Today’s callers: Ann from Nashville asks how to adapt her jewelry business in the face of rising gold prices. Then Felix in Martha’s Vineyard considers strategies for growing his family’s legacy honey and skincare company. Finally, Matt in Massachusetts seeks strategies for maintaining a healthy work-life balance at his grief-inspired brewing project.

Plus, Ronnen and Guy discuss why your 20s are the best time to start a business.

Thank you to the founders of Yearly Company, Island Bee Company and Wandering Soul Beer for joining us on the 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 Spin Master and PAW Patrol’s founding story as told by Ronnen on the show in 2021.

This episode was produced by Katherine Sypher with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Cena Loffredo.

You can follow HIBT on X & Instagram and sign up for Guy's free newsletter at guyraz.com and on Substack.

In 2004, Joey Shamah and his partner launched a cosmetics company built on an idea that made almost no sense:

Sell high-quality makeup for just $1.

At the time, high quality beauty products were supposed to be expensive. The biggest brands spent fortunes on celebrity endorsements, glossy ads, and premium shelf space.

And every major retailer told Joey the same thing:

Your idea will never work.

But Joey believed he'd found a wormhole in the beauty business: spend money on the product, not fancy packaging, marketing, or celebrity endorsements. Then, pass those savings on to your customers.

The brand grew slowly, but Joey knew he was onto something when a bizarre rumor spread that Bloomingdale's was buying e.l.f. and raising prices. Within days, the tiny company went from a few hundred orders a week to 18,000 orders a day.

What followed was a journey from a scrappy warehouse operation in New Jersey to one of the most disruptive brands in the beauty business.

You'll learn:

• The surprising economics behind $1 lipstick
• Why retailers initially rejected e.l.f.
• How a single magazine mention launched e.l.f.'s online business
• The retail insight that unlocked national expansion
• How a false rumor generated 18,000 orders a day
• The emotional toll of a $225 million acquisition that collapsed at the eleventh hour

Timestamps:

• 00:10:28 — How to make (decent) makeup for just $1
• 00:18:35 — The dollar stores say no
• 00:24:32 — Glamour comes calling, and e.l.f has 30 days to build a website
• 00:38:27 — The question from a Target buyer that leaves Joey speechless
• 00:39:56 — The H-E-B test that proves everyone wrong
• 00:46:36 — “That’s news to me!” The viral rumor that sends Joey back to China
• 00:59:42 — Scaling to tens of millions in revenue
• 01:07:15 — “It was crushing.” The L’oreal sale that never happened
• 01:12:02 — After e.l.f: Joey stops watching House of Cards and gets back to business

This episode was produced by Carla Esteves with music composed by Ramtin Arablouei.

It was edited by Neva Grant with research by Olivia Rockman. Our audio engineer was Patrick Murray.

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Website → guyraz.com

Today’s callers: Ruchi from Chicago looks for advice on which channels to focus distribution for her probiotic skincare line. Then Peter in San Francisco considers strategies to champion his line of organic South African wines. And Dominic from Barbados asks about expanding his specialty coffee brand into international markets like the United States.

Plus, Susan discusses how people and relationships can make or break your business.

Thank you to the founders of Yobee, Culture Wine, and Wyndhams Bajan Coffee Roasters 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 EO Products founding story as told by Susan Griffin-Black and Brad Black in 2019.

This episode was produced by Casey Herman 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 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.