- 10 hours ago
Maxxed Out - Season 1 Episode 4 - The Spoiled Sister (Full Episode)
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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?
00:11Yeah, you said it. Oh, wow.
00:13I am Leah Collins, and I'm a financial relationship coach.
00:16But I heard you did it. Yeah, I'm pretty good.
00:18One 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 is basically her personal ATM.
00:49Richard has loaned Krishna money
00:51for her yoga and tea businesses
00:53because she is still operating both like startups.
00:56and neither business is making a profit.
00:59Situations like this are really tricky
01:00when you mix family and business
01:02because there's really a thin line
01:04between 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.
01:24Oh, I love your place.
01:26Thank you. Please sit wherever you want.
01:28All right, tell me what's going on.
01:34So 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
01:42and the money aspect of the business together just yet.
01:45Okay.
01:46And therefore, 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
02:10is 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,
02:22then I'm back out of the country again.
02:24I'm missing out on precious time, but you know,
02:27and 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. Why 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.
02:44I 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.
02:53We'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 Krishna would never be able to stand on her own two feet,
03:08and Richard won't be able to achieve financial security for himself.
03:11Hello.
03:12What's up, Krishna? How you doing?
03:13Hello. How 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.
03:22Okay.
03:23Once 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.
03:43So 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.
04:05Krishna's 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.
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 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.
04:45But 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. I want to help.
04:53I 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.
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.
05:06My 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 for the rest of my life.
05:27And I just wasn't okay with that.
05:29And taking herbs, I reversed my thyroid.
05:32So I turned into a business, and I blend all my teas because I've seen how much it did help me.
05:38And I started a yoga brand, Flow in Nature.
05:41And we do yoga in the park every Sunday for the community.
05:45It's donation-based.
05:46So I'm very proud about that.
05:48Okay.
05:49And just to clarify, for the yoga business, are you wanting to monetize that?
05:52Or is that more-
05:53I do.
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.
05:59As of right now, when it comes to Cosmic T, I do pop-up shops.
06:02And 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?
06:11Yes.
06:12Okay.
06:13Have you been able to turn a profit yet?
06:14For Flow in Nature?
06:15No.
06:16What about-
06:17What has been your highest profit?
06:1945K, maybe?
06:21That's profit after expenses?
06:23Or is that revenue?
06:24Well, 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.
06:30So no.
06:33So she's not good with numbers.
06:34So no.
06:35Okay.
06:36How do you track and manage your finances?
06:38In my head.
06:39Girl.
06:40I literally wrote down, girl.
06:42What's your highest-sailing tea?
06:45Our 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.
07:00What?
07:01Because 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.
07:16I'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.
07:33I'm a project manager.
07:34And 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, so 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?
07:57Since we were little.
07:58Yeah.
07:59I think I created a monster is what I did.
08:01A monster.
08:02That's a little cliche.
08:03Just a little spoiled.
08:05That is true.
08:06I got to change it now before things get too up.
08:08It's too late.
08:09It ain't too late.
08:10How much do you think you owe?
08:11Maybe about 20.
08:1220 cents.
08:13No.
08:1420K.
08:15Yeah.
08:16It's somewhere around 20K.
08:18If you're gonna get that back, the world may never know.
08:20Have you paid any of it?
08:21What?
08:22Huh?
08:23Say that again?
08:24Nothing.
08:25I feel like this is all one big joke to Krishna.
08:28And honestly, I'm infuriated by Krishna's lack of respect for her brother.
08:33Richard has three children to support and he needs to put their needs and their security first.
08:38He doesn't even get to spend time with them because he's overseas making money trying to fuel her passion projects.
08:45Do you have any savings?
08:46Personal savings?
08:47I do.
08:48That's good.
08:49How much?
08:50You brought this lady here to tell my business.
08:53Yeah.
08:54Okay.
08:55Roughly 10K.
08:58And you owe your brother money.
09:00How does that make you feel?
09:01I mean, that's more than what I got.
09:05You mean?
09:06Hey, you need some help, man.
09:07See, 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.
09:15I hear that my sister has a pretty healthy savings account when I should be getting some of that money.
