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00:00चर्वाटे विम अमार्च ऽिंझे आजिने ओवार बिंध रिंग जवार
00:08क्या सचिह syntCarlton सोनि भानि מקな how to स Yeah,
00:13व梗 defect से साथनरी r 있게 मार्कश्ष मार्क टौन जर arrivé
00:16आवी पिसंऄ बिंपने को बिसंगा, प्रॉगिजर वे फ Chuokay रवार Two
00:20I'm a capitalist. This is $15,000. Always looking for ways to make money.
00:35That's why we want you to work with us, because we're bad at math.
00:37That's a terrible reason. You should be good at math.
00:41I'll work on their people. I don't know why you're being such a dick about it.
00:45Leon, are you mad about something?
00:46No.
00:47Why the f*** are you singling me out?
00:48और प्रॉसस बज़सिते हैं
00:52इसब इसे इसे अरन प्रॉड़कत
00:54और प्रॉट क्यांस अ how to
00:56हो एक typ इसे और छोड़कत
00:57मार्कति शच्छेंग अज़स्टरा लंवेष्ट और स्थार्षज का इसे ज़स्पश्टाइ झमिपन फिसे और दॉस्टी battle
01:03और �νहुटर है थैंटलावाई पि भेल किे ये यू झाले के भी है जुर अईां अब युझा types
01:10PROTbane
01:16यह करते हैं
01:17के नच्छी हाई नहां कर अछ्छी है यह मFA मक्षण प्यenne Decrealt
01:22हي दान्या। य squeezing श्यॉ इन za το
01:24दिसन्ताव के छेलार यह थो यह निंध it
01:27हैंट ठीग। का एग। काने की आथ चे संवे प्रेव निर्सी वैसे एट के विस जूंग संगलेटने खीष्ट काई रग थे विस जा स्वेंट अ इस च्तूंग टेसंग और आ तुम एम टी इल्ट सेंग विस थे व्यों अधेगा था आप एल्स लूंध इला। आओ ए एल्स
01:572.5 million in total, is that about right?
01:59The whole company, I'd say about 2.
02:00What's the bottom line?
02:02Between 1 and 1.5.
02:04Wow.
02:05So that's a pretty big net margin return.
02:07Why don't you have more of these?
02:09That's where you come in.
02:10Oh.
02:10I want to create this into a franchisable concept.
02:13I want to open these all over the country.
02:15That really is the dream.
02:16Okay.
02:17All right, let's have some fun.
02:18Yes, let's have some fun.
02:19We're going to do the escape box first.
02:23There's a coin in here that you need to access.
02:25You're looking at the box.
02:26You can see there's locks, right?
02:28Looking for a combination.
02:30Okay.
02:31Excellent.
02:33Okay, there's my coin.
02:38So what are we doing?
02:40And now you may bump.
02:42Take you out, Liam.
02:43He's down.
02:46Mark this one.
02:46Next, we're going to move to the rage room.
02:53I get it.
02:54Clearly, based on the numbers, it's a great cash flow business.
02:59But if you don't constantly change the game, at some point, your ability to retain customers
03:05would dissipate.
03:07And right now, for me, I don't think it's scalable.
03:10So I don't think that it's something that I would invest in.
03:15Thank you for the opportunity.
03:16I appreciate you.
03:17Nice to meet you.
03:18Thank you, sir.
03:18Thank you for your time.
03:18Thank you very much.
03:25It's live.
03:26Two to this.
03:27Wow.
03:28Hello, Marcus.
03:30Very good to meet you.
03:31What is your name?
03:32Frank.
03:32Frank.
03:32Frank.
03:32Nice to meet you.
03:33Sean.
03:34Sean, nice to meet you.
03:35Carlos.
03:36Carlos, nice to meet you.
03:38Brian.
03:38Pleasure.
03:38Brian, how are you?
03:40So we are Brothers Guitar Shop.
03:42We are a retail store in Manhattan.
03:45We started out of the back of our hardware store, our family-owned business.
03:49Oh, wow.
03:49Yeah.
03:50Our parents are immigrants, so we're first-generation Americans.
03:53It's a family business that's been established for how many years in New York?
03:5740 years.
03:5840 years pushing.
03:59We've been really focusing on trying to have us spending more time on the guitars.
04:03Guitars, it's more of our passion, you know?
04:05That's what we like to do.
04:07Is it more profitable than the hardware store?
04:09No, it's not at all.
04:11The margins are way better in the hardware business.
04:14100%.
04:14It's, you know, you have a pack of screws, you buy it for 57 cents and sell it for $4.99.
04:19Here, it's a 30% margin on all new gear.
04:23Do you guys provide guitar lessons?
04:26We do, yeah.
04:26We also love to do the used stuff.
04:29The used, we make the most profit right now.
04:32I think that-
04:32No, you don't.
04:33Well-
04:34In the guitar lesson business, there's no cost associated with it.
04:37You essentially split the revenue with the instructor, and that's it.
04:41Totally.
04:42Makes sense.
04:42Totally.
04:42It's 100% margin.
04:44Well, the used, we'd see the most money out of it in the register.
04:47Generating the most revenue is different than it being the most profitable.
04:50Yeah.
04:50It can generate the most gross profit, but there's also expenses against it.
04:55Can I use your guitar as an example?
04:56Consider this like your revenue, and then all the way down, you'll have your cost of
05:02goods, and you'll have all of your expenses, and then at the bottom, you'll have your profit
05:06or not.
05:07And I think that if you're running multiple businesses, this is one P&L for used sales,
05:12and there's one for new sales, and there's one for service, and there's one for lessons.
