The Fixer S01E04

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2 days ago

The Fixer S01E04

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00:00across America thousands of businesses grinding it out every single day because the ultimate

00:09American dream is owning something you built everything will be stationary for when Marcus

00:15comes in every episode I'm meeting businesses at a crossroads we have actually invested our

00:21entire life savings into this business I'll pick one and go to work but I'm not a consultant I

00:28don't believe in handouts I'm a capitalist this is $15,000 always looking for ways to make money

00:34that's why we want you to work with us because we're bad at math that's a terrible reason you

00:40should be good at math I'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 no why the are you singling me out their process the execution

00:50is just like what is it in their product we've heard from the clients that it's not so easy

00:57that's Marcus is an amazing investor and hopefully we'll invest in our business in the end we'll

01:02negotiate my offer is five hundred thousand dollars for ten percent to see if the deal can be made so

01:08we both can profit tonight I'm meeting with businesses from across the country we created

01:17Modi toys they're all looking to take their business to the next level I need somebody with a better

01:23business acumen that has a good heart to run this business we're actually not profitable we have

01:28taken some bank loans out our growth is flattening very quickly so I'm giving direct feedback it's

01:34called key man risk it's when a company is reliant on one specific person and it dramatically increases

01:40the chances of failure in the absence of that person and cutting through the noise I don't know who's in

01:47charge many people in the US would see this as a small market a lot of time has to be invested I

01:53actually think you're capable by yourself I don't see an opportunity for me to invest but I do have

01:59the ability to introduce you to people that I think can help thank you so much and here he comes well

02:08hello how are you how are you I'm Marcus I'm Aaron nice Aaron nice to meet you I'm Marcus I'm Jacob Jacob nice to

02:15meet you sir I am Jonathan Jonathan nice to meet you you brought some popcorn yeah beautiful setup thank

02:23you so much so tell me about you guys so we've been friends for many many years and pop insanity gourmet

02:30popcorn evolved from this popcorn machine Jacob's wife is like get rid of the popcorn machine the kids in the room to play

02:38so you know what before I put it at the curb let me make some popcorn for the kids let me go up to

02:42the kitchen marshmallow fluff grand practice chocolate let me try this nuts that nuts so now

02:48he makes 9 by 13 pans he tells his wife do me a favor put it in a teacher's lounge she came back on a

02:54list of orders he's crazy fast forward a little bit we're in 12,000 square feet with 20 plus employees

03:01that's what we've accomplished thus far beautiful can we walk the booth a little bit

03:07this is absolutely stunning the packaging is beautiful truffle or parmesan on dairy and that's moving

03:17mmm how's that that's delicious how about here I keep seeing this freeze-dried stuff everywhere right I don't

03:27understand it a big part of the business five percent two percent one percent less than three

03:32percent how much total revenue does the business do a little bit on the four million a year and how

03:36much of it comes from popcorn eighty-five percent so if I translate that into dollars I'm gonna take

03:42off six hundred thousand I'm gonna be at three point four on four million correct and bottom line

03:47nine hundred and twenty seven million bucks wow I'm really impressed thank you okay sounds like you

03:56guys are doing great do you guys think there's an opportunity for me to make money and contribute yes

04:02absolutely it's very simple I've noticed that our growth is flattening very quickly okay okay at the

04:08same time when our costs are increasing a tremendous amount I've seen enough so I'm excited to pursue the

04:15opportunity at the end of the day I just want to know when I get there who's in charge and who's

04:20making final decisions thank you okay it's a pleasure to meet you it's an honor as well for me when I

04:26invest in businesses I have to believe that there's a big market for that nice to meet you Marcus thank

04:31you guys but before that I want to understand what their numbers are what their process looks like

04:37how their factory functions and then I also want to be sure that there's an opportunity to make money

04:43I'm here in New Jersey at the factory for pop insanity they generate four million dollars of

04:54revenue they have great margins but I'm trying to really understand what the dynamics are between the

04:59three of them hi guys how are you how are you I'd like to get a quick tour I kind of I understand the

05:09basic product so I don't need to understand how popcorn works but I want to understand how the

05:13process works sure this is where all the magic happens this is where it all happens isn't that fun I love it look at

05:27that look how cool that is that's beautiful so once it's loaded up we do batch by batch just for

