- 3 days ago
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00:00You actually owe $80,000.
00:03Wait a second!
00:05Money affects every aspect of our lives,
00:07but most importantly, our relationships.
00:09You think it's coming off the top?
00:10Yeah, you said it.
00:11Oh, wow.
00:12I am Leah Collins, and I'm a financial relationship coach.
00:15But I heard you did.
00:16Yeah, I'm pretty good.
00:17One person has nominated someone in their life
00:20who is drowning in debt.
00:23I help people take control.
00:25Let's break the bad habits that are holding us back
00:28and keeping us maxed out.
00:40I'm on my way to Two Sisters Sweet Creations,
00:43which is a bakery in DeSoto, Texas.
00:45I am going to meet Yolanda.
00:47She nominated her older sister, Deidre,
00:50because her personal and business finances are in disarray.
00:55The twist is Yolanda and Deidre are co-owners of the bakery,
00:58so she kind of nominated herself.
01:00I'm here to determine if this is a business management issue,
01:03a sisterhood issue.
01:05Let's see what we'll find out.
01:16Welcome.
01:17Yolanda?
01:18Yes, I'm Yolanda.
01:19And you are...
01:20I'm Leah.
01:21Very nice to meet you.
01:22I'm so glad you're here.
01:23Yes, me too.
01:24Yes, thank you so much.
01:25What can I eat?
01:26We have some cinnamon pecan cookies.
01:27Okay.
01:28Would you like one of those?
01:29Sure.
01:30I'm excited.
01:31Yes, me too.
01:32My initial impression is that it's more bakery than store.
01:35Like, I did expect a lot more storefront.
01:38But you did head straight to the cookies.
01:40I did.
01:41I did head straight to the cookies.
01:43Mm.
01:44Yes, yes, yes.
01:45This is really good.
01:46That's the reaction we like.
01:47Yes.
01:48Yes.
01:49How could they possibly be struggling when these cookies taste this good?
01:51What's going on?
01:53Gosh, we're just, you know, trying to make sure we're keeping our heads above water.
01:58And it's just, it's been difficult.
02:00It's been really hard.
02:01What isn't going so well?
02:03Just making enough money.
02:04That's, that's the, that's the problem.
02:06How much is this cookie?
02:07That cookie is $2.50.
02:09I would pay $4 easily for that cookie.
02:11Okay, okay.
02:12I think it's underpriced.
02:13I can tell you that right now.
02:14Okay.
02:15It is delicious.
02:16Okay, thank you so much.
02:17Yes.
02:18Hi.
02:19I'm Deirdre.
02:20Leah.
02:21Hey.
02:22Nice to meet you.
02:23What's going on?
02:24What's going on?
02:25You called these people.
02:26Well, actually, yes, I called her here.
02:27She's our financial planner.
02:28Okay.
02:29Just, you know.
02:30Okay.
02:31Yes.
02:32Hi, Miss Nikki.
02:33Hey.
02:34Hey, sister.
02:35So how much does she know about you coming?
02:38Yes.
02:39Uh, this way.
02:42We've talked about needing help.
02:45So now we're here.
02:46Well, how do you feel about me being here?
02:48Um, we do need the help.
02:49It's a bit of a surprise.
02:51We had discussed bringing in some financial help.
02:55I just didn't know this was happening today.
02:57But I'm just ready to hear whatever it is.
03:00Do I need to strap you in?
03:02We can still bake a cake later if you want to.
03:05Okay.
03:06Mm-hmm.
03:07I'm Deirdre.
03:08And I'm Yolanda.
03:09And we are the owners of Two Sisters Sweet Creations.
03:13See, the D is for Deirdre.
03:14The Y is for a yo-yo.
03:16Get it all together.
03:17So we got to show you.
03:18No?
03:19Okay, no, for real.
03:20Girl, you are crazy.
03:22We definitely were really close growing up.
03:29And we have always been together.
03:32You know, I'm big sister.
03:34I am a protector.
03:36I love my sister so much.
03:39She's so incredibly smart.
03:41She's so loving and caring and nurturing.
03:44All those things she said about me, I am.
03:49No, you didn't.
03:51See?
03:52I have a husband of 21 years.
03:56And we have four amazing children.
03:59I am Auntie Extraordinaire, of course.
04:03I love my nieces and my nephew more than anything.
04:07We own our bakery now.
04:09But formerly, I was an educator.
04:12Total of 22 years in public school education.
04:15I worked in the OR as a nurse.
04:17And I absolutely loved it.
04:19However, we love to cook and we love to bake.
04:21We used to give things away to our coworkers.
04:24People started saying to us, you should sell this.
04:27And so that's why we decided, okay, we're gonna have a bakery.
04:31We started the bakery in my kitchen.
04:33We baked around the clock.
04:35And then we opened our bakery in 2022.
04:38We call our customers our sweetsters.
04:41But the only problem is there just isn't enough of them.
04:45We experienced a decline in sales, foot traffic.
04:48So the business has had a very hard year.
04:50The lack of income forced me to, you know, live off my credit cards.
04:55Whatever we need to do to make purchases, we will take from our personal finances and do that.
