- 11 minutes ago
Maxxed Out - Season 1 Episode 4 - The Spoiled Sister
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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.
00:11Oh, wow.
00:12I am Leah Collins, and I'm a financial relationship coach.
00:16But 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.
00:38I'm on my way to meet Richard, who
00:40has 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
00:52businesses because she is still operating both like startups.
00:55And neither business is making a profit.
00:58Situations like this are really tricky when you mix family
01:01and business because there's really a thin line between support
01:05and resentment.
01:06I'm excited to meet the siblings and see what's really going on.
01:20Hey, how you doing?
01:21Richard, how are you?
01:22Nice to meet you.
01:23Nice to meet you.
01:24Oh, I love your place.
01:26Please 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, great ideas.
01:39The thing is, I don't know if she has her budgeting and the money
01:42aspect of the business together just yet.
01:45OK.
01:46And therefore, she leans on me heavily financially.
01:49I just don't have the funds to give her and do the things that I want to do for me and my family.
01:53Right, and about how much money do you think you've given her?
01:58I've lost count.
01:59It's over $20,000.
02:02It's a pretty hefty load for me, being that I have three kids who need things for me.
02:07And I travel for work overseas, and I've been doing it for so long as I'm able to make quick money.
02:12And that quick money enables me to help my family, help 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, then 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, yeah.
02:33Why 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's got to do this on her own.
02:42I'm a big brother, but I ain't that big.
02:45I absolutely plan to help her, but I also want to help you too,
02:48because it seems like there's this pattern of enabling, right?
02:52That's for sure.
02:52So we're also going to work on your boundaries.
02:54Is that something that you're willing to do?
02:56That sounds like something I need.
02:58Richard seems like a very generous person,
03:00and he probably takes pride in providing for his family.
03:03But he has to stop the handouts.
03:05Or Christian 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.
03:12What's up, Christian? How you doing?
03:13How are you?
03:14Good. How are you? Good.
03:15Christian, this 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, I 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 been.
03:56I feel like I need Leah for Christian,
03:57because she doesn't like to listen.
03:59I mean, yeah, that's true.
04:00I am very stubborn.
04:01She's very stubborn.
04:03Just wait.
04:04I hate her.
04:05Yeah.
04:07Christian has always been the doer and the dreamer.
04:09I am the only girl.
04:11I'm close to both my brothers, and they think that I'm spoiled.
04:14But I mean, I do get what I want, so.
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, if I got it, I'm going to give it.
04:29After I joined the military, I had money faster than everybody else,
04:32and it was easier for me to help you.
04:34So when I opened up my businesses in 2020,
04:39I didn't go to the bank.
04:42I went to my brother, because he is the bank.
04:45But I don't think he wants to be an investor.
04:48It's just that I be needing help.
04:50I want to invest as well, though.
04:52I want to help.
04:54I believe in you.
04:55I'm just very persuasive.
04:57Or are you a bully?
04:58I'm not a bully.
05:00I'm not a bully.
05:01You think I'm a bully?
05:02Not to me.
05:03She's a bully, for sure.
05:04But not to me.
05:05I don't even like bullies.
05:06Well, my bad.
05:11Richards 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 T because I was diagnosed with hypothyroidism.
05:21And so they told me that I would have to take this medication
05:26for the rest of my life.
05:27And I just wasn't OK with that.
05:28And taking herbs, I reversed my thyroid.
05:31So I turned into a business.
05:33And 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.
05:47OK.
05:48And just to clarify, for the yoga business,
05:50are you wanting to monetize that, or is that more?
05:52I do.
05:53OK.
05:53That's the goal.
05:54And where's your business currently?
05:56We're currently-
05:56Do you have a store for it?
05:57No, we don't.
05:58As of right now, when it comes to Cosmic T, I do pop-up shops.
06:01And we have an online store as well.
06:03OK.
06:04The 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.
06:11OK.
06:11Have you been able to turn a profit yet?
06:13For Flow in Nature, no.
06:14What about?
06:15Cosmic T, I have.
06:17What has been your highest profit?
06:19$45,000, maybe.
06:21That's profit after expenses, or is that revenue?
06:23Well, after expenses, I would say $25,000.
06:25So do you know what your expenses are?
06:28Yeah, if I write them down, I can't tell the top of my head.
06:30So no.
06:32So she's not good with numbers.
06:34So no.
06:35OK.
06:35How do you track and manage your finances?
06:38In my head.
06:38Girl.
06:41I literally wrote down, girl.
06:44What's your highest-sailing tea?
06:46Our Moonstone tea.
06:47And do you know your profit margins?
06:50You 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?
07:02Because you know how?
07:04No.
07:04When you cook.
07:05No, I don't know.
07:07You know how when you cook, we don't really
07:09just measure what we put in food.
07:11We can tell by our risk.
07:12With the ancestors tell you.
07:13Yeah.
07:14Letting my ancestors tell me, you want to stop?
07:17I'm concerned that Krishna isn't taking the business
07:20aspect of her business seriously.
07:22Because the operations, the bookkeeping, the accounting,
07:25all of that is what makes your business a business.