05:36freshness for whatever it is this is so good you have such an attention to detail because that's

05:43what makes people want to buy it what are the difference between your standards and his his

05:52level of kitchen grade is that when he walks out of here at night every machine gets sterilized

05:58the floor gets power washed I take them an hour plus clean out the facility every night I think it

06:05will be done in 35 minutes sometimes there's a middle ground part of it is really understanding

06:10what are you spending your time on now what would it take to open up a second shift and not compromise

06:15what I want Jacob to understand is just know what he's leaving on the table what I want Jonathan to

06:22understand is the necessity for things to be perfect my goal is to get them to advance their business and

06:28the only way to do that is to look at things a little differently so this bag finished in a 55

06:35minute process generates wholesale revenue of how much 762 dollars so when he when he pushes back on

06:43you that hour that you're cleaning is 762 dollars lost you're in production for 283 days and you multiply

06:52that it's 215 thousand dollars of wholesale revenue for every hour in a given year wow 1698 hours of

07:04production a year on an annual basis it's almost a quarter of a million dollars of revenue so when

07:10you look at the bottom line that extra hour starts to really matter Marcus has a way of analyzing a

07:17situation and making it a lot simpler than we can every bag is dated so we know the data was

07:23pomegranate this is now going in the garbage that doesn't sell well so why don't you kill it because

07:28aren't you don't you get to decide what stays and goes you specifically not always one thing that has

07:35become really clear to me is that there are two alphas in the room and there's another one that's a

07:41little bit more subservient and Jacob needs to find his voice the fact that he doesn't say a lot

07:46doesn't mean that he doesn't know a lot how you doing brother what do you do here

07:50what everything what doesn't he do here everything outside of this room is Joe so all the supply chain

07:57sourcing the staffing the scheduling the packaging the shipping allowing why did they hide you where

08:04have you been they saved the good to last no the best meeting Joe who I'm learning actually runs

08:11the operations here who oversees this group of folks Joe okay and he trained them all yes this

08:18machine and the staff and the process it largely functions that way because of him who's in charge

08:25here of the three of them it's in the kitchen I was gonna him him he's in charge yeah if it's about

08:31the kitchen it's him it's about any other things it's them these two are at odds over a topic who makes

08:38the decision between them two yeah I would say him in the end of the day I'm gonna tell you right now

08:46it's still not clear who's in charge but I was thinking about what you're saying and I don't know why

08:51I'm having such a difficult time of understanding because there are certain decisions that I don't

08:57need him to make there are certain decisions he doesn't need me to make and vice versa the

09:01likelihood of success is typically greater when ultimately somebody has to make her call it happens

09:06to the call is made what is the difference if it's made collectively or one guy decides no we're doing

09:14this that's what I want to see because leadership isn't just about a decision it's about the strategy

09:19direction who sets the strategy but that's also discussed yeah we'll keep talking about it

09:27so this is my office back here and here is Joe so where's your guy's office where we spend most of

09:38the time every day is a half hour away from here why why aren't you here with everybody else

09:44the quick answer is that spot is you know about seven minutes from my house and and five minutes

09:51from his house how far from your house half hour we can take our hats off in here great idea so we

09:57have a freeze-dried candy line which we run over there so we still have a reason to be there there

10:02are challenges of having them there just sometimes when it comes to communication this and that in my

10:09opinion yes come here why tell them why we're sitting right over here the questions are related

10:13instead of picking up the phone hey what do you think about this what do you think about that

10:16they're here everything is done well we could put booths out here there is a solution I know but I want

10:21you to hear something that I think gets lost in business you have a young man here who's driving

10:26the business saying to you I need you your job is to lead them so it's not about wanting to have you drive or

10:33anything else but they want their leader to be near them in the absence of it we sort of just figure it

10:40out on our own that's a good point out of sight out of mind it's that camaraderie and leadership that

10:48they have an obligation to provide to their people I won't invest in this business unless they're willing

10:53to make the changes that are necessary period end of story I want to visit pop insanity second location

11:06it's where Jonathan and Aaron work out of and it's separated from everybody else how you doing but they

11:12tell me that it's closer to their house and it's essential for their freeze-dried candy so welcome to

11:17the original home of pop insanity taste money this is a mellow this is a crunchy candy okay not his

11:25tastes here you could see there's um probably 18 different ones but we're only running four four

