest gift Kendra Scott, the company, ever received, which sounds really crazy, but it really was the greatest gift because I was playing it safe.”
Kendra Scott Mar 20, 2017 ▶ 26:51
Assertion Not checkable as stated
Kendra Scott's bank called her credit line during the 2008 crisis.
“My line of credit gets called by the bank because I'm a high-risk Being fashion and jewelry”
Kendra Scott Mar 20, 2017 ▶ 27:31
Disclosure
Kendra Scott Design took zero outside investment capital until 2012.
“So we didn't bring in investment capital until 2012, very small amount.”
Kendra Scott Mar 20, 2017 ▶ 31:36
Assertion Supported
By 2017, Kendra Scott Design employed 2,000 people.
“I mean, now I have 2000 people that work for us, so it's their, I'm responsible for their families, so, you know, those things keep you up at night.”
Kendra Scott Mar 20, 2017 ▶ 33:52
Assertion Supported
Berkshire Partners' 2016 investment valued Kendra Scott Design over $1 billion.
“Last December, Berkshire Partners made a large investment in her company. The size of the deal wasn't disclosed, but according to a report in Reuters, Berkshire's investment raised the value of the company to more than a billion dollars.”
Guy Raz Mar 20, 2017 ▶ 36:48
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