- 6 hours 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?
00:11You said it. Oh, wow.
00:12I am Leah Collins, and I'm a financial relationship coach.
00:15But I heard you're good. Yeah, 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.
00:38I'm on my way to meet Richard,
00:40who has nominated his younger sister, Krishna.
00:45According to him, he's basically her personal ATM.
00:49Richard has loaned Krishna money for her yoga and tea businesses
00:52because she is still operating both like startups.
00:55And neither business is making a profit.
00:58Situations like this are really tricky
01:00when you mix family and business
01:02because there's really a thin line between support and resentment.
01:06I'm excited to meet the siblings
01:08and see what's really going on.
01:10Hi, Richard. How are you? Nice to meet you.
01:23Oh, I love your place.
01:25Thank you. Please sit wherever you want.
01:28All right. Tell me what's going on.
01:33So the issue is my sister.
01:35She's got these two businesses.
01:38Great ideas.
01:39The thing is, I don't know if she has her budgeting
01:42and the money aspect of the business together just yet.
01:45Okay.
01:46Therefore, she leans on me heavily financially.
01:49I just don't have the funds to give her
01:51and do the things that I want to do for me and my family.
01:53Right.
01:54And about how much money do you think you've given her?
01:57I've lost count.
01:59It's over $20,000.
02:02It's a pretty hefty load for me.
02:04Being that I have three kids who need things for me
02:06and I travel for work overseas and I've been doing it for so long
02:10because I'm able to make quick money
02:12and that quick money enables me to help my family,
02:16help my sister.
02:17You know, it's just that I'm going for three months at a time.
02:20I'll come home for maybe a month or so.
02:22Then I'm back out of the country again.
02:24And I'm missing out on precious time, but, you know,
02:28and I've learned you just can't pay for that time.
02:31You really have to treasure it and be in the moment.
02:33Yeah.
02:34Why do you continue to help her?
02:35Well, it's my sister.
02:37You know, I love my baby sister and I want her to succeed,
02:40but she got to do this on her own.
02:42I'm a big brother, but I ain't that big.
02:43I absolutely plan to help her, but I also want to help you too
02:47because it seems like there's this pattern of enabling, right?
02:51That's for sure.
02:52So we're also going to work on your boundaries.
02:54Is that something that you're willing to do?
02:55That sounds like something I need.
02:57Richard seems like a very generous person
02:59and he probably takes pride in providing for his family,
03:02but he has to stop the handouts.
03:04Or Krishna would never be able to stand on her own two feet.
03:07And Richard won't be able to achieve financial security for himself.
03:11Hello.
03:12How are you?
03:13Good.
03:14How are you?
03:15Good.
03:16This is Leah, the financial coach I was telling you about.
03:18How do you feel about me being here?
03:21I don't know yet.
03:22Once we start talking.
03:24That's fair.
03:25I might feel some type of way.
03:32Richard inviting a financial coach in my business right now
03:36is kind of pissing me off because ain't nobody got time for that.
03:40I didn't tell him to do that and nor did he ask me.
03:42So I feel blindsided.
03:46Maybe we can highlight some of the things that we can fix
03:49to make things better so that maybe I don't have to assist
03:53as much as I have.
03:55I feel like I need Leah for Krishna because she doesn't like to listen.
03:59I mean, yeah, that's true. I am very stubborn.
04:01She's very stubborn.
04:02Just wait. I hate her.
04:06Christian has always been the doer and the dreamer.
04:09I am the only girl. I'm close to both my brothers.
04:12And they think that I'm spoiled, but I mean, I do get what I want.
04:16So.
04:17We were raised by our mom in Milwaukee, Wisconsin.
04:20Our dad lived in Philly.
04:22So I've always been the man in the house for all of my family members.
04:26Whatever they needed something, if I got it, I'm going to give it.
04:28After I joined the military, I had money faster than everybody else,
04:32and it was easier for me to help.
04:34So when I opened up my businesses in 2020, I didn't go to the bank.
04:41I went to my brother because he is the bank.
04:44But I don't think he wants to be an investor.
04:47It's just that I be needing help.
04:49No, I want to invest as well, though. I want to help. I believe in you.
04:54I'm just very persuasive.
04:56Or are you a bully?
04:58I'm not a bully.
04:59I'm not a bully. You think I'm a bully?
05:02Not to me. She's a bully for sure, but not to me.
05:05I don't even like bullies.
05:06Well, my bad.
05:10I'm good.
05:11Richard's told me a lot about your business.
05:13Can you tell me a little more details about each of them?
05:16I got into Cosmic Tea because I was diagnosed with hypothyroidism.
05:21And so they told me that I would have to take this medication for the rest of my life,
05:27and I just wasn't okay with that.
05:29And taking herbs, I reversed my thyroid.
05:31So I turned into a business, and I blend all my teas because I've seen how much it did help me.
05:37And I started a yoga brand, Flow in Nature.
05:40And we do yoga in the park every Sunday for the community.
05:44It's donation-based.
05:45So I'm very proud about that.
05:47Okay.
05:48And just to clarify, for the yoga business, are you wanting to monetize that, or is that more...
05:52I do.
05:53Okay.
05:54That's the goal.
05:55And where's your business currently?
05:56We're currently...
05:57Do you have a storefront?
05:58No, we don't.
05:59You know, when it comes to Cosmic Tea, I do pop-up shops.
06:02Mm-hmm.
06:03And we have an online store as well.
06:04Okay.
06:05The goal is to have a studio with a tea cafe in the front.
06:09So you can do your yoga and then sip your tea?
06:10Yes.
06:11Okay.
06:12Have you been able to turn a profit yet?