09:24It kind of makes me feel, I don't know, play a little bit.
09:27It's one of those things with my whiteboard in my head, it erased that I owe you money.
09:31So maybe that's why I forgot.
09:37When am I going to get the money from you?
09:39When I get big.
09:40No.
09:41Is that usually how it works when you take out a business loan, though?
09:44Can you tell the bank I'll help you win?
09:45No, but he not the, he not the legit bank.
09:47Hmm.
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?
09:58No.
10:00I 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.
10:09We are going to focus on some homework.
10:11Here is a financial planner.
10:14And just work on the first step for now.
10:16Really just identifying three long-term goals.
10:18Have you guys got the meat?
10:21This was a trap.
10:22For sure.
10:23This is an interesting situation.
10:25You can't build a business off of vibes alone.
10:27You need a plan.
10:28And Krishna doesn't seem concerned at all about her business
10:32and paying her brother back the $20,000 that she owes him.
10:35All right, I will see you all later, okay?
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.
10:46Let's start with this homework.
10:47I don't want to do this right now.
10:48No.
10:49Let's start with number one.
10:51I'm not going to do a deck.
10:53This represents your deck.
10:55Oh, damn.
10:56Feels like I should be worried a lot more.
10:58Yeah, because he probably going to get his money back looking at it.
11:00Yeah.
11:01Probably not.
11:03Money in the bag.
11:04Money in the bag.
11:05You never run out too much gas in the tank.
11:08No, it'll make you feel good, don't it?
11:10Tank 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.
11:20How are y'all?
11:21Good, good.
11:22It's nice to see you.
11:23Who invited you?
11:24Who do you think invited me?
11:26I know that Krishna hosts a yoga class in this park every week.
11:29So I'm meeting up with her and Richard beforehand to discuss the financials that she sent over to me.
11:36Is this where you usually do your yoga?
11:38Yeah.
11:39We like the views and the vibes in the park.
11:41About how many people come?
11:42The least we get is 20, but we have sometimes 50 plus.
11:47It just depends.
11:48Oh, wow.
11:49And 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.
11:58As a business owner, you really need to know your numbers.
12:00Yeah.
12:01Okay.
12:02I got to get better with knowing them in my head, too.
12:03Right.
12:04And on paper.
12:05Well, I know on paper as a head is just...
12:06Well, okay.
12:07I got to get better.
12:08Okay.
12:09You're right.
12:10You're right.
12:11You're right.
12:12I know I keep saying I keep the numbers in my head.
12:14But honestly, I don't even know what them numbers are.
12:17I kind of make them up as I go.
12:22Ooh.
12:23Ooh.
12:24What is that?
12:25Money.
12:26We got some money down there.
12:27Actually, this $80,000 represents your income.
12:32Mm-hmm.
12:33And this represents your debt.
12:36Oh, damn.
12:38You said my debt?
12:39Mm-hmm.
12:40Or what I'm going to get?
12:41Your debt.
12:42Which is about $170,000.
12:45Ooh.
12:49Krishna's credit card debt is about $4,000.
12:51Her personal loans are $9,900.
12:54Her student loans are a whopping $132,000.
12:58And she owes Richard $25,000.
13:03What are you thinking?
13:04It is what it is.
13:05It 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 different when you see numbers
13:25versus 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?
13:40I mean, I guess I can't, I mean the numbers, the business.
13:44Yeah, you bring in a little bit from your tea business.
13:47Yeah.
13:48It's not bad, but your expenses are so high.
13:49Yeah.
13:50That you're making nothing at 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 from the revenue.
14:05Cosmic Tea's monthly revenue is about $2,400.
14:09The monthly expenses are about $4,000.
14:12This 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.
14:25Just 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.
14:34For sure.
14:35All right.
14:36Krishna makes a lot of sales, but she doesn't make a lot of profit, which leads me to believe
14:41that 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.
15:00About 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.
15:07No.
15:08How?
15:09We just said you were losing money.
15:10And you owe your brother money.
15:11There's no way you're affording that.
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.
15:19I don't like that one.