05:16And in the end, you're going to see what the bottom line is.
05:19This hobby business still feels like a hobby, because knowing the sectors of revenue
05:26and the gross profit and the expenses associated with them is not as clear for me yet.
05:33Am I wrong?
05:34No, you're absolutely right.
05:35You're absolutely right.
05:36I mean, we're kind of all over the place.
05:38And that's why I don't think there's an opportunity here for us together.
05:43Keep your hobby going, but not at the expense of your hardware business.
05:48Thank you for coming today.
05:49Thank you, Marcus.
05:50It's great to meet you.
05:51I appreciate it.
05:52We'll see you next time.
05:54That's it.
06:11Okay.
06:11Well, that's an interesting way to make an entrance.
06:21Nice to meet you there, young fella.
06:22How are you?
06:23I'm Marcus.
06:23Marcus, I'm Gene Seller.
06:24Gene, nice to meet you.
06:26Nice to meet you, too.
06:26So what is it that you do?
06:27I own a store called Jazz Audio, and I do a bunch of accessories on cars.
06:33You know, we do amplifiers and lights underneath the car.
06:36Yeah.
06:36Power steps, rims and tires.
06:39So your company soups up my ride, makes it sound better, look better.
06:44It's perfect.
06:45Let's maybe put the music on.
06:46I want to hear how good this bass is.
06:49I'm going to give you a demo.
06:50Because I just want to clarify, I'm from Miami.
06:53So bass for me is very different than it is for most people.
06:56I know what bass is.
06:57You do?
06:58I do.
06:59And you have a subwoofer behind the seat?
07:01I got an amp behind the seat.
07:03And by the way, this is called a downfire box, and I'll tell you why.
07:06A what?
07:08Downfire box.
07:08Downfire.
07:09Right.
07:09You know why?
07:10Because you can put anything you want on top of it.
07:11Okay.
07:11Hold on.
07:13Yeah, get in there.
07:14All right, go ahead.
07:16Okay.
07:22You know what I'm saying, buddy?
07:25Now we're rocking.
07:25Okay.
07:28That's how you drive a car.
07:32I thought I was going to be a rock star.
07:34It didn't happen.
07:35So I had an opportunity to open up a stereo shop, and I jumped all over it.
07:40So I've been in the car business.
07:41I know.
07:42For a big part of my life.
07:44And seeing stuff like this, aftermarket distributor of car accessories that does insulation.
07:50Right.
07:51And there's a million of them.
07:53Yeah, but they're not cheap.
07:54They're not jazz audio.
07:55I know you're going to ask me, what separates you?
07:58Me.
07:59My whole system, my whole procedure.
08:01You have a process?
08:02Of course.
08:02It's like McDonald's.
08:03I got a process.
08:04So let me, let's take a step back.
08:06Shoot.
08:07If you're not a manufacturer, your market is only as big as your labor reach.
08:13Your basic trade area, BTA.
08:15Okay.
08:16That basically means that this is the area that you can influence.
08:20Yeah.
08:20My store will take out a certain amount of, you know, square miles.
08:24100%.
08:24So it's limited.
08:26Yeah.
08:26Unless you have a bunch of stores.
08:27Is that your goal?
08:29That's my goal.
08:30How many you have now?
08:31I have one.
08:32What's your total revenue?
08:33Bring it in?
08:34Like one three.
08:35And on the bottom line?
08:37400.
08:37450.
08:40And so how much money have you saved?
08:43Uh, do I really want to say that?
08:45Well, I mean, I think, I think ultimately.
08:47I got money saved.
08:48No, you don't have to give me a dollar amount.
08:51But what I'm asked, what I'm trying to understand is you've built a heck of a business.
08:55Yes.
08:55Truly like the American dream.
08:57Yeah, definitely.
08:58So why am I here?
09:00What's the opportunity?
09:01I want to get another salesperson.
09:03I want to, I want to start training some people at the location I have now.
09:07Get them ready for the next location.
09:09My job is to help you navigate to where you want to get to.
09:12And to use my resources and things that I know and the people that I know and the things
09:18that you know and try to put it together to make the road from point A to point B as
09:22straight as possible.
09:23Yeah.
09:23No matter what we do, no matter how much we know, that road's not going to be straight.
09:26The fire in my belly's not out.
09:28To do what?
09:29Make more money.
09:31You're a great guy.
09:32I did a lot.
09:32I'm just thinking about what I want to do right now.
09:34Oh, listen, you can get back to me.
09:37I could, or I can tell you now.
09:38You could do both.
09:39Yeah.
09:40It's your choice.
09:41Yeah.
09:51You're a great guy.
09:52I did a lot.
09:52I'm just thinking about what I want to do right now.
09:54Listen, you can get back to me.
09:56I could, or I can tell you now.
09:58You could do both.
09:59I think, I think this is an opportunity worth pursuing.
10:03I want to do some business with you.
10:05If Gene's numbers are accurate, $1.3 million in revenue and $400,000 in profit, well, that's
10:12interesting to me.
10:13But I'm not just going to write a check.
10:15I want to look under the hood to find out if the people, the process, the product, and
10:19the profit are legit.
10:21I guess we're about to find out.
10:26Me and Marcus are getting together.
10:28This is happening.
10:30Marcus got hooked on me.
10:31There might be a million installers out there, but right now there's only one Gene out there.
10:35Until me and Marcus partner up, and we make another Gene for our next store.
10:39So, another Jazz Audio coming soon to a place near you.
10:48I'm here in Long Island, New York, to see Jazz Audio and its owner Gene.