11:31types of candy we don't sell that and how much revenue you don't sell this no good the candy was

11:36disgusting it's freeze-dried candy has nothing to do with pop or insanity it may be insanity the candy

11:43to me feels very off-brand there's nothing popcorn about it what do you have to do with this honestly

11:49not a lot shut it down just do popcorn okay that's not the kind of company this is I don't know that I

12:00agree with you a hundred percent I don't think you should have this space how much is the rent between

12:05these two four four thousand dollars and the other space that giant warehouse was how much 12 and how

12:12much revenue gets generated out of here talk about production this is three percent of our revenue

12:18they're taking on a four thousand dollar rent factor to do two hundred thousand in revenue where

12:24the other place is eleven thousand eight hundred to do four million it's a math equation like we don't

12:29even have to spend five minutes on it bye-bye close this whole thing down and move on everybody

12:35in agreement who is in charge if the three of you don't agree now rabbi rabbi Brody we should

12:44let the rabbi decide I like the fact that the rabbi ultimately has the final say because with these

12:50three guys they need somebody to make the decision and I don't have that seat yet the rabbi at least

12:55gives them the credibility and the credence to make that decision and do it quickly when's the next time

13:00you're gonna see the rabbi um supposedly Sunday am I gonna be able to meet him I would like to invite

13:06you to lunch with the rabbi okay the next step for me is I want them to confirm that they're going to

13:13wind this place down and I want to meet the rabbi to understand what his influence is over them and how

13:19I need to factor him into the decision-making of me wanting to make an offer thank you Marcus bye

13:28how are you I'm Marcus nice to meet you rabbi nice to meet you too this is a real privilege for me

13:54I'm a little nervous so I apologize no no I'm very nervous rabbi who's the leader of the business

14:05it's a joke to say as I am the leader I'm not the leader you know so my concern and what I would like

14:11your help with is I see Jonathan as the engine and he'll do anything and everything to get the results

14:19I see Aaron as more of a people person he's a little more empathetic he doesn't get upset I see

14:27Jacob as the roots of the tree making sure that it's rooted in its foundation without compromise

14:35he says it's very correct did I get it right yes okay when you take those three it works but somebody

14:45still has to be the ultimate leader in a business he said in every business there has to be one

14:57soloist but who should the leader who should be the face of the country we should decide amongst ourselves

15:07and if we can't come with a decision you need to speak to me if we can't agree then he'll he'll give

15:14us a pin he said if you spoke the same language you'd love to spend time talking to you I'm always

15:21available and I love to learn we're all learning we're all learning

15:27I'm back at pop insanity today to ensure that everything that the guys have agreed to do

15:43has gotten done come on in so I just want to give you an update hey great enumerate them be specific

15:52freeze-dried candy is being closed as of March 1st great okay we are giving up a location over

15:57there for sure how many people are coming here three three yes so I think the conference room

16:01should go we should go get some desks at the other place bring them over and start to bring that

16:06together so that everybody understands that progress is happening okay the third item is we we now have a

16:13definitive boss and who is that myself you're okay with that I was the one that voted for him how about

16:20you I'm great with that look I'm glad that the rabbi provided the clarity that these three guys need

16:27and while I had made the suggestion I knew that if the rabbi had blessed this idea it would actually

16:32get executed what's more important to me is that they've made a decision and quite frankly I think

16:37they made the right one Aaron is the perfect leader with the right temperament okay we need to get to work

16:42walk me through like what's the best selling flavors this top seller top seller top seller this is

16:53everything can't be a top seller this is this is not gangbusters okay we have seven core flavors that

17:00makes up what percentage of the total revenue 80 80 80 we have a total 15 flavors so more than half

17:07half of your skews make up 20 percent of your revenue this particular one which is eighth and

17:12this particular one which is ninth and this particular one is tenth what if this got to 95 percent just

17:19hypothetically now these are really like kind of bums I'm leaving with these because these suck now give

17:28me new ones but they don't suck they don't have the sales number as those but those are sold every week

17:34he's saying is if we're going to do 15 maybe there'll be five new ones that will do better than

17:40those love it Jacob and I are going to work on starting to develop some new flavors here's why

17:45on Sunday we're going to go into Manhattan we're going to meet with the owner of a company called Nut

17:50Factory they have 40 locations and they're putting up five to six every couple of months I called the