07:29Do you work at all?
07:30Do you have a W2 job?
07:31No, I do.
07:31OK.
07:32I'm a project manager.
07:33And do you use some of those funds to help invest
07:35in your business?
07:36OK.
07:37How much?
07:39It's in your head?
07:41OK.
07:42I mean, I'm not bad with numbers.
07:44But 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.
07:53Yeah.
07:54How 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.
08:03Just 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.
08:14No, 20K.
08:16Yeah, it's somewhere around 20K.
08:18But if you're going to get that back,
08:19the world may never know.
08:20Have you paid any of it?
08:21What?
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
08:31of respect for her brother.
08:32Richard has three children to support,
08:34and he needs to put their needs and their security first.
08:38He doesn't even get to spend time with them
08:40because he's overseas, making money,
08:42trying to fuel her passion projects.
08:44Do you have any savings, personal savings?
08:47I do.
08:48That's good.
08:48How much?
08:49You brought this lady here to tell my business.
08:53Mm-hmm.
08:54OK.
08:56Roughly 10K.
08:59And you owe your brother money.
09:00How does that make you feel?
09:02I mean, that's more than what I got.
09:05You mean?
09:06You need some help, man.
09:08See, look, that was an investment.
09:09What was an investment?
09:10Well, he gave me.
09:11I mean, I'm tired of this.
09:12It's getting to a point where you're dragging me down.
09:19I hear that my sister has a pretty healthy savings account.
09:22When I should be getting some of that money,
09:24it kind of makes me feel, I don't know,
09:26play it a little bit.
09:27It's one of those things with my whiteboard in my head.
09:29It erased that I owe you money.
09:31So maybe that's why I forgot.
09:33I'm not going to get the money from you.
09:38When I get big.
09:40Nah.
09:40Is that usually how it works when you take out
09:42a business loan, though?
09:43Can you tell the bank, I'll help you when?
09:45No, but he's not the legit bank.
09:47Mm.
09:49He has three kids.
09:50I know I can help him.
09:52With what, babysitting?
09:53Babysitting?
09:54You 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.
10:13And 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.
10:22This 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.
10:35All right, I will see you all later, OK?
10:37Bye.
10:38And Richard seems completely unable to say no
10:41or have boundaries for Krishna.
10:43I think I'm going to have my hands full with the both of them.
10:45Let's start with this homework.
10:47I don't want to do this right now.
10:48No.
10:49Let's start with number one.
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
10:58his money back looking at it.
10:59Yeah.
11:00Probably not.
11:01Money in the bag, money in the bag.
11:05You never run out too much gas in the tank.
11:08No, it'll make you feel good on it.
11:10OK, perfectionist.
11:12You ain't supposed to step on your mat with your shoes.
11:15Y'all do sets?
11:16That's, this is yoga.
11:17We don't do no sets.
11:18No.
11:19Hello.
11:21How are y'all?
11:22Good, good.
11:22It's nice to see you.
11:23I'm invited you.
11:24Who do you think invited me?
11:26I know that Krishna hosts a yoga class in this park
11:29every week, so I'm meeting up with her and Richard
11:32beforehand to discuss the financials
11:34that she sent over to me.
11:36Is this where you usually do your yoga?
11:38Yeah, we like the views and the vibes in the park.
11:41About how many people come?
11:43The least we get is 20, but we have sometimes 50 plus.
11:47It just depends.
11:48And you said it's donation-based mostly?
11:50Donation-based, yeah.
11:51About how much do you get in donations each week?
11:53You know what?
11:54I really could not tell you.
11:57Yeah, as a business owner, you really
11:59need to know your numbers.
12:00Yeah.
12:00OK.
12:01I got to get better with knowing them in my head, too.
12:03Right, and on paper.
12:04Well, I know on paper as a head is just, I got to get better.
12:08OK.
12:08You're right, you're right, you're right.
12:10I know I keep saying I keep the numbers in my head,
12:13but honestly, I don't even know what them numbers are.
12:17I kind of make them up as I go.
12:21Oof.
12:22Oh, look at that.
12:24Money.
12:24You got some money, darling.
12:26Actually, this $80,000 represents your income.
12:32And this represents your debt.
12:35Oh, damn.
12:38You said my debt?
12:39Mm-hmm.
12:39Or what I'm going to get?
12:40Your debt.
12:41Oh.
12:42Which is about $170,000.
12:44Oof.
12:48Krishna's credit card debt is about $4,000.
12:51Her personal loans are $9,900.
12:53Her student loans are a whopping $132,000.
12:58And she owes Richard $25,000.
13:02What are you thinking?
13:03It is what it is.
13:05That shouldn't be what you think.
13:06It is what it is.
13:07What does that mean?
13:09We win some, we lose some.
13:11Man, seeing it like this feels like I should be worried a lot more.
13:15Yeah, because he probably going to get his money back looking at it.
13:17Yeah.
13:18Probably not.
13:19Probably not.
13:20All jokes aside, I'm a little bit embarrassed because it's
13:23different when you see numbers versus you see the actual money.
13:26I feel bad about even wanting the money back, you know?