15:20I don't like that one.
15:21I 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 and you increase
15:32your revenue and do better with tracking your expenses.
15:35It's not going to happen.
15:38I'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.
15:45She sees something she wants, she's going to do it.
15:46She's going to think about the end goal first, and then she makes a plan as she goes along.
15:50Tunnel vision.
15:51All right.
15:52Well, your homework is to work on your budget.
15:54I want to see where you're going to get this $4,000 from and how you are going to pay back
15:59your brother and all of your other expenses.
16:01Yeah.
16:02For sure.
16:03All right.
16:04Well, I will see you all later, okay?
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, so I don't even know what you're doing.
16:17Look, that's beyond the point.
16:18We already got our stretch and our warm-up in, so 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?
16:44You coming right down to me.
16:45Flip around and push back.
16:49On the double.
16:50Today, Junior.
16:51We're at the gym.
16:52My homeboy.
16:53This is a childhood friend of mine.
16:55I'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.
17:05Don't hate.
17:06Cam is my girl, and she loves a good workout.
17:08All right, Rich.
17:09You got 10 down, 10 back.
17:10All right.
17:11I'm done with that.
17:13Let me not tell you what my brother did to me.
17:17He signed me up for this intervention, is what I call it.
17:22So I have to talk to this financial advisor, because 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.
17:3620 grand.
17:39Richard is very loyal to a fault.
17:41He gave 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, that's a no brainer.
17:50He needs to cut that off, and she needs to 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 are 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, because it is partially your fault.
18:05Just because I don't, you know, flip out on you, I'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.
18:18He's always saving you.
18:19You 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.
18:49You're a businesswoman, don't know your numbers.
18:51I've been her calculator for a while.
18:53I'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.
19:02I 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 you got to do.
19:10Month after month.
19:12You know, I'm private.
19:13I don't want anybody in my business.
19:15They know business, but they don't even know what I tell them.
19:17So for them to be sitting up in there telling me,
19:20yeah, Katie, do this and then.
19:22I don't want to hear that.
19:24But unfortunately, they are right.
19:26Yeah.
19:27And you lock your pockets.
19:29So for this tea, were you calculating the cost in your head?
19:38Yeah, it's $22.
19:39I came up with $64.
19:41She'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.
19:53I know I got it.
19:55Y'all can't top it.
19:56You want to be her.
19:58I got a good feeling.
20:00Is those things in there, Richard?
20:02Those flying things?
20:03Yeah.
20:04Leah told me that she wanted me to bring Cosmic Tea to a pop-up at the park
20:09because she wants to watch how I sell my teas.
20:12Ain't nobody even here.
20:13You 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, though.
20:22I don't.
20:24I mean, how would you feel if somebody was all up in your business?
20:28Hello.
20:29Hey, how you doing?
20:30Speaking of the devil.
20:31How are y'all?
20:32Good.
20:33I like your setup.
20:35This is really nice.
20:36Is it?
20:37It 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?
20:50Here 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?
21:07Mm-hmm.
21:08So it also helps with women menstrual.
21:10But it also can increase women's sex drive.
21:13OK.
21:14Well, 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 to see if you know.
21:38I don't know basic math.
21:39How to do.
21:40We don't. We don't.
21:41How 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, she can see that proper bookkeeping
21:52is essential for 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.
22:11I'm going to measure it.
22:12Oh, lordy, lordy.
22:133.9 ounces.
22:15And then one of our other ingredients is hibiscus.
22:254.4 ounces.
22:27The Damiana.
22:28That's what makes you sleepy.
22:30OK.
22:334.5 ounces.
22:35This will be the lemon balm.
22:373.9 ounces.
22:40And then passion flower.
22:424.4 again.
22:47And then the last ingredient is cinnamon.
22:514.5 ounces.
22:55We would just mix them up.
22:56So for this tea, were you calculating the cost in your head?
23:00Yeah.
23:01What did you come up with?
23:02$22.
23:03OK.
23:04I came up with $64.
23:09My 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, the packaging, the overhead.
23:18My math and your math wasn't together.
23:21We know.