17:57guy and you guys are going to pitch having you guys be integrated into their business I did the math

18:04in my head there's 40 locations that's $25,000 a year for a million dollars that's $2,000 a month

18:11is all that business has to do from us to do a million dollars a year wow wow wow that's amazing

18:18however comma we got to go with our best foot forward and it's okay if we do a little research

18:25Jacob of what they do and the flavors they have because we want to make sure that it fits for their

18:32customer profile not for ours Jacob and I are going to work on just some ideas and we'll come

18:38back to you guys later what I don't think that the guys understand is that going to the nut factory

18:43is different than dealing with the distributor they're going to go to one meeting to meet with

18:47one guy for a million dollar account and they have one shot at it hey Joe yeah list off all the things

18:55that you do here manufacturing bagging shipping inventory management what about all the staff

19:01management I'm in charge of the staff who does all the hiring of the staff oh me do you think

19:07you should make more I know I could make more how much more let's say I'm making about 120 a year

19:12yeah I think I could make 250 I do think so wow how many kids do you have six now so that's a lot

19:19to be responsible for in my head I'm always thinking oh maybe I'll meet someone and he'll

19:25give me an amazing offer so I'll go right somewhere else yeah because it's better do you still think

19:31about it today if you're being honest yeah with any investment I have to know that all the risks have

19:38been addressed and Joe not being secured and locked down is a risk okay I want to understand how your

20:00flavor development works okay and I'm gonna be candid as I can okay Jonathan and Aaron are big

20:08personalities when they lean in they sort of take over everything you're the founder of this business

20:15you're the creator of this business so I think you have to maintain your control of that process as

20:21much as you can if the business doesn't constantly have development that at some point it's gonna fade

20:27away so how many new flavors do you develop a year so when we were smaller I would develop try to work on

20:35you know five six different flavors every year and why does the size of your business because dictate

20:41that you can't have that many I don't have a test kitchen and I'm doing it at home so it becomes a

20:47little challenging why isn't this a test kitchen Jonathan doesn't want any downtime and he wants to get as

20:55many batches out as we can in the time that everyone's here but when are you supposed to develop new

21:00ideas it's it's challenging nobody in this building knows more than Jacob about popcorn his knowledge

21:09his expertise and his opinion have to actually come to the forefront I'm gonna grab the guys real quick

21:15you mind if I come back Jonathan and Aaron they have to be mindful not to put him in the background in

21:21anticipation of seeing nut factory I thought we could make something and there's no test kitchen

21:27there's there's there's nowhere for him to develop new ideas so he has been asking for a test kitchen

21:36and at the end of the day based on the cost of these machines which is how much 50 000 we weren't

21:43comfortable doing that but you got to really understand the core of the business is innovation

21:48and creativity he's got to have a place for him I want him to be happy well if you did you would have

21:54spent the 50 000. there are times right when I I've asked for certain no we're not spending that

22:01kind of money it was just no it's so it's so expensive right and we didn't really have the

22:05room for it so between being expensive and no room for how are we doing it right so that's what it was

22:12that's what it was can I just tell you what he just said to you yeah yes Aaron you do say no to

22:16me sometimes and I don't like it that's not what he said that's what I heard also you guys think you're

22:21listening to him I'm just being honest I don't think anybody listens to him just let the guy win

22:25once in a while and listen to him once in a while okay not everybody is the same he's a people pleaser

22:40you guys are not people pleasers you don't give a thank you I take your drivers your drivers but

22:48he's different we will do anything to protect him he doesn't need to be protected let him just say

22:54what he thinks it's it's a passion of mine that you know to create and it's just it's hard to create

23:01when I don't have what to create with so I'm gonna apologize that we haven't made that decision and

23:09built you it built you a a a a lab where you can create so we will step to the plate to give you the

23:16kitchen that you need awesome 100% I feel hopeful the test kitchen is going to allow us to build our

23:27company and hopefully they're gonna start listening to me there's two things that I'm concerned about

23:35in this business and why I want you to have the super duper version of this QuickBooks account okay

23:40one is it has great inventory management of raw materials what I like about this dashboard is that

23:48you can play in this all day long what did we sell today why isn't this receivable getting collected

23:53ready for this one how come these people haven't paid in 90 days it was $92,000 over 90 days old and

