How I Built This with Guy Raz Episode: Boll & Branch: Scott and Missy Tannen Release Date: November 11, 2024

In this compelling episode of How I Built This, host Guy Raz delves deep into the entrepreneurial journey of Scott and Missy Tannen, the dynamic duo behind Boll & Branch. Their story is one of resilience, ethical commitment, and bold risk-taking that transformed a simple idea into one of the nation's leading luxury linen brands.

1. Beginnings: From College Sweethearts to Entrepreneurs

Scott and Missy Tannen's partnership began unexpectedly during their junior year at Vanderbilt University in the late 1990s. A blind date orchestrated by their friends marked the start of both their romantic relationship and future business collaboration.

• Missy Tannen (06:09): "We got set up on a blind date... And that's it, you become a couple."

Tragedy struck shortly after their graduation in 1999 when Scott's father passed away unexpectedly. This event accelerated their decision to move to New Jersey, where they supported each other through significant personal and professional challenges.

• Scott Tannen (08:10): "I was made to become an adult really fast... We transitioned from being kind of college boyfriend, girlfriend to like really a couple."

2. Scott's Initial Venture: Fun Tank and Candy Stand

Post-college, Scott ventured into the digital space by revamping Nabisco's website into an engaging gaming platform named Candy Stand. This initiative, acquired by Fun Tank in 2008, saw unprecedented user growth.

• Scott Tannen (10:05): "We ended up over time creating 200 unique online games... These were really casual, fun games like what you play on your iPhone today."

Despite attracting 20-30 million monthly visitors, the rise of smartphone apps led to a rapid decline in web-based gaming, forcing Scott to sell the company to Publishers Clearinghouse in 2010.

• Scott Tannen (12:16): "Now it was when the App Store opened up... revenues plummeted."

The sale provided Scott with financial relief, allowing him to focus on his personal life, though it came at the cost of his mother battling pancreatic cancer—a period he credits Missy for helping him through.

3. The Birth of Boll & Branch: Identifying an Underserved Market

In the midst of personal upheavals and professional exploration, Scott and Missy Tannen identified a gap in the luxury bedding market. Their dissatisfaction with conventional bed linens—laden with confusing terms like "thread count" and "Egyptian cotton"—sparked the idea for Boll & Branch.

• Missy Tannen (19:05): "We Were renovating our bedroom... I just wanted some soft sheets."

Scott's realization that quality bed linens were straightforward to produce led them to bypass extensive research, opting instead to source directly from local suppliers in New Jersey.

• Scott Tannen (20:30): "This is just what I was looking for."

However, their lack of industry expertise soon revealed flaws in their understanding, especially concerning product certification and ethical sourcing.

4. Commitment to Ethics and Quality: Overcoming Industry Skepticism

Determined to uphold ethical standards, Scott and Missy faced significant challenges. Discovering that labeled "Egyptian cotton" was often produced in China, they sought to ensure full traceability and fairness in their supply chain.

• Scott Tannen (23:38): "I found that these Egyptian cotton sheets were woven in China... They couldn't trace their own supply chain."

The tragic Rana Plaza collapse in 2013 reinforced their resolve to avoid contributing to unethical practices, pushing them to partner directly with manufacturers who met rigorous fair-trade standards.

• Missy Tannen (27:50): "We wanted to make it from scratch and know everything about it... ensuring that no cycle of poverty is being continued."

Despite skepticism from industry insiders and sustainable textile experts, Scott and Missy persisted, driven by their commitment to quality and ethics.

• Scott Tannen (36:20): "I couldn't find anybody that would validate what we were doing... it was a bad idea."

5. Launching Boll & Branch: Trials and Triumphs

After meticulously sourcing organic cotton and ensuring ethical manufacturing practices, Scott and Missy launched Boll & Branch in early 2014. Initial challenges included quality control issues, such as the ivory sheets' unintended greenish tint, which delayed their Christmas launch.

• Missy Tannen (43:00): "The ivory sheets... cast a limey, creamy green color. I can't sell these."

Despite these setbacks, their integrity paid off. A feature in the Wall Street Journal highlighted their transparent cost structure, leading to a surge in sales that skyrocketed from $1.5 million to nearly $13.5 million in just two years.