05:00And it just has taken a toll on, you know, the pockets.
05:04Yes, yes.
05:05At which point did you all decide to leave your jobs and pursue this full time?
05:10In 2018, I was diagnosed with breast cancer.
05:16That was very devastating for me.
05:19I decided that the bilateral mastectomy would be my best option.
05:24When I had the surgery, I...
05:26It's okay.
05:27Sorry.
05:28You can take your time.
05:29I had a battle with breast cancer.
05:36It totally changed my life.
05:38The surgery and my healing journey, it shifted my priorities.
05:41And I know that if I can survive breast cancer, I'm cancer free, I feel like I can take on anything.
05:49It just created a sense of urgency for me.
05:51Right.
05:52Mm-hmm.
05:53I've always wanted to be an entrepreneur business owner.
05:55And I knew at that time that I had to make it happen.
05:58Okay.
05:59Mm-hmm.
06:00Can I get a tour of the place?
06:02Of course.
06:03Okay.
06:04We would love to give you a tour.
06:06Here.
06:07Okay.
06:08These are our brand new ovens.
06:09Okay.
06:10$7,600 for both of those.
06:11The vent hood, that cost us nearly $10,000.
06:14Mm-hmm.
06:15These are our mixers.
06:16And how much are these?
06:17$350 to $400 for each one.
06:20Oh.
06:21Mm-hmm.
06:22And this is our merchandiser or refrigerator.
06:24These are all of our ingredients.
06:26And our stainless shelving, we purchased all of these.
06:29And let us show you our other space, Sweet Bee.
06:31Other space?
06:32Yes.
06:33It's right next door.
06:34Where?
06:35The space that we're renting.
06:37We call it Sweet Bee.
06:38And we have big plans for it.
06:40Ooh.
06:41This is nice.
06:42So what do you use this space for?
06:44We want to be able to offer some different types of classes,
06:47some educational opportunities.
06:49And how much do you pay for this space?
06:50A little over $1,300 for the month.
06:53Okay.
06:54How often do you all utilize this space to bring in income?
06:57Currently, we are not really utilizing it as we should be.
07:00Well, let's head back and let's talk some numbers.
07:02All right.
07:03All right.
07:04I'm confused.
07:05I don't understand the purpose of this space.
07:06It really just looks like a big storage unit.
07:08There's no way this is cost efficient.
07:10Everything they do in Sweet B, they can do in Sweet A.
07:13So what are your biggest expenses?
07:15Our biggest expenses here at the bakery would be the rent.
07:20How much is the rent?
07:21$3,300 a month.
07:23Is it $3,300 for both?
07:24For both of them.
07:25Okay.
07:26Yes.
07:27And then we have our brand new ovens, which we have here.
07:29Yes.
07:30All shiny and new.
07:31And did you have to do anything to get the space up the car?
07:34Oh, yes.
07:35Yes.
07:36We had to do a lot.
07:37It was a dance studio beforehand.
07:38Okay.
07:39We hired a plumber.
07:40He ran the gas.
07:41He ran the water from the back to the front.
07:43And what was the total cost?
07:44So we poured about $50,000.
07:47$50,000 is a lot of money to spend for a small business owner.
07:51It would have been smarter for them to find a location that had previously already been a bakery or a restaurant.
07:57Do you know what your business debt is?
08:00Business debt is around $30,000.
08:03Okay.
08:04What was your income last year?
08:06Not enough.
08:07Oh, it was straight poverty.
08:10You know?
08:11No, really.
08:12This last year, my salary was $17,000.
08:18Yolanda, she's at 22.
08:20Okay.
08:21I saw the look, but that's the reality of it.
08:23So why does she get 22 and you get 17?
08:25Well, that's the decision that I made.
08:28To give her more, Yolanda has a family.
08:34Payroll has been the biggest conflict.
08:36Just the other week, I knew we had not made enough.
08:40So I ended up paying her $1,200 and I paid myself $10
08:46because I don't want to see her and her family going without, especially the children.
08:52I feel like it should be split evenly.
08:56That's how I feel.
08:57But you have kids that I love and they need to be taken care of.
09:07So it's just a sacrifice, you know, to help, you know, the family out more.
09:12If it means any of the other children can do some of the things that they want to do, I'll eat noodles.
09:18How does that impact you? Does that hurt you at all?
09:21Does it hurt me?
09:22Well, yes, of course it hurts me financially.
09:24Yes, it does.
09:25Is there any time you've gone without basic needs?
09:27What about medical expenses?
09:29Yes.
09:30Medical needs?
09:31Yes.
09:32Health insurance?
09:33I don't have health insurance.
09:34It's cheaper for me to pay when I do need to go to the doctor out of pocket.
09:37Okay.
09:38Yeah, I'm just grateful that I, again, I'm not having to have, you know, some type of medical procedure, major or minor where I would have to pay a deductible.
09:46But what happens if you do?
09:48Well, then we can just cross that bridge when we get there.
09:53And I'm going to say this.
09:55Faith is something that's really extremely important to both of us.
09:59I just believe that God is, he's going to always make a way, regardless as, you know, what the situation looks like.