13:28She got bigger fish to fry, you know?
13:30But when I make it big, I'm going to give him his money back in more.
13:36This looks crazy, but I know I bring in more than that.
13:39Where?
13:41I mean, I guess I can't, I mean, the numbers, the business.
13:44Yeah, you bring in a little bit from your tea business.
13:47It's not bad, but your expenses are so high that you're making nothing
13:51at the end of the day.
13:52Yeah.
13:53I think Krishna is confusing revenue and profit.
13:57Revenue is the total amount of money that comes in from sales.
14:00Profit is the number left over after all of the expenses have been deducted
14:04from the revenue.
14:06Cosmic T's monthly revenue is about $2,400.
14:09The monthly expenses, about $4,000.
14:13This is a negative profit of about $1,600 a month.
14:17That's about $20,000 a year.
14:20It's no wonder she has to keep borrowing money from Richard.
14:23So she really just, like, just going in debt, really, just losing money, actually.
14:26Right.
14:27What does she need to do?
14:28One of the things that I want you to do is really figure out your profit margins
14:31and figure out what your pricing should be and update that.
14:33For sure.
14:34All right.
14:35Krishna makes a lot of sales, but she doesn't make a lot of profit, which leads me to believe
14:40that this is due to a poor pricing strategy.
14:43My plan for Krishna is, one, to increase her prices to at least cover her costs.
14:48I mean, let's just start there.
14:50Two, do her bookkeeping on paper, not in her head.
14:54And three, pay back her debt, starting with her brother, Richard.
14:58You mentioned a storefront.
14:59About how much is that, a month?
15:01For the area, we're looking at about $4,000 a month.
15:03OK.
15:04Do you think you can afford that right now?
15:06Yeah.
15:06No.
15:07How?
15:08We just said you were losing money, and you owe your brother money.
15:11There's no way you're affording it.
15:12I'm definitely going to be able to afford it.
15:14How?
15:15The same way I find money to pay my rent?
15:17From your brother?
15:18I don't ask him no more.
15:20I don't like that one.
15:22I think you should relax.
15:25I got this.
15:26Well, I recommend holding off on that until you do pay off some of this debt
15:31and you increase your revenue and do better with tracking your expenses.
15:35It's not going to happen.
15:37I'm very passionate about my brick and mortar.
15:40That is my ultimate goal.
15:41I'm not going to stop.
15:42I'm not going to give up until I get it right.
15:44She's a doer.
15:44She sees something she wants, she's going to do it.
15:46She's going to think about the end goal first,
15:48and then she makes a plan as she goes along.
15:50Tunnel vision.
15:52All right, well, your homework is to work on your budget.
15:54I want to see where you're going to get this $4,000 from
15:57and how you are going to pay back your brother
16:00and all of your other expenses.
16:01Yeah.
16:02For sure.
16:03Well, I will see you all later, OK?
16:05But you ain't do yoga?
16:07Oh, I don't do outdoors.
16:09Oh, ho, ho, ho, ho, ho, ho.
16:15Light it up.
16:16Light it up.
16:17Put me in, turn it back in.
16:19I'm out of pocket, out of pocket.
16:21Hello.
16:22What's going on?
16:23No, no, y'all late, bro.
16:25Y'all always late.
16:26You're going to be late to your home, too.
16:27I wasn't supposed to be here, so I don't even know too long.
16:29Look, that's beyond the point.
16:30We already got our stretch and our warm-up in,
16:32so you got to get busy.
16:33You got two trips on the sled.
16:35We don't get no warm-up?
16:36That's your warm-up right there.
16:38This is the end.
16:40All right, you grab your 10, you grab your 20.
16:42So can I just sled on right into you?
16:43You coming right down to me.
16:45Flip around and push back.
16:48On the double.
16:50Today, Junior.
16:51We're at the gym, my homeboy.
16:53This is a childhood friend of mine.
16:54I've known Ray since high school.
16:57I'm good friends with Ray as well.
16:59He is my personal trainer.
17:01He's actually my best friend.
17:03I took his best friend.
17:04Yeah, don't hate.
17:05And Kem is my girl, and she loves a good workout.
17:08All right, Rich, you got 10 down, 10 back.
17:10All right.
17:12I'm done with that.
17:14Let me not tell y'all what my brother did to me.
17:17He signed me up for this intervention,
17:21is what I call it.
17:22So I have to talk to this financial advisor,
17:24because he don't want me asking for no more money.
17:27It's getting to the point where I can't take it.
17:29But I don't even know how much I owe you.
17:31So it don't really count.
17:33You know it's over 20.
17:35Oh, 20 grand.
17:39Richard is very loyal to a fault.
17:41He'd give you the shirt off his back if he could.
17:43But I didn't know it was to that extent.
17:45For any family member to borrow almost $20,000 from you,
17:48that's a no brainer.
17:50He needs to cut that off, and she needs
17:51to stop taking advantage of him.
17:54Life is going to be givers and takers.
17:55And if the givers don't say no, then the takers
17:58are going to always take.
17:59It's been going on for a while.
18:00I got used to it, and it's partly my fault.