10:52When I saw the product the other day, I saw a couple of things, but I want to understand.
10:57Is this a big business?
10:58Is it even an opportunity?
11:01How are you?
11:02How are you?
11:03Good.
11:03I'm Marcus.
11:04I'm Marcus.
11:05I'm Rob.
11:05Rob?
11:06Robert.
11:06Yeah.
11:06Michael, nice to meet you.
11:07Michael, nice to meet you.
11:08The aftermarket automobile business is really enticing because not only do manufacturers tend
11:14to drive price down by leaving options out, but with the used car market being as good
11:18as it is, it gives consumers the opportunity to customize the vehicle to exactly what they
11:23want.
11:24And whether that's rims, running boards, alarms, leather seats, a variety of things,
11:29it's a great business with great margins.
11:31Gee, Marcus is here to see us.
11:33Marcus, is here for me?
11:34Yep.
11:34Oh, you want to meet Marcus?
11:35Good morning.
11:36Buddy.
11:37Hey.
11:38Marcus, how are you?
11:39How are you?
11:39That's my wife, Susan.
11:41How are you?
11:41Nice to meet you.
11:42She made a surprise visit on me.
11:43She came to check on you to make sure you're behaving?
11:46I guess.
11:47So is this jazz audio?
11:49This is jazz audio.
11:52Your love is all I breathe.
11:591985 called, and they want their store back.
12:03What's going on here?
12:04Okay, so these are a soundboard.
12:07These are speakers.
12:08Why are these empty?
12:09Sold them out of the board.
12:10How long ago?
12:11Too long ago.
12:12How long has this stuff been in the case?
12:14Oh, God.
12:15That stuff has been in that case so long that none of those radios are current.
12:21They all need to be changed.
12:22How many of these are out of production already?
12:24Probably half of them.
12:25So half of them, they don't even make any more.
12:27They don't even make any more.
12:28It feels like time stood still in here.
12:31And that technology changed.
12:34And then as you sold things, you just didn't replace it.
12:36I mean, there's a lot, just, just, there's, there's a lot of empty slots here.
12:40I agree.
12:41That's not a good look.
12:42It's a terrible look.
12:44When somebody walks in the front door, if they have a good experience and the parts are in inventory,
12:49the likelihood of them buying it is increased.
12:51And if they buy it, the likelihood of it going to the shop and giving those guys the chance to earn money is also increased.
12:57That's it.
12:59Sell more, service more, make more.
13:01It feels like you're not paying attention to the business.
13:04Just, that's my first impression.
13:06When I first met Gene the other day, he said,
13:08Now on Long Island, my store will take out a certain amount of, you know, square miles.
13:13So it's limited.
13:14Yeah, unless you have a bunch of stores.
13:15Is that your goal?
13:16That's my goal.
13:17There's this great concept to take across the nation and...
13:23Um...
13:24No.
13:26Michael, how long have you been here?
13:28About two years.
13:29And what did you do before this?
13:31I ran global operations for Alliance Bernstein for 23 years.
13:34Well, that's a big deal.
13:35Are you the manager?
13:36Yes and no.
13:37Which part is yes, which part is no?
13:39Well, I handle most of the interactions with the clients, sometimes with the retail,
13:44but I don't, like, directly order anything or control, you know, that type of stuff.
13:48Who does that?
13:49Gene.
13:51He used to manage a business a hundred times the size of this.
13:54His aptitude and his knowledge of being just a general manager of sorts is probably
14:00greater than Gene gives him credit for.
14:02And what is the inventory management?
14:04There really isn't one.
14:06There isn't one.
14:07No.
14:08Running any kind of business without an inventory supply chain system is really like deciding
14:13that you don't want to be in business anymore.
14:14Knowing what you have in real time, knowing what's coming, and understanding what to reorder
14:18is all about predicting how sales are going to flow through your business.
14:22But with Gene, not tracking the inventory is a problem.
14:25That's headquarters.
14:26That's me getting ready to put on a show.
14:28Who is?
14:28That's me.
14:30I always wanted to be a rock star.
14:31Tried to get a couple of record deals, and it didn't pan out.
14:34But I love music.
14:35So I opened up, you know, a stereo shop.
14:37I started out as an installer.
14:39I did sales.
14:40So this is mama.
14:42Who does the installations?
14:44They do my installers in the shop.
14:46Juan, Rob, Richie.
14:48So there's three installers?
14:50Correct.
14:50And one salesperson?
14:51Correct.
14:52And me.
14:53The installers, listen, I love them as people, and why not?
14:56But do they need help?
14:57They need to get here on time.
14:59They need to be more assertive instead of just sitting on their ass waiting for a car to
15:03come in.
15:04Yep.
15:04And if I tell them I've said anything to them, they'll just walk out.
15:07And I need a mechanic.
15:10You know, so they're not listening to me.
15:12So that's the real...
15:13Why don't they listen?
15:14They don't, because they don't care.
15:16They just want a paycheck.
15:17They're welcome to America.
15:19They don't want to work.
15:20It infuriates me when a manager or an owner of a business thinks that people are just
15:24sitting on their ass.
15:25Guys, this is Marcus.
15:26I just experienced no inventory on the shelf, but now you're accusing your technicians
15:30of sitting on their ass because there's no work?
15:32There's no work because there's nothing to buy.
15:34So the technician is my most favorite person in the whole world.
15:40It's been since I was a little kid.
15:41That would be me?
15:42I grew up in the auto business.
15:43I grew up in the shop.
15:45Okay.
15:45I grew up in the parts department.
15:47I was an assistant tech.
15:48I was a service advisor.
