Life is Good Founders Explain Rational Optimism | How I Built This with Guy Raz | NPR

TL;DR

Life is Good responded to collapsing wholesale demand by accelerating direct-to-garment printing, producing relevant designs to order, and selling directly in response to current consumer behavior. The shift reduced inventory risk, shortened a design cycle that had stretched 12–18 months, and showed the founders that optimism, kindness, and supportive relationships remained valuable during a crisis.

Transcript

hello and welcome to how i built this resilience edition from npr this is where we talk with businesses and entrepreneurs about how they're building resilience during this challenging time and guess what tomorrow marks our four-year anniversary of how i built this four years ago tomorrow we launched this very show our first episode was with sarah b... Read More

Key Insights

• Life is Good faced a severe wholesale collapse when most retail partners closed their doors and canceled orders, pushing its founders into candid discussions about bankruptcy and laying off at least half of the company's staff.
• The company's crisis strategy was to play offense by accelerating a supply-chain transformation it had already researched and developed, replacing a 12–18 month design horizon with a system capable of responding within days.
• Direct-to-garment printing works by applying a selected graphic and message to a blank shirt only after a customer places an order, allowing even a single shirt in a particular size and style to be produced on demand.
• On-demand production is more expensive per unit, but it can create more precise inventory because the company makes additional products only when daily purchasing behavior demonstrates actual consumer demand.
• Inventory is a major business risk because excess products weigh a company down, while print-to-order production limits commitments to designs that may not sell and allows successful designs to receive additional production.
• Workplace safety was central to keeping the New Hampshire distribution center operating, with workstations placed 10 feet apart, an in-house nurse, temperature scanning, and protocols developed by the company's team.
• Timely optimistic messages generated an immediate response, including designs promoting handwashing and staying home, plus products celebrating people and pets who served as support systems during quarantine.
• Life is Good's point of difference is its optimistic art and messaging, rather than the shirt alone, because the founders believe their community's emotional connection comes from seeing and sharing the world through an optimistic lens.

Questions & Answers

Q: How did Life is Good respond when wholesale orders collapsed?

Life is Good initially held grim discussions about bankruptcy and laying off at least half its staff because most wholesale retailers had closed and canceled orders. Its leadership then chose to play offense. The company kept its New Hampshire distribution center operating under strict safety measures, accelerated on-demand production, and introduced timely designs connected to staying safe, remaining home, kindness, and personal support systems.

Q: What is direct-to-garment printing at Life is Good?

Direct-to-garment printing is a production method that lets Life is Good print each product after receiving a specific customer order. If someone orders one medium V-neck shirt with a particular graphic and message, the company prints that individual item and ships it. The method relies on blank shirts and allows production to follow actual purchases rather than forecasts made far in advance.

Q: Why did Life is Good move toward on-demand production?

Life is Good wanted to replace an established retail model in which designs were created 12–18 months before anticipated demand. The founders viewed that system as poorly aligned with consumers who wanted greater choice and products closer to the moment. On-demand production allowed the company to observe daily purchasing behavior, make more of successful designs, and avoid producing products that customers were not buying.

Q: How does print-to-order production reduce inventory risk?

Print-to-order production reduces inventory risk because Life is Good does not have to commit to large quantities of every finished design before knowing whether customers want it. Although printing each unit costs more, the company can maintain blank shirts, track sales each day, expand production for designs that sell, and stop producing concepts that fail to attract demand.

Q: How did Life is Good keep its distribution center safer?

Life is Good made its New Hampshire distribution center safer by creating workstations spaced 10 feet apart, using temperature scanning, maintaining an in-house nurse, and establishing extensive protocols through its team. Company leaders concluded that a tightly controlled workplace could be safer for warehouse employees than forcing them to seek other work in supermarkets, delivery services, or other warehouses.

Q: What products did Life is Good create during the pandemic?

Life is Good designed products that spoke directly to conditions during the pandemic. Messages promoted practices such as washing hands, staying calm, staying cool, and staying home. The company also celebrated support systems, including people and pets sharing quarantine. Its playful term for these companions supported products featuring different dog breeds while carrying broader messages about kindness and treating one another well.

Q: Why is optimism important to the Life is Good brand?

Optimism is important because the founders describe it as the lens through which Life is Good creates and shares ideas. The company sells quality basics, primarily shirts, but its distinguishing feature is the combination of art and uplifting messages. During difficult conditions, the founders observed demand for hopeful ideas, kindness, and celebrations of the relationships that help people endure hardship.

Q: What did the crisis reveal about Life is Good's business model?

The crisis revealed that Life is Good had a strong direct relationship with consumers and that customers had an appetite for products created closer to current events. It also forced the company to accelerate a change that had previously met resistance from retailers, sales representatives, and its own staff. The experience supported a model built around faster production, consumer choice, and reduced dependence on long-range wholesale forecasting.

Summary

In this episode of NPR's "How I Built This: Resilience Edition," Guy Raz interviews John and Burt Jacobs, co-founders of Life is Good. They discuss how their business has built resilience during the challenging times of the COVID-19 pandemic. The conversation touches on their response to the pandemic, their shift in business strategy, and the power of optimism in overcoming difficulties.

Questions & Answers

Q: How did Life is Good respond to the COVID-19 pandemic?

