- 5 months ago
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00:00across America thousands of businesses grinding it out every single day because the ultimate
00:09American dream is owning something you built everything will be stationary for when Marcus
00:15comes in every episode I'm meeting businesses at a crossroads we've actually invested our entire
00:21life savings into this business I'll pick one and go to work but I'm not a consultant I don't
00:28believe in handouts I'm a capitalist this is $15,000 always looking for ways to make money
00:34that's why we want you to work with us because we're bad at math that's a terrible reason you
00:40should be good at math I'll work on their people I don't know why you're being such a dick about it
00:45Leon are you mad about something no why the f*** are you singling me out their process the execution
00:50is just like what is it in their product we've heard from the clients that it's not so easy
00:57that's Marcus is an amazing investor and hopefully we'll invest in our business in the end we'll
01:02negotiate my offer is five hundred thousand dollars for ten percent to see if the deal can be made so
01:08we both so we are a husband and wife team operating out of Brooklyn we're a frozen dessert business
01:14we sell ice pops sorbets and ice cream growing up in the Caribbean ice cream is traditionally presented you know I'd be of a passion
01:44fruit ice cream you have a sauce of ice cream you have a rum raisin we're here to kind of push those boundaries so we we turn any dessert
01:50into ice cream or sorbet or a popsicle you have one shop yes and how does that do that does well 23 we did a 475 and we turn a 70,000 profit 24 we did 360 and we did a 3,000 profit but we moved so the bulk of the difference between one year and the next is simply because you had to close down and start up yes can I taste what you have of course definitely
02:16wow look at this maybe start with the sauce up because it'll be lightest on your palate yes it tastes
02:23like a tart vanilla yes it's got a really beautiful smoothness it's not too sweet not too tart try the guava cheesecake
02:31that's delicious it's the number one summer flavor for us yep what is this one reason rum and which I love it's actually my favorite flavor we soak the raisins in rum for three to four months
02:41that is outstanding thank you where you've been all my life
02:45what do you need help with we need help scaling we want to be in other states and we also need capital to make that happen you have a unique product in my brain I'm having a slight problem though okay I can't get my head away from warm climates
03:02yes so when I think about you being here in New York you're swimming upstream constantly I have a an ownership stake in a key lime pie business in Key West and there's a young lady that owns it now and she's got a big space I'd like to connect you with the team in Key West okay
03:21I'd like to put up 15 grand to test some data to explore if we were in a warmer climate what is the opportunity
03:28does that work so awesome thank you so much
03:35well hello
03:36so nice to meet you Elizabeth Elizabeth nice to meet you
03:40so nice to meet you nice to meet you hey Marcus nice to meet you nice to what is your name
03:45Marlin nice to meet you White Lotus Home is an organic bedding company
03:49we make it all using nothing but natural and organic products and we hand make it right in New Jersey
03:57what are some of the things that are amazing about the company the revenue so we got up to 1.1 million two
04:03years ago okay the end of 2024 we went up to 1.7 break down the 1.7 for me so it's only six six hundred
04:11thousand private label two hundred thousand wholesale and the rest is retail which will be nine hundred
04:17thousand will be retail nine hundred thousand will be retail half of 1.7 is how much uh 850.
04:24okay so if that's the middle ground which part of the business generated more than 850.
04:30none so you just said retail was 900.
