David Green, founder and CEO of Hobby Lobby, is a remarkable example of a self-made entrepreneur whose journey from humble beginnings to extraordinary success offers powerful lessons in business and values-driven leadership. His story is one of hard work, resilience, and unwavering faith, providing inspiration to aspiring entrepreneurs across industries.
Early Life and Beginnings
David Green was born in 1941 in Emporia, Kansas, into a family with six children. His parents were pastors, and Green grew up in a household rooted in faith, community, and modest means. Money was often tight, and from an early age, he learned the importance of resourcefulness and determination. Green’s parents’ deep commitment to their faith left a lasting impression on him and would later shape his approach to both business and philanthropy.
Green got his first taste of retail work as a teenager when he took a job at a five-and-dime store. His experience stocking shelves and interacting with customers ignited a fascination with retail. Despite having few resources, Green was determined to one day build his own business. As he worked his way through various jobs, his entrepreneurial spirit grew stronger, along with an ambitious vision for his future.
Founding Hobby Lobby
After high school, Green continued to work in retail and eventually became a manager at a TG&Y store, a popular discount chain in the 1960s. However, he felt a persistent calling to start something of his own. In 1970, with a $600 loan and a desire to create an arts and crafts business, Green and his wife Barbara started making miniature picture frames in their garage in Oklahoma City. The frames quickly sold out, and the Greens saw an opportunity to expand.
In 1972, they opened the first Hobby Lobby store in Oklahoma City, offering a variety of craft supplies, framing materials, and hobby items. Their target audience was anyone with a passion for creating, from artists to home decorators to hobbyists. Green worked tirelessly, pouring his energy and resources into the business, while he and Barbara took turns managing the store. During this period, he faced numerous challenges, from tight budgets to long work hours. However, his commitment to quality and customer satisfaction drove him to keep going, even when profits were lean.
Growth and Expansion
As the popularity of Hobby Lobby grew, Green expanded his product offerings and developed a unique business strategy focused on customer service and Christian values. By the 1980s, Hobby Lobby had grown to multiple locations across Oklahoma. Green decided to take a significant risk and launch an aggressive expansion plan. He opened stores in neighboring states, testing the market and perfecting Hobby Lobby’s approach.
Green was known for his hands-on leadership style. He believed in maintaining close control over operations to ensure that every store adhered to the same standards of quality and service. This approach allowed Hobby Lobby to grow while retaining a family-owned feel. Green also implemented a six-day work week for the stores, closing them on Sundays to give employees time for rest and family—a decision that was unusual in retail but one that aligned with Green’s values.
Key Milestones and Success Strategies
Throughout the 1990s and 2000s, Hobby Lobby’s growth continued to accelerate. Green attributed this success to several key strategies:
- Commitment to Debt-Free Growth: Green made a commitment early on to grow Hobby Lobby without taking on debt. This conservative approach allowed him to maintain financial control over the business, even during economic downturns. By avoiding debt, Hobby Lobby could reinvest its profits into expansion and improvements without the pressure of interest payments.
- High-Quality Merchandise and Competitive Pricing: Green was diligent about sourcing high-quality materials at affordable prices. He negotiated directly with suppliers to ensure Hobby Lobby could offer products at prices that attracted a broad range of customers. This allowed Hobby Lobby to remain competitive, especially in a crowded retail space.
- Employee-First Culture: Unlike many retail businesses, Green prioritized fair compensation and benefits for employees. Hobby Lobby became known for paying above-average wages and offering generous health benefits. This employee-centered approach contributed to low turnover and created a loyal, motivated workforce that was instrumental in the company’s success.
- Faith-Based Leadership: Green’s Christian beliefs played a major role in shaping Hobby Lobby’s business practices. From closing stores on Sundays to supporting charitable initiatives, Green maintained a sense of purpose and mission beyond profit. This sense of integrity resonated with customers, many of whom shared his values, helping Hobby Lobby establish a loyal customer base.
Challenges and Controversies
Green’s commitment to his faith was both a strength and a source of controversy. In 2014, Hobby Lobby became the focus of a U.S. Supreme Court case when Green objected to a mandate under the Affordable Care Act that required businesses to provide certain contraceptives in employee health plans. Green argued that this mandate conflicted with his religious beliefs, and the case was eventually ruled in favor of Hobby Lobby. The decision was both celebrated and criticized, igniting national debates about religious freedom in business.
Though the controversy attracted criticism, Green remained steadfast in his convictions, stating that his company’s values were non-negotiable. For Green, faith and business were inseparable, and he believed that his success was due in large part to his commitment to God.
Legacy and Lasting Impact
Today, Hobby Lobby has over 900 stores across the United States and employs thousands of people. Under Green’s leadership, it has become one of the largest arts and crafts retailers in the country. Green’s success extends beyond business—he has used his wealth to support numerous charitable causes, from education to medical research, often through the Green family’s foundation.
Green’s story is a testament to the power of hard work, faith, and adherence to values. His focus on employee welfare, customer service, and financial independence has set an example for entrepreneurs who want to build a business that is both profitable and purposeful.
Lessons for Aspiring Entrepreneurs
- Stay True to Your Values: Green’s unwavering commitment to his beliefs helped Hobby Lobby stand out in a competitive market. Entrepreneurs can learn the importance of letting values guide their decision-making, even when it might be challenging.
- Prioritize Financial Responsibility: Green’s debt-free approach to growth allowed Hobby Lobby to weather economic downturns and maintain control over its expansion. Aspiring entrepreneurs should remember that a conservative financial approach can provide stability and longevity.
- Invest in Your Employees: Green’s focus on fair wages and benefits fostered loyalty and motivation among employees. Treating employees well is not just ethical but can also be a significant driver of business success.
- Adapt but Don’t Compromise on Core Beliefs: Even as Hobby Lobby grew, Green never wavered on key principles. Entrepreneurs can be flexible with business strategies while still holding fast to what they believe is right.
Conclusion
David Green’s journey from a small-town kid with a dream to the founder of one of the nation’s largest retail chains is inspiring. His story underscores that entrepreneurship is about more than just profit—it’s about purpose, commitment, and faith. By remaining true to his values, Green built a business that reflects his beliefs and supports countless employees and customers. Aspiring entrepreneurs can find in Green’s story both a blueprint for success and a reminder that values-driven business can lead to both financial and personal fulfillment.
14/12/2022