06:13For Flow in Nature?
06:14No.
06:15What about...
06:16Cosmic Tea, I have.
06:17What has been your highest profit?
06:1945K, maybe.
06:21That's profit after expenses, or is that revenue?
06:23Well, after expenses, I would say 25.
06:25So do you know what your expenses are?
06:28If I write them down, I can't tell the top of my head.
06:31No.
06:32So no.
06:33So you're not good with numbers.
06:34So no.
06:35Okay.
06:36How do you track and manage your finances?
06:38In my head.
06:39Girl.
06:41I literally wrote down girl.
06:44What's your highest selling tea?
06:46Our Moonstone Tea.
06:47And do you know your profit margins?
06:49You should probably know your profit margins.
06:51In my head?
06:52Absolutely.
06:53How do you calculate those profit margins?
06:55You?
06:56How do you measure the ingredients for the teas?
06:59I was just pouring.
07:01What?
07:02Cos you know how...
07:04No.
07:05When you cook...
07:06No, I don't know.
07:07You know how when you cook, we don't really just measure what we put in food.
07:11We can tell by our risk.
07:12Let the ancestors tell you.
07:13Yeah.
07:14Letting my ancestors tell me you want to stop.
07:18I'm concerned that Krishna isn't taking the business aspect of her business seriously.
07:23Because the operations, the bookkeeping, the accounting, all of that is what makes your
07:28business a business.
07:29Do you work at all?
07:30Do you have a W2 job?
07:31No, I do.
07:32Okay.
07:33And do you use some of those funds to help invest in your business?
07:36Yes.
07:37Okay.
07:38How much?
07:39It's in your head?
07:41Okay.
07:42I mean, I'm not bad with numbers, but I ain't good either.
07:46She's never been great with numbers.
07:48I'm not a math whiz.
07:49So I always kind of push that to him.
07:52I think that's just the dynamic that we have.
07:54Yeah.
07:55How did the pattern of borrowing start?
07:56Since we were little.
07:57Yeah.
07:58I think I created a monster is what I did.
08:00A monster, that's a little cliche.
08:02She's a little spoiled.
08:04That is true.
08:05I got to change it now before things get too ugly.
08:07It's too late.
08:08It ain't too late.
08:10How much do you think you owe?
08:11Maybe about 20, 20 cent, no.
08:1420K.
08:15Yeah, it's somewhere around 20K.
08:17But if you gonna get that back, the world may never know.
08:20Have you paid any of, what?
08:21Huh?
08:22What do you, say that again?
08:23Nothing.
08:25I feel like this is all one big joke to Krishna.
08:27And honestly, I'm infuriated by Krishna's lack of respect for her
08:31brother.
08:32Richard has three children to support.
08:34And he needs to put their needs and their security first.
08:37He doesn't even get to spend time with them because he's overseas,
08:41making money, trying to fuel her passion projects.
08:44Do you have any savings, personal savings?
08:47I do.
08:48That's good.
08:49How much?
08:50You brought this lady here to tell my business.
08:52Mm-hmm.
08:53Okay.
08:54Roughly 10K.
08:58And you owe your brother money.
08:59How does that make you feel?
09:01I mean, that's, that's more than what I got.
09:04You mean?
09:05Hey, you need some help, man.
09:06See, look, that was an investment.
09:07What was an investment?
09:08Well, he gave me.
09:09I mean, I'm tired of this.
09:10It's getting to a point where you dragging me down.
09:15I hear that my sister has a pretty healthy savings account.
09:19When I should be getting some of that money, it kind of like makes me feel,
09:22I don't know, play it a little bit.
09:23It's one of those things with my whiteboard in my head, it erased that I owe you money.
09:28So maybe that's why I forgot.
09:33When am I going to get the money from you?
09:38When I get big.
09:39Nah.
09:40Is that usually how it works when you take out a business loan, though?
09:43Can you tell the bank, I'll help you win?
09:45No, but he not the, he not the legit bank.
09:47He has three kids.
09:50I know I can help him.
09:51With what?
09:52Babysitting?
09:53You do $25,000 for the babysitting?
09:56No.
09:58No.
09:59I know that's not true.
10:01Who's counting?
10:02Apparently no one.
10:03You're not, clearly you're not.
10:04Apparently no one is counting.
10:05Clearly you're not.
10:06That's the problem.
10:07I will need numbers at some point.
10:08We are going to focus on some homework.
10:10Here is a financial planner and just work on the first step for now,
10:15really just identifying three long-term goals.
10:18Have you guys got the meat?
10:20This was a trap.
10:21For sure.
10:22This is an interesting situation.
10:24You can't build a business off of vibes alone.
10:26You need a plan.
10:27And Krishna doesn't seem concerned at all about her business
10:31or paying her brother back the $20,000 that she owes him.
10:34All right, I will see you all later, okay?
10:36Bye.
10:37And Richard seems completely unable to say no or have boundaries for Krishna.
10:42I think I'm going to have my hands full with the both of them.
10:45Let's start with this homework.
10:46I don't want to do this right now.
10:48No.
10:49Let's start with never once.
10:50I'm not going to do a deck.
10:52This represents your deck.
10:54Oh, damn.
10:55Feels like I should be worried a lot more.
10:57Yeah, because he probably going to get his money back looking at it.
10:59Yeah.
11:00Probably not.
11:01Money in the bag.
11:02Money in the bank.
11:03It never runs out.
11:04Too much gas in the tank.
11:05No, it'll make you feel good, don't it?
11:06Okay, perfectionist.
11:07You ain't supposed to step on your mat with your shoes.
11:08Y'all do sets?