23:23She's the reason why we're not making a profit.
23:25I'm over it.
23:26It needs to change.
23:27So really, your revenue should be much higher than it is.
23:30Yeah.
23:31And if you were pricing what you should be, you'd probably be making a profit right now.
23:36Seeing how much money is on the table that I'm leaving, it's definitely hitting me.
23:41It's definitely hitting hard.
23:43And it's making me think about all the money that I could have been making up till now.
23:46See, for me, when I'm making teas, I'm putting a lot of love in it.
23:50We know.
23:51We ain't thinking about them numbers.
23:53I want to keep them affordable because I want everybody to 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 have 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.
24:08We gonna get better.
24:09Yes.
24:10Yes.
24:11Krishna is very passionate about giving back to people who are underserved, marginalized.
24:17And that's one of the reasons that we need to get her business profitable because then she can take a portion of that profit
24:23and allocate it to those people that she cares about the most.
24:26It was an eye-opener.
24:27And I'm definitely gonna consider all of this when it's time for me to prepare for my brick and mortar because that's an initial plan.
24:35And I'm gonna do that.
24:37I think I'm finally having a breakthrough with Krishna, especially as it concerns her pricing strategy.
24:42But it's very important that she understands the flaws in her business model before she even thinks about a brick and mortar.
24:53Do you know what comes with getting a storefront?
24:56I know what I kind of researched.
24:59Basically, you're gonna have more profit than your losses.
25:01If they seen you losing more than what you're making, I'm not gonna let you move in there.
25:06Sweetin' Box, sweetin box, it's mean.
25:10Nakin' money like aade one on trees.
25:13You can help but I'm ì ‘ the queen.
25:17Hello.
25:18Hi.
25:19How's it goin'?
25:20How's it goin'?
25:21What's up, man? What's your name?
25:22What? I'm Richard.
25:23Nice to meet you, Rich. I'm Don. Yes, sir.
25:24Hey, Krishna.
25:25Hey, girl.
25:26I invited you here to meet my good friend, Don.
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.
25:41What type of business are you trying to do?
25:43I am opening up a tea house slash yoga studio.
25:46OK.
25:47So I'm looking for something with a studio
25:49and enough space to turn into a retail tea, cafe type of thing.
25:53Do you know what comes with getting a storefront?
25:56I know what I kind of researched.
25:58Research?
25:59I wouldn't say I just know everything.
26:01What I just know is a lot of work.
26:03Got 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.
26:10How is she going to pay for a storefront?
26:12I'm hoping that Don 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.
26:26How many years of tax returns do you have?
26:27I was told I needed three years.
26:29Yeah.
26:29So I do have three.
26:30And then you need about two to three months of bank statements?
26:33Two to three months?
26:34Yeah, about two to three months.
26:35OK, so I do have that.
26:36I 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?
26:49Basically, you want to have more profit than your losses.
26:52As long as you have more profit than your losses, then you're good.
26:54If they see you're losing more than what you're making,
26:56they're not going to let you move in there.
26:59How much square foot are you looking for?
27:00Well, I have been looking, and there is one space that I'm
27:05actually very interested in.
27:06OK.
27:07It is 1,210 square foot.
27:09OK.
27:10They're looking at the low $4,000.
27:13$4,000.
27:13Or a little bit under.
27:14They want another yoga studio in there,
27:17because that's what it was prior to.
27:19OK.
27:19So they are pretty lenient with the pricing.
27:22Gotcha.
27:23Up until this point, Krishna has shown me she's
27:25unserious about her debt, very unserious about paying her
27:27brother back, and unserious about making a profit.
27:30Who is this woman, Harpo?
27:31Did you calculate utilities?
27:36I did.
27:36OK.
27:37So utilities, I was 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 if you all want to sell beverages and things like that,
27:49you have to get the certifications for that.
27:50That's like another $400 right there.
27:52On top of the utilities and the licenses,
27:55you also got insurance, too.
27:56Yeah.
27:56That can range from about $4,000 to $10,000 a year.
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?
28:08I would say you want to have a deposit first month
28:10and last month.