15:49So I understand the plight of the manager inside and the technician outside.
15:55So I get it.
15:57Technicians are the most important labor pool for me in the entire world.
16:01They are the driving force of everything that happens in this country.
16:04And they are underappreciated and they are underrecognized and they are underpaid.
16:09The other thing that I know about technicians, they don't say a lot.
16:12But when they do, you better listen.
16:14How long have you worked here?
16:1625 years.
16:18What?
16:18Yeah.
16:19You've been with him for, Gene, for 25 years?
16:2125 years.
16:22I've been here in 15 years.
16:25So you guys like it here if you've been here that long?
16:27Um, it's okay sometimes.
16:32Sometimes it's just too much tension.
16:34What drives that?
16:35Who even came up with such a stupid idea?
16:39Where was the brain power to come up with that?
16:41There's two genes I always say.
16:42Is it a happy gene?
16:45And there's an evil gene.
16:48There's the gene that will insult you.
16:51I'm saying you look cranky.
16:53Did you have a bad night?
16:53Did you get into a fight with your husband or something?
16:56Berate you.
16:57Richie, I'm killing myself and you're sitting on your ass.
17:00You don't know what you're walking into.
17:02He'll blow up on some of the dealers.
17:04And we lost a couple of dealerships.
17:07Which is a lifeline of the business.
17:09Yeah.
17:09There are two distinct streams of revenue in an aftermarket business.
17:13Individual customers who walk in and wholesale customers like dealerships.
17:17So no product to sell at the front of the store.
17:20And now you've pissed off all the dealers in your local area?
17:23How are these guys supposed to make a living?
17:25Richie, I'm Marcus.
17:27Nice to meet you.
17:28How are you?
17:29Good.
17:29How long have you been here?
17:30I started in 93.
17:33That's a long time.
17:34Mm-hmm.
17:34I'm getting the sense from Michael and from the other guys that most of you are unhappy.
17:40100%.
17:40He has good days, a lot of bad days.
17:43What are his good days like?
17:45It can be fun.
17:46And his bad days?
17:47Just berated.
17:50Um, it's not right.
17:52I don't know why anybody would do that to somebody.
17:54Especially somebody that's worked for you for that long.
17:58Made you money.
17:59How hard he is on Richie, it's just, it upsets me.
18:04I think it'd be helpful if you guys are open to it, where the five of us have an honest conversation once and for all.
18:11That would be tremendous.
18:12Let's see if Gene's available.
18:13This is a bigger challenge than I ever thought that I was signing up for.
18:19And it's a smaller opportunity than I thought I was signing up for.
18:23Do I care at this point?
18:24No, because I'm so pissed off and I'm so fired up about the way the guys in the shop are treated that I don't care how much time I have to spend here.
18:32I'll feel good about it.
18:34And that's all that matters.
18:35What I think is broken is the relationship between you guys.
18:38They have a lot to say.
18:39You have a lot to say.
18:41Best thing to do is flush the toilet so the s*** doesn't sit in the bowl anymore.
18:46Yeah.
18:47I have no problems starting at all.
18:49My big thing has always been mutual respect.
18:54We've had this conversation many times.
18:56Is there a lack of respect for each other?
18:57I don't think you respect any of us.
18:59Why?
19:00Why do you feel that way?
19:00The way you are.
19:03I feel like some of you come in and you just want a s*** paycheck and that's it no matter how it is.
19:08That's not true.
19:10I'll tell you what.
19:10You put yourself in that shoe right there and you own the damn store.
19:14Would you pay me to sit on my s*** to do nothing?
19:17God, no way.
19:18You would s*** never pay me to do that.
19:20Never.
19:21You would throw me out and go tell me to go to s*** home and you guys know you would.
19:24Richie, get off your fat s*** sitting in the corner when I got no work going on.
19:28Come up to my office.
19:29Hey, you got anything you want me to do?
19:30Why the s*** are you singling me out right now?
19:39Richie, get off your fat s*** sitting in the corner when I got no work going on.
19:43Come up to my office.
19:44Hey, you got anything you want me to do?
19:46I'd bite the b***h.
19:47Why the s*** are you singling me out right now?
19:48No, I'm just looking at the whole crew.
19:50I'm just looking at the whole crew, Bob.
19:51That's all.
19:52Not just you.
19:53I'm looking at the whole crew.
19:54Well, you did call him a fat s***.
19:55Well, I apologize for that.
19:58Well, my people process product model is a little busted right now because there is no product in inventory.
20:06They have zero process.
20:08Zero.
20:09How about when I go out and do $1,500, $1,600 and 4 o'clock you want to get rid of me because now it's dead?
20:18It ain't my fault you're so fast.
20:20You're getting paid for three hours.
20:21is what I'm saying.
20:25Dysfunctional?
20:25Should we go with that?
20:26But there's no reason for you to get agitation on me.
20:30Juan, I need you to get here at 9.30.
20:33I mean, yeah, I know you think it's funny, but that's f***ing costing me money.
20:37I'm a businessman.
20:39What's your thought on what he's saying?
20:41No, I just say he's right, you know.
20:43So you agree with him?
20:44Yeah, I do.
20:46Right.
20:46But you can deliver that same message a totally different way.
20:51And the fact that he just acknowledged it is a pretty good thing.
20:55The fact that he's productive is a pretty good thing.
20:59The fact that you called him names, not a good thing.
21:02Got it.
21:0325 years?
21:0430-something years?
21:05Mm-hmm.
21:0615.
21:06So there's some reason, against their better judgment, that they stay with you.
21:13Can you imagine if they actually liked working here, how much better the business could be?