04:36yeah I know I put you on the spot I apologize but not really you don't really know the math of your
04:42business so I disagree but okay but I want you to prove it to me then if you look behind you that's
04:48why we love you see that's what we have we have that for every single skew breaks everything down
04:52for you to the tee how much yard we pull from the roll so one and a half and then we can make five
04:58out of those right this is the course of fabric just for that one pillow right now this is for all
05:04five of them or for one no no this is for one sorry this is for all five no that's the price
05:09per yard of the fabric sorry thank you thank you here's the thing I'm intrigued by 1.7 million dollars
05:16what I'm still cautious about is that business is about the specifics and if you don't know the
05:24numbers you don't know your business of course I don't see an opportunity today but I smell one or I
05:32see one in the distance but I need more refinement yes look they've put up this giant spreadsheet
05:37on the screen and it's impressive to look at but if they don't understand the numbers that make up
05:42the sheet I don't know what we're doing here okay my man so thank you thank you for taking the time
05:52look at the doggy hi guys hi how are you oh he likes people well I like doggies they do I'm Marcus
06:01Kimberly Kimberly nice to meet you and who is this this is Ezra Ezra mm-hmm Liz Liz
06:07how are you very cool hair thank you very much Stephen Stephen how are you we are a new experience
06:14in the pet space we provide grooming but in a very different way we focus on stress-free environments
06:22and transparency where we have individual suites that are made of glass so that mom and dad can see
06:29through and we do not kennel and we do not cage and what is your role in the business I am the director of
06:35grooming and education oh so I've been in the industry for over 30 years I'm called an NCMG which
06:41is a nationally certified master groomer we are in the process of building a school I've transitioned
06:46into that role of educating can you show me how it works oh yeah what'd the whole build out of your
06:52whole place cost a little over a million okay how much does it cost like if this was my doggy
06:58would be like 180 at his weight range that's a lot more than I used to pay I think our base price on
07:05our most expensive is 290. what are you doing are you rubbing my feet what's happening there
07:11Kimberly her gold Rolex watch was big and her diamond earrings were shiny she's premium and I'm
07:17wondering if she created something that was so elevated that she's trying to figure out how to generate
07:24revenue are you not profitable today why'd you have to think about it you're like you're looking
07:31up at this guy hoping because I'm trying to think am I profitable no we're not profitable yet okay I'm
07:36not even to my burn yet I'm still self-funding how much money have you put in
07:40a little over three three what million
07:53how much money have you put in a little over three three what million
08:02it cost you a million dollars to build it out and then the other two million went where operating
08:06I mean so you've lost a million dollars a year of your own money that's I'm shocked yeah that's a
08:14lot of money you're learning that for the first time right now yeah how much longer can you survive
08:18if the business keeps losing money maybe another six months you've got amazing people you have a great
08:27at least an execution process and you're dealing with a great product and for me when I see those three
08:33things there's a chance to make a profit so I'm going to come see you in LA good economy bad economy
08:40people will have pets and people will spend money on their pets before they'll spend money on themselves
08:45it's really only because of you
08:51I've arrived in North Hollywood at the fluffology business and I'm about to meet with Kimberly the
08:56owner and I want to understand where this disconnect is between her price points and why she's not
09:02seeing consumers and as I look around the neighborhood I'm starting to understand that there may be a
09:07mismatch
09:11hi how are you guys good morning I'm on the other side of the country good to see you nice to see you
09:18nice to see you how are you good I've been involved in the pet space for years and I understand the
09:23opportunity here but my primary motivation for coming here is the look on Liz and Stephen's face when
09:29Kimberly said that they had six months to survive anytime an employee feels insecure unstable about
09:37where they work that's not a good thing that's what I'm here to fix how you doing I'm well how are you
09:46fluffology's concept is all about transparency and I'd love that for the pets and the pet owners
09:52but in order for me to understand how to help this business I have to look at it from the perspective of the
09:57groomer so I've asked Liz to actually give me a hands-on course all right I'm ready to be trained
10:03anything over 50 pounds is a team lift one two three awesome
10:10so our next step is we start the washing of the body so you're going to take this middle knob you're
10:14going to turn it to number one oh this is like a car wash exactly we've already pre-diluted the
10:19shampoos we don't have mixing bottles and you have to do a lot of stuff we do everything ahead of time so
10:24less movement around for the dog so it just helps calm them down once you're fully trained you want
10:30to know how fast you should be at bathing a dog 10 minutes on a dog his size at his length that
10:35should take you about four minutes I'll be honest water's going everywhere so I wish that the tub