10:06Which I 100% understand, respect.
10:08Okay.
10:09And I just want you to know faith and financial discipline can co-exist.
10:12Yes.
10:13Okay?
10:14Try to combine those two.
10:16Yes.
10:17To find an approach that's going to work.
10:19That sounds great.
10:20Okay.
10:21Well, I want to give you some homework.
10:23Okay.
10:24In addition to submitting your detailed financials to me, I also want you to go through this Money Moves Makeover Workbook and really just focus on step one, which is identifying your values.
10:37Okay.
10:38And start coming up with your short and long-term goals.
10:40All right.
10:41All right.
10:42Well, I'm excited.
10:43Nice to meet you all.
10:44It was nice meeting you too.
10:45It's very nice to meet you too.
10:46Calling Leah to come in and help us with our business finances.
10:50I definitely feel like it was the right move.
10:52I guess I can take my apron off.
10:55We have literally been praying for advisement because we know we don't have all the answers to that.
11:01You know, she's an answer to our prayers.
11:04Until next time.
11:05All right.
11:06Bye-bye.
11:08Deidre and Yolanda are like many entrepreneurs.
11:10They want to turn their passion into profit, but they really don't understand the fundamentals of actually running a business.
11:16However, I want to help them increase their revenue and achieve their financial goals.
11:21Oh, they have some examples.
11:22We can get started on this.
11:24Do you all have a budget?
11:25I don't have anything to budget.
11:28We have been making pennies.
11:30It's been rough.
11:31It is a shared commercial kitchen space.
11:34We feel like it would not be ideal for us.
11:36We can't jump at everything that everybody is saying to do.
11:56Hi, Deidre.
11:57After going through the business financials, I have a complete picture of the predicament that Deidre, Yolanda, and the business are in.
12:04Good to see you again.
12:05You too.
12:06We have a lot to talk about, but hopefully they'll be able and willing to make big changes.
12:13We had homework.
12:15So how did that go?
12:16We agreed on five values for ourselves.
12:19Faith, of course.
12:20Family.
12:21Discipline.
12:22Consistency.
12:23And integrity.
12:24Okay.
12:25Yes.
12:26And what about the goals?
12:27So for business, we did those together, of course.
12:31And so for short term, we said we definitely want to pay off our debt.
12:35Mm-hmm.
12:36And another short term goal was to be able to pay ourselves a decent, livable wage.
12:42Is there a monetary value attached to it?
12:44In my last career, which I had been for 22 years, my salary had gotten up to about $80,000.
12:51So if it was something comparable to that, at least it would be where I left off.
12:55Gotcha.
12:56Like everything going forward needs to have a monetary value attached to it.
13:00Look, we tired of playing.
13:03Tired of being broke.
13:04Yeah.
13:06Well, I'm glad to hear that.
13:07Yes.
13:08And my goals, I just really want to spend more time with my family.
13:13I mean, I don't really get to see them that much.
13:15That's kind of the point of doing this, right?
13:16It is.
13:17Exactly.
13:18And I need to lose some weight.
13:20Okay?
13:21Because, I mean, you know, I'm thicker than a snicker.
13:23But I need to get on down a little bit.
13:26Yeah.
13:27Well, I did a little homework of my own.
13:29Okay.
13:30Thank you for sending over your financials.
13:32Let's have some little boxes for you.
13:35Okay.
13:38So go ahead and open.
13:41And tell me what you see.
13:43Sprinkles.
13:45Dig down in there.
13:46Dig in.
13:47Yes.
13:48Okay.
13:51Is this fake or is this real?
13:54Ooh.
13:55The Lord really answer prayer.
13:59I see your big head at home.
14:00It's not real.
14:01Oh, okay.
14:02It's not.
14:03Okay.
14:04I don't like sprinkles.
14:07At all.
14:11This stack here represents your personal and your business debt,
14:14which is about $100,000.
14:16And this is your take-home pay, which is about $40,000.
14:21So you've been trying to make this $40,000 stretch to not only cover your expenses,
14:26which isn't even included here, but also the debt on top of your expenses.
14:30Mm-hmm.
14:31How does that feel?
14:33What were you thinking?
14:34It feels like it looks.
14:35It does.
14:36It does.
14:37Yeah.
14:38Like stretching a dollar, you know, trying to make a dollar out of 15 cents, you know.
14:44We have been making pennies.
14:46It's like we've been trying to do something about it.
14:48It's just been hard financial times.
14:51Looking through the finances, I didn't see anything, any house payments coming out.
14:55Oh, from me.
14:57I saw this day coming where I would not have enough money to perhaps cover my mortgage.
15:05So I called my mortgage company and had a conversation with them.
15:09We talked about some options.
15:10I selected the forbearance.
15:12I'm going to do that for three months until we could, you know, just try to, you know,
15:17bring in more revenue with the bakery.
15:19I learned a lot about Deidre once I looked at her personal finances.
15:23Her personal debt is about $74,000.
15:26And that doesn't even include her mortgage, which is $150,000 that she's not paying at all.
15:32The business is carrying debt of about $30,000.