21:19Well, I'm hoping you're right.
21:21Oh, I know I'm right.
21:22Okay.
21:23I know I'm right.
21:24But the machine is not working.
21:25It's broken.
21:26So either we fix the machine, and you fix it my way, or I'm gonna leave and never come back.
21:34Those are the choices.
21:35We'll make it right now.
21:36You want me to help you fix it, or do you want to just let it just die?
21:39I'm with you.
21:40100% in.
21:41I'm with you.
21:42Okay.
21:43Come prepared to work your ass off.
21:45Okay.
21:45I'm ready.
21:46Me and my guys, you know, we're button heads.
21:49I don't really hate them, but they do aggravate the crap out of me sometimes.
21:53And Marcus does see that.
21:55And Marcus is gonna help me try to fix it.
21:58Jazz audio could use an infusion.
22:00I'll change the name to Marcus Costerio.
22:02Ain't no problem with that.
22:05Everybody's coming to see Gene.
22:08That's why I'm concerned.
22:14Anytime I walk into a business, I always want to go under the premise that I'm gonna leave it better than I found it.
22:20And this business is broken with people.
22:22That's Gene.
22:22Has no process, no inventory system, and literally has no product.
22:26And so we're gonna have to rebuild the basic building blocks of any business.
22:30We bring inventory in, renovate the store, put a system in place, and then I can figure out if there's even a deal here at all.
22:37We're gonna start over.
22:38We're gonna get this business back on track with the right inventory, and we're gonna start chucking any of these parts and pieces that don't work that we know are obsolete.
22:46For as much time as it takes to get the store renovated, I'm gonna cover the payroll.
22:51All right?
22:52Let's get to work.
22:52What's going on?
23:01Marcus and me and the boys are tearing apart jazz audio.
23:05Oh, my, my.
23:06Marcus, you don't know how bad I've been wanting to do all that.
23:09Well, why haven't you?
23:11Because he won't let me touch anything.
23:13I've been wanting to redo the shop and get this place ship-shaped, you know?
23:17So having Marcus come in and get the ball rolling was a big plus.
23:21I feel like I had him on my side.
23:24Michael, can we throw this out?
23:25I don't even care what's in here.
23:26I never go through it.
23:27I do.
23:28That's bothering you?
23:29That is bothering you?
23:30Yes, ma'am.
23:31Oh, my God.
23:35Oh, yeah.
23:36That's right.
23:36Those wires, it's gonna fall.
23:38I knew Marcus was gonna do something.
23:40I didn't know it was gonna be this extreme.
23:42Somebody's gotta grab one.
23:43What do you think?
23:43Put your feet.
23:45When I seen him tip over the soundboard, I knew the showroom was in trouble.
23:50Yeah!
23:5116 years later.
23:53This is empty now.
23:56Wait.
23:57Oh!
23:57See?
23:58See?
23:59That was better.
23:59That's why you do it.
24:02Marcus, you know, nobody knows half the s*** I do.
24:05Nobody knows half the stuff that I do.
24:07That's life.
24:07That's life.
24:08That's my choice.
24:08I picked it.
24:10I chose to open this store.
24:11I chose to open this store.
24:12I chose to open a taco store.
24:13They call a dealership.
24:14Do you have a taco place?
24:15I do.
24:16What else do you have?
24:17Shell and bagel.
24:18Okay.
24:18What else?
24:19We'll use car on the street, too.
24:20I forgot to tell you.
24:21Okay.
24:21Who runs the used car place?
24:23Oh, I have people for that.
24:23I got a corner.
24:24Who runs the bagel shop?
24:25Benny's there every day.
24:26He runs it.
24:27Okay.
24:27Maybe this particular business shouldn't have so much gene in it.
24:31I love that.
24:32I would love that.
24:33And maybe it should just be about these guys.
24:35You should put a manager in place.
24:37Can you pop in and out?
24:40I would love to.
24:40Okay.
24:41Look, I understand that this is Gene's first business after being a rock star.
24:45And I understand the love affair that everybody has with their first business.
24:48But for this business to actually survive and prosper, Gene's going to have to put somebody
24:53else in charge.
24:54So, basically, what's going to happen here is I'm going to remove myself a little bit
25:00from the store.
25:01Michael is going to be general manager.
25:04He's going to be running everything up front.
25:06He's going to be doing it all.
25:08You know, the buck's going to stop with him with customer satisfaction, efficiency of the
25:13shop, my inventory.
25:14You're going to have to deal with me more.
25:17Oh.
25:18It's all right.
25:19I'm fine.
25:19I love Michael.
25:20Fine or it's a good thing?
25:22It's good.
25:22Okay.
25:23When Michael is the manager now, I'm going to step back.
25:25And it's very hard.
25:26It's very hard to step back.
25:28I'm going to tell you something, because I got 45 years of my life into this store.
25:31But Gene's got enough work.
25:34If you can turn the camera around and look at Gene's desk, Gene's got enough work to
25:37keep him busy until he's 75.
25:40Even though we butted heads up until last Friday, whatever, I still believe we got the
25:44best stereo shop on Long Island.
25:46We got the best installs.
25:48And if there's a problem, you can come to me.
25:51Okay?
25:51But just don't come to me with a stupid problem.
25:54You were doing good.
25:55You were doing so well.
25:57You were on track.
25:58You were doing so well.
26:00All right.
26:01Okay.
26:01Just...
26:01Back that up?
26:02Yeah.
26:03Just back that up.
26:03You guys are awesome.
26:05You guys are awesome.
26:06We've been here together for 30 years.
26:08You know what I mean?