24:01receivables who's waking up and thinking about that every day I have a hard time doing business with

24:06people that don't see the value in having a platform like QuickBooks ready on their fingertips

24:12on their phone so they wake up every morning they just know where their money is this platform takes

24:17the guesswork out of decisions you guys say that you want to make sure that you survive I want to make

24:24sure and the reason I'm spending my time here is so you thrive that's why this platform matters to me

24:30do you want to do the history of the company first you want everything do everything I don't care how

24:40you guys do it I want to I want to also see how you do because I've never seen you sell you say

24:46you're a good salesperson we're gonna see I want to bring the guys from pop insanity to nut factory

24:51today largely because I believe they need that million dollar account what I don't know is how

24:56they're gonna handle the process hi there hi how are you thank you yep after you today's meeting

25:02is a big deal for me because this is truly going to decide if I want to be in business with them or not

25:10if they do a great job I'm definitely want to be in business if they do an okay job

25:14so the idea that I had after I met you guys and understanding how you particularly think about

25:30things Jacob he's just as insane about quality about the process so I saw the similarity between

25:37the two of the two of you so from this point it's up to the three of you to convince him first of all

25:43um we are actually looking for a popcorn thing so that's kind of like comes to your advantage right

25:49now I want to show you something what is it this is taste it yeah just taste it it's popcorn oh okay

25:56it's very good what is it so it's the equivalent of like a muddy buddy but it's with popcorn there's a

26:06good crunch I think it's perfect fit for your type of store I guess what is the pricing of this so we

26:12have three sizes okay right so the UPCs the case pack it's all there I tell you what the thing by this

26:20item I I would hope that someone gonna bite on a weekly basis and that's why the pricing is

26:27basically my biggest concerns I would hope to get this one at their own $10 to the customer my 99 is a

26:36problem for me because that puts you at 40 percent below with every of the my other customers are

26:43selling it on what what are you guys thinking right now I'm not going to now hurt all my customers

26:51that have been loyal to him for the last eight years and undermine their price by four dollars minimum

26:58a bag there have one perspective I have a different perspective okay I think you're wrong

27:04at 995 okay and I want to tell you why because 995 and 1095 are kind of the same and I don't want

27:12this to I don't ever want our brand or your brand to become a bodega so 395 yep 695 yep and 1095

27:25in a 9 or 10 ounce bag reverse this is like a 12 ounce that's right okay and if we invest the time to

27:32develop the product you're not going to sell any other popcorn here either I'm good with that I

27:39feel like a compromise Aaron what's your decision here I love for I appreciate the opportunity I love

27:45the opportunity and I love the store and the environment but it's something that I really need

27:52to analyze but just to say yes I can do it and yes and yes I'm not that guy I'm not doing that I'm just

27:59not doing that I've never been in a situation where I set up a million dollar meeting and the

28:04other people are doing a lot to maybe ruin it what's the frustration be honest it's it's this

28:12this whole thing you want boom boom boom you're telling me to change everything and it's a I'm and

28:18it's a lot I never like to say no I'm a salesman by heart I want the order but once you go into

28:24changing the actual product changing the ounces or prices or labels or things it's not something

28:32that I normally would do unless it really made sense sometimes you can't close there's so many

28:40variables what do you want to do right now it's up to me I'm going to leave with nothing and come

28:45back and try your way you emotionally did not come prepared you emotionally did not come prepared

29:01for what he was going to do even though you knew he was going to do it I told you he was a grinder

29:06you have to be a good listener and the first time that the other the buyer says yes stop thank you

29:14these guys struggle with that maybe because they feel like they need to process it when you don't

29:20leave with a confirmation the chances of it actually getting a second meeting a third meeting are low

29:27they just are that's just life he's he he's challenging us with a price point that he's not

29:34comfortable so I'm saying put it on the side let me try one time to take it away from him what's the

29:40worst that could happen you lose a million dollar opportunity you'll find it somewhere else I don't

29:46know I don't see that's what I disagree with this this this thought process but you're a lot more

29:51experienced than I am Marcus hey guys I wanted to leave with a yes when I pulled Aaron aside I said to

29:58him listen let me try it a different way I'm gonna take away the opportunity from the buyer it's called

30:04the takeaway what I don't want to do is to leave here and have them feel that they got asked to do

30:10something that is outside of their norm and I don't want you to do something that you think isn't going