10:41just ate up all that space because every time well most of them literally have a built-in
10:44backdrop yeah like a tub at home exactly now just towel dry here's the thing you don't rub hair this is
10:51when it's the most fragile creates more matting so you take the hair and you squeeze and let that
10:57towel do its job exactly welcome to dog grooming we're gonna put a happy hoodie on finn so it helps
11:09muffle the sound for him what this table can't hold him yes it can really yes it can
11:17here's a couple things from my perspective one I thought the tub was a terrible setup we had to
11:25hoist a giant dog up and into the tub water was going behind it the table didn't work for me it was
11:35too small for this size of dog Kimberly can you show me what you have going on in the back
11:40this is the future home of the fluffology institute of grooming fluffology is operating in a massively
11:48oversized space there's six grooming booths that aren't all being utilized and then there's the back
11:54of the building that's totally empty and while that's a huge problem i'm not sure it's as big of
11:59a problem is how bad this location is how is the neighborhood so the neighborhood you know is is rich
12:09with history okay i appreciate all that how is the neighborhood it's mixed there's it's all sorts
12:14of different yeah that's all income a significant amount of homelessness as i walked and i didn't see
12:21the type of affluence that i thought i would see i'm not sure this was the greatest location for us
12:28we can't move at the moment we are three years into a six-year lease now that i understand that
12:34Kimberly stuck into a six-year lease in a neighborhood where the customers aren't going to pay
12:39150 to 200 to have their dog groomed it's clear to me that something dramatic is going to have to
12:45happen now i'm also seeing that the products on the shelf are equally tone deaf to the local environment
12:52how much inventory is in the retail store we probably have about 176 000. and how much revenue does the
12:58store do you don't want to say five to eight thousand a month okay what is your name sir leo leo yes leo how
13:08you doing that was my father's name nice to meet you brother nice to meet you can you hang with us
13:11here because i see most i see you snickering a little leo are you do you handle retail uh operations
13:18okay yeah what days supply do you have uh 4.65 years you should be turning your inventory two to three
13:25times a year when i hear that there's four and a half years of inventory that's 1642 days that's a lot of
13:33inventory what i really want is about 90 to 120 days so i want to push that number down but in order
13:39to do that i need to change the price point and the offering that's really the problem leo did you
13:45order this no okay it's 175 this is this a poop bag this is more than the price of a handbag
13:58that a woman who lives in this neighborhood would spend i'm just going to be more candid with you
14:04this is offensive it says to them we are expensive and what is wrong with that you do have to rely on
14:12what's around you yeah and if what's around you doesn't match what you offer yeah that could explain
14:18the losses we're going to need to create a retail assortment that actually speaks to a normal person's
14:25budget hey how are you i'm marcus hey marcus rick rick nice to meet you nice to meet you how long have
14:32you guys been married uh 18 years uh-huh 18 years now that i'm hearing about and meeting rick her
14:38husband for the first time i think it's important that we all sit down to understand how in the heck did
14:44they spend three million dollars ah i can't go anywhere without it oh my god does that fit in
14:52your pocket what is the total for the year last year 375 000. okay what was the best month of last
15:01year 47 000 47 k and what was the worst month of last year 19 5. okay how much business did you do
15:10last month 45 000. i think that's a good trend it is now tell me where the revenue's coming from
15:18grooming for sure what's becoming more clear to me is that while the revenue is up it clearly isn't
15:23generating enough to cover their expenses but the bigger problem is the lack of diversity around their
15:30revenue source the three million dollars that came into this business came from where most of our
15:36wealth we accumulated while we were married we had a very good run in business yep she helped me
15:42expand my business at a time that i really needed help so if i could help support her by being kind of
15:49really an investor during her startup of a business that she's passionate about that would certainly
15:54seem to be the right thing for me to do when is the next time you think you're going to have to put
15:59money in uh probably at the end of the month at the end of this month and what is the projection
16:04for the rest of the year easily 22 000 a month shortfall 22 000 a month yeah let me do the math for
16:11you that's over a quarter of a million dollars a year and they don't seem phased by it where most
16:18business owners in america would either be figuring out that they have to close or figuring out very
16:24rapidly how to not close i don't think i could do this so where's your line in the sand uh are you
16:32talking about time or finances money probably another million dollars the fact that rick is so flippant
16:40about like yeah i'll just put in another million dollars while they just got through telling me that
16:44they're going to lose a quarter of a million dollars this year that means he's planning on continuing this
16:49insanity for four more years i hope they don't think it's going to be my million dollars because
16:56that is never happening allowing money to continue to be lost in the face of obvious things that you