18:02I'm glad you took accountability,
18:03because it is partially your fault.
18:05Just because I don't, you know, flip out on you,
18:07I'm not angry.
18:09You're like that spoiled little sister that everybody wants.
18:13In terms of what?
18:16Because Richard has been saving you.
18:17He's always saving you.
18:20You got to live within your means.
18:21You tell me that all the time.
18:23I'm just a girl.
18:26You're going to be a homeless girl.
18:29We all love Krishna, and we all want to see her succeed.
18:33But I think that sometimes in Krishna's uncomfortability,
18:37she kind of shuts down and makes things a joke,
18:41rather than taking this seriously.
18:43She just wants to always have it together,
18:45and sometimes we have to tell our friends and family,
18:48I need some help.
18:50You're a businesswoman, don't know your numbers.
18:52I've been her calculator for a while.
18:54I'm doing all the math, so.
18:55You the fool.
18:56You are the enabler.
18:57Yeah, you're right.
18:58I'm an independent contractor,
19:00but I know my numbers for every month.
19:01I know what I got coming in.
19:03I know what all my expenses are, my miscellaneous.
19:05And I keep track of everything in a spreadsheet.
19:08That way, you can see exactly what it is
19:10you got to do month after month.
19:13You know, I'm private.
19:14I don't want anybody in my business.
19:15They know business, but they only know what I tell them.
19:17So for them to be sitting up in there telling me,
19:20yeah, Katie, do this and then, I don't want to hear that.
19:24But unfortunately, they are right.
19:27Yeah.
19:28You lock your pockets.
19:34So for this tea, were you calculating the cost in your head?
19:37Yeah, $22.
19:39I came up with $64.
19:42She's the reason why we're not making a profit.
19:44I'm over it.
19:45It needs to change.
19:46My math and your math wasn't together.
19:48We know.
19:49I know I got it, y'all can't top it.
19:56You want to be her, I got a good feeling.
20:00Is those things in there, Richard, those flying things?
20:03Yeah.
20:05Leah told me that she wanted me to bring Cosmic Tea
20:08to a pop-up at the park because she wants
20:10to watch how I sell my teas.
20:12Ain't nobody even here.
20:14You got to see how you running your thing,
20:16how you putting your stuff together.
20:18So she want to be more in my business?
20:19Possibly.
20:20You need somebody in your business.
20:22I don't.
20:24I mean, how would you feel if somebody was all up
20:26in your business?
20:28Hey, how you doing?
20:29Speaking of the devil.
20:30How are y'all?
20:31Good.
20:32How are you doing?
20:33Good.
20:34I like your setup.
20:35This is really nice.
20:36Is it?
20:36It is.
20:38Krishna has made it clear in our conversations
20:40that she manages her expenses in her head.
20:43I want to see how she manages her whole business that way.
20:46Well, what do we have here?
20:47Can you walk me through your process, your ingredients?
20:49Here we have our dandelion, which is good for the liver.
20:54This one is our moonstone tea.
20:56That's one of our best sellers.
20:57All right.
20:58I do have one that's good for, like, blood pressure.
21:01It's good for the heart.
21:03Mm-hmm.
21:04I'm going to tell you a little secret about that one.
21:05So this is the rose one, right?
21:07So it also helps with women menstrual,
21:10but it also can increase women's sex drive.
21:13OK.
21:15Well, I told you that you're here to do a pop-up,
21:18but what we're really here to do is a challenge.
21:21The real reason we're here.
21:22So this ain't no pop-up?
21:23That's why it's so empty.
21:24Yeah.
21:25Challenge.
21:26We need this.
21:27We're going to play a game called store,
21:29something that I play with my kiddo all the time.
21:32You will be the store owner.
21:33I will be the customer.
21:36We're just going to do basic math
21:37to see if you know how to create your pricing strategy, OK?
21:43Since Krishna doesn't normally measure her ingredients,
21:45there's no way to know if she's pricing appropriately.
21:48So hopefully, with this challenge,
21:50she can see that proper bookkeeping is essential
21:53for a profitable business.
21:55OK.
21:56So let's do the rose tea.
21:58OK.
21:59I am annoyed, because I know what that game is called,
22:03because we played it growing up.
22:05But I know this one is going to involve some real numbers.
22:08Rose petals is one of our herbs that's in our rose tea.
22:11This is what I'm going to measure.
22:12Oh, lordy, lordy.
22:143.9 ounces.
22:17And then one of our other ingredients is hibiscus.
22:254.4 ounces.
22:27The Damiana, that's what makes you freaky, OK?
22:324.5 ounces.
22:35This would be the lemon balm.
22:373.9 ounces.
22:40And then passion flower.
22:454.4 again.
22:46And then the last ingredient is cinnamon.
22:504.5 ounces.
22:54We would just mix them up.
22:56So for this tea, were you calculating
22:58the cost in your head?
23:00Yeah.
23:00What did you come up with?
23:01$22.
23:02OK.
23:04I came up with $64.
23:08My math is bad.
23:11Oh.
23:12This is why I'm here.
23:13And again, that's just the ingredients.