28:11I'll say just to be safe around maybe $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
28:18up front for down payment?
28:21$10,000, like you said.
28:21Yeah, $10,000?
28:22OK, perfect.
28:24I got to get back to some other clients out
28:25in the streets right now.
28:26It was a pleasure talking to you all, Leah.
28:27Thank you for introducing us.
28:29Thank you for coming by.
28:29Yeah, thank you so much.
28:30Richard.
28:31It's a pleasure to meet you all.
28:31Yes, sir.
28:32It was nice to meet you.
28:34Hey, thank you all so much.
28:35One thing I feel like first-time business owners
28:36struggle with 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.
28:50But when it comes down to having the money
28:52and the credit scores, they don't have it.
28:54What are you thinking?
28:55You've obviously done your research.
28:57I do know that there is still work to be done, but 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,
29:14because that's just a deposit.
29:15You still have to pay the rent after that, and the utilities,
29:18and everything else.
29:18You're not going to just generate revenue automatically
29:21from day one to pay at all.
29:22Of course not.
29:23What I really want you to focus on
29:25is being lean and profitable, so that way your business
29:28can sustain that growth when it does happen.
29:30So I think you really should be pouring that money into things
29:32like marketing, operations, and systems first,
29:37and then look into a storefront within a year or so.
29:39That's my recommendation to you.
29:41I can do six months from now.
29:43I'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?
29:51No.
29:52Not 100%.
29:52I'm not ways to get the money.
29:54But at the end of the day, if she doesn't have it,
29:56I'm going to help her out.
29:57I was waiting for him to say, he's going to pay it.
29:59I'm going to give her a hard time,
30:00and then do it at the end of the day.
30:03You used 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.
30:20No, I'm not that.
30:22I know exactly what will happen.
30:24Krishna won't pay her rent.
30:25She'll ask Richard for it.
30:27And Richard will give it to her,
30:28because that's what Richard does.
30:30I need to help Richard see that he is not
30:32helping Krishna's business model by bailing her out.
30:35And he's not helping himself by enabling her.
30:37He needs to learn how to say no.
30:40What 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.
30:46I'd rather be home with my family.
30:48What happens with your sister?
30:50I love my little sis.
30:51I mean, it's difficult for me to tell her no.
30:53But I think I'm just going to have to put my boots
30:55on the ground and stand firm.
30:56Yeah, give me all you got, all you got,
31:01just the time to put the work in.
31:03That's a lot, got it coming with the fire, blazing hot.
31:09Hi, Leah.
31:10Hi, Richard.
31:11How's it going?
31:12Good, how are you?
31:13Have a seat.
31:14Thank you, thank you.
31:15Hi.
31:16Hello, how's it going?
31:17I'm Richard.
31:18Nice to meet you, Richard.
31:19I'm Star.
31:20Nice to meet you.
31:21She is a counselor, and she has helped me through many
31:23of my highs and lows, as well as some of my relationships.
31:26issues, so I thought she would be a great person to talk to.
31:30I've become increasingly concerned
31:32over Richard's lack of boundaries with his sister.
31:35I am going to head out and leave you all to it.
31:37Okay.
31:38It was a pleasure seeing you again.
31:39So I think it's really important that Richard talk
31:42one-on-one with a professional, and 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.
31:54Okay.
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?
32:03Made me feel good, made me feel like I had a purpose in the house,
32:05feel like I had a duty to take care of my family.
32:08And I always liked that.
32:09I always appreciated it, you know?
32:11Okay.
32:12I've done therapy before, but financial therapy feels a little more vulnerable, I think.
32:20But I understand behind comfortability is growth, so 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, and I guess you provide her the funds.
32:34Mm-hmm.
32:35Me going overseas enabled me to, you know, help her out when she needed.
32:38And I would do that often.
32:40Not only for her, for my mother and my brother as well.
32:43Mm-hmm.
32:44But me having those extra funds and them knowing I have those funds kind of enabled them
32:49and got them kind of spoiled a little bit.
32:52Okay.
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.
32:59I'd rather be home with my family.
33:02Mm-hmm.