11:09That's, this is yoga.
11:10We don't do no sets.
11:11No.
11:12Hello.
11:13How are y'all?
11:14Good, good.
11:15It's nice to see you.
11:16Who invited you?
11:17Who invited you?
11:18Who do you think invited me?
11:19I know that Krishna hosts a yoga class in this park every week, so I'm meeting up with
11:33her and Richard beforehand to discuss the financials that she sent over to me.
11:37Is this where you usually do your yoga?
11:39Yeah, we like the views and the vibes in the park.
11:42About how many people come?
11:44The least we get is 20, but we have sometimes 50 plus.
11:48It just depends.
11:49Oh, wow.
11:50And you said it's donation based mostly?
11:51Donation based, yeah.
11:52About how much do you get in donations each week?
11:54You know what?
11:55I really could not tell you.
11:58Yeah.
11:59As a business owner, you really need to know your numbers.
12:01Yeah.
12:02Okay.
12:03I gotta get better with knowing them in my head, too.
12:04Right, and on paper.
12:05Well, I know on paper as a head is just...
12:07Well, okay.
12:08I gotta get better.
12:09Okay.
12:10You're right, you're right, you're right.
12:11I know I keep saying I keep the numbers in my head, but honestly, I don't even know what
12:17them numbers are.
12:18I kind of make them up as I go.
12:20Ooh.
12:21Ooh.
12:22What is that?
12:23Money.
12:24We got some money down there.
12:26Actually, this $80,000 represents your income.
12:32Mm.
12:33And this represents your debt.
12:36Oh, damn.
12:37You said my debt?
12:38Mm-hmm.
12:39Or what I'm gonna get?
12:40Your debt.
12:41Oh.
12:42Which is about $170,000.
12:45Ooh.
12:46Krishna's credit card debt is about $4,000.
12:51Her personal loans are $9,900.
12:54Her student loans are a whopping $132,000.
12:59And she owes Richard $25,000.
13:04What are you thinking?
13:05It is what it is.
13:06I shouldn't hear what you think.
13:07It is what it is.
13:08What does that mean?
13:09We win some, we lose some.
13:11I mean, seeing it like this feels like I should be worried a lot more.
13:16Yeah, because he probably ain't gonna get his money back looking at it.
13:18Yeah.
13:19Probably not.
13:20All jokes aside, I'm a little bit embarrassed because it's different when you see numbers
13:26versus you see the actual money.
13:28I feel bad about even wanting the money back in.
13:30She got bigger fish to fry, you know?
13:32But when I make it big, I'm gonna give him his money back in more.
13:37This looks crazy, but I know I bring in more than that.
13:40Where?
13:41I mean, I guess I can't, I mean, the numbers, the business.
13:45Yeah, you bring in a little bit from your tea business.
13:48It's not bad, but your expenses are so high that you're making nothing at the end of the day.
13:53Yeah.
13:54I think Krishna is confusing revenue and profit.
13:58Revenue is the total amount of money that comes in from sales.
14:01Profit is the number left over after all of the expenses have been deducted from the revenue.
14:07Cosmic Tea's monthly revenue is about $2,400.
14:11The monthly expenses are about $4,000.
14:14This is a negative profit of about $1,600 a month.
14:19That's about $20,000 a year.
14:21It's no wonder she has to keep borrowing money from Richard.
14:24So she really just like just going in debt really, just losing money actually.
14:28Right.
14:29What does she need to do?
14:30One of the things that I want you to do is really figure out your profit margins and figure out what your pricing should be and update that.
14:35For sure.
14:36All right.
14:37Krishna makes a lot of sales, but she doesn't make a lot of profit, which leads me to believe that this is due to a poor pricing strategy.
14:44My plan for Krishna is one, to increase her prices to at least cover her costs.
14:49I mean, let's just start there.
14:51Two, do her bookkeeping on paper, not in her head.
14:55And three, pay back her debt, starting with her brother, Richard.
14:59You mentioned a storefront. About how much is that, a month?
15:02For the area, we're looking at about $4,000 a month.
15:04OK.
15:05Do you think you can afford that right now?
15:07Yeah.
15:08No.
15:09How?
15:10We just said you were losing money.
15:11And you owe your brother money.
15:12But there's no way you're affording that.
15:14I'm definitely going to be able to afford it.
15:15How?
15:16The same way I find money to pay my rent.
15:18From your brother?
15:20I don't ask him no more.
15:21I like that one.
15:22I like that one.
15:23I think you should relax.
15:26I got this.
15:27Well, I recommend holding off on that until you do pay off some of this debt.
15:32And you increase your revenue and do better with tracking your expenses.
15:36It's not going to happen.
15:39I'm very passionate about my brick and mortar.
15:41That is my ultimate goal.
15:42I'm not going to stop.
15:43I'm not going to give up until I get it right.
15:45She's a doer.
15:46She sees something she wants, she's going to do it.
15:47She's going to think about the end goal first.
15:49And then she makes a plan as she goes along.
15:51Tunnel vision.
15:52All right.
15:53Well, your homework is to work on your budget.
15:55I want to see where you're going to get this $4,000 from.
15:58And how you are going to pay back your brother and all of your other expenses.
16:02Yeah.
16:03For sure.
16:04All right.
16:05Well, I will see you all later, okay?
16:06Thank you. Thank you.
16:07But you ain't do yoga?
16:08I don't do outdoors.
16:10Hello.
16:11What's going on?
16:12Nah.
16:13Nah, y'all late, bro.
16:14Y'all always late.
16:15You going to be late to your home?
16:16I wasn't supposed to be here.
16:17So I don't even have to tell them.