15:35So when you combine that $30,000 plus Deidre's $74,000 in personal debt, she's over $100,000 in debt.
15:42Have you possibly considered house hacking to reduce your living expenses?
15:48And what house hacking is, is basically renting out a portion of your home.
15:51And that's something that I did when I was getting out of debt.
15:54Is that something that you would consider?
15:56No.
16:00Absolutely not.
16:06I've had two family members to live with me since I've been in this home.
16:09And it was not a good experience.
16:11And I thought that that would help me financially, but it ended up hurting me.
16:16It's not something that's on the table for me to consider at all.
16:19And for me, my house is being hacked.
16:24By my four kids.
16:28Well, let's turn to your business finances.
16:31From looking at Yolanda and Deidre's monthly expenses, I can see why they're not able to make a dent in their business debt.
16:36Their monthly revenue is $11,600.
16:39Their monthly expenses are about $10,000.
16:42This leaves them with $1,600 a month, but most of their profit is going towards their $30,000 of debt,
16:48leaving them very little to pay themselves.
16:51How did you choose the storefront that you chose and why did you choose it?
16:55Well, we knew we wanted to be in Dallas.
16:57We wanted to be in a community where there were people who looked like us.
17:01And it was a very, very reasonable price at the time for what we felt like we could afford.
17:06Has it increased or is it still the same?
17:08No, it's increased about $600, $700.
17:11All right.
17:12Do you all have a budget, a personal budget or a business budget that you stick to?
17:17I mean, I don't have anything to budget.
17:21You know.
17:22You need some money.
17:23Yeah.
17:24We do have a budget here.
17:25Okay.
17:26And the money moves makeover workbook that you can begin utilizing.
17:30And if you have any questions, just let me know.
17:32And I want you to see, if possible, where you can allocate funds to marketing so that we can try to get your revenue up.
17:38I know you do social media, but do you do any other type of marketing?
17:42No.
17:43No other real marketing.
17:44Okay.
17:45Mm-hmm.
17:46And also, we're going to look into some bookkeeping.
17:49Sometimes what I suggest to my clients is I'll come in and I'll set up their accounting system for them, show them what to do, and then I'll come in quarterly and tell them where they need to make changes.
17:58Okay.
17:59And I have a whole presentation that I can show you how to do that as well.
18:01Okay.
18:02Okay?
18:03Mm-hmm.
18:04That sounds great.
18:05All right.
18:06Yes.
18:07My plan for Yolanda and Deidra is to reduce their overhead expenses because the two spaces that they have are not serving them.
18:11Increase their income by raising prices, change their marketing strategies, get them to create and stick to a budget for their business, and teach them some bookkeeping skills.
18:23Until next time, thank you so much, ladies.
18:25All right.
18:27Since the sisters called me in to help them, I thought they'd be more receptive to my solutions, my advice.
18:33However, I'm really concerned because Yolanda and Deidra seem very resistant to anything new.
18:39But this is not a good business mindset.
18:42You can't get stuck.
18:45I did a little research, and the average price of a cookie in this area is about $5.
18:50Mm-hmm.
18:51And Yolanda is $2.50.
18:52Mm-hmm.
18:53So that's something, again, that y'all may want to reconsider because they're worth it.
18:55I've had them.
18:56I've had several.
18:57Raising our prices will potentially price some people out.
19:01But just because we love our customers, it does not mean the financial burden should fall on us.
19:17Hi, ladies.
19:18Hey.
19:19Hello.
19:20How are you today?
19:21Good.
19:22How are you?
19:23Good to see you again.
19:24You too.
19:25We'll see.
19:26Well, we have the ingredients that you asked us to prepare for the seven to a pound cake.
19:32Okay.
19:33Kind of interested to see how this is going to work out.
19:36Yeah.
19:38Leah has asked us to get these items or these ingredients ready.
19:43But we don't know exactly what it is we're going to be doing with them.
19:47But, you know, we're going to let her do her thing, and she's going to let us do our thing, and it's going to be a nice collaboration.
19:53We are going to bake a cake.
19:55All right.
19:56Okay.
19:57But we're going to bake with a twist.
19:58Okay.
19:59With a twist.
20:00The recipe is basically going to be a metaphor for your budget.
20:04Okay.
20:05Or the lack of a budget.
20:06Okay.
20:07Okay.
20:08The ingredients will represent your expenses, and the cake basically represents your business.
20:12After meeting with Yolanda and Deidre and going through their financials, I can tell that they have some blind spots in their operations.
20:19I'm using one of their own best-selling desserts to show them exactly what's happening with their finances.
20:24So the first thing we're going to do is add our sugar in.
20:27So the sugar represents your overhead expenses.
20:30I think we need a little more sugar.
20:32You have quite a bit of overhead expenses like that sweet next door.
20:35Wow, that is a lot of sugar.
20:36It is a lot of sugar, Leah.
20:37Okay, next we're going to add in the butter.
20:39Okay.
20:40I think we need one more stick of butter.
20:42So the butter represents your ingredients in inflation.
20:45And we all know that the cost of food has gone up significantly and your prices have not.
20:50So you're literally baking in a loss with each sale.