33:03The only reason I'm over there is to make the money, you know?
33:05And if you don't go overseas, then what happens with your sister?
33:08When it comes to standing firm against my family, I think that's where I have an issue.
33:13Okay.
33:14My family needs help, and there's nobody else that can help them.
33:17Mm-hmm.
33:18I'm stuck in.
33:19There are times when people ask us for things, especially people that we love or that we're
33:24really close to, and we almost feel automatically compelled to say yes.
33:29And so the trick that I've taught people to do is to say, let me get back to you.
33:34Okay, okay.
33:35It gives yourself a moment to just breathe and get your thoughts together and make a decision
33:41as to do I really want to do that or not.
33:44Mm-hmm.
33:45And you get to set some boundaries in that, and they can either accept it or...
33:50Or not, right.
33:51Or not.
33:52Mm-hmm.
33:53And oftentimes if they are invested in your relationship with them, they'll understand.
33:58Mm-hmm.
33:59Yeah.
34:00I understand.
34:01You're saying take a beat.
34:02Mm-hmm.
34:03And kind of allow yourself to think about it.
34:05Mm-hmm.
34:06Then decide.
34:07Yes.
34:08I got you.
34:09Now what happens in a case where there's a family member who really does need help?
34:12Need help.
34:13How do you discern when they need help and they really don't?
34:17Okay.
34:18So there's a difference between the need and the want.
34:20Mm-hmm.
34:21Sometimes the needs, you might help them out one time, and then you might help them out
34:25again, and then you might help them out again.
34:27Mm-hmm.
34:28And so I think that's where the communication piece comes in.
34:30You have to talk to them about what are you doing, that you keep needing assistance with
34:35paying your bills.
34:36Mm-hmm.
34:37Because sometimes people will continue to utilize you if they know you're going to provide
34:41what they need.
34:42Right.
34:43So if it starts to become a pattern, it's time to have a conversation.
34:47Yeah.
34:48Yeah.
34:49Mm-hmm.
34:50I also understand from Leah that there's some money that your sister owes you?
34:53Mm-hmm.
34:54You know, we talked about a plan to pay that back.
34:58Okay.
34:59What's the plan?
35:00Yeah.
35:01I guess we don't have a plan written down yet, no.
35:03Okay.
35:04So if you could come up with a plan, what would it be?
35:06It would be to establish a percentage from each check.
35:10Okay.
35:11I think that would be a good plan.
35:12When would that start for you?
35:13I would say the next 30 days.
35:15Okay.
35:16Well, at least you know some of the terms.
35:1930 days, a percentage, every paycheck.
35:22Mm-hmm.
35:23Yeah.
35:24Setting boundaries seems pretty easy when we start, and I understand why it's important.
35:28But I don't think it would be the same when I do that with my sister.
35:30Right.
35:31I love my little sis.
35:32I mean, it's difficult for me to tell her no.
35:34But I think I'm just gonna have to put my boots on the ground and stand firm.
35:38Baby steps.
35:39We're not trying to do everything all at once, but just one baby step at a time.
35:44You're welcome.
35:46So what's happened since we last met?
35:48A lot of thinking.
35:49Elaborate.
35:50I'm expecting small wins.
35:52But as far as the boundaries between Krishna and Richard, that part, I'm not so sure.
35:58Hello.
35:59How are you?
36:00Krishna.
36:01Good to see you.
36:02Richard.
36:03Today, I'm having my final meeting with my clients, Richard and Krishna, to see what progress
36:05they've made.
36:06So what's happened since we last met?
36:07A lot of thinking.
36:08I'm expecting to see small wins.
36:09But as far as the boundaries between Krishna and Richard, that part, I'm not so sure.
36:11I'm not so sure.
36:12I'm not so sure.
36:13I'm not so sure.
36:14I'm not so sure.
36:15I'm not so sure.
36:16I'm not so sure.
36:17I'm not so sure.
36:18I'm not so sure.
36:19I'm not so sure.
36:20What are those things?
36:21I'm not so bad.
36:22You're not so sure.
36:23It's a big deal.
36:24I'm not so sure.
