Inc.

Waco Then the World

Mesh cap backward, face unshaven, Chip Gaines talks with the bluster of a guy at a party who has a story, or a colorful analogy, for everything—which he does. Joanna, his wife and co-founder of the couple’s rapidly expanding media and retail brand, Magnolia, sits beside him with an occasionally bemused expression, her black hair tumbling around the shoulders of a creamy sweater as she looks for opportunities to steer the conversation.

Two full years before they shocked their fans by announcing the end of their hit HGTV show, Fixer Upper, they already knew they were going to have to leave it. The move would be risky. It was late 2015, and the Gaineses were in only the third season of the show that had transformed their lives almost overnight, taking them from local house flippers in Waco, Texas, to regulars on the covers of celebrity-gossip magazines.

Fixer Upper, which chronicled home renovations that Chip and Joanna did around Waco, was an instant sensation when it launched in 2013. By 2015, the show was setting ratings records at HGTV and helping make the network one of the top 10 on cable. Such high visibility allowed the couple to build other businesses around their growing celebrity. In 2014, they launched a tiny homewares store, Magnolia, that became so popular shoppers lined up for hours in the summer sun to get in. Former first lady Laura Bush came by, with Secret Service agents in tow.

In the fall of 2015, the Gaineses supersized the store after relocating it to a long-dormant cottonseed mill complex that covers two city blocks. They launched a Magnolia-branded furniture line with the company Standard Furniture and fielded calls to do other licensing deals.

So why ditch the show so quickly? Why shut off their most successful marketing channel, the spark that lit a blaze of popularity? The answer, as with most things Chip and Joanna, involves a combination of country humbleness—the official reason for the 2017 announcement was their desire to focus on family—and world-conquering ambition. What Chip and Joanna are great at, it turns out, goes well beyond homebuilding and decorating. Self-made entrepreneurs, the Gaineses are naturals at forging powerful connections with their audience, in ways that others don’t. And then building—and building—upon that foundation.

and Chip and Joanna are seated at a gently weathered wooden table at they had two.

You’re reading a preview, subscribe to read more.

More from Inc.

Inc.1 min readCrime & Violence
The Best Self-defense: Let A Lawyer Do It
After nearly two decades defending owners of small to medium-size businesses, Minneapolis-based attorney Aaron Hall understands the pain points of litigation and has a few words of advice on avoiding the financial strain. In Hall's experience, busine
Inc.2 min read
Family Office
The most stressful part of Pistola founder Grace Na's day isn't what you'd expect for the founder of a denim company with 40 employees and a factory right in Los Angeles. It's placing a lunch order for her head of tech and pattern and her head financ
Inc.6 min read
Steve Young Shares Lessons From the Private Equity Playbook With a First-Time Founder
Not many entrepreneurs have both professional football and private equity on their résumés. But Steve Young has always been something of an overperformer. During his 15-year career in the NFL, the Hall of Fame quarterback earned himself three Super B

Related