20:53So let's put one or two more sticks of butter.
20:55Oh, Lord.
20:56So much butter.
20:57Now let's see how the attachment will go in.
21:00And we're going to turn it on.
21:01Okay.
21:02And while that's creamy, I'm going to go ahead and crack the eggs.
21:05Okay.
21:06How many eggs?
21:07We have six eggs here.
21:08So for the eggs, let's do two.
21:10That represents your marketing.
21:11So we're going to do a little less than we need.
21:14This is very interesting, Leah.
21:16This is actually going to spill out.
21:19Do it faster.
21:20Because that's what happens when you don't have a budget and you're operating in chaos and you don't really have a strategy or a plan.
21:24Operating your business without a budget makes it easy to mismanage cash flow and overspend.
21:29This is not a good business model.
21:31Is this the flavoring?
21:32It is.
21:33All right.
21:34This is your interest on your lawn.
21:35Oh, my gosh.
21:36Okay.
21:37So I think the flowers should represent your labor.
21:39Because I know you all pour a lot of time into your business.
21:46So I think we'll put this and maybe like one more bowl of this.
21:50Okay.
21:51Even though I understand the metaphor, that is not how I would describe what's going on with us.
21:57We're not just completely out of control.
22:00So the purpose of this was to show you what happens if you don't follow a plan.
22:04Mm-hmm.
22:05So the metaphor was the recipe is your budget.
22:08Okay.
22:09And so if you're just winging it with your budget, it's kind of like winging it with a recipe.
22:14You would never do that, right?
22:15You would never do that.
22:16Mm-mm.
22:17Mm-mm.
22:18So I just wanted you all to really see a visual of how well you manage your recipes and your products that you produce.
22:24You want to do the same with your business operations, your financial operations, your financial management.
22:29Does that make sense?
22:30Yes, it does.
22:31It makes a lot of sense.
22:32I did a little research and the average price of a cookie in this area is about $5.
22:37Mm-mm.
22:38And y'all is just $2.50.
22:39Mm-mm.
22:40Yes.
22:41So that's something, again, that y'all may want to reconsider because they're worth it.
22:43I've had them.
22:44I've had several.
22:45Yes.
22:46I'm going to have more.
22:47We definitely agree with you.
22:48We're just trying to keep it affordable for people, you know, being afraid to lose the existing customers.
22:54You're losing money.
22:55So either way, it's a loss.
22:56Yes.
22:57You're already losing.
22:58You lose nothing else by increasing your prices.
23:00Yeah.
23:01And just a personal story, I did the same thing with my accounting firm.
23:03Mm-mm.
23:04So my prices were average.
23:05Mm-mm.
23:06And I knew I wanted to increase them because the ROI, the return on investment, just did not make any sense.
23:10Mm-mm.
23:11And I had this one client and I knew, like, I should charge for a lot more and I wasn't going to do it, but something told me to do it.
23:16I doubled the price.
23:17Mm-mm.
23:18And I just knew she was going to walk away.
23:19No, she signed a contract immediately.
23:20Yeah.
23:21She didn't care.
23:22Mm-mm.
23:23She did not care because she knew the services that I provided were worth the value.
23:25Mm-mm.
23:26And sometimes if you're too low, people think, what's wrong with it?
23:28Mm-mm.
23:29Really, you have given us a lot to think about.
23:31Mm-mm.
23:32We have to keep considering what Leah is sharing with us.
23:35But raising our prices will potentially price some people out.
23:39But we're paying more when we go to the grocery stores.
23:42And just because we love our customers, it does not mean the financial burden should fall on us.
23:47Right.
23:48Wow.
23:49Girl.
23:50Now, that is a mess.
23:51Mm-mm.
23:52Wow.
23:53That's a mess.
23:54So this is what it's supposed to look like?
23:55Yes.
23:56This is a mess.
23:57Y'all let me know how it is.
23:58Come on, you can get the first place.
23:59Y'all let me know how it is.
24:00We'll be sure to bring you a piece when we see you later.
24:02See you later.
24:03All right.
24:04See you later.
24:05On the holidays or during special events, you can do pop-ups.
24:08I absolutely loathe pop-ups.
24:10I don't want a pop-up anywhere.
24:12For me, that's a non-negotiable.
24:27Hi, ladies.
24:28Hi.
24:29How are y'all?
24:30Doing great.
24:31How are you?
24:32Good.
24:33All right.
24:34Do you know what this is?
24:35Where we are?
24:36No.
24:37No.
24:38No?
24:39All right.
24:40Well, let's go in and check it out.
24:41Okay.
24:42All right.
24:43They've built something beautiful, but to keep it alive, they have to think strategically.
24:50So I brought you here to Miss Gina's.
24:56It is a shared commercial kitchen space.
25:00Miss Gina used to be a restaurant, but they transformed it into a commercial kitchen to help local small businesses such as yourself.
25:11Shared commercial kitchens are becoming much more popular, especially businesses looking to get their product out into the market without the hefty overhead of a brick and mortar store.
25:20You can rent them monthly, weekly, daily, even hourly, and provide the same quality product without any hassle or maintenance.
25:29So here they have refrigerators and another set over here.