30:15to work for you I don't feel this way that I want to do it right and I want to do it too let's not talk

30:21about the price let's put it on the shelf for four weeks if it's not selling you're taking it back and

30:27if it's selling then we're gonna a little talk about the price what do you think about that let's just do

30:32it now you have a deal I'll put it on consignment yeah gotta do it on consignment they got a deal

30:40love it Dean's already started processing how much revenue they're gonna do where it's gonna go how

30:47excited they are I love the flavor I love the whole idea and when we took it away first thing that

30:52happened is the guy compromised on everything that we had been spending an hour talking about

30:58very happy with the outcome and you know who's gonna decide the customer thank you thank you I

31:07think the most important thing that you can learn from Marcus from today is never walk away until you

31:13have a deal okay so use the bigger box and I'm gonna use the small box okay if you don't mind whoa can't

31:28believe I'm packing up my office at the nut factory meeting Aaron and Jonathan learned that anytime you

31:33slow things down you could kill momentum make a decision and do it quickly so when the team said

31:43they wanted everyone under one roof they didn't hesitate they're moving it looks like we got to say

31:47goodbye to my to our origins there we go we're getting some desks in today we are creating our take on Dubai

32:01chocolate I have one job for Jacob create an exclusive flavor for nut factory and with his new test kitchen

32:12coming together there's no reason he can't deliver and deliver fast hold on that is good

32:20faking like you're busy it's always good Marcus how are you how you doing buddy you guys looking pretty

32:34professional here you like our new place I do yeah I do like it so here we're gonna put in our product

32:41development area yeah because we move the conference room outside hey buddy hey how you

32:45doing so a couple things that I wanted to check in on what's the status of nut factory so as of

32:52Thursday we're ready to go then as the product okay good that's good here's the other piece that's

33:01missing for me do you know every customer that you have that's ever bought online from you we have our

33:06IT guy retargets that there's an email blast that goes out see how you use the word blast makes me

33:12crazy if we end up doing a deal which we're gonna find out today if we're gonna do one okay we're gonna

33:19install a system in here that's a little tool that I use it's in my pocket it's Salesforce and what it

33:25does is it takes all the customer data and it builds a persona and a profile curated and custom

33:31specifically to them based on their buying patterns and what they've looked at on the website and it

33:36becomes a single persona relationship tonight I'd like to sit down and meet and have a real conversation

33:44about what are the real financials of the business and then establish what you think the value of the

33:50business is and then well I'll tell you this is what I think we'll agree on that or not agree on that

33:55I'll tell you what I want to do you tell me yes or no and if we do something great and if we don't I'll

33:59still love you guys and then I'll go buy another popcorn company and kick your ass okay we'll see

34:06you later okay guys we'll see you come prepared come prepared I'm prepared I know that

34:29I'm here to see Aaron is Aaron back here great what a beautiful restaurant

34:36guys good to see you good to see you nice to see you okay who's excited we all we all are we all are

34:48Marcus there's one thing when we talk about an investor there was always one word that we always

34:56said and it's called a strategic investor so whether it's Rolodex experience know-how whatever

35:04we were always always open to a strategic partner so I want to give you a little bit of a counter

35:10argument to that okay every business needs capital and every business doesn't need to have a strategic

35:17partner money is money until money becomes control I have no interest in being a significant holder of

35:25the business I have none it's your family's business when the market gives you an opportunity to get cash

35:33and they have no rights over what you're doing who cares you've done the same revenue for the last

35:39three years you're sort of like stuck in this like under four million dollar range why is that I'm not

35:45going to tell you the consulting's over what do you think the business is worth I put a value of 12 million

35:52the whole month you think the business is worth 12 million okay how much debt does the company have today can I see the

35:58financials it says all the assets and all the liabilities including cash inventory yes belay loan

36:06everything has a net positive of 464,000 464,000 so you're not swimming in cash if everything works out

36:17with the nut factory you wouldn't have nut factory if it wasn't for me I'm not saying that I'm not paying you

36:23I'm not putting a value on your business for something that I gave you 500,000 of earnings so

36:29it's worth 24 times earnings Marcus I'm just I'm just trying to get clarity so I don't necessarily

36:37disagree that your business is worth a lot I don't disagree at all I wouldn't be sitting here