23:14That's not even including the labor,
23:16the packaging, the overhead.
23:18My math and your math wasn't together.
23:20We know.
23:21She's the reason why we're not making a profit.
23:24I'm over it.
23:25It needs to change.
23:26So really, your revenue should be much higher than it is.
23:29Yeah.
23:30And if you were pricing what you should be,
23:32you'd probably be making a profit right now.
23:35Seeing how much money is on the table that I'm leaving,
23:39it's definitely hitting me.
23:41It's definitely hitting hard.
23:42And it's making me think about all the money that I could have
23:45been making up till now.
23:47See, for me, when I'm making teas, I'm putting a lot of love in it.
23:51We know.
23:51We ain't thinking about them numbers.
23:53I want to keep them affordable because I want everybody
23:55to be able to enjoy my tea, not just a certain demographic.
23:58Mm-hmm.
23:59Just because you can't afford it doesn't mean that you shouldn't
24:02have something that's good for you.
24:03And that's probably why I'm here today.
24:05Mm-hmm.
24:06Because it is a business at the end of the day.
24:07It is a business.
24:09We're going to get better.
24:09Yes.
24:10Krishna is very passionate about giving back
24:13to people who are underserved, marginalized,
24:17and that's one of the reasons that we need to get her business
24:19profitable because then she can take a portion of that profit
24:22and allocate it to those people that she cares about the most.
24:25It was an eye-opener, and I'm definitely going to consider
24:28all of this when it's time for me to prepare for my brick and mortar
24:32because that's an initial plan, and I'm going to do that.
24:36I think I'm finally having a breakthrough with Krishna,
24:39especially as it concerns her pricing strategy.
24:42But it's very important that she understands the flaws
24:45in her business model before she even
24:47thinks about a brick and mortar.
24:52Do you know what comes with getting a storefront?
24:55I know what I kind of researched.
24:58Basically, you want to have more profit than your losses.
25:00They seen you losing more than what you're making.
25:02I'm not going to let you move in there.
25:04I'm not going to let you move in there.
25:16Hello.
25:17Hey, how's it going?
25:18How's it going?
25:19How's it going?
25:19How's it going?
25:20What's up, man?
25:20What's your name?
25:21I'm Richard.
25:21Nice to meet you, Richard.
25:22I'm Dawn.
25:22Yes, sir.
25:23Hey, Krishna.
25:23Hey, girl.
25:24I invited you here to meet my good friend, Dawn.
25:28He is a commercial real estate broker,
25:31and I know you mentioned looking for a storefront,
25:33so I really wanted him to go through some options with you.
25:36He's already done a little research
25:37to see if we can find something that makes sense.
25:40Awesome.
25:40What type of business are you trying to do?
25:42I am opening up a tea house slash yoga studio.
25:46OK.
25:46So I'm looking for something with a studio
25:49and enough space to turn into a retail tea,
25:52cafe type of thing.
25:53Do you know what comes with getting a storefront?
25:56I know what I kind of researched.
25:59Research?
25:59I wouldn't say I just know everything.
26:01What I just know is a lot of work.
26:02Got you, got you, got you.
26:04Opening a brick and mortar right now
26:06is absolutely a mistake for Krishna.
26:08She can't even pay off her debt.
26:09How is she going to pay for a storefront?
26:12I'm hoping that Dawn can make her aware of some
26:15of those hidden costs that she may not be considering.
26:18First of all, y'all make sure your business
26:20is set up the right way.
26:20So do y'all have an LLC and everything set up?
26:22Yes.
26:23OK.
26:23Do you have tax returns?
26:24Yes.
26:25OK, perfect.
26:25How many years of tax returns do you have?
26:27I was told I needed three years.
26:28Yeah.
26:29I do have three.
26:30And then you need about two to three months
26:32of bank statements?
26:33Two to three months?
26:34Yeah, about two to three months.
26:34OK, so I do have that.
26:35I just opened up a new business bank account.
26:37OK.
26:38So I should be fine.
26:39OK.
26:40I have a question.
26:41You mentioned bank statements and tax returns.
26:43Is there a certain revenue profit that they're looking for?
26:46Mm-hmm.
26:49Basically, you won't have more profit than your losses.
26:51As long as you have more profit than your losses,
26:53then you're good.
26:54If they see you losing more than what you're making,
26:56they're not going to let you move in then.
26:59How much square foot are you looking for?
27:00Well, I have been looking.
27:02Uh-huh.
27:03And there is one space that I'm actually very interested in.
27:06OK.
27:06It is 1,210 square foot.
27:09OK.
27:10They're looking at the low 4,000.
27:134,000.
27:13Or a little bit under.
27:14They want another yoga studio on there,
27:17because that's what it was prior to.
27:18OK.
27:19So they are pretty lenient with the pricing.
27:22Gotcha.
27:23Up until this point, Krishna has shown me
27:24she's unserious about her debt, very unserious
27:27about paying her brother back, and unserious
27:29about making a profit.
27:30Who this woman, Harpo?
27:31Yes.
27:33Did you calculate utilities?
27:36I did.
27:36OK.
27:37So utilities, looking at about $2,000 to $5,000.