25:33They have an oven that appears to be similar to the oven that you all have at your store.
25:39Okay.
25:40Triple sinks.
25:41Okay.
25:42Over there.
25:43And so the reason I brought you here is we talked about reducing your overhead expenses.
25:47And this is one of the quickest ways to do it.
25:50Either getting rid of one of the sweets or moving into a shared commercial kitchen.
25:58I'm agitated and I am not going to go in the shared kitchen.
26:06This seems like we're taking a step back.
26:09When I started one of my businesses, I jumped in 100%, did not work out.
26:15So what I did was I went back to work, paid off my debt, created a nest egg savings, and then I came back harder than ever, stronger than ever.
26:22I know you love nursing.
26:24You love education.
26:25So maybe that's something that you all would want to consider.
26:30Essentially what I'm proposing to Yolanda and Deidre is retrenchment.
26:34It's basically when a struggling business reduces overhead, closes storefronts, and liquidates assets to get back on track financially.
26:41If the sisters remove the cost of rent and everything associated with it, they can focus on paying down their debt and increasing their savings.
26:49And yes, that may mean that they need to return to their previous jobs temporarily so that they can rebuild their finances and stop hemorrhaging money and get medical insurance.
27:00You know, going back to education for me at this point is not something that I'm interested in.
27:05That means maybe I would have to go back to nursing.
27:08I'm not sure that I'm willing to do that.
27:10I just don't know.
27:11And maybe what you can do is on the holidays or during special events, you can do pop-ups.
27:16So you're increasing your profit by increasing your revenue, but also significantly reducing those expenses.
27:22I absolutely loathe pop-ups.
27:24I'm just going to tell you I do.
27:25I agree.
27:26We feel the same way.
27:27Quite frankly, I don't want to pop up anywhere.
27:31We have an address and people can drive to us.
27:35Why?
27:36What is the thought process behind that?
27:37Well, it's just a lot of work to make something and then transport it to another location.
27:44You don't know what the business is going to be.
27:47You don't know how many customers you're going to have.
27:49It's really unpredictable.
27:50To me, it's more unpredictable than the expectancy of the customers that we have right now.
27:56For me, that's a non-negotiable.
27:57Okay.
27:58I don't want to do pop-ups.
27:59Okay.
28:00And the first thing I felt when we started talking about the shared space here, your kitchen is like your sanctuary.
28:12It's your domain.
28:13We don't have anybody else's stuff in there with ours.
28:16We don't have to try to figure out when somebody else is renting the space.
28:21And right now, if we want to go into our bakery at 2 o'clock in the morning, we can.
28:25We can.
28:26We have already set the atmosphere in our space.
28:31We pray in there.
28:32We cry in there.
28:33We laugh together in there.
28:35That's where our creative juices flow also.
28:38So moving into a shared space, we feel like it would not be ideal for us because that's somebody else's vibe.
28:47Just to address some of your concerns, they do have kitchens where you can rent your own room so that you're not sharing with other people.
28:54And you can have your own dedicated space.
28:56And that would still cut your overhead expenses.
28:58Reducing overhead is definitely something that would be nice.
29:02We do want to cut costs where we can, especially in today's economy.
29:06Would you be willing to get rid of one of your sweets, maybe Sweet B?
29:10We've actually had that conversation before because that would save us money as well.
29:15Right.
29:16But we just need to have more conversation about whether or not we really want to get rid of it.
29:23OK.
29:24I don't know.
29:25I just feel like I've been caught off guard.
29:26We need more time to talk about it and think about it before we make any final decision.
29:31Take some time to think about it and we will regroup later, OK?
29:35OK.
29:36I'm concerned because I'm offering all these solutions to their problems and they don't want to consider them.
29:41I think it's uncomfortable for them. They don't like change.
29:44Bye, ladies. Bye-bye.
29:45But all this pushback on every idea, I'm not here to force anyone to do anything.
29:51We can't jump at everything that everybody is saying to do.
29:55And again, I really do appreciate the help.
29:57I just wish, like, come and walk a mile in our shoes before our final assessment as to what's going on or what you should be doing.
30:05Yes. Yes, absolutely.
30:06Yeah.
30:07Even right now, the numbers that we know exist, they say stop.
30:14Go back to education, you know, do something else or whatever it is, get a shared kitchen space.
30:21They say quit right now.
30:23But that's what faith is to me.
30:25Faith is like hoping for something that I don't see.
30:29God has never failed me yet.
30:31And so if I continue to trust in him, I know that everything is going to work out all right.
30:41Hey!
30:43Yawanda and I have these friends and we want to see what they have to say about what it is that's going on.
30:49Yes, you have dreams, but right now that's going to bankrupt you, right?
30:53Hmm.
30:54Let's go, let's move.
30:55Let's go, let's move.
30:56Let's go, let's move.
30:57Can't nobody do it like me, can't do it like you.
30:58Baby, cause we gonna dig in, honey.
30:59Cause who hungry is me?
31:00It's the small ones that are the eaters.
31:01Look!
31:02Girl!
31:03Hey!
31:04We didn't get the memo till we were wearing ruffles today.