16:18Look, that's beyond the point.
16:19We already got our stretch and our warm-up in.
16:20So you got to get busy.
16:21You got two trips on the sled.
16:22We don't get no warm-up?
16:23That's your warm-up right there.
16:24This is the end.
16:25All right.
16:26You grab your 10.
16:27You grab your 20.
16:28So can I just sled on right into you?
16:29You coming right down to me.
16:30I'm flipping around and push back.
16:32On the double.
16:33Today, Junior.
16:34We're at the gym.
16:35Uh-huh.
16:36We're at the gym.
16:37Uh-huh.
16:38Uh-huh.
16:39Uh-huh.
16:40Uh-huh.
16:41Uh-huh.
16:42Uh-huh.
16:43Uh-huh.
16:44Uh-huh.
16:45Uh-huh.
16:46Uh-huh.
16:47Uh-huh.
16:48Uh-huh.
16:49Uh-huh.
16:50Uh-huh.
16:51Uh-huh.
16:52Uh-huh.
16:53We're at the gym.
16:54I'm a homeboy.
16:55This is a childhood friend of mine.
16:56I've known Ray since high school.
16:58I'm good friends with Ray as well.
17:00He is my personal trainer.
17:02He's actually my best friend.
17:04I took his best friend.
17:05Yeah.
17:06Don't hate.
17:07And Kem is my girl, and she loves a good workout.
17:09All right, Rich.
17:10You got 10 down, 10 back.
17:11All right.
17:12Whew.
17:13I'm done with that.
17:15Let me not tell y'all what my brother did to me.
17:18He signed me up for this intervention,
17:22is what I call it.
17:23So I have to talk to this financial advisor,
17:26because he don't want me asking for no more money.
17:28It's getting to the point where I can't take it.
17:30But I don't even know how much I owe you.
17:32So it don't really count.
17:34You know it's over 20.
17:36Oh.
17:3720 grand?
17:39Richard is very loyal to a fault.
17:42He gave you the shirt off his back if he could.
17:44But I didn't know it was to that extent.
17:46For any family member to borrow almost $20,000 from you,
17:49that's a no-brainer.
17:51He needs to cut that off, and she needs to stop taking advantage
17:54of him.
17:55Life is going to be givers and takers.
17:57And if the givers don't say no, then the takers
17:59are going to always take.
18:00It's been going on for a while.
18:01I got used to it.
18:02And it's partly my fault.
18:03I'm glad you took accountability,
18:04because it is partially your fault.
18:06Just because I don't, you know, flip out on you,
18:08I don't mean I'm not angry.
18:10You're like that spoiled little sister.
18:13That everybody wants.
18:14In terms of what?
18:16I don't think I'll bet it yet.
18:17Because Richard has been saving you.
18:19He's always saving you.
18:20You got to live within your means.
18:22You tell me that all the time.
18:24I'm just a girl.
18:26You're going to be a homeless girl.
18:28We all love Krishna, and we all love Krishna,
18:32and we all want to see her succeed.
18:34But I think that sometimes in Krishna's
18:37uncomfortability, she kind of shuts down
18:40and makes things a joke rather than taking this seriously.
18:44She just wants to always have it together.
18:46And sometimes we have to tell our friends and family,
18:49I need some help.
18:50You're a business woman.
18:51Don't know your numbers.
18:52I've been her calculator for a while.
18:54I'm doing all the math, so.
18:56You the fool.
18:57You are the enabler.
18:58Yeah, you're right.
18:59I'm an independent contractor,
19:01but I know my numbers for every month.
19:03I know what I got coming in.
19:04I know what all my expenses are, my miscellaneous,
19:07and I keep track of everything in a spreadsheet.
19:10That way you can see exactly what it is
19:11you got to do month after month.
19:14You know, I'm private.
19:15I don't want anybody in my business.
19:16They know business, but they only know what I tell them.
19:18So for them to be sitting up in there telling me,
19:21yeah, Katie, do this and this, I don't want to hear that.
19:25But unfortunately, they are right.
19:28Yeah.
19:29And you lock your pockets.
19:35So for this tea, were you calculating the cost in your head?
19:38Yeah, it's $22.
19:40I came up with $64.
19:42She's the reason why we're not making a profit.
19:45I'm over it.
19:46It needs to change.
19:47My math and your math wasn't together.
19:49We know.
19:55I know I got it.
19:57Y'all can't top it.
19:59You want to be her.
20:01I got a good feeling.
20:03Is those things in there, Richard, those flying things?
20:06Yeah.
20:07Leah told me that she wanted me to bring cosmic tea
20:10to a pop-up at the park
20:12because she wants to watch how I sell my teas.
20:14Ain't nobody even here.
20:16You got to see how you running your thing.
20:18How you putting your stuff together.
20:20So she want to be more in my business?
20:22Possibly.
20:23You need somebody in your business.
20:24I don't.
20:26I mean, how would you feel if somebody was all up in your business?
20:31Hey, how you doing?
20:32Speaking of the devil.
20:33How are y'all?
20:34Good.
20:35How are you doing?
20:36Good.
20:37I like your setup.
20:38This is really nice.
20:39It is.
20:40Krishna has made it clear in our conversations
20:43that she manages her expenses in her head.
20:45I want to see how she manages her whole business that way.
20:48Well, what do we have here?
20:49Can you walk me through your process, your ingredients?
20:52Here we have our dandelion, which is good for the liver.
20:56This one is our moonstone tea.
20:58That's one of our best sellers.
20:59All right.
21:00I do have one that's good for, like, blood pressure.
21:04It's good for the heart.
21:06Mm-hmm.