17:03know aren't right to me just feels negligent and that's i think for me what is a big turnoff
17:12when people are casual it scares me because then i think they're going to be casual with my money too
17:17that scares me okay i respect i want to think about whether i want to whether i want to do this
17:32i've spent some time with kimberly and rick i'm a little concerned about their casualness around money
17:40am i the only person that sees that no spare no expense it's that attitude of just
17:46but i've made it so beautiful she doesn't want it to look like it's a groom shop and so that has
17:51been a struggle what are you hoping for for yourself i don't know if you know but i literally left my
17:57husband and two of my kids in arizona so that i could have this opportunity to transition to full-time
18:03teaching because that's the goal i've been in the industry long enough that now i want to educate
18:07full-time and when do you see them when i can and you've been here by yourself
18:15i literally moved from one state to another to be a part of this opportunity and i love my husband and
18:23i love my kids and for it to not work out i just can't even describe how frustrating and how
18:29disappointing that would be and how do you get paid salary what about a percentage of like all
18:36have you asked for that we've talked about money and i you know this is a startup you've gotten a raise
18:42no so no equity yeah no bonus and no raise and no family right and if you went back to arizona what
18:51would happen to this place
18:53i don't know i think he would be an awesome pathology mascot i want to go over and visit
19:07kimberly because she's doing this community event where she's trying to attract new customers and i
19:12want to understand like how do they collect data and how are they going to market to these folks after
19:17we haven't met so do you work with kimberly and rick so i do pr for them i have a pr agency
19:22so as a business owner which you are one yes what do you think is a concern with the business
19:27what's that what's a constructive criticism that you have so the one thing i've been telling them
19:32since day one i'm native to la is they're in the complete wrong spot i find it ironic that the woman
19:39who's handling pr for fluffology was so comfortable telling me that they have a terrible location and no
19:46matter how much money you spend marketing it won't matter the only thing to do is to restructure and
19:51re-imagine the entire business model let's go through the customer process so you come here
19:56today you talk to a lot of people how did you collect the information we did it we didn't normally
20:06we do normally this is how we always do a giveaway and they have to they have to fill something out
20:12so that we capture their information there's a term called roas return on ad spend and in this
20:18particular community event they spent money to go there and how are they going to market to these
20:23folks after if you don't write anybody's name down you know what the return on ad spend is for this
20:28event it's zero okay see you tomorrow thank you thank you by the way great job how much do you pay her a
20:35month six six hundred no six thousand six thousand dollars a month yep what does the average groomer
20:44make in your shop 52 000 and how much do you pay your pr agency 72. she's the only one seriously that
20:54helps you bring in business i swear to god no one else is except the people that do the grooming they're
21:00not they don't work on bringing business no but they are the reason that people come back yes but
21:05i the only reason i feed them like i feed them like children and i'm out there hustling my ass all day
21:11long all right can i just talk to her for a minute by myself please i know how desperately you want this
21:18to work i can feel it and you're so scared that it's not going to work and it's not working because
21:25you're so scared i think i believe in this i think it's a great model i think it is def we're going to
21:31be a premier pet destination place but i'm telling you i don't have this team support that i think you
21:36think i have they don't support you the way you want them to no they just don't support me at all
21:41they're spoiled on these people in my mind when i listen to kimberly she sees herself at the top of
21:48the mountain and her employees at the bottom the only way she's going to be successful is if she sees
21:54herself at the bottom of the mountain and she wakes up every single day pushing her employees
21:59to the top making sure they're successful that's what a leader's responsibility is to do i would
22:05tell everybody that we're going to have a company meeting on tuesday and they better get their ass
22:12there so without talking about it anymore i'm going to get everybody in a room and we're going to
22:18flush this out once and for all let's get down to it i'd like you to list off two or three things
22:28that make you crazy in a negative way in working here we'll start with you stephen there's definitely
22:35a lot of things that need to change as far as morale in here and then time gaps obviously i get paid
22:43commission and then if i'm sitting here i would like to be paid for that time i'll say it as if
22:50i worked here i would say you spend money on lots of stupid but then you can't figure out how to pay me
22:56when you're willing to pay other people like a pr agency six grand a month did you know that no you
23:06paying those girls six grand a month is it's a waste of your money when your groomers and your staff
23:14aren't getting paid per year as much as your pr staff that is delusional
23:21well they don't just do pr they do all the social media all the content all the posting what do i do