31:08Yawanda and I have talked about it.
31:09I'm not sure.
31:10I'm not sure.
31:11I'm not sure.
31:12I'm not sure.
31:13I'm not sure.
31:14I'm not sure.
31:15I'm not sure.
31:16I'm not sure.
31:17I'm not sure.
31:18I'm not sure.
31:19I'm not sure.
31:20I'm not sure.
31:21Yawanda and I have talked to each other about so much,
31:25but we have these friends that we've known for many years,
31:29and we decide we want to see what they have to say
31:32about what it is that's going on.
31:34So how you been, girl?
31:35Girl!
31:36You know life be doing the number, but we here, baby.
31:39Every day.
31:40Every day.
31:41Okay.
31:43What about you?
31:44Where y'all been?
31:45You wanna start?
31:46Well, yes, I'll start.
31:48The last several days we've been very busy.
31:52Y'all probably did not know this,
31:54because it's not something that we talk about,
31:56but we have been having some serious challenges financially
32:00in our business, and so we're actually pulling
32:03from our personal finances.
32:05So we reached out to a financial advisor
32:07so that she could help us with that.
32:09We went on a field trip, and we went into a commercial kitchen.
32:14It was a shared space.
32:16That was something that was presented as an option to us.
32:19Also, perhaps doing pop-ups.
32:21And we were like, um, no, we don't know about that.
32:24Pop-ups.
32:25Because that's not something that we do.
32:27First, I was kind of having a problem with it because,
32:30you know, like, you don't really know us like that.
32:33You know?
32:34Number one, right?
32:35Right.
32:36You don't wanna do pop-ups because it will take you away
32:38from the bakery or because it's too much work.
32:41It is a lot of work.
32:42You know, we would have to bake,
32:44transport those items to another location.
32:47They may or may not sell.
32:48Stuff like that could potentially do numbers.
32:51You never know.
32:52Mm-hmm.
32:53So one thing I will tell you,
32:55if you wanna stay top of mind for people,
32:57you gotta stay top of mind.
32:59That's true.
33:00Right?
33:01Being out there is currency.
33:02People need to see you, hear you,
33:04see what you're doing.
33:05How can I use them?
33:07So what are the other options?
33:08I heard you say pop-ups, right?
33:10Commercial kitchen.
33:11Was there anything else?
33:12The bakery is where we're operating from.
33:15Okay.
33:16But we also have space B.
33:17We use it as storage space.
33:19We can do classes over there.
33:22Whenever we do our videos,
33:24we're sitting in those big chairs.
33:25And so...
33:26What was the goal of this?
33:27Taking space?
33:28To use it for those types of things.
33:30Mm-hmm.
33:31I think just knowing you guys,
33:33like, the space where you actually bake,
33:36that's where your heart is.
33:38Yeah.
33:39Like, yes, you have dreams,
33:40and yes, you want to do things.
33:42But right now, I think that maybe just letting sweet B go,
33:45if that's gonna allow you to keep baking,
33:48you know, you sometimes have to sacrifice a limb
33:50to save the whole.
33:52Mm-hmm.
33:53What else did the financial advisor say
33:55that could be viable?
33:56One suggestion that she had was going back to work.
34:00Like, going back into education and nursing.
34:03And so, we were like, who are you talking to?
34:07Right, that part.
34:08You said, who are you doing that?
34:09Right. No, ma'am.
34:10So that's not an option.
34:11So that's off the table.
34:12Well, is it off the table?
34:14You know, like, one of the main reasons
34:16why I decided to get out of that
34:19is when I was diagnosed with breast cancer.
34:23And having a medical illness such as that
34:28will make your priorities shift.
34:30Yeah.
34:31And it gives you more of a sense of urgency about life
34:33and how you're gonna live the rest of your life.
34:36Returning to education,
34:38I would just feel like I am going back
34:42on the things that I promised myself,
34:45and I don't know if I'm willing to do that.
34:48I commend you for taking those courageous risks,
34:51but I do worry.
34:52You know, y'all are self-employed,
34:54and so, you know, I'm married to someone
34:56that's self-employed, so I know what comes with
34:58or does not come with being self-employed,
35:00and that's insurance.
35:01I love it.
35:02So just, you know, what are next steps?
35:06So I'll say this.
35:08If I were paying a medical insurance premium this year alone,
35:11I would have spent more money on insurance premium
35:14than I would have just going to the doctor paying out of pocket.
35:18But you should, at the very least,
35:20maybe consider a catastrophic policy.
35:22Say you leave here today, God forbid you're in an accident,
35:25and you're in the ICU for a month.
35:27That's gonna bankrupt you, right?
35:29Hmm.
35:31But just look into it.
35:32That's gonna cost money that I just don't have right now.
35:35Literally, I don't.
35:37This is so hard.
35:39Right now, it feels like I'm in a wilderness.
35:46This year, we're going into our, you know, fourth year in the business,
35:53and we need to revisit our business plan.
35:56You know, we need to modify it,
35:58and we don't know what we're gonna do about it.
36:00Right now, I don't see any other way out.
36:05The math just isn't mathing.
