Shark Tank winners Rick and Melissa Hinnant talk about how they started their $7 million business after the sudden loss of their baby.
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A few years ago
Melissa Hinnant
snapped a shot of a lacy sock
and tossed that photo online.
Well that sock helped
launch a business,
one that's doing millions
of dollars in sales.
Rick and Melissa Hinnant were
excited to start a family.
In 2010 when Melissa was
five months pregnant,
she was ordered on bed rest
until the baby was born.
To pass the time, she
started sewing and knitting.
They were heartbroken when
Melissa lost the baby two weeks
later.
But Rick and Melissa
decided to channel that pain
into something good.
They launched their
company Grace and Lace
by making and selling
lace socks online.
After appearing on ABC's
"Shark Tank" in 2013,
they hit $1 million
in five days.
Please welcome to the show
the founders of Grace and Lace,
Rick and Melissa Hinnant.
And it's so good to
have you both here.
Thank you so much.
We are honored.
It's great to be here.
You know, there
is a theme it seems
running through our program
today of children who
have, for one reason
or another, been lost,
been in terrible situations.
You as parents were in
a terrible situation
with your first child, lost it.
I say lost, but didn't survive.
Was it five months
when she was born?
Yeah, she was born, yep, about
halfway through my pregnancy.
Wow.
I mean, that is just
so hard to even imagine
the heartache of that.
Out of that though,
where you were
in the hospital on that bed rest
before you actually delivered,
you started doing something
that-- had you ever
done it before, the knitting?
No, I had learned to
sew as a little girl.
And when I was confined to
the bed rest in the hospital,
they told me I'd have to lay
on my back for potentially
four months.
So I could only
work with my hands.
And so I picked up sewing again
and knitting and crocheting.
And that's really
where my love for knits
grew, on that hospital bed.
Wow.
Rick, you've always been a bit
of an entrepreneur at heart.
Yes ma'am.
TERRY MEEUWSEN: I
mean, you always
knew you wanted to
do that, didn't you?
Well I've started businesses
from seventh grade on.
TERRY MEEUWSEN: Wow.
And it's just been something
that I naturally gravitated to
and loved.
So here you are in
this difficult scenario.
And then the baby
that you so believed
was going to make it
because of your four
months of sacrificially
lying still, you lose.
And you're left with
the heartache of it.
How did you take that
heartache and move forward?
There's really two
decisions one can make.
And as believers that prayed
with everything that we had,
had a ton of people
praying for us,
we could have made a
decision to be mad, bitter--
TERRY MEEUWSEN: Yes.
--upset, ask God why, why
didn't you answer our prayers?
Or we could choose to trust
in him, through the pain.
And I told Melissa about
an hour after our loss
that we were going to make
the decision to trust God.
And if we got an answer
of why it happened, great.
But if we didn't, no big deal.
You know the Bible says that
God gives us beauty for ashes
and the oil of joy for mourning.
But you kind of have to make a
decision in the midst of that
that you're not
going to stay there,
that you're going to let
God move you forward.
Exactly.
So you throw up
online a picture of a--
and this is kind of a
form of it, but of a sock
that actually sticks
out of the top of boots.
Yeah.
You know, it was on that
time during bed rest
where I developed that
love for creating.
And one day I just
wanted to make
a pair of socks that had
lace on the top of them that
stick on the top of my boots.
And I did, for myself.
And everywhere I went people
would stop me and ask me
where I got them.
So Rick suggested I
stick them up online.
And I did.
And they sold instantly.
And within a matter
of three days,
we had sold over
500 pairs of socks.
Wow.
Can I just say flying fingers.
[LAUGHTER]
And that was--
[INTERPOSING VOICES]
--funny thing
because I was like,
how am I going to
make all of these?
It took me five hours
to make one pair.
So before we knew it we had
trained a bunch of others
to sew them and to make them.
And before we knew it
my accidental company
Grace and Lace was born.
TERRY MEEUWSEN: So
"Shark Tank," Rick,
tell me about that, because
that was a dream in your heart
as well.
Yeah, we had been huge fans
from the very first episode.
And I even mentioned to
Melissa early on in season one,
wouldn't it be cool if
we had a business that
was on "Shark Tank"?
And sure enough this
business comes out
of our tragedy, an
accidental company
that we thought, but not
accidental in God's eyes.
And I told Melissa after having
the business for three months,
I really feel like we're
supposed to be on "Shark Tank."
And she kind of looked
at me and smiled.
I love you but you're
crazy, whatever.