Life is Good immediately closed down their Boston office and focused on making their Southern New Hampshire location a safe distribution center. They also invested in technology, such as direct garment printing, to respond to consumer demand faster. They began designing t-shirts with messages related to the pandemic, like "Stay Calm, Stay Cool, Stay Home," which resonated with customers and took off.

Q: How did Life is Good adapt their business model during the pandemic?

Life is Good had been trying to shift their business model to be more responsive to consumer demand, and the pandemic accelerated that process. They invested in technology that enabled them to print t-shirts to order, reducing inventory and waste. This allowed them to quickly respond to changing consumer preferences and avoid excessive inventory.

Q: Was it expensive to invest in the technology for responding to consumer demand faster?

Yes, it was a significant investment, but Life is Good had confidence in the direction they wanted to take their brand even before COVID-19. They believed that moving towards a more adaptive business model was essential, and the pandemic provided them with the opportunity to make that shift.

Q: What kind of messages did Life is Good put on their apparel during the pandemic?

Life is Good created t-shirts with messages that spoke directly to what was happening during the pandemic. They promoted safe practices like washing hands and staying home. They also celebrated support systems, such as family, pets, and the importance of kindness. The messages were simple but resonated with their customers, providing optimism and uplift during difficult times.

Q: How did Life is Good's e-commerce business perform during the pandemic?

Life is Good's e-commerce business doubled compared to the previous year. This growth helped offset the decline in their wholesale business, which was heavily impacted by store closures. Their brand's strong connection with consumers and their ability to adapt quickly allowed them to thrive even in challenging times.

Q: How did Life is Good's values play a role in navigating the pandemic?

Life is Good's values, including gratitude, love, authenticity, and creativity, have always been central to their brand. These values provided a strong foundation during the uncertain times of the pandemic. They enabled the team to stay focused on their mission of spreading optimism and connecting with their community. The power of optimism and gratitude was especially important in helping both employees and customers navigate the challenges they faced.

Q: How did Life is Good's upbringing influence their resilience and optimism?

Life is Good's parents faced their own challenges, including financial difficulties and health issues. Despite these hardships, their mother focused on optimism and instilled in them the power of seeing the world through an optimistic lens. This upbringing, coupled with their own experiences as entrepreneurs, taught them the value of resilience and finding ways to adapt to difficult situations.

Q: How does Life is Good's community factor into their resilience?

Life is Good emphasizes the importance of community in their brand. They view their customers as co-authors of their brand story, and they actively engage with their community, listening to their feedback and incorporating their ideas. In times of crisis, the community becomes even more vital, providing support and uplift to one another. Life is Good's community has played a significant role in their resilience and ability to navigate challenging times.

Q: How do John and Burt Jacobs stay resilient and motivated during tough times?

John and Burt prioritize healthy coping mechanisms, such as exercise, gratitude, and staying connected to loved ones. They draw inspiration from their parents, who demonstrated resilience and optimism despite their own hardships. Creating a strong support system and seeking out positive influences are crucial for maintaining resilience. They acknowledge that it's not always easy and that there are tough days, but they believe that choosing optimism is a powerful tool for overcoming challenges.

Q: What important lessons has John learned about leadership during the pandemic?

John highlights the importance of listening and hiring people with an optimistic and resilient mindset. Their leadership team and employees demonstrated remarkable resilience and proactivity during the pandemic, making it clear that they embody the values of Life is Good. John emphasizes the need for leaders to create an environment where everyone's voices can be heard and where there is space for collaboration and innovation.

Q: What lesson has Burt learned about leadership during the pandemic?

Burt emphasizes the importance of clarity in leadership. During challenging times, a lack of clarity can exacerbate problems. Life is Good's leaders remained clear about their mission and values, which guided them in making strategic decisions. Burt also emphasizes the value of enabling consumers to co-author the brand's story, recognizing that the community's input and engagement are essential for success.

Takeaways

Life is Good's resilience during the COVID-19 pandemic stems from their commitment to their mission of spreading optimism, their adaptive business model, and their strong community engagement. They responded to the pandemic by investing in technology to respond to consumer demand faster and by designing t-shirts with messages relevant to the crisis. Their e-commerce business thrived, and their values of gratitude, love, authenticity, and creativity played a vital role in navigating the challenges. Listening to their team and consumers, as well as providing clarity in leadership, were key lessons they learned during this time. Overall, Life is Good demonstrates the power of optimism and resilience in overcoming adversity.

Summary & Key Takeaways

• When the pandemic closed most wholesale retailers and led them to cancel orders, Life is Good faced possible bankruptcy and considered laying off at least half its staff. Its leadership chose an offensive response, keeping the New Hampshire distribution center open under strict safety protocols while accelerating a more responsive business model.

• The company used direct-to-garment printing to make individual products after customers ordered them. This system cost more per unit, but it allowed Life is Good to monitor daily demand, produce more of successful products, avoid manufacturing unpopular designs, and reduce the inventory burden that can damage a business.

• Life is Good created timely products encouraging people to wash their hands, remain home, support one another, and appreciate pets or other quarantine companions. The response reinforced the founders' view that their real point of difference was not simply apparel, but art and messages that present life through an optimistic lens.