21:07I'm going to tell you a little secret about that one.
21:08So this is the rose one, right?
21:10Mm-hmm.
21:11So it also helps with women menstrual,
21:13but it also can increase women's sex drive.
21:16Okay.
21:17Well, I told you that you're here to do a pop-up,
21:21but what we're really here to do is a challenge.
21:24The real reason we're here.
21:25So this ain't no pop-up.
21:26That's why it's so empty.
21:27Yeah.
21:28Challenge.
21:29We need this.
21:30We're going to play a game called store,
21:32something that I play with my kiddo all the time.
21:34You will be the store owner.
21:36I will be the customer.
21:38We're just going to do basic math to see if you know.
21:41I don't know basic math.
21:42We don't. We don't.
21:43How to create your pricing strategy, okay?
21:45Since Krishna doesn't normally measure her ingredients,
21:48there's no way to know if she's pricing appropriately.
21:51So hopefully, with this challenge,
21:53she can see that proper bookkeeping is essential
21:55for a profitable business.
21:57Okay.
21:58So let's do the rose tea.
22:00Okay.
22:01I am annoyed because I know what that game is called
22:05because we played it growing up,
22:07but I know this one is going to involve some real numbers.
22:10Rose petals is one of our herbs that's in our rose tea.
22:14I'm going to measure it.
22:15Oh, lordy, lordy.
22:163.9 ounces.
22:20And then one of our other ingredients is hibiscus.
22:274.4 ounces.
22:29The Damiana, that's what makes you freaky.
22:32Okay.
22:354.5 ounces.
22:37This would be the lemon balm.
22:393.9 ounces.
22:43And then passion flower.
22:474.4 again.
22:49And then the last ingredient is cinnamon.
22:534.5 ounces.
22:57We would just mix them up.
22:59So for this tea, were you calculating the cost in your head?
23:02Yeah.
23:03What did you come up with?
23:04$22.
23:05Okay.
23:07I came up with $64.
23:11My math is bad.
23:14Ugh.
23:15This is why I'm here.
23:16And again, that's just the ingredients.
23:17That's not even including the labor, the packaging, the overhead.
23:21My math and your math wasn't together.
23:23We know.
23:25She's the reason why we're not making a profit.
23:27I'm over it.
23:28It needs to change.
23:29So really, your revenue should be much higher than it is.
23:32Yeah.
23:33And if you were pricing what you should be, you'd probably be making a profit right now.
23:38Seeing how much money is on the table that I'm leaving is definitely hitting me.
23:43It's definitely hitting hard.
23:44And it's making me think about all the money that I could have been making until now.
23:49See, for me, when I'm making teas, I'm putting a lot of love in it.
23:53We know.
23:54We ain't thinking about them numbers.
23:55I want to keep them affordable because I want everybody to be able to enjoy my tea, not just a certain demographic.
24:01Mm-hmm.
24:02Just because you can't afford it doesn't mean that you shouldn't have something that's good for you.
24:06And that's probably why I'm here today.
24:07Mm-hmm.
24:08Yeah.
24:09Because it is a business at the end of the day.
24:10It is a business.
24:11We gonna get better.
24:12Yes.
24:13Krishna is very passionate about giving back to people who are underserved, marginalized.
24:20And that's one of the reasons that we need to get her business profitable.
24:23Because then she can take a portion of that profit and allocate it to those people that she cares about the most.
24:28It was an eye-opener.
24:30And I'm definitely gonna consider all of this when it's time for me to prepare for my brick and mortar.
24:35Because that's an initial plan.
24:38And I'm gonna do that.
24:39I think I'm finally having a breakthrough with Krishna.
24:42Especially as it concerns her pricing strategy.
24:45But it's very important that she understands the flaws in her business model before she even thinks about a brick and mortar.
24:51Do you know what comes with getting the storefront?
24:52I know what I kinda researched.
24:53Basically, you wanna have more profit than your losses.
24:54They seen you losing more than what you're making.
24:55I'm not gonna let you move in there.
24:56Hey, how's it going?
24:57How's it going?
24:58How's it going?
24:59How's it going?
25:00What's up, man?
25:01What's your name?
25:02How's it going?
25:03How's it going?
25:04How's it going?
25:05How's it going?
25:06How's it going?
25:07How's it going?
25:08What's up, man?
25:09What's your name?
25:10I'm Richard.
25:11Nice to meet you, Richard.
25:12I'm Don.
25:13Yes, sir.
25:14Hey, Krishna.
25:15Hey, girl.
25:16I invited you here to meet my good friend, Don. He is a commercial real estate broker. And I know you mentioned looking for a storefront. So I really wanted him to go through some options with you. He's already done a little research to see if we can find something that makes sense.
25:31Awesome.
25:32What type of business do you want to do?
25:33How's it going?
25:34How's it going?
25:35How's it going?
25:36How's it going?
25:37How's it going?
25:38How's it going?
25:39How's it going?
25:40How's it going?
25:41How's it going?
25:42How's it going?
25:43How's it going?
25:44Awesome.
25:45What type of business are you trying to do?
25:47I am opening up a tea house slash yoga studio.
25:50OK.
25:51So I'm looking for something with a studio and enough space to turn into a retail tea, cafe type of thing.
25:57Do you know what comes with getting the storefront?
26:00I know what I kind of researched.
26:03Researched?
26:04I wouldn't say I just know everything. What I just know is a lot of work.
26:07Got you, got you, got you.
26:08Opening a brick and mortar right now is absolutely a mistake for Krishna. She can't even pay off her debt.
26:13How is she going to pay for a storefront?
26:16I'm hoping that Don can make her aware of some of those hidden costs that she may not be considering.