26:08You guys can work anywhere.
26:09You don't need to work at Jazz Order.
26:10You can work anywhere.
26:12But somehow, you guys all choose to work with me.
26:15And I appreciate that.
26:16And I thank you.
26:17Now that Michael's the general manager, I have a high expectation that he's going to drive
26:21business through the front door or finding dealerships to do business with.
26:25All while managing the inventory at the store.
26:28All right.
26:29Let's finish the work, guys.
26:29Let's do it.
26:30Let's finish the shop.
26:32You're disappointed with the bottom line?
26:35Well, yeah.
26:35Like, you're working your ass off for that.
26:38Yes, I am.
26:40Something's got to change.
26:49Gene, you ready to say goodbye to the old Jazz floor?
26:52Here it goes!
26:53Rubble coming down.
26:57Michael, I want to walk you through the upgraded QuickBooks that I want to put in the system.
27:03Okay.
27:03I need somebody to track all of the assets, all of the assets, all of the cash, all of
27:07the liabilities at all times.
27:09How do you track your receivables today?
27:11Yeah.
27:11Yeah, for argument's sake.
27:13And then I saved the paperwork here.
27:15So, basically, I made a check.
27:16I print it out.
27:17But is all that recorded in QuickBooks?
27:19No.
27:20No.
27:20It needs to be.
27:20Okay, that's what I'm saying.
27:21No, I used just this.
27:22So, you bring in inventory, you log it into QuickBooks.
27:26You sell inventory, you record it in QuickBooks.
27:29Because all this paper craziness is what leads to things being out of stock, parts missing,
27:35you not feeling comfortable if things are being, walking away out the back door.
27:39It's a tracking mechanism.
27:41It's an analytical mechanism.
27:42Yeah, no, we can eliminate a lot of steps.
27:44There's a lot of room for error in that.
27:46There's a lot of steps.
27:47I think when I was 12, and I had my candy business, I had a better system than you.
27:54What are you trying to say?
28:00So, part of the reason why I wanted to come here is that I'm looking for margin expansion
28:04for the business.
28:05Is there somewhere we could look at product?
28:07Absolutely.
28:08Yeah.
28:08Can we go into the warehouse?
28:10Yeah.
28:10One of the first moves I want to make is to improve the way the company thinks about inventory.
28:15So, I'm taking them to a regional distributor that'll give them access to innovation, real-time
28:20inventory, and much better margins.
28:23Can we pull stuff and just put it on so we understand what we're doing?
28:26One of the side benefits to doing this with Michael and Gene is so I could see how Gene
28:30behaves.
28:31This is Michael's first opportunity to step up as the leader, to build that relationship
28:36with the distributor, and to show Gene that he's qualified.
28:38This is a great piece, and if I'm correct, you came in at a great price point.
28:42It's also the test to see if Gene can zip it.
28:46So, I was thinking, you know, the JVC, the Alpine, that, those are great, uh, you got a
28:52wireless one?
28:53The $6.95.
28:54I appreciate Gene getting up in there, but I think you have to remind him not to go
29:00back to his old ways.
29:01He's doing it right now.
29:02I don't want to spend the extra money.
29:04What I would ask you to do is politely say to him, listen, Gene, I'm gonna, I'm gonna handle
29:11this.
29:12And if, and then I would ask them, what other things do you guys recommend?
29:16What are you seeing?
29:17What's new?
29:18What's innovative?
29:18I want to pull from their knowledge.
29:21So, go ahead and jump in.
29:22So, what I was thinking was what the client base has been looking for, and see if they
29:31can give us some recommendations on what the best, you know, uh, options are for us.
29:37That's fine.
29:38Um, difference between having just a regular BT screen.
29:42Let him make you see.
29:44What categories are emerging.
29:45Come here for a second.
29:46What's hard for you about this?
29:48Letting go.
29:48What's hard for you?
29:50Eh, because I'm a control guy.
29:51I, I, I put 35 years of my life into it.
29:55It's like you, walking away from camp world after you did all that.
29:58So, here's the thing that I learned.
30:00Tell me.
30:00My own advice.
30:02For years, I thought I was the only person that could do anything there.
30:05Okay.
30:06And what I learned over time is that when I brought in people that were so much smarter
30:10than me, they had a different perspective than me.
30:14They approached people differently than me.
30:16The business actually flourished more.
30:19I think it worked.
30:19And my job was to organize and collect all the smartest brains in the world to run the
30:27business that I had started.
30:29Mike is going to be your sales guy.
30:30Okay.
30:31I appreciate the fact that you're letting Michael represent your business.
30:35He's going to place the order.
30:37You're going to take a deep breath.
30:38Mike, just so when we, when we're done, we just pay.
30:44Yep.
30:44Okay.
30:45I want Gene to understand how committed I am to improving his business with him.
30:50And paying for the inventory right now is a good way to make a good faith effort towards
30:54that.
30:55But I want to see how they handle it.
30:57It's the final step in determining whether I even want to do a deal here or not.
31:00Mike, I look forward to working with you.
31:02Thank you so much.
31:02Now that Michael's taking control of rebuilding the inventory, I want him to develop new
31:07relationships.
31:08So I'm taking him to a local dealership so I can see how he performs.
31:14Hi, Aaron.
31:15Mike.
31:16Michael, Aaron, how are you?
31:17Marcus.
31:18I've been running this dealership for 12 years.
31:20We don't even know all of the services and accessories that you guys provide.
31:25So we're going to put a marketing deck together that gives you everything that we believe we
31:29can provide to you?
31:31Yeah.
