
How I Built This with Guy Raz
Taylor Guitars: Kurt Listug and Bob Taylor. From $3,700 Shop to Global Icon
A bright blue guitar covered in orange koi fish vanished from a museum display ⊠and Swifties immediately knew what it meant. That distinctive guitarâthe one Taylor Swift used to record Speak Now âhad 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 worldâs most respected acoustic guitar brandsâhow 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 shouldâve ended it: a distributor deal that didnât add up, a brutal market crash in the disco era, and such slow growth thatâfive years into the businessâthe founders could barely pay themselves a salary ($15/week). Itâs a story about serendipity, obsession, and the quiet power of a partnership where each person knows their laneâBob with relentless craftsmanship, Kurt with the discipline to turn it into a massive business. Plus: the purple 12-string featured in Princeâs âRaspberry Beretâ ⊠the MTV Unplugged boom that boosted the business ⊠and why the founders eventually chose to convert the business to 100% employee ownership . What youâll learn: The operating principle that changed Taylorâs production: one finished guitar beats 10 half-finished ones How to make a slow-growth business survivable (and why Bob saw it as âeducationâ) How to recognize a bad distribution deal The design innovations that drew musicians to Taylor guitars Why Bob got a call from Taylor Swiftâs dad when she was 14âand the iconic guitar her fans grew to love How the business managed demand shocks during COVID Why an ESOP can be a founderâs best âsuccession planâ decision What a great partnership looks like in practice Timestamps: (Timecodes are approximate and may shift depending on platform.) 00:06:39 â The high school moment: âI didnât have $175 ⊠so I thought, Iâll just make a guitar.â 00:07:14 â The American Dream shop: the hippie setup that became a launchpad 00:10:20 â The âbaseball bat neckâ problem with guitarsâand Bobâs happy-accident innovation 00:11:59 â Buying the shop for $3,700 ⊠then realizing it didnât include the name (or phone number) 00:22:31 â The sentence that changed everything: âWould you rather have 10 half-done guitars or one done guitar?â 00:26:28 â The distributor deal that ended in layoffs: good sell job, bad math, and what they learned 00:38:30 â Buying out the third partner: why the business doubled when âthe brakes were offâ 00:59:52 â Before Taylor Swift was Taylor Swift: a phone call from a proud dad, and a promotional concert that almost went unheard 01:09:36 â The inflation economics of guitar building *** Heyâwant to be a guest on HIBT? If youâre 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 theyâre facing right now. Advice thatâs 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. Soâgive us a call. We canât wait to hear what youâre 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 .
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