Advice Line with Vicky Tsai of Tatcha (September 2024)

Netflix shouldn’t have survived. In 1997, Blockbuster owned home entertainment—9,000 stores, a business fueled by late fees, and a brand that felt untouchable. Netflix was a scrappy DVD-by-mail experiment that almost sold itself off to stay alive. So how did Netflix win? In this conversation, Reed Hastings breaks down the behind-the-scenes decisions that helped the business thrive: the uncomfortable leadership choices, the culture blueprint that surprised corporate America, and a near-catastrophic misstep that could have blown the whole thing up. Reed also talks about what shaped him long before Netflix: being a late-bloomer, teaching in the Peace Corps, learning humility from a former boss, and the painful management mistakes he made while building his first company. This is a masterclass in: challenging the status quo, choosing a culture on purpose, and making big bets without pretending you’re always right. What you’ll learn: Why Netflix’s early “obvious” advantages weren’t enough—and how close it came to dyingThe leadership lesson Reed learned from a CEO who was admirable… but strategically wrongWhy Reed says the best companies are like championship sports teams: if you can’t perform at peak, leaveThe “keeper test” and how it changed corporate cultureThe Qwikster fiasco: what went wrong, and how Netflix moved to prevent future misstepsBuilding a House of Cards: How Netflix made the leap to original contentReed on the media landscape: The remote-control moment of truth, rival streamers, and the rise of AI Timestamps:00:08:06 — “I was a late bloomer.” Reed on why no one saw greatness coming00:09:30 — Peace Corps in Swaziland, and the moment he nearly quit00:11:23 — An unforgettable lesson learned from the CEO who washed Reed’s coffee cups00:14:39 — Building his first company in a cold cabin—no internet, just obsession and proof of concept00:16:48 — Reed’s early struggles as a manager: “Too busy chopping wood to sharpen the axe.”00:24:11 — Blockbuster’s late-fee pain and an early bet on DVDs00:44:47 — The dot-com crash… and the $50M LVMH round that saved Netflix (barely)00:47:12 — A possible Blockbuster buyout: “We probably would’ve taken any offer.”00:56:18 — The Netflix culture deck: “We’re not a family,” and why that shook people up01:05:07 — The Qwikster crisis, and the backlash that humbled Reed01:19:33 — The competition: Netflix is just

Plus, Jon’s take on why now is a good time to start a business — in spite of market uncertainty.    Today’s callers: Dan from Washington considers new offerings beyond his core loose leaf yerba mate product. Then, Mike from New Hampshire wants to expand his woodworking business beyond his basement, without taking on debt. And Maggie from Georgia wonders how to respond to rising customer acquisition costs for her soccer-themed dog brand. Thank you to the founders of Heretic Yerba, MTS Woodworking, and Floofball for being a part of our show. If you’d like to be featured on a future Advice Line episode, 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 [email protected] or call 1-800-433-1298. And be sure to listen to Betterment’s founding story as told by Jon on the show in 2018.   This episode was produced by Noor Gill with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Kwesi Lee. 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.

In the late 2000s, two French mountain athletes set out to build a running shoe that captured the feeling of flying.  Jean-Luc Diard and Nicolas “Nico” Mermoud had spent decades inside the innovation engine at Salomon—where product was obsession. In 2007, as Nico recovered from a brutal ultramarathon around Mont Blanc, the founders fixed on a problem that Big Footwear didn’t care about: downhill running was destroying bodies. Their solution: make the shoe bigger, softer, and shaped like a rocker. At first, their prototypes looked like clown shoes. Runners who preferred minimalist footwear laughed at them. Retailers said no. But the founders kept doing the one thing that they knew could reverse things: they made people try them. HOKA went from under $3M in sales in 2012 to more than $2B a year—and in this episode, you’ll hear how it happened: the risky design, the early cash crunch, and the strategic partnership that helped them win the U.S. market. What you’ll learn:How to think of a shoe as a machine, not just a piece of apparelThe go-to-market weapon that worked: relentless demo-ing Why outside money can’t always solve a cash flow bottleneck (and what does)How HOKA used performance proof to avoid being dismissed as a gimmickWhy HOKA partnered with Deckers—and why it wasn’t just about capitalHow to keep a “rebel” mindset as competitors start copying you Timestamps: (Timecodes are approximate and may shift depending on platform.)[07:12] George Salomon’s leadership lesson: the CEO who sought advice from an intern[11:11] Nico’s first day at Salomon: testing ski prototypes on a glacier[18:42] The ultramarathon race where Nico’s legs crumbled (and why)[21:29] A breakthrough insight: performance changes with surface (leaves, lava, snow)[31:25] Designing a sneaker as if it were a car: engine, tires, seat[40:00] The “clown shoe” prototype—and the first successful run [47:22] Elite runners kickstart the brand [49:02] The hard part nobody glamorizes: factory minimums, bank demands, anemic cash flow[53:31] Deckers enters: the minority investment that unlocks the U.S. (without killing the brand) Hey—want to be a guest on HIBT? If you’re building a business, why not get advice from some of the greatest entrepreneurs on Earth? Every Thursday on the HIBT Advice Line, a previous HIBT guest helps new entrepreneurs work through the challenges they’re facing right now. Advice that’s smart, actionable, and absolutely free. Just call 1-800-433-1298, leave a message, and you may soon get guidance from someone who started where you did, and went on to build something massive. So—give us a call. We can’t wait to hear what you’re working on. *** This episode was produced and researched by Rommel Wood with music composed by Ramtin Arablouei. It was edited by Neva Grant.  Our engineers were Patrick Murray and Kwesi Lee.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Plus, Mark on his most challenging venture yet: revolutionizing the prescription drug market in America. First we meet Lucy from Washington DC, considering an opportunity to bring her upside-down peanut butter brand into a big box retailer. Then Macy from Utah, wondering if her youth-safe skincare products are better marketed to kids or their parents. Then Dan from North Carolina, looking to reboot his pre-pandemic business selling hand-crafted wooden razors. And finally Kristen from Michigan, questioning if she should expand her children’s winter wear brand with gear for other seasons. Thank you to the founders of One Trick Pony, Girlyish Skincare, Imperium Shaving, and Northern Classics for being a part of our show. If you’d like to be featured on a future Advice Line episode, 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 [email protected] or call 1-800-433-1298. And be sure to listen to Mark Cuban’s original episode on the show from back in 2016. This episode was produced by Casey Herman with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineers were Robert Rodriguez and 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.