36:43and it's worth more because of its potential than it is because of its current state do you agree with

36:50that agree for me I can't invest into something that is valued at 12 million so what is your sweet spot or

37:00your or your comfortability to be to I want to invest enough money in the business to do the things that

37:08need to be done without putting pressure on the current bank account I think you do need an inventory

37:15slash shipping and receiving manager because that would relieve Joe that's 80 grand I think that Joe

37:22is a flight risk I think he's going to quit if you don't do something different if I wanted to make

37:28Joe a equity stakeholder in the company what would be the proper number to offer him to retain him I

37:34would do it an investing schedule over time where he would earn two percent a year up to a maximum of

37:41time yep and if you leave at any time you lose it all let's just say that's 30 grand from profit

37:48participation you probably need to spend 200,000 more a year on driving the web business I think

37:56you do need to put in business software you do need to put in salesforce I think you do need to

38:01refine your packaging so when I add all that up I feel like the business needs like 400 grand of cash

38:08in the business does 400 grand sound like it would solve a lot of things in the business you're you're

38:14on target I'm gonna make it an even 500,000 because there's probably something we're not thinking about

38:20okay uh my offer is 500,000 for 10 percent and I understand that I'm putting the value at 5 million

38:30I respect that you disagree with it I don't want to pay for what's going to be in the future

38:36when what exists today is this that's my opinion I'm going to step out because you guys have to

38:42talk about it on your own but it's 500,000 for 10 percent okay I'm not talking this so then tell

38:50how long to cut the cameras off let's go out

39:06I think it's an offer that I would like to consider so what's the same question what do you mean what's

39:12the question we just we just we're in eight years business we haven't gotten an opportunity like this

39:15let's talk like mention let's not get pissed at each other let's talk nicely you're giving away 10% of

39:20your company for half a million dollars you heard my opinion I'm not I'm not in agreement

39:31so the short answer is without having the time it's a huge decision for us it's not something that I can

39:40answer right now simply because there are there are details or or or things that we need to understand

39:48better we're basing the offer on a on an evaluation which is lower than you lower than thing it's still

39:5610 times your earnings I understand that it doesn't mean you have to agree with it but I still 10 times

40:01I do understand that your earnings I'm not saying it's a flat out no I'm saying based on everything

40:07we really really appreciate the offer and I I I want to spend some time great thinking about it

40:12and discussing it so I appreciate that you guys don't want to make a decision but I have to make

40:19a decision I spent all the time doing the calculus in my head you should have been doing the same

40:24calculus in your head you didn't think I was there to hang out with you listen it was nice meeting you

40:29and our paths will cross hopefully in the next couple years well hopefully sooner than that it will it

40:36I won't from a business standpoint because as much as I've wanted to respect your process and the

40:44things that you do you knew why ultimately I was here so at some point you should have been prepared

40:50for it and you weren't for me it's a little inconsiderate and you did the same thing at din's

40:56where you're like we need to think about it it's something that I really need to analyze but just to say

41:02yes I can do it and yes and yes I'm not that guy I'm not doing that I would have much preferred a no

41:11than a we need more time that I understand because it feels like a no to me

41:16no it's you know I've hurt my feelings a little bit but I'll get over it

41:20I hate what you're saying all right thank you guys thank you buddy really appreciate it

41:28I think the fact that he evaluated the company as five million dollars made it very very difficult

41:36for us to say yes we have a deal I don't know if he's done I don't know his process I don't know

41:43what's in his mind will will he want to understand why we couldn't give him an answer I don't know

41:49take care man while my five hundred thousand dollar offer was rejected the one thing that

41:58I will measure is the return on investment of my time when I go into a business my primary objective

42:04is to help the business and to make money but it's also to focus on helping the people who work in the

42:10business improve their lives in the case of Joe who actually runs the day-to-day operations

42:17it was my belief that the owners didn't recognize his value now I can walk away knowing that Joe is

42:23being properly paid and the equity that he was promised is being memorialized in the end maybe I

42:30did get a win after all hello hi how are you how are you you pulled your mom into the business

42:38she's my right hand woman

42:40we are a dinosaur science education we're a dope ass ice cream shop okay

42:50what's the opportunity for me because I also like to make money oh lord the concept's honestly

42:56a little janky I don't take that lightly I really want to pursue something here how many locations do

43:02you have now none oh

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