27:40Yes.
27:41So now you have $4,200.
27:42Right.
27:42And then you got to add on the certification.
27:45So, yeah.
27:46So if you all want to sell beverages and things like that,
27:49you have to get certifications for that.
27:50That's like another $400 right there.
27:52On top of the utilities and the licenses,
27:54y'all, it's got insurance, too.
27:56Yeah.
27:56That can range from about $4,000 to $10,000 a year, you know?
27:59I know.
28:00Quick question.
28:00So just to walk into the door and have the keys
28:03and get her business operational,
28:05how much does she have to put down?
28:07I would say you want to have a deposit first month
28:10and last month.
28:11I would say just to be safe around $10,000.
28:13Maybe $10,000.
28:14That's what I would say.
28:15Yeah, about $10,000 just to be safe.
28:17How much money do you have to put up front for down payment?
28:21$10,000, like you said.
28:21Yeah, $10,000?
28:22OK, perfect.
28:23I got to get back to some other clients
28:25out in the streets right now.
28:26It was a pleasure to talk to y'all, Leah.
28:27Thank you for introducing us.
28:29Thank you for coming by.
28:29Thank you so much.
28:30Richard, it's a pleasure to meet you all.
28:31Yes, sir.
28:32It was nice to meet you.
28:33Thank you all so much.
28:35One thing I feel like first-time business owners struggle
28:37with is not having a plan.
28:38What it's going to come down to is the numbers.
28:40$10,000 is a good way to start just to get in the door,
28:42but you're probably going to need more.
28:43So far, like $20,000, you know, just for all those other expenses
28:46that we mentioned earlier.
28:47So a lot of people have these businesses.
28:48They got these big plans.
28:49But when it comes down to having the money and the credit
28:52scores, they don't have it.
28:54What are you thinking?
28:55You've obviously done your research.
28:56I do know that there is still work to be done,
29:00but I am ready.
29:01What are you ready for, though?
29:02Are you ready to move in today?
29:03I'm ready to move in soon.
29:05OK, so you have the $10,000.
29:07Yeah.
29:09I know you had $10,000 in your savings.
29:10That's it.
29:11You don't want to wipe out your savings on this one space
29:13because that's just a deposit.
29:15You still have to pay the rent after that and the utilities
29:17and everything else.
29:18You're not going to just generate revenue
29:20automatically from day one to pay at all.
29:22Of course not.
29:23What I really want you to focus on
29:24is being lean and profitable so that way your business can
29:28sustain that growth when it does happen.
29:30So I think you really should be pouring that money
29:31into things like marketing, operations, and systems first,
29:37and then looking to a storefront within a year or so.
29:39That's my recommendation to you.
29:41I can do six months from now.
29:42I'm a hustler.
29:44I'm not waiting no year to get my storefront.
29:47I know ways to get the money.
29:48Are you ways to get the money?
29:50Mm-hmm.
29:51No.
29:51Not 100%.
29:52I'm not ways to get the money.
29:54But at the end of the day, if she doesn't have it,
29:55I'm going to help her out.
29:56I was waiting for him to say he's going to pay it.
29:58I'm going to give her a hard time and then do it
30:01at the end of the day.
30:03You use the $10,000 for the deposit.
30:05What happens for the first month of rent after that?
30:08An unexpected cost.
30:09Anything more than that, we'll have
30:10to look into investors of some sort.
30:13You have to have the financials for investors, right?
30:16So that's going to be hard.
30:17You're going to do the Richard investment bank.
30:20I'm not that.
30:22I know exactly what will happen.
30:24Krishna won't pay her rent.
30:25She'll ask Richard for it.
30:26Richard will give it to her because that's what Richard does.
30:29I need to help Richard see that he is not helping Krishna's business
30:33model by bailing her out.
30:35And he's not helping himself by enabling her.
30:37He needs to learn how to say no.
30:42What is it that you'd like to be different?
30:44I don't want to go overseas anymore.
30:45I don't want to work over there anymore.
30:47I'd rather be home with my family.
30:48What happens with your sister?
30:51I love my little sis.
30:52And it's difficult for me to tell her no.
30:53But I think I'm just going to have to put my boots on the ground
30:56and stand firm.
30:59Yeah, give me all you got, all you got.
31:03Just the time to put the work in.
31:05That's a lot, gotta come in with the fire.
31:08Blazing hot.
31:11Hi, Leah.
31:12Hi, Richard.
31:13How's it going?
31:13Good.
31:14How are you?
31:15Have a seat.
31:16Hi.
31:17Hello.
31:17How's it going?
31:18I'm Richard.
31:19Nice to meet you, Richard.
31:19I'm Star.
31:20She is a counselor.
31:22And she has helped me through many of my highs and lows,
31:24as well as some of my relationship issues.
31:27So I thought she would be a great person to talk to.
31:30I've become increasingly concerned over Richard's lack
31:34of boundaries with his sister.
31:35I am going to head out and leave you all to it.
31:37It was a pleasure seeing you.
31:38Good to see you.
31:39So I think it's really important that Richard talk
31:42one-on-one with a professional.