36:25I'm not so sure.
36:26I'm not so sure.
36:27I'm not so sure.
36:28A lot of thinking.
36:30Today, I'm having my final meeting with my clients, Richard and Krishna, to see what
36:32progress they've made.
36:33What's happened since we last met?
36:34A lot of thinking.
36:35I'm expecting to see small wins.
36:36But as far as the boundaries between Krishna and Richard, that part, I'm not so sure.
36:39Elaborate.
36:40I've been going through my financials to really just see where I can start to improve.
36:45Good.
36:46We've made some plans for the next 30 days.
36:48What are those things?
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.
36:55Okay. Got it. Okay. How do you feel about that?
36:58I feel good. I feel great.
36:59Good.
37:00We're starting at 10% from every paycheck.
37:02And if she doesn't have anything else going on, we're going 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 in a thing. I got you.
37:15We talked about increasing your prices. Have you been able to do that yet?
37:18It's a little difficult because I still want to stay affordable.
37:21So that's why I was thinking maybe different size jars and make the big one that I have maybe 30 plus.
37:28You know, that way people that possibly can't afford 30 can get a $12 jar or a $22 jar, you know?
37:35So I'm taking that into consideration for sure.
37:38Good. One thing that I really like about you is you have a big heart.
37:41You have a really big heart. I noticed that in the short amount of time I spent with you.
37:44But just keep in mind that there are other ways to give back without hurting your business, right?
37:48I get it. I'm not going to be able to sustain and be here long if I continue that.
37:54I want to make sure that you are getting the cost of the ingredients, the labor, the packaging, the shipping, the overhead,
38:02and just getting what you put into it, out of it, plus more.
38:06Correct.
38:06Right? That markup is where you make your money.
38:08It's a good product, so I know people will be willing to pay that.
38:11What about your long-term goals?
38:13Of course my long-term 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?
38:33We'll give it a little while longer. We're getting there.
38:35Baby steps.
38:36Baby steps.
38:37Has the communication opened up more between you all as far as, like, finances?
38:41We've always been close, right?
38:43It's my big brother.
38:45But I think financial-wise, it's gotten a lot better because I would try to dodge him because
38:51I knew I owed him.
38:52So now I'm like, okay, 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, you don't really see it until it's put in the front
39:03of you, like, look, this is your family.
39:05They're going to always be there.
39:06Don't take advantage.
39:06And it seems like you've made some progress, too, as far as putting boundaries in place.
39:10Yeah, yeah.
39:12He tried to put his foot down.
39:14I spoke with a counselor, and she gave me some information that I can use to kind of
39:18keep my head on straight and keep myself in place because, you know, we all need work,
39:23so.
39:23I'm so proud of you guys.
39:25Y'all have made a lot of progress in a very short amount of time.
39:28We tried.
39:28I am very impressed by Richard and Krishna's lens.
39:32Krishna is getting more organized with her finances.
39:35She is postponing the storefront, and Richard's finally setting healthy boundaries with his
39:40sister.
39:40I will be following up, checking in on you all within a few months.
39:43Please do.
39:44Don't be surprised.
39:45We don't want to drop it.
39:46We look forward to it.
39:46We look forward to it.
39:47Yeah, and if you have any questions in the meantime, feel free to reach out.
39:50I'm always looking for you.
39:51Yeah, we're going to have questions for sure.
39:52Okay.
39:53Working with Leah has definitely been an eye-opener to see where I need to do better.
39:59And I have to stop relying on my brother so much because he does have children, and he
40:06has his own things going on.
40:07This has kind of inspired me to maybe put some more effort into my dreams.
40:12Thank you again for all your help.
40:14It was just definitely a blessing to have you.
40:16No problem.
40:17Thank you, guys.
40:18Lending money to family and friends can 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 to never see that money again.
40:36Thank you so much for that problem.
40:38It's such a pleasure.
40:39It was.
40:41All right.
40:42You all have a good one.
40:42You too.
40:43Next time on Maxed Out.
40:55Pastor Greg has nominated Donna, his church member.
40:57She owes him tens of thousands of dollars for 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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