23:47do the groomers are the company i made so little last year steven do you mind sharing how much you
23:54made last year yeah i made 26 000 you only work three days a week right don't start blaming me no
24:02no but you only i work four days a week okay no i think there was time in the beginning where there
24:07was no appointments nothing i worked weeks with nothing and i stayed here for you don't blame me
24:15leo your turn um for me my position um it's always been fluid um my responsibilities have always
24:26just kind of like wavered and it just kind of depends on the day and like the company needs
24:30um so just kind of like more strict or direct responsibilities will help me not set you up
24:37or the company for failing thanks i hate that and i appreciate your vulnerability leo
24:44because that's the best way to communicate is honesty you're up liz it is so difficult to deal
24:50with your highs and your lows and your your inability to be clear and follow through and
24:57stay on track because it's all over the place i have never worked this hard for somebody for so
25:03little in my entire life i honestly thought that i would be teaching at the school portion at this
25:08point what the hell am i doing why am i still here how much longer are you willing to stay here
25:16six months i think we should take a little break here it's a lot to process we'll come back in a few
25:23minutes this process that we just went through with the employees it proves to me that if kimberly
25:30doesn't make changes to her leadership style this business doesn't survive is liz leaving in six
25:36months if she doesn't see a path forward she is i think you got to take a breath and what i wanted
25:42you to see here is they are pissed off at you oh yeah i think so and so that's why you're not able
25:48to motivate them to do things managing people is really hard because i have to tell you no matter what
25:53you do no matter what you do right they only remember what you do wrong if you want to manage
25:58the way you're managing now unfortunately i don't think i can help you anymore and i think they will
26:03they will leave and the business will close right there was a lot and i feel a little misled that
26:16somebody else is making a ton more money than me because the stylist is supposed to make the most money
26:22we're the lifeblood of the company i'm a tough bitch but i'm also a crybaby when they say i don't
26:30appreciate them i can't remember the last time they ever have appreciated me i am bombarded with
26:39you're not doing this right you're not doing that right you're not doing this right we don't do this
26:42right you don't do that right stop with the attacks maybe it is just human nature no matter how
26:49much you give people no matter how much you do you know they just want more hey guys can you guys
26:56come on back do you feel like you made enough money in the last year no do you feel like you made enough
27:04money no do you feel like you made enough money no most importantly do you feel like you made enough
27:09money no all right so we're all going to cut and you're going to do what i tell you to do
27:14we're going to think about this in three zones zone one is the retail store we need to stock it with
27:21things that we think speak to the neighborhood so we're going to put in a chew and treat bar because
27:25it's high frequency high margin and it's going to give the business the profitability it needs to pay
27:30everybody the proper wage that doesn't have to come out of their pocket zone two are the six booths
27:38i want to swap out the tubs and tables so it's easier for you guys and it's way more efficient
27:42in the back the third zone we're going to start what was promised to you with a very basic
27:48educational platform going forward we have three rules every decision we're going to make we're going
27:56to use a filter does it drive revenue does it improve morale and does it plan for the future
28:02if it doesn't check those boxes it doesn't work they have to know what the rules of engagement are
28:08they have to know what their jobs are they have to know what their expectations are
28:12you have to give them a proper pay plan and stay out of their way that's it
28:23look i am up to here with kimberly right now you know the best way to get kimberly to change her
28:28perspective about her people in the process make her do their job and then she'll realize how
28:34difficult it is and then she'll be okay with changing all right kimberly first thing we're
28:39going to do is check our water temperature if it is warm on your skin it is warmer on theirs
28:46so you have a bar of soap that is hanging on the inside of your tub and you're going to use that to
28:52saturate her entire face paying really close attention to her mouth where food gets in it
28:58so we're almost done baby
29:10in the time that we've been open kimberly has washed two dogs
29:15live
29:17two two dogs
29:20how's it going okay well that's over there
29:28our staff meeting was hard for me to digest to hear and see those reactions and responses from my staff
29:36small sections it was super tough on me and super emotional i can respect how they feel i walk past my
29:42groomers all day i'm in and out of their suites but i had no idea it's hard work
29:48i am open to changes i'll give them a vote okay go ahead oh what a good time
29:58for me the path to prosperity for this business is surrounding yourself with the right people
30:03and having more dogs and the quickest easiest tool is zip recruiter which is like the best hiring site
30:09out there all they have to do is create a job posting and zip recruiter delivers qualified