31:44And I hope he's receptive.
31:46I'd like for you just to tell me a little bit about yourself.
31:49I'm 40 years old.
31:50I have three children, two 16-year-olds and an eight-year-old.
31:54OK.
31:55My brother's 10 years younger than me,
31:57and my sister's three years younger than me.
31:59I've always been, you know, the man of the house, you know?
32:03It made me feel good.
32:04It made me feel like I had a purpose in the house.
32:05I feel like I had a duty to take care of my family.
32:08And I always liked that.
32:09I always appreciated it, you know?
32:12OK.
32:12I've done therapy before, but financial therapy feels
32:18a little more vulnerable, I think.
32:20But I understand behind comfortability is growth.
32:24So I'm up for the growth.
32:26So I understand from Leah that if your sister is in need of cash,
32:30that you have to go abroad and work.
32:33And I guess you provide her the funds.
32:35Me going overseas enabled me to help her out when she needed.
32:39And I would do that often.
32:40Not only for her, for my mother and my brother as well.
32:44But me having those extra funds and then knowing
32:47I have those funds kind of enabled them
32:50and got them kind of spoiled a little bit.
32:52OK.
32:53So what is it that you'd like to be different?
32:57I don't want to go overseas anymore.
32:58I don't want to work over there anymore.
33:00I'd rather be home with my family.
33:03The only reason I'm over there is to make the money, you know?
33:05And if you don't go overseas, then
33:07what happens with your sister?
33:09When it comes to standing firm against my family,
33:12I think that's where I have an issue.
33:14My family needs help.
33:16And there's nobody else that can help them.
33:18I'm going to step in.
33:20There are times when people ask us for things,
33:22especially people that we love or that we're really close to.
33:25And we almost feel automatically compelled to say yes.
33:29And so the trick that I've taught people to do
33:32is to say, let me get back to you.
33:35OK, OK.
33:36It gives yourself a moment to just breathe
33:39and get your thoughts together and make a decision as to,
33:42do I really want to do that or not?
33:44And you get to set some boundaries in that.
33:46And they can either accept it or not.
33:53And oftentimes, if they are invested in your relationship
33:56with them, they'll understand.
33:58Mm-hmm.
33:59Yeah.
33:59I understand.
34:00You're saying take a beat.
34:01Mm-hmm.
34:02You kind of allow yourself to think about it.
34:05Mm-hmm.
34:05Then decide?
34:06Yes.
34:06I got you.
34:07Now, what happens in a case where there's a family member
34:10who really does need help?
34:13How do you discern when they need help and they really don't?
34:16OK, so there's a difference between a need and a want.
34:19Mm-hmm.
34:20Sometimes the needs, you might help them out one time,
34:24and then you might help them out again,
34:25and then you might help them out again.
34:27Mm-hmm.
34:27And so I think that's where the communication piece comes in.
34:30You have to talk to them about, what are you doing,
34:32that you keep needing assistance with paying your bills?
34:35Mm-hmm.
34:36Because sometimes people will continue to utilize you
34:39if they know you're going to provide what they need.
34:42Right.
34:43So if it starts to become a pattern,
34:45it's time to have a conversation.
34:47Yeah, yeah.
34:48Mm-hmm.
34:49I also understand from Leah that there is some money
34:52that your sister owes you?
34:53Mm-hmm.
34:54You know, we talked about a plan to pay that back.
34:57OK.
34:58Um...
34:59What's the plan?
35:00Yeah, I guess we don't have a plan written down yet, no.
35:03OK, so if you could come up with a plan, what would it be?
35:06It would be to establish a percentage from each check.
35:10OK.
35:11I think that would be a good plan.
35:12When would that start for you?
35:14I would say the next 30 days.
35:16OK, well, at least you know some of the terms.
35:1930 days, a percentage, every paycheck.
35:22Mm-hmm.
35:23Yeah.
35:23Setting boundaries seems pretty easy with a start,
35:26and I understand why it's important.
35:28But I don't think it would be the same
35:29when I do that with my sister.
35:31I love my little sis, and it's difficult for me to tell her no.
35:34But I think I'm just going to have to put my boots on the ground
35:37and stand firm.
35:38Baby steps.
35:39We're not trying to do everything all at once,
35:41but just one baby step at a time.
35:44You're welcome.
35:47So what's happened since we last met?
35:49A lot of thinking.
35:50Elaborate.
35:51I'm expecting small wins, but as far as the boundaries
35:55between Krishna and Richard, that part, I'm not so sure.
36:14Hello.
36:15How are you?
36:15How are you?
36:16How's it going?
36:17Krishna?
36:17How's it going?
36:18Good to see you.
36:18Richard?
36:19You too.
36:20Today, I'm having my final meeting with my clients,
36:22Richard and Krishna, to see what progress they've made.
36:25So what's happened since we last met?
36:27A lot of thinking.
36:28I'm expecting to see small wins, but as far as the boundaries
36:33between Krishna and Richard, that part, I'm not so sure.
36:37Elaborate.
36:38I've been going through my financials to really just
36:42see where I can start to improve.
36:45Good.