26:21First of all, y'all make sure your business is set up the right way. So do y'all have an LLC and everything set up?
26:26Yes.
26:27OK. Do you have tax returns?
26:28Yes.
26:29OK, perfect. How many years of tax returns do you have?
26:31I was told I needed three years.
26:32Yeah.
26:33So I do have three.
26:34And then you need about two to three months of bank statements?
26:37Two to three months?
26:38Yeah, about two to three months.
26:39OK, so I do have that. I just opened up a new business bank account.
26:41OK.
26:42So I should be fine.
26:43OK.
26:44I have a question.
26:45You mentioned bank statements and tax returns.
26:47Is there a certain revenue profit that they're looking for?
26:51Basically, you're going to have more profit than your losses. As long as you have more profit than your losses, then you're good. If they see you're losing more than what you're making, they're not going to let you move in.
27:02How much square foot are you looking for?
27:04Well, I have been looking.
27:06Uh-huh.
27:07And there is one space that I'm actually very interested in.
27:10OK.
27:11It is 1,210 square foot.
27:13OK.
27:14They're looking at the low 4,000.
27:174,000.
27:18Or a little bit under.
27:19They want another yoga studio in there, because that's what it was prior to.
27:23OK.
27:24So they are pretty lenient with the pricing.
27:26Gotcha.
27:27Up until this point, Krishna has shown me she's unserious about her debt, very unserious about paying her brother back, and unserious about making a profit.
27:34Who this woman, Harpo?
27:39Did you calculate utilities?
27:40I did.
27:41OK.
27:42So utilities, I was looking at about 2 to 5.
27:44Yes.
27:45So now you have 4,200.
27:46Right.
27:47You got to add on the certification.
27:49Certification.
27:50Yeah.
27:51So if you all want to sell beverages and things like that, you have to get certifications for that.
27:54That's like another $400 right there.
27:56On top of the utilities and the licenses, you also got insurance, too.
28:00Yeah.
28:01That can range from about $4,000 to $10,000 a year.
28:03I know.
28:04Quick question.
28:05You have to walk into the door and have the keys and get her business operational.
28:08Right.
28:09Mm-hmm.
28:10How much does she have to put down?
28:11I would say you want to have a deposit first month and last month.
28:15I would say just to be safe around maybe $10,000.
28:18That's what I would say.
28:19Yeah, about $10,000 just to be safe.
28:21How much money do you have to put up up front for down payment?
28:24Yeah.
28:2510K, like you said.
28:26Yeah, 10K?
28:27Okay, perfect.
28:28I got to get back to some other clients out in the streets right now.
28:30It was a pleasure talking to y'all, Leah.
28:31Thank you for introducing us.
28:32Thank you for coming by.
28:33Yeah, thank you so much.
28:34Richard.
28:35Pleasure to meet you, though.
28:36Yes, sir.
28:37It was nice to meet you.
28:38Hey, thank you all so much.
28:39One thing I feel like first-time business owners struggle with is not having a plan.
28:42What it's going to come down to is the numbers.
28:44$10,000 is a good way to start just to get in the door, but you're probably going to need more.
28:47So far like $20,000, you know, just for all those other expenses that we mentioned earlier.
28:51So a lot of people have these businesses, they got these big plans, but when it comes down to having the money and the credit scores, they don't have it.
28:58What are you thinking?
28:59You've obviously done your research.
29:00I do know that there is still work to be done, but I am ready.
29:05What are you ready for, though?
29:06Are you ready to move in today?
29:07I'm ready to move in soon.
29:09Okay, so you have the $10,000.
29:11Yeah.
29:12I know you had $10,000 in your savings.
29:14Savings.
29:15That's it.
29:16You don't want to wipe out your savings on this one space because that's just a deposit.
29:19You still have to pay the rent after that and the utilities and everything else.
29:22You're not going to just generate revenue automatically from day one to pay at all.
29:26Of course not.
29:27What I really want you to focus on is being lean and profitable so that way your business can sustain that growth when it does happen.
29:34So I think you really should be pouring that money into things like marketing, operations, and systems first, and then look into a storefront within a year or so.
29:43That's my recommendation to you.
29:45I can do six months from now.
29:46I'm a hustler.
29:47I'm not waiting no year to get my storefront.
29:50I know ways to get the money.
29:52Are you ways to get the money?
29:54No.
29:55Not 100%.
29:56I'm not waiting to get the money.
29:57But at the end of the day, if she doesn't have it, I'm going to help her out.
30:00I was waiting for him to say he's going to pay it.
30:02I'm going to give her a hard time and then do it at the end of the day.
30:07You used the $10,000 for the deposit.
30:09What happens for the first month of rent after that and unexpected costs?
30:13Anything more than that, we'll have to look into investors of some sort.
30:17You have to have the financials for investors, right?
30:20So that's going to be hard.
30:21You're going to do the Richard investment bank.
30:24No, I'm not that.
30:26I know exactly what will happen.
30:28Krishna won't pay her rent.
30:29She'll ask Richard for it.
30:31Richard will give it to her because that's what Richard does.
30:34I need to help Richard see that he is not helping Krishna's business model by bailing her out.
30:39And he's not helping himself by enabling her.
30:42He needs to learn how to say no.
30:45What is it that you'd like to be different?
30:48I don't want to go overseas anymore.
30:49I don't want to work over there anymore.
30:50I'd rather be home with my family.
30:52What happens with your sister?
30:54I love my little sis.
30:55I mean, it's difficult for me to tell her no.
30:57But I think I'm just going to have to put my boots on the ground and stand firm.
31:15Hi, Leah.