It's not going to happen,
but you just do ahead and--
TERRY MEEUWSEN: Keep
fantasizing about that Rick.
You just apply online.
And so I did, didn't
hear anything.
I did about five times
over a four month period,
didn't hear a thing.
And I said, well, maybe
this isn't of God.
Maybe I missed it, because
sometimes we miss it.
And I was on the phone
with a good buddy of mine
and asked him if he
wanted to partner with us.
And he said, "I do, but I really
feel like you're supposed to be
on 'Shark Tank.'"
And I kind of--
TERRY MEEUWSEN: Funny
you should mention that.
Exactly.
I kind of laughed and
chuckled because we
hadn't talked about it.
I said, "Why did you say that?"
And he said, "Well, I've
been praying about it.
And I just feel that's
what God has for you guys."
And he said, "I know a producer.
Let me make a phone call."
TERRY MEEUWSEN: Come on.
And within 15 minutes,
we were on the phone
with the producers
telling them our story.
They said, we love it.
We have you guys.
TERRY MEEUWSEN:
You know, sometimes
I think God just
wants to let us know,
this was really my
idea, not yours.
RICK HINNANT: Yes,
without a question.
TERRY MEEUWSEN: So you wound up
partnering and doing business
with Barbara.
RICK HINNANT: Yes.
TERRY MEEUWSEN: And
I mean at that point,
you must have had
vision for this.
But were you stunned that
it actually worked out?
RICK HINNANT: Well--
It's surreal being on
that stage It really is.
And we had done our leg work
before the show and knew
and really felt the Lord
leading us to partner with her.
So when we did finally
get a full offer from her,
we knew that that was it.
Well let's leap forward into
the success of your company.
You now have, is it
more than 400 products?
Oh no, we have about
1,000 SKUs at this point.
We had probably 25 when
we aired on "Shark Tank."
MELISSA HINNANT: About
40 employees, yeah.
So this is the
initiator of the--
MELISSA HINNANT: That is, yeah.
[INAUDIBLE] that is.
Wow.
What do you call these?
Are they called boot--
MELISSA HINNANT:
Those are legwarmers.
Legwarmers.
MELISSA HINNANT: Yep,
with buttons down them.
And then the business has--
OK, those are the legwarmers.
This is the boot top.
MELISSA HINNANT: Yeah.
But you're actually-- are
you wearing your pieces?
MELISSA HINNANT: I am.
I'm wearing two of my
pieces actually, yes.
So you know, like
I said, I started
making this pair of
socks with lace on it.
And now I've just
come to really be
able to create what I'm
missing in my own closet.
And so we create and design
all sorts of women's apparel.
Yeah, this is my [INAUDIBLE].
So what do you call this?
MELISSA HINNANT:
That's a lace extender.
So tops that you feel are
maybe a little bit too short
and just want a little
bit of extra length,
just like the one, you just--
I just put it under there and
it turns any tunic into a dress.
TERRY MEEUWSEN: So you have
just exploded in this business
that you're doing.
You're not just hungry
for the profits,
as so many people would be
in a business doing well,
but you want to make
a difference as well.
You have some work
going on in India.
Tell us about that.
When I was 18 years
old, I went to India
and I spent my summer there.
And I had never seen poverty--
TERRY MEEUWSEN: I agree.
--like that.
I've been all over the
world on mission trips,
and I left there with a note
in my journal that said,
I've been so heartbroken.
I'm working in an
orphanage seeing a baby
with a bottle
strapped to its face
because there's not
enough workers to feed it,
and a belly so extended
from malnutrition.
And I left with a
note in my journal
that said I've got
to do something more.
Never in a million
years would I think
the Lord would give
us a business that
would be able to fund and
support orphanages being
built over there.
So Grace and Lace has
been able to build seven
in our last five years.
TERRY MEEUWSEN: Wow, talk
about coming full circle.
Yes, we've been up to
rescue hundreds of orphans
off the street.
What a plan God
has in all things.
And who can ever
understand it completely?
But what an amazing
story you have
and what an amazing
journey you're on.
It's so exciting to see where
you're going with all of this
and how God has truly given
you the desires of your heart,
and fulfilled his own promises.
Well we want to thank you for
being on the program with us
today.
Thank you for what you're doing.
If you're interested in
what Grace and Lace has
to offer, both in product
and also their involvement
in India, just go to CBN.com.
We'll tell you how you can see
more about their product line.
God bless you.
MELISSA HINNANT: All right.
Thank you Terry.