36:46We've made some plans for the next 30 days.
36:49What are the plans?
36:50The payment plans and what we're going to do going forward.
36:53You mean the payment plan as far as?
36:54To him.
36:55OK.
36:56Got it.
36:56OK.
36:56How do you feel about that?
36:57I feel good.
36:58I feel great.
36:59Good.
37:00We're starting at 10% from every paycheck.
37:02And if she doesn't have anything else going on,
37:04we'll come up to 15.
37:05But I just need her to stick to what she's going to say.
37:07If it's $600, I need to be $600 a month and consistent.
37:12Money and a thing.
37:13I got you.
37:15We talked about increasing your prices.
37:16Have you been able to do that yet?
37:18It's a little difficult because I still
37:20want to stay affordable.
37:21So that's why I was thinking maybe different size jars
37:24and make the big one that I have maybe 30 plus.
37:28That way, people that possibly can't afford 30
37:32can get a $12 jar or a $22 jar.
37:36So I'm taking that into consideration for sure.
37:37Good.
37:38One thing that I really like about you
37:39is you have a big heart.
37:41You have a really big heart.
37:41I noticed that in the short amount of time
37:43I spent with you.
37:44But just keep in mind that there are other ways
37:46to give back without hurting your business, right?
37:48I get it.
37:49I'm not going to be able to sustain and be here long
37:53if I continue that.
37:54I want to make sure that you are getting
37:56the cost of the ingredients, the labor,
37:59the packaging, the shipping, the overhead,
38:02and just getting what you put into it, out of it, plus more.
38:06Correct.
38:06That markup is where you make your money.
38:08It's a good product.
38:09So I know people will be willing to pay that.
38:11Yeah.
38:11What about your long-term goals?
38:13Of course, my long-time goal is the storefront.
38:17That is not going to go away.
38:19But I know I have to start here to get there.
38:22I love that.
38:23Initially, you wanted to get into the storefront immediately.
38:26Then you said six months, I recommend it a year minimum.
38:29What are you thinking now?
38:30Eight months.
38:31Eight months?
38:31Still eight months.
38:33We'll give it a little while longer.
38:34We're getting there.
38:35Baby steps.
38:36Baby steps.
38:37Has the communication opened up more between you all
38:40as far as finances?
38:41We've always been close, right?
38:43That's my big brother.
38:45But I think financial-wise, it's gotten a lot better
38:49because I would try to dodge him because I knew I owed him.
38:52So now I'm like, OK, we're on the same page.
38:55I don't want to take advantage of my brother.
38:57And when you're so used to something,
39:00you don't really see it until it's put in the front of you.
39:03Like, this is your family.
39:05They're going to always be there.
39:05Don't take advantage.
39:06And it seems like you made some progress, too,
39:08as far as putting boundaries in place.
39:10Yeah.
39:12He tried to put his foot down.
39:14I spoke with a counselor, and she gave me some information
39:16that I can use to kind of keep my head on straight
39:20and keep myself in place because we all need work.
39:23So I'm so proud of you guys.
39:24Y'all have made a lot of progress in a very short amount of time.
39:27Be tried.
39:28I am very impressed by Richard and Krishna's lens.
39:32Krishna is getting more organized with her finances.
39:34She is postponing the storefront.
39:37And Richard's finally setting healthy boundaries
39:39with his sister.
39:40I will be following up, checking in on you all
39:42within a few months.
39:43Please do.
39:44Don't be surprised.
39:45We don't want to drop the phone.
39:46We look forward to it.
39:47We look forward to it.
39:47If you have any questions in the meantime,
39:49feel free to reach out.
39:50I'm always waiting for you.
39:51We're going to have questions, for sure.
39:52OK.
39:53Working with Leah has definitely been an eye-opener
39:56to see where I need to do better.
40:00And I have to stop relying on my brother so much,
40:03because he does have children, and he
40:05has his own things going on.
40:07This has kind of inspired me to maybe put some more
40:10effort into my dreams.
40:12Thank you again for all your help.
40:14It was just definitely a blessing just to have you.
40:16No problem.
40:17Thank you, guys.
40:18Lending money to family and friends
40:20can create a sense of codependency and entitlement.
40:23And that dynamic can be very difficult to change.
40:26My honest advice when it comes to lending money is don't.
40:29They ain't got it.
40:30That's why they asked you for it in the first place.
40:32But if you do, make sure you can afford
40:34to never see that money again.
40:36Thank you so much for that problem.
40:38Such a pleasure.
40:39It was.
40:41All right.
40:42You all have a good one.
40:42You too.
40:46Next time on Maxed Out.
40:54Pastor Greg has nominated Donna, his church member.
40:57She owes him tens of thousands of dollars
41:00for her dance studio.
41:02Do you loan money to a lot of your church members?
41:04No.
41:05No, no, no.
41:06$60,000 from my dad.
41:08That's not normal.
41:09Yeah.
41:09We won't be able to continue with this cycle.
41:12You currently have about $200,000 worth of debt.
41:15At this rate, you'll never pay it off.
41:17How would I pay that back?
41:19This is a singing Titanic.
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