31:16Hi, Richard.
31:17How's it going?
31:18Good.
31:19How are you?
31:20Have a seat.
31:21Thank you, thank you.
31:22Hi.
31:23Hello.
31:24How's it going?
31:25I'm Richard.
31:26Nice to meet you, Richard.
31:27I'm Star.
31:28She is a counselor.
31:29And she has helped me through many of my highs and lows as well as some of my relationship
31:32issues.
31:33So I thought she would be a great person to talk to.
31:36I've become increasingly concerned over Richard's lack of boundaries with his sister.
31:41I am going to head out and leave you all to it.
31:43It was a pleasure seeing you.
31:44Good to see you.
31:45So I think it's really important that Richard talk one-on-one with a professional.
31:49And I hope he's receptive.
31:51I'd like for you just to tell me a little bit about yourself.
31:54I'm 40 years old.
31:56I have three children, two 16-year-olds and an eight-year-old.
32:00Okay.
32:01My brother's 10 years younger than me and my sister's three years younger than me.
32:04I've always been, you know, the man of the house, you know?
32:08It made me feel good.
32:09It made me feel like I had a purpose in the house.
32:10I feel like I had a duty to take care of my family.
32:13And I always liked that.
32:14I always appreciated it, you know?
32:17Okay.
32:18I've done therapy before, but financial therapy feels a little more vulnerable, I think.
32:25But I understand behind comfortability is growth.
32:29So I'm up for the growth.
32:31So I understand from Leah that if your sister is in need of cash, that you have to go abroad
32:37and work.
32:38And I guess you provide her the funds.
32:40Me going overseas enabled me to, you know, help her out when she needed.
32:44And I would do that often.
32:46Not only for her, for my mother and my brother as well.
32:49Mm-hmm.
32:50But me having those extra funds and then knowing I have those funds kind of enabled them and
32:55got them kind of spoiled a little bit.
32:57Okay.
32:58So what is it that you'd like to be different?
33:02I don't want to go overseas anymore.
33:03I don't want to work over there anymore.
33:05I'd rather be home with my family.
33:07Mm-hmm.
33:08The only reason I'm over there is to make the money, you know?
33:11And if you don't go overseas, then what happens with your sister?
33:14When it comes to standing firm against my family, I think that's where I have an issue.
33:19Okay.
33:20My family needs help and there's nobody else that can help them.
33:23Mm-hmm.
33:24I'm going to step in.
33:25There are times when people ask us for things, especially people that we love or that we're
33:29really close to, and we almost feel automatically compelled to say yes.
33:34And so the trick that I've taught people to do is to say, let me get back to you.
33:39Okay, okay.
33:40It gives yourself a moment to just breathe and get your thoughts together and make a
33:45decision as to, do I really want to do that or not?
33:48Mm-hmm.
33:49And you get to set some boundaries in that.
33:52And they can either accept it or...
33:55Or not, right.
33:56Or not.
33:57Mm-hmm.
33:58And oftentimes if they are invested in your relationship with them, they'll understand.
34:03Mm-hmm.
34:04Yeah.
34:05I understand.
34:06You're saying take a beat?
34:07Mm-hmm.
34:08You kind of allow yourself to think about it?
34:10Mm-hmm.
34:11Then decide?
34:12Yes.
34:13I got you.
34:14Now what happens in a case where there's a family member who really does need help?
34:18How do you discern when they need help and they really don't?
34:22Okay.
34:23So there's a difference between a need and a want.
34:25Mm-hmm.
34:26Sometimes the needs, you might help them out one time, and then you might help them out
34:31again, and then you might help them out again.
34:32Mm-hmm.
34:33And so I think that's where the communication piece comes in.
34:35You have to talk to them about what are you doing that you keep needing assistance with
34:40paying your bills.
34:41Mm-hmm.
34:42Because sometimes people will continue to utilize you if they know you're going to provide
34:46what they need.
34:47Right.
34:48So if it starts to become a pattern, it's time to have a conversation.
34:52Yeah.
34:53Yeah.
34:54Mm-hmm.
34:55I also understand from Leah that there's some money that your sister owes you?
34:58Mm-hmm.
34:59You know, we talked about a plan to pay that back.
35:03Okay.
35:04Um...
35:05What's the plan?
35:06Yeah.
35:07I guess we don't have a plan written down yet, no.
35:09Okay.
35:10So if you could come up with a plan, what would it be?
35:12It would be to establish a percentage from each check.
35:15Okay.
35:16I think that would be a good plan.
35:17When would that start for you?
35:19I would say the next 30 days.
35:21Okay.
35:22Well, at least you know some of the terms.
35:2430 days, a percentage, every paycheck.
35:27Mm-hmm.
35:28Yeah.
35:29Setting boundaries seems pretty easy when we start.
35:31And I understand why it's important.
35:33But I don't think it would be the same when I do that with my sister.
35:36I love my little sis.
35:37I mean, it's difficult for me to tell her no.
35:39But I think I'm just going to have to put my boots on the ground and stand firm.
35:43Baby steps.
35:44We're not trying to do everything all at once, but just one baby step at a time.
35:50You're welcome.
35:52So what's happened since we last met?
35:54A lot of thinking.
35:55Elaborate.
35:56I'm expecting small wins, but as far as the boundaries between Krishna and Richard,
36:02that part, I'm not so sure.
36:20Elaborate.
36:21Elaborate.
36:22I've been going through my financials to really just see where I can start to improve.
36:27Good.
36:28We've made some plans for the next 30 days.
36:29What are the plans?
36:30The payment plans and what are we going to do going forward?
36:31The payment plans and what are we going to do going forward?