31:31You give us a fair price and make it quick, easy, and efficient.
31:34We're all in.
31:35I'm going to teach Michael how to use technology to actually understand who his whole customer
31:41base is.
31:42Salesforce is a technology platform that will allow Michael to understand every single
31:47customer that walks through the door, how to manage the account, how to communicate
31:51with them, and how to get the most out of that relationship.
31:55Bye.
31:55Thank you.
31:56I have to be honest.
32:05I think the space looks really good.
32:09One of the benefits of Marcus coming here was getting everybody to work together to refresh
32:14the store.
32:15We tried to make it, like, more inviting.
32:19I love the way it turned out.
32:20It feels so much better.
32:22It feels like a whole new store.
32:23You guys have to move back a little bit, because I'm going to show you what's behind the curtain.
32:29One of the things that I think is important is that a business never forgets where it
32:33started, and it understands where it's going.
32:35And with Michael being the general manager and the shop being cleaned up and new inventory
32:39coming, it's a fresh start.
32:41But I also think it's important to recognize the work, Gene, that you've done to get us
32:46here.
32:46Thank you.
32:46And whether there was twists in the roads and bumps in the road, you still have had
32:52a business that's lasted for a long time.
32:54And I think a lot of people dismiss the fact that a business can last for 25, 30, 35 years,
32:59despite all of its dramas.
33:01So I'm going to show you something that I hope you enjoy.
33:06Okay.
33:07You ready?
33:07I'm ready.
33:08I'm ready.
33:16Oh, Mike.
33:27Who's that good-looking guy?
33:28Awesome.
33:29That is awesome.
33:31Marcus, give me a hug.
33:34That is awesome.
33:36There's nobody he loves more than himself.
33:37Look at Gene.
33:38He's always showing people that picture.
33:40Which one?
33:40Look at me with the hair.
33:41Everyone's going to see it.
33:42They always say, that's not you, and then I've got to show him my tattoo.
33:45We believe you.
33:46You don't have to take your clothes off.
33:47We're good.
33:48One of the things that I wanted to accomplish in addition to paying homage to your past
33:53Thank you.
33:53is that if this is the sales counter and people are coming in, this is a conversation starter.
33:59It shows that you're in the business that you believe in.
34:03Him and the rest of the guys are going to lay out the floor.
34:06Okay.
34:06The three of us are going to go next door to the bagel store.
34:09I want you to bring your financials with you.
34:12Okay.
34:13Print out, like, last year's numbers.
34:14Okay, fine.
34:15Okay?
34:15I can do that.
34:16Let's do that.
34:17And then we're going to meet next door and sit down and talk a little turkey.
34:20Talk turkey?
34:21Okay.
34:21I don't like turkey.
34:23Too bad.
34:23Yes, you do.
34:25Now that I've spent time with Gene working on the people, the process, the product, it's
34:29time to sit down to really understand, is there an investment opportunity here?
34:33And what I'm thinking about is the kind of deal that would be unlike anything I've ever
34:38done before.
34:39What's the business need besides the people, process, and product?
34:48Profit.
34:49needs money.
34:49Needs money.
34:50Needs some money.
34:51Needs some money.
34:51It looks like last year, the business did almost $900,000 in sales.
34:56Mm-hmm.
34:56We're going to have $239,000 in gross profit, so that puts the margin at around 27%.
35:05Total expenses of $190,000 against $239,000 in gross, and a profit of $48,000, call it
35:16$50,000.
35:18Not a lot of money in the bank.
35:20No, not too much.
35:21I'm going to put some money into the store.
35:24You made $50,000 this year?
35:26The company did.
35:28Really?
35:29That's it.
35:30You're disappointed with the bottom line?
35:31Well, yeah, like, you're working your ass off for that.
35:35Yes, I am.
35:37Okay.
35:39Something's got to change.
35:40It's clear to me that Gene doesn't know his numbers, because when I met him, he told me
35:44that his business was doing $1.3 million in sales, and it had profit of $400,000.
35:50That would normally be on the bottom line.
35:52What's your total revenue?
35:53Bring it in, like, one three.
35:55And on the bottom line?
35:56What, our net profit?
35:58Yeah.
35:58$400, $450.
36:00What Gene misrepresented is that he meant gross profit.
36:04That's the number right underneath the revenue number.
36:07Then there's all the expenses, and then there's the bottom line.
36:11The bottom line is not $400,000.
36:13It's $50,000.
36:15And I'm going to maneuver my offer around $50,000, because it would be worth way more if
36:21it actually made $400,000.
36:22How much is the inventory that was just purchased?
36:25Right now, I think you spent about $30,000.
36:28I think I didn't see the receivables.
36:30I think between what I wired and what I put on my cart, it's close to $50,000 now.
36:35All right.
36:35You might be close to $50,000.
36:37That's how much I have in.
36:38All right.
36:39I'd like the $50,000 to stay in the business that I put in the inventory.
36:43Wow.
36:44That's very kind of you.
36:45And I'd like to have some equity for it.
36:49Okay.
36:51I'd like to think about that.
36:53You'd think about it right now.
36:54No, I can't make a decision that quick, Marcus.
36:56I'm not to be disrespectful.
36:59I'd love to have your support, and I'd love to do what I'm supposed to.
37:00Well, I made the decision to put the $50,000 in.
37:02You did.
37:03Because I knew that the business needed it, and I knew you needed it, and I knew the people
37:08that work there needed it, and I didn't even hesitate.
37:11I can make the argument that you did it because you wanted to help a small business.
37:14I don't do anything in business for charity.
37:17I don't believe in handouts.