30:14experienced people quickly and then hire them bring in more dogs and generate more revenue in the booths
30:21it's that simple
30:29thank you how you doing buddy how you doing good to see you man i brought the team to one of the
30:36largest and best pet distributors in the u.s and i wanted kimberly and rick to understand that
30:41it's not that difficult to figure out how to get to break even you have to start looking for new ways to
30:45make money find new revenue sources find new margin we're meeting the neighborhood at the price point
30:52but i most importantly want to give leo the assignment of overseeing the retail store so that
30:57he wakes up every day and feels like he has purpose and he can contribute to this company
31:02that has a little novelty to it those should be flying off the shelf i think ultimately leo you
31:08are going to be fully in charge of that retail store and then from that day forward it'd be my
31:13preference that you have your wage and then you have an incentive directly tied to the sales where you
31:19can make real money don't you have a restocking charge when you take something back no not for
31:24marcus okay what a fabulous offer it's almost like unbelievable that we're here and you're here
31:29and we're just meeting you now this looks really great part of the reason that i'm so adamant about
31:34this chew bar getting set up in their retail store is that they're losing 22 000 a month if they sell
31:40a thousand dollars a day at a 50 margin that's 15 000 a month in gross profit getting a lot closer to
31:48zero than they've ever gotten but the real revenue growth is going to come from more customers walking
31:53in the front door and taking on grooming services so i want to show you something that i had my friends
32:00at salesforce built they've launched a product called agent force and it's essentially like having
32:05an executive assistant that helps you communicate with the consumers so i want to show you an example
32:11of what will happen all right so this is your website right and i had them build an agent hey there
32:17i saw that you're looking at our various grooming services are there any questions i can help with i'd like to
32:23book a groom for my dog ezra could you please tell me ezra's breed and age he is a standard poodle
32:30and he's three years old we would be excited to pamper ezra we love standard poodles we have a 3 30
32:38p.m slot on thursday at our magnolia boulevard location it's the future it's really the present
32:47the primary adjustment that needs to be made to achieve a level of profitability for this business
32:52is for them to understand the tam the total addressable market within their neighborhood
32:58and in order to do that you're going to have to modify your pricing how much does it cost like if
33:03this was my doggy how much would it cost 180 at his weight range to 210. our base price on our most
33:09expensive is 290. the lower the price the more people are open to it how did you establish this
33:16pricing model i did a very elaborate spreadsheet you may need an abacus to figure out what the pricing
33:24is is it a puppy is it have short hair is it four months old is it weigh this much it's like holy
33:30it's just all way too expensive what you're selling in that booth is time that is that's all you're
33:36selling right right you can make it very simple by saying for a small dog it's an hour for a medium dog
33:42it's an hour and a half and for a large dog it's two hours and you just charge time so i was thinking
33:48to max out this store let's just do 99 for a groom and you'd get away from all this complicated
33:57numbers look whether rick is right about 99 or not i can appreciate him wanting to simplify the process
34:04and get to profitability but that's just one component there's a whole host of other things that
34:09i'm going to require kimberly to do to help us get to profitability there are assignments here read
34:15them out loud new pay plans for the groomers as well as incentives for growth on selling other products
34:20and services standards and expectations for groomers on what is expected of them and that's what leo said
34:26he said i just want to know what am i supposed to do tell me what you expect of me and you also need
34:31to get liz out of the grooming booth and let her do some teaching i'm asking you to sign up to get this
34:37done in two weeks if i come back and it's not done in two weeks i have no interest in investing
34:50we're making it happen over here we're making it happen we're getting rid of some of our retail
34:54items that just didn't sell we've reconfigured a lot of the merchandise we put up sale signs in the
35:01window we're gonna have a small army of people distributing flyers directly in the neighborhood
35:08and maybe we should do cafe tables back here
35:22after over a month of working with this business fluffology in los angeles i'm back to see if all the
35:27changes that we've been working on have actually happened have we fixed the people process and
35:32product i guess we're about to find out well hello one of my main rules in business is that if you don't
35:41know your numbers you don't know your business and intuit quickbooks gives our businesses the tools we need
35:48all on one platform at fluffology kimberly manages a complex business with a growing staff
35:54i love the fact that quickbooks allows business owners to support our teams with access to health
36:00benefits and affordable retirement plans that integrate directly into quickbooks payroll now that
36:06you know your numbers you'll understand why i use cookbooks and you should too
36:10well hello hello hello how are you i'm well how are you how would you describe the execution
36:23of la's biggest chew and treat bar and i'd give it a solid seven