• Scott Tannen (49:41): "We had done over $100,000 in sales overnight."

6. Scaling Challenges: The Howard Stern Gamble

As demand outpaced their capacity, Scott faced a pivotal decision: take a massive risk by investing $2 million from a loan secured against his home to advertise on the Howard Stern show. Despite industry advice against such a steep investment, his belief in Stern's influence convinced him to proceed.

• Scott Tannen (61:45): "I took the most amount of debt I've ever had on anything in my life."

The gamble paid off phenomenally. Howard Stern's endorsement catapulted Boll & Branch into national prominence, increasing sales from $1.5 million to $13.5 million in 2015.

• Scott Tannen (64:19): "We ended up doing over $100,000 in sales overnight."

7. Navigating Cash Crises and Growth Missteps

Rapid growth brought unforeseen challenges. An accidental order of ten times the necessary cardboard boxes plunged the company into a severe cash crisis. With suppliers awaiting payments and inventory overwhelming their storage capabilities, Scott and Missy had to swiftly raise additional funds from friends, family, and institutional investors, diluting their ownership but ensuring the company's survival.

• Scott Tannen (65:25): "It cost us at least 15 to 20% of the business."

In 2017, further miscalculations led to another financial strain, prompting them to bring in Silas Capital. This partnership not only provided financial relief but also aligned with their long-term vision, allowing Scott and Missy to retain operational control while sharing ownership.

8. Maintaining a Strong Partnership: Love and Business Intertwined

Throughout their entrepreneurial journey, Scott and Missy's relationship remained a cornerstone of their success. By dividing responsibilities—Scott handling marketing and business operations while Missy focused on product development—they leveraged each other's strengths, fostering a harmonious and effective partnership.

• Missy Tannen (73:41): "Scott has such a command for the marketing side... while he would trust me with anything having to do with products."

Their mutual trust and shared commitment not only kept their marriage strong but also ensured the stability and growth of Boll & Branch amidst numerous challenges.

9. Balancing Luck and Hard Work: The Key to Success

Reflecting on their journey, Scott and Missy acknowledge the role of both luck and relentless effort. While fortunate encounters, such as meeting an industry insider and securing ethical manufacturing partners, provided invaluable boosts, their unwavering dedication and hard work were pivotal in overcoming obstacles and achieving sustained success.

• Scott Tannen (75:44): "No matter what, no one is going to outwork us... fierce commitment to our business."

Their story underscores the importance of aligning business practices with personal values, the courage to take calculated risks, and the strength of a supportive partnership in building a successful and ethically grounded brand.

10. A Legacy of Ethical Luxury: Boll & Branch Today

By 2024, Boll & Branch had not only cemented its reputation as a leader in luxury linens but also made significant cultural impacts, such as supplying custom sheets for Maria Sharapova's Met Gala gown. This milestone highlights the brand's commitment to quality, ethical sourcing, and innovative design, positioning Boll & Branch as a beacon of sustainable luxury in the industry.

• Narrator (75:04): "In 2024, the brand made a surprise appearance at the Met Gala... a gown in a color described by one critic as tennis ball yellow."

Conclusion

Scott and Missy Tannen's journey with Boll & Branch is a testament to the power of ethical entrepreneurship, resilient partnership, and strategic risk-taking. Their unwavering commitment to quality and fairness, combined with their ability to navigate financial crises and industry skepticism, has propelled Boll & Branch to national acclaim. This episode serves as an inspiring blueprint for aspiring entrepreneurs aiming to build impactful and sustainable businesses.

Notable Quotes:

• Scott Tannen (03:07): "Yeah, I took the Most amount of debt I've ever had on anything in my life."
• Scott Tannen (37:33): "Yeah, without a plan for what I was gonna do if it worked."
• Missy Tannen (16:52): "We felt that... there’s gotta be a better way to do this or it’s not worth doing at all."
• Scott Tannen (75:44): "No one is going to outwork us."

Final Thoughts

Scott and Missy's story with Boll & Branch encapsulates the essence of building a brand with heart and integrity. Their ability to blend personal values with business acumen has not only created a successful company but also fostered a positive impact on their employees and the broader community. This episode is a masterclass in navigating the complexities of entrepreneurship with grace and determination.