37:20So basically, you want a piece of my store?
37:22Well, I put money in.
37:23Right.
37:23You want a piece of it.
37:24Right.
37:24That's fine.
37:25I put money in.
37:25I got it.
37:26How much equity are you looking for?
37:28What's the $50,000 that I put in worth?
37:3110%.
37:32So the business is worth $500,000?
37:35My business took 35 years of my sweat and blood to get it here.
37:39You gave me $50,000.
37:41I'll give you a $50,000 back.
37:42You know, if that's what you want, I'll hand you a $50,000 back.
37:45I got, you know, that's what it takes.
37:46That's what it takes.
37:47But I'm not giving up half my store for $50,000.
37:50It took 35 years of my sweat and blood to get it here.
37:56But I'm not giving up half my store for $50,000.
37:59Did I ask for half?
37:59No.
38:00Then why would you accuse me of asking for half?
38:02You reacted to me as if I was reaching into your pocket trying to take something from you.
38:07I think that's wrong.
38:08I don't think so.
38:09I just said $50,000.
38:09I'm telling you how I perceive it.
38:11Okay, well...
38:11It's the same way your people perceive it when you tell them to sit their fat ass down or get off their fat ass.
38:17You go from zero to 100 really fast.
38:20Instead of just taking it slow and having a dialogue and just talking about it.
38:26So now I'm asking you, what is everything that we've gone through plus the $50,000 worth you?
38:31Because the $50,000 is just money out of the account.
38:35The time that I've spent with you and the things that you say that you've learned from me have to be worth 50 grand.
38:43100%.
38:43Okay.
38:44So do I get any credit for flipping your ass like a pancake and getting you to think a different way?
38:53Well, okay.
38:55So I'll go up to 20% if you're interested.
38:59Is 20% something you could live with?
39:03100%.
39:03Love to have you as a partner.
39:04Okay, great.
39:05Love to have you as a partner.
39:06Okay.
39:07Fantastic.
39:07Can we go talk to your team?
39:09Sure.
39:09Okay.
39:12You know, I don't like making spur-of-the-moment decisions.
39:14I don't do that.
39:15But I didn't want to lose the deal.
39:17And I believe he can still bring a lot to the table.
39:19So I believe the 20% I gave up, it's fair.
39:23Why don't you tell them what just happened?
39:31I'm going to give Marcus, or you're going to team up.
39:33You're not giving me anything.
39:34No, Marcus bought in.
39:38Marcus now owns 20% of jazz audio.
39:41He's coming aboard.
39:42We did make a deal for me to buy 20% of jazz audio.
39:48But I like to buy and sell things.
39:51So do any of you have any money in your pocket?
39:55Uh.
39:56Do you have a dollar?
39:58You got a dollar for one, too?
40:00Can I have your money, please?
40:02One dollar, two dollar, three dollar, four dollar.
40:05I just sold my interest to them for four dollars.
40:11You guys now own my 20%.
40:13Here you go.
40:16Today's your lucky day.
40:18Richie, Rob, Michael, and Juan, you will equally own the 20%, 5% apiece,
40:24and no more nonsense about you're the owner and they're the workers.
40:30This is your business, too.
40:32I'm excited because I think it's always a good motivation to say you're part of something.
40:39I'm glad you did that.
40:40I like the way you flipped it.
40:41Right.
40:42You flipped it and you did an awesome job.
40:44There's a pot of gold at the end of the rainbow.
40:46We just got to get there.
40:47Now we're getting there together.
40:48You guys should actually have a monthly financial review.
40:52And Michael's going to help lead that because he's going to have access to Salesforce.
40:58You're going to have all the data that you need to understand how to run the business.
41:01If the business makes 300 grand, that's 15 grand a piece extra for everybody.
41:06The more money you guys make, the more money I'm going to make.
41:09That's the right way to think about it.
41:11I said something right?
41:12That's finally, finally.
41:16These individuals who have been with him for 15, 20, and 30 years are the backbone of his business.
41:22And I wanted him to see value.
41:23I also wanted them to recognize the value that I see in that type of labor force.
41:28I also wanted the employees to understand that it's your business and your shop and your customer and your inventory.
41:35And when people take an ownership mentality, they have a totally different mentality.
41:40Thank you for giving me the chance.
41:42I appreciate it.
41:43Thanks, Martha.
41:44Thank you.
41:44Nice meeting you.
41:45Thank you very much.
41:46It's a great investment because it's an homage to every technician that I've ever worked with since I was a little kid who taught me the value of hard work and a long day.
41:56That was a small price to pay to recognize an audience that I think is underappreciated.
42:03Thank you, Martha.
42:04Thank you for working on our work.
42:05Oh, thank you.
42:07Marcus, thank you so much.
42:08Appreciate it.
42:08So nice to meet you.
42:09By the way, everybody's got my number.
42:12They will when I leave.
42:13If you misbehave.
42:15Oh, give me your number.
42:19See you, guys.
42:22What's the business?
42:23A new experience in the pet space.
42:25An organic bedding company.
42:26We created Modi Toys.
42:27Pop Insanity.
42:28Gourmet popcorn.
42:29Dry ice depots.
42:30We're a frozen dessert business.
42:32That's delicious.
42:33You don't really know the math of your business.
42:36I disagree.
42:36You've lost a million dollars a year.
42:38Our growth is flattening very quickly.
42:40How much longer can you survive if the business keeps losing money?
42:43Maybe another six months.
42:46I've seen enough.
42:48I don't know who's in charge.
42:49Do you guys think there's an opportunity for me to make money and contribute?
42:53Then I'm your guy.
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