Podcast Summary: How I Built This with Guy Raz
Episode: Advice Line with Eric Ryan of Method
Release Date: June 26, 2025
Introduction to Eric Ryan
In this episode of How I Built This, host Guy Raz welcomes back Eric Ryan, a serial entrepreneur renowned for co-founding iconic brands such as Method, Ollie, and Welly. Eric shares his journey from childhood friends in Michigan to launching environmentally friendly cleaning products in the tech-centric landscape of San Francisco during the early 2000s.
Strategies for Starting and Scaling Businesses
Eric Ryan emphasizes an academic approach to entrepreneurship, focusing on identifying categories with a "sea of sameness" and leveraging culture shifts or macro trends to differentiate products. For instance, with Method, Eric and his co-founder Adam Lowry capitalized on the trends of high design and deep sustainability, transforming everyday cleaning products into objects of desire through sleek, colorful packaging and environmentally friendly formulations.
Notable Quote:
"Failure is part of it. I've had failures both on the business side as well as within the companies that have been successful."
— Eric Ryan [08:17]
Importance of Design and Branding
Design is central to Eric's brand-building philosophy. He believes that great design fosters an emotional connection with consumers, turning products into emotional experiences rather than mere functional items. This approach not only appeals visually but also instills a sense of innocence and inner childfulness in serious product categories.
Notable Quote:
"The heart of it is almost like an object of desire. I want to create an emotional connection through great design, great creativity."
— Eric Ryan [09:00]
Omnichannel Distribution Approach
Eric advocates for an omnichannel strategy, integrating both online Direct-to-Consumer (D2C) platforms and traditional retail partnerships. He underscores the importance of being present where consumers are, whether that's on Instagram, TikTok, or securing prime retail placements like end caps in Target stores. This dual approach ensures brands remain visible and accessible across various shopping preferences.
Notable Quote:
"There's no more valuable real estate in America than an end cap at a Target."
— Eric Ryan [10:58]
Caller Interaction 1: Transparent Hospitality and Seeking Mentorship
Caller: Maggie Girth from Franklin, Tennessee, co-owner of Transparent Hospitality with five locations in Nevada and newly expanded operations in Nashville.
Business Background: Maggie and her husband, Tyler, run a bakery and restaurant concept called Perrin, which combines naturally leavened bread and rotisserie cooking. Transitioning from private chefs to owning multiple locations, they now manage a team of 120 employees.
Challenge: Maggie seeks advice on finding a mentor to guide them through scaling challenges while maintaining their company ethos and vision.
Advice Provided: Eric and Aubrey Wolaski suggest assembling a small advisory board comprising individuals with expertise in operations, finance, and Consumer Packaged Goods (CPG). This structured approach can provide strategic guidance without necessitating immediate outside capital.
Notable Quote:
"If you want to build this for cash flow so you don't ever have that pressure to sell the business someday, finding somebody who's got that same passion that you have could be a nice Goldilocks fit."
— Aubrey Wolaski [19:04]
Caller Interaction 2: Props Luggage and Funding Decisions
Caller: Matt Engorn from Chicago, Illinois, founder of Props Luggage, a carry-on suitcase with a built-in leg system eliminating the need for additional luggage racks.
Business Background: Props Luggage was born from Matt's personal experience as a parent managing travel with four daughters. The product gained traction through direct-to-consumer channels, Amazon, QVC, and recently, The Container Store.
Challenges: Matt grapples with the decision to either continue self-funding to maintain control or seek investors to scale the business more aggressively. Additionally, he contemplates licensing the leg system to larger brands and expanding the product line beyond a singular offering.
Advice Provided: Eric and Aubrey recommend evaluating the long-term vision and determining whether outside capital aligns with their growth objectives. They also suggest exploring licensing opportunities as a means to generate free cash flow while continuing to build the brand.
Notable Quote:
"You're making an incredible product, but you have to think about whether you're ready to scale and potentially give up some control in the process."
— Aubrey Wolaski [33:31]
Caller Interaction 3: FlipKnits Adventure Gloves and Retail Challenges
Caller: Matt Engorn (possibly a typo in the transcript; assuming a different caller named Matt Engorn) from Scottsdale, Arizona, co-founder of FlipKnits, a versatile glove system for runners and other activities.
Business Background: FlipKnits offers 3-in-1 adventure gloves that transform into mittens or function as hand towels, addressing the varying needs of runners during different stages of their activity. The product is available on Shopify, Amazon, QVC, and recently, feedback from Walmart has posed challenges in determining appropriate in-store placement.
Challenges: Matt seeks guidance on scaling beyond existing sales channels, particularly overcoming retail placement obstacles and enhancing consumer education to drive in-store sales.
Advice Provided: Aubrey advises hyper-specialization by creating targeted versions of the gloves for specific activities (e.g., running, hunting, weightlifting) and licensing to entities like universities or sports teams. This strategy can enhance product recognition and align with familiar retail categories, facilitating better placement and sales.
Notable Quote:
"For retail to work, you've got to be able to really put it into that space of familiarity. Possibly the right way is to create different versions targeting different use occasions."
— Aubrey Wolaski [48:39]
Eric Ryan's Reflections and Final Advice
During the episode's conclusion, Eric shares wisdom on time management and patience in entrepreneurship, emphasizing the importance of building strong foundations and pacing growth effectively.
Notable Quote:
"Be much more patient and don't be in such a rush. Building strong foundations takes time in entrepreneurship."
— Aubrey Wolaski [53:06]
Closing Remarks
Guy Raz concludes the episode by highlighting a memorable moment from Eric's earlier appearance, reinforcing the non-toxic commitment of Method’s products through an anecdote where Eric and Adam Ryan ingested their own product to prove its safety.
Notable Quote:
"To prove that this really was non-toxic, you actually drank it."
— Guy Raz [54:08]
Key Takeaways
- Strategic Brand Building: Focus on design and emotional connections to differentiate products in saturated markets.
- Omnichannel Distribution: Integrate online and offline sales channels to maximize brand visibility and accessibility.
- Mentorship and Advisory Boards: Assemble a team of advisors with diverse expertise to guide business growth without relinquishing core vision.
- Product Diversification and Licensing: Expand product lines strategically and explore licensing to increase revenue streams and market presence.
- Patience and Time Management: Recognize that building a business foundation requires time and deliberate pacing to ensure sustainable growth.
Notable Quotes Summary:
- "Failure is part of it." — Eric Ryan [08:17]
- "The heart of it is almost like an object of desire." — Eric Ryan [09:00]
- "There's no more valuable real estate in America than an end cap at a Target." — Eric Ryan [10:58]
- "If you want to build this for cash flow so you don't ever have that pressure to sell the business someday, finding somebody who's got that same passion that you have could be a nice Goldilocks fit." — Aubrey Wolaski [19:04]
- "For retail to work, you've got to be able to really put it into that space of familiarity." — Aubrey Wolaski [48:39]
- "Be much more patient and don't be in such a rush." — Aubrey Wolaski [53:06]
Conclusion This episode offers invaluable insights into brand building, scaling strategies, and mentorship, drawing from Eric Ryan's extensive experience in launching and growing successful consumer brands. Listeners gain practical advice applicable to various stages of entrepreneurship, enriched by real-world examples and dynamic interactions with fellow entrepreneurs.