A bright blue guitar covered in orange koi fish vanished from a museum display … and Swifties immediately knew what it meant. That distinctive guitar—the one Taylor Swift used to record Speak Now—had been a gift. Hand crafted, by the founders of Taylor Guitars. When she brought it back on stage during her Eras tour, the fans went wild. In this episode, Bob Taylor and Kurt Listug tell the unlikely story behind one of the world’s most respected acoustic guitar brands—how it grew from a tiny San Diego repair shop doing $30,000/year into a global business with nine-figure revenue. And how it survived every challenge that should’ve ended it: a distributor deal that didn’t add up, a brutal market crash in the disco era, and such slow growth that—five years into the business—the founders could barely pay themselves a salary ($15/week). It’s a story about serendipity, obsession, and the quiet power of a partnership where each person knows their lane—Bob with relentless craftsmanship, Kurt with the discipline to turn it into a massive business. Plus: the purple 12-string featured in Prince’s “Raspberry Beret” … the MTV Unplugged boom that boosted the business … and why the founders eventually chose to convert the business to 100% employee ownership. What you’ll learn:The operating principle that changed Taylor’s production: one finished guitar beats 10 half-finished onesHow to make a slow-growth business survivable (and why Bob saw it as “education”)How to recognize a bad distribution dealThe design innovations that drew musicians to Taylor guitarsWhy Bob got a call from Taylor Swift’s dad when she was 14—and the iconic guitar her fans grew to loveHow the business managed demand shocks during COVIDWhy an ESOP can be a founder’s best “succession plan” decisionWhat a great partnership looks like in practice Timestamps: (Timecodes are approximate and may shift depending on platform.)00:06:39 – The high school moment: “I didn’t have $175 … so I thought, I’ll just make a guitar.”00:07:14 – The American Dream shop: the hippie setup that became a launchpad00:10:20 – The “baseball bat neck” problem with guitars—and Bob’s happy-accident innovation00:11:59 – Buying the shop for $3,700 … then realizing it didn’t include the name (or phone number)00:22:31 – The sentence that changed everything: “Would you rather have 10 half-done guitars or one done guitar?”00:26:28 – The distributor deal that ended in layoffs: good sell job, bad math, and what they learned00:38:30 – Buying out the third partner: why the business doubled when “the brakes were off”00:59:52 – Before Taylor Swift was Taylor Swift: a phone call from a proud dad, and a promotional concert that almost went unheard01:09:36 – The inflation economics of guitar building*** Hey—want to be a guest on HIBT? If you’re building a business, why not get advice from some of the greatest entrepreneurs on Earth? Every Thursday on the HIBT Advice Line, a previous HIBT guest helps new entrepreneurs work through the challenges they’re facing right now. Advice that’s smart, actionable, and absolutely free. Just call 1-800-433-1298, leave a message, and you may soon get guidance from someone who started where you did, and went on to build something massive. So—give us a call. We can’t wait to hear what you’re working on. *** This episode was produced by Alex Cheng with music composed by Ramtin Arablouei. It was edited by Neva Grant with research help from Rommel Wood. Our engineers were Patrick Murray and Maggie Luthar. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.