36:07We could be two steps away from the breakthrough
36:10that we have been praying for.
36:12Hello.
36:28Hello.
36:29How are you?
36:31Doing great.
36:32I haven't seen Yolanda or Deidre in a couple of weeks.
36:35I'm eager to see if they've implemented any of my feedback.
36:38How have you been?
36:39Busy.
36:40Busy.
36:41Okay.
36:42Yes, we have been.
36:43As you can see by the workbook.
36:44I see.
36:45Lots of notes.
36:46Have you made any progress?
36:48Yes, we have.
36:49Okay.
36:50We really do want to keep our space, you know, the one space.
36:53Okay.
36:54And we don't foresee giving up, you know, our bakery.
36:57But we've put a lot of thought into Sweet B,
37:00and we feel like that would be a really good decision for us
37:04to just really let that go at this time.
37:07Congratulations.
37:08I'm happy to hear about getting rid of Sweet B.
37:10Yes, thank you.
37:11That will reduce expenses by about $1,300, right?
37:13Mm-hmm.
37:14What about the business model in general?
37:16How are you going to generate more revenue?
37:19We reopened again on Wednesday.
37:22And about how much additional revenue do you bring in on Wednesdays?
37:25Anywhere from $800.
37:26Mm-hmm.
37:27To $1,000.
37:28It's an improvement from where we've been, right?
37:31Okay.
37:32Another thing that we say that we're going to do is raise our prices.
37:37Yes.
37:38So that will definitely bring us more revenue.
37:41Okay.
37:42Good.
37:43I'm so happy to hear about that.
37:44Yeah.
37:45And bookkeeping.
37:46That's something that I do want to provide to you all
37:49to help you keep your finances organized.
37:54I'm glad you all made these choices.
37:56I always talk about small wins, but you're still kind of at a break-even point, right?
38:00You're still not able to pay your basic living expenses, let alone your business expenses.
38:06I don't see any other way out.
38:10The math just isn't mathing.
38:13Well, I would like to just push back just a little bit on some of the things that you mentioned.
38:19Okay.
38:20Respectfully, we're going to go back to our core values, right?
38:23I feel strongly about faith over everything.
38:27I just believe that God is an on-time God.
38:30And if we keep doing the things that we're doing, he's going to make a way where you don't see a way, right?
38:36It's just the financial piece that, you know, we have to work out.
38:39So I just think it just requires a little bit more time.
38:43We're not going to give up because we could be two steps away from the breakthrough that we have been praying for, you know?
38:50Can I tell you a personal story?
38:52Yes, you can.
38:53Okay. I was in the same situation.
38:55I started this business and it really took off in the beginning.
38:59And then it just kind of fizzled out.
39:01But I kept holding on because of that initial opportunity.
39:04And I hung on for about three years.
39:07And so at a certain point, I just said, okay, God, I know you put me here for a reason.
39:10I don't know why, but when it's supposed to happen, it'll happen.
39:13Mm-hmm.
39:14And when it popped, it popped.
39:16Yeah.
39:17Harder than ever.
39:18So I understand the faith part is what I'm trying to say.
39:20I'm not discounting that at all.
39:22Yeah.
39:23We're putting our faith in God and we know that he's going to get us to the next level.
39:28Okay.
39:29This has been a wonderful experience.
39:31It's been very eye-opening.
39:32And just learning the importance and value of not only the business, but also of ourselves.
39:38Yes, absolutely.
39:39Yeah.
39:40We know we are going to be successful.
39:42Mm-hmm.
39:43Absolutely.
39:44And even when we fall down, we don't stay down.
39:46That's right.
39:47We get back up.
39:48Right.
39:49Well, I will be checking in in a few months.
39:54And if you've made progress, great.
39:57And if not, would you be open to other options or something from that point?
40:02Of course.
40:03Yes.
40:04Definitely.
40:05Yolanda and Deidre have had a lot of wins.
40:07Cutting costs by eliminating Sweet B.
40:09Raising prices, which will raise revenue.
40:12Increasing their business operating hours.
40:14And they're willing to learn bookkeeping skills.
40:17All these things are steps in the right direction.
40:20You all have made progress for sure.
40:22And I want you to know that I am very proud of you all for that.
40:27Yes.
40:28And we still love you.
40:30Even though I know that more changes need to be made to make their business profitable,
40:37as an entrepreneur, it's true.
40:38You have to have faith and belief that you will succeed.
40:41We appreciate you.
40:42Absolutely.
40:43All right.
40:44But along with that, you need a business model that will truly sustain you.
40:47And when it doesn't, you have to be willing to pivot.
41:00Next time on Maxed Out.
41:04This represents your debt.
41:05Ooh.
41:06Richard has nominated his sister Krishna.
41:09He has her personal ATM.
41:11How much do you think you owe?
41:12Who's counting?
41:13Apparently no one.
41:14I created a monster.
41:16Richard inviting a financial coach in my business right now.
41:20It's kind of pissing me off.
41:21You gotta live within your means.
41:22I'm just a girl.
41:23You're gonna be a homeless girl.
41:25This is all one big joke to Krishna, because Richard's always been her safety net.
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