How I Built This with Guy Raz – Episode Summary: Advice Line with Isaac Larian of MGA Entertainment

Release Date: July 31, 2025

In this engaging episode of How I Built This with Guy Raz, host Guy Raz sits down with Isaac Larian, the dynamic founder and CEO of MGA Entertainment—the powerhouse behind iconic brands like Bratz Dolls and L.O.L. Surprise. This episode delves deep into the challenges and triumphs of building a globally recognized toy company, while also providing invaluable advice to budding entrepreneurs through the Advice Line segment.

Segment 1: Navigating Tariffs and Trade Policies

[04:09]
Guy Raz opens the conversation by addressing a pressing issue for MGA Entertainment: tariffs. With a significant portion of MGA’s production being imported, tariffs directly impact the company's bottom line and the broader toy industry.

Isaac Larian:
"Tariffs are basically tax in the toy industry. It's tax on children. And these tariffs are not going to be paid by the toy companies or any company. They're not going to be paid by retailers. They're going to be paid by the consumers." [04:38]

Larian emphasizes the complexity of global supply chains, highlighting that components for products like Bratz Dolls are sourced internationally, making tariffs a consumer-burdened issue rather than one absorbed by businesses or retailers.

Segment 2: The Art of Creating Viral Products

Transitioning from macroeconomic challenges, the conversation shifts to product innovation and marketing strategies—crucial elements in MGA’s success story.

Isaac Larian:
"I think innovation is the mother of all successes. And you know, first of all, I want to take a step back in order for it to be successful. As an entrepreneur, you must embrace failure. For every success that we have had, we have had 10 failures." [06:25]

Larian underscores the importance of resilience and adaptability in entrepreneurship. He shares how MGA navigated the evolving landscape of marketing platforms—from Nickelodeon to YouTube and now TikTok—demonstrating the need to stay attuned to changing consumer behaviors.

Segment 3: Advice Line – Helping Fellow Entrepreneurs

The heart of the episode lies in the Advice Line segment, where listeners call in with their entrepreneurial dilemmas. This episode features two insightful callers: Libby Mochan of T is for Taught and Robin Hall of Town Hall Outdoor Co.

Caller 1: Libby Mochan of T is for Taught

[07:33] Libby Mochan:
"Hi Isaac. My company is T is for Taught, and we create learn and play kits for kids ages 3 to 6. We ship these educational kits all over the country."

Libby's Challenge:
Seeking strategies to enhance PR and brand visibility without the hefty investment of a full-service PR agency. Despite efforts in DIY outreach and influencer gifting, traction remained limited.

Advice from Isaac and Megan:

• Targeting the Right Audience:
  Megan:
  "I think I would change and market to grandparents. Once you start marketing to grandparents because they want to take care of their grandchildren and they have a lot more disposable income." [13:36]

• Content Strategy:
  Megan:
  "Shoot videos where kids are just playing with your product and then edit that and put that out. That's how it becomes viral." [15:28]

• Business Sustainability:
  Libby:
  "We are cash flow positive. We've grown 250% from '23 to '24 and are on track for seven figures next year." [10:30]

Libby implemented the advice by shifting her marketing focus towards grandparents and leveraging authentic testimonials from parents, leading to improved brand visibility and engagement.

Caller 2: Robin Hall of Town Hall Outdoor Co.

[32:50] Robin Hall:
"We design durable, purpose-built outdoor apparel for adventurous kids using sustainable materials."

Robin's Challenge:
Rapid growth has led to resource strain and cash flow issues. With plans to expand into new product lines, Robin is contemplating the best strategies to sustain growth amidst macroeconomic uncertainties and tariff impacts.

Advice from Isaac and Megan:

• Rebranding for Market Resonance:
  Megan:
  "Change the name because names matter. It could be a division of Town Hall, but change the name because that name doesn't resonate with the product." [35:31]

• Strategic Partnerships:
  Isaac:
  "Look for investors who have CPG experience and connections at major retailers like Target and Walmart." [27:55]

• Authentic Marketing:
  Megan:
  "Use authentic testimonials and encourage parents to share their positive experiences on social media." [29:42]

Robin took the advice to heart by considering a rebranding strategy and focusing on authentic customer testimonials, which helped in refining their market approach and enhancing brand loyalty.

Segment 4: Personal Insights and Closing Thoughts

In the episode's closing, Isaac shares personal reflections on entrepreneurship, emphasizing the value of problem-solving skills honed through various experiences.

Isaac Larian:
"Engineering teaches you how to solve problems. When you run a business, you have to solve problems on a daily basis. So it's like a brain muscle. So I would not change anything." [46:48]

Additionally, Isaac highlights the importance of resilience and honesty in business dealings, drawing inspiration from figures like Simon Cowell to advocate for authentic and straightforward communication.

Key Takeaways:

1. Embrace Failure: Success often stems from multiple failures. Resilience is key.
2. Stay Adaptive: Marketing strategies must evolve with changing platforms and consumer behaviors.
3. Target the Right Audience: Understanding and reaching the core demographic, such as grandparents for educational products, can significantly boost brand visibility.
4. Authentic Storytelling: Genuine testimonials and relatable content can drive engagement and trust.
5. Strategic Growth: Balancing growth with resource management is crucial, especially amidst economic uncertainties.

This episode not only sheds light on the intricate workings of MGA Entertainment but also offers practical advice for entrepreneurs navigating the competitive landscape. Whether you're grappling with marketing challenges or scaling your business, the insights shared by Isaac Larian and Megan provide a roadmap for sustainable success.

Notable Quotes:

• Isaac Larian on Tariffs:
  "Tariffs are essentially a tax on children. They're not going to be paid by the companies or retailers; they're going to be paid by the consumers." [04:38]

• Megan on Embracing Failure:
  "You have to embrace failure. For every success that we have had, we have had 10 failures." [06:25]

• Megan on Marketing to Grandparents:
  "Marketing to grandparents is effective because they have more disposable income and are willing to invest in their grandchildren's education." [13:36]

• Isaac Larian on Strategic Partnerships:
  "Look for investors who not only provide capital but also bring valuable industry experience and retail connections." [27:55]

By intertwining personal anecdotes with actionable business strategies, this episode serves as a masterclass in entrepreneurship, offering listeners both inspiration and practical tools to build and sustain their own ventures.