36:32You mean the payment plan as far as?
36:33To him.
36:34Okay.
36:35Got it.
36:36Okay.
36:37How do you feel about that?
36:38I feel good.
36:39I feel great.
36:40Good.
36:41We're starting at 10% from every paycheck.
36:42And if she doesn't have anything else going on, we're going up to 15.
36:43But I just need her to stick with her.
36:44I just need her to stick with her.
36:45That's so sure.
36:46Elaborate.
36:47I've been going through my financials to really just see where I can start to improve.
36:52Good.
36:53We've made some plans for the next 30 days.
36:56What are the plans?
36:57The payment plans and what are we going to do going forward?
37:00You mean the payment plan as far as?
37:01To him.
37:02Okay.
37:03Got it.
37:04Okay.
37:05How do you feel about that?
37:06I feel good.
37:07I feel great.
37:08Good.
37:09We're starting at 10% from every paycheck.
37:10And if she doesn't have anything else going on, we're going up to 15.
37:12I just need her to stick to what she's going to say.
37:13If it's $600, I need to be $600 a month and consistent.
37:18Money and a thing.
37:20I got you.
37:21We talked about increasing your prices.
37:23Have you been able to do that yet?
37:24It's a little difficult because I still want to stay affordable.
37:27So that's why I was thinking maybe different sized jars and make the big one that I have
37:33maybe 30 plus, you know?
37:35That way people that possibly can't afford 30 can get a $12 jar or a $22 jar, you know?
37:42Mm-hmm.
37:43So I'm taking that into consideration for sure.
37:44Good.
37:45One thing that I really like about you is you have a big heart.
37:47You have a really big heart.
37:48I noticed that in the short amount of time I spent with you.
37:50But just keep in mind that there are other ways to give back without hurting your business,
37:54right?
37:55I get it.
37:56I'm not going to be able to sustain and be here long if I continue that.
38:01I want to make sure that you are getting the cost of the ingredients, the labor, the packaging,
38:06the shipping, the overhead, and just getting what you put into it, out of it, plus more.
38:12Correct.
38:13Right?
38:14That markup is where you make your money.
38:15It's a good product.
38:16So I know people will be willing to pay that.
38:17Yeah.
38:18What about your long-term goals?
38:19Of course my long-term goal is the storefront.
38:23That is not going to go away.
38:25Mm-hmm.
38:26But I know I have to start here to get there.
38:29I love that.
38:30Initially, you wanted to get into the storefront immediately.
38:33Mm-hmm.
38:34Then you said six months.
38:35I recommend it a year minimum.
38:36What are you thinking now?
38:37Eight months.
38:38Eight months?
38:39Still ain't there.
38:40Give it a little while longer.
38:41We're getting there.
38:42Baby steps.
38:43Baby steps.
38:44Has the communication opened up more between you all as far as finances?
38:48We've always been close.
38:49Mm-hmm.
38:50Right?
38:51That's my big brother.
38:52But I think financial-wise, it's gotten a lot better because I would try to dodge him
38:57because I knew I owed him.
38:59So now I'm like, okay, we're on the same page.
39:02I don't want to take advantage of my brother.
39:04And when you're so used to something, you don't really see it until it's put in the front of you.
39:09Like, look, this is your family.
39:11They're going to always be there.
39:12Don't take advantage.
39:13And it seems like you made some progress, too, as far as putting boundaries in place.
39:17Yeah, yeah.
39:18Mm-hmm.
39:19He tried to put his foot down.
39:20I spoke with a counselor, and she gave me some information that I can use to kind of keep my head on straight
39:26and keep myself in place because, you know, we all need work, so.
39:30I'm so proud of you guys.
39:31Y'all have made a lot of progress in a very short amount of time.
39:34Be tried.
39:35Be tried.
39:36I am very impressed by Richard and Krishna's lens.
39:38Krishna is getting more organized with her finances.
39:41She is postponing the storefront.
39:43And Richard's finally setting healthy boundaries with his sister.
39:47I will be following up, checking in on you all within a few months.
39:50Please do.
39:51Don't be surprised.
39:52We don't want to drop the phone.
39:53We look forward to it.
39:54We look forward to it.
39:55Yeah, and if you have any questions in the meantime, feel free to reach out.
39:57I'm always looking for you.
39:58Yeah, we're going to have questions for sure.
39:59Working with Leah has definitely been an eye-opener to see where I need to do better.
40:06And I have to stop relying on my brother so much because he does have children and he has his own things going on.
40:14This has kind of inspired me to maybe put some more effort into my dreams.
40:19Thank you again for all your help.
40:20It was just definitely a blessing just to have you.
40:22No problem.
40:23Thank you guys.
40:24Lending money to family and friends can create a sense of codependency and entitlement.
40:29And that dynamic can be very difficult to change.
40:32My honest advice when it comes to lending money is don't.
40:35They ain't got it.
40:36That's why they asked you for it in the first place.
40:38But if you do, make sure you can afford to never see that money again.
40:42Thank you so much for your problem.
40:44Such a pleasure.
40:45It was.
40:48All right, you all have a good one.
40:49You too.
40:50Next time on Maxed Out.
41:01Pastor Greg has nominated Donna, his church member.
41:04She owes him tens of thousands of dollars for her dance studio.
41:08Do you loan money to a lot of your church members?
41:10No.
41:11No, no, no.
41:1260,000 from my dad.
41:14That's not normal.
41:15Yeah.
41:16We won't be able to continue with this cycle.
41:19You currently have about $200,000 worth of debt.
41:22At this rate, you'll never pay it off.
41:24How would I pay that back?
41:25This is a singing Titanic.
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