36:40like we're definitely headed in the direction that you want us to like head in leo you did a
36:46really nice job in here how's business been from your perspective we had the best month ever
36:52you did yeah how much 54 000 for the month yeah i've been waiting for her to get over 50 000 for
36:58two years eliminating losses is good for our relationship and ours
37:02yes i want to see how liz is doing kicking off the grooming school i know i know super excited and
37:11all you're gonna do is move your thumb that's all you're gonna do hey guys hey what's going on is
37:17that a real dog why don't you see and find out are you starting from scratch no scratch have you ever
37:25done this this is first okay not bad i like it i'm glad to see that liz is able to do what she came
37:34here to do which is to teach but i also want to ensure the other changes i required have also been done
37:41show me what's different about your door is actually a ramp
37:46oh that's so awesome this table is super super awesome there's no lifting at all is it not as
37:56pretty no it's not yeah does it make everybody feel better yeah so what are we doing to address
38:03compensation with the team we've drafted a commission structure for our stylist my commission
38:09has gone up dramatically yeah okay yeah you should be able to get close to doubling your income
38:16yeah in tooth in this year versus last year right yeah is the last 30 days shown that to be happening
38:22100 i'm able to pay my bills i'm able to live a little more comfortably so you feel better
38:27i feel better new tub yeah new pay yeah new attitude yeah how about everybody else i think
38:33everybody is happier yeah we've been booked and busy yeah and how do you feel now about all this
38:38you kind of re-energize us and sometimes you just need that can i have a minute just with them
38:44absolutely how different is she if at all one she's giving more actual autonomy to decisions
38:54she's a lot more you know just personable whereas before it felt like rushed and not acknowledged yeah
39:00no acknowledgments but now it's like oh can i get you a coffee that stuff feels good as an employee
39:06i'm happy with the progress here that's being made towards driving towards profitability and i'm also
39:10happy to see what's happened with the people but for me i really need to decide what i want to do
39:16here with this business take a deep breath i know right i feel like you are so close and when i met you
39:30i felt like you were so far away after i left on day one i was like what am i doing here right so i want
39:37to tell you that i'm really proud of how you changed thank you it's part of the reason why you
39:43had your best month ever i think rick you've been really supportive of her it certainly makes for a
39:49much more harmonious marriage and business partnership when you are not watching your life savings go out the
39:56door which leads me to what i would like to do i have an interest in being a non-active backer
40:04of your business and you understand that if i do that i'm going to want a chunk of something
40:11that's just how it is i would like to task you with two things one get to profitability you got 90 days
40:19to make money second i want you to go to some mild level of an architectural drawing that shows the cost
40:28broken down by zone one two three retail where do we get our fixtures from where does the product
40:33come from where do the freezers come from go to zone two where did the tubs come from where did the
40:38tables come from all of that i want to build all of that out what i'm trying to get you to build is the
40:44concept that somebody else could buy you now can take people who want to be business owners and say to
40:50them here's my playbook we are certainly interested in being involved with you i have an interest in
40:56being involved at some point but not until you get to zero okay thank you super proud and you really
41:05did a hell of a job we'll see you soon yeah okay be good awesome i am very pleased that fluffology had
41:13their best month ever and a big chunk of that credit goes towards kimberly in adopting the filter system
41:19that i gave her which is do the decisions i make drive revenue here and she did that by changing
41:26her grooming pricing and adding the treat bar do they improve morale and she did that by giving the
41:32focus to the employees that they deserve with the right pay plan and the right freedom to be the best
41:38version of themselves and does it set us up for the future and i think she's done that by modifying
41:44all of those things that give this business a chance to succeed in the future if she continues to adopt
41:50those three and embrace them the next month and the month after that we'll only get better from here
41:58i have someone who finally says all right get here and i'm committed i'm thrilled to death i really am
42:07we were able to convince a smart investor like marcus to believe in us maybe i'm feeling a little
42:14validated with all the hard work that i have put in and my team they want this too and they deserve it
42:25i'm happy to report that after two months and the team making all the changes and most importantly
42:30working together fluffology has become profitable for the first time it marks a new chapter in their
42:37future it proves to me that when people can work together and have a common goal well that's when
42:43the profit comes i need somebody with business acumen we're actually not profitable our growth is
42:51flattening hmm that's delicious these suck now give me new ones shut it down you're telling me to change
42:59everything you emotionally did not come prepared
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