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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 then their product we've heard from the clients that it's not so easy that's
00:57Marcus is an amazing investor and hopefully we'll invest in our business in the end we'll
01:03negotiate my offer is $500,000 for 10% to see if a deal can be made so we both can profit
01:10yeah that's not connecting hi how are you nice to meet you I'm Jeff Jeff I'm Marcus pleasure hi
01:22Danielle nice to meet you this is our son Liam Liam how you doing my man good how are you so we own a
01:29company called Escape Room New Jersey okay we now own three locations oh what kind of revenue do
01:35these locations do Engelwood's the smallest is Engelwood's about $10,000 a week I would say
01:40so just extrapolate that out a half a million a year yes what's the next location Madison probably
01:46pulling in about 15 to 20,000 a week so Pompton Lakes will be our next location and revenue there
01:53that one's 20 to 20 and 25 okay so two and a half million in total is that about the whole company
01:59I'd say about two what's the bottom line between one and 1.5 wow so that's a pretty big net margin
02:06return why don't you have more of these that's where you come in oh I want to create this into a
02:12franchisable concept I want to open these all over the country that really is the dream okay all right
02:17let's have some yes let's have some fun we're gonna do the escape box first there's a coin in here
02:24that you need to access you're looking at the box you can see there's locks right looking for a
02:28combination okay excellent there's my coin so what are we doing and now you may bump thank you out
02:43mark this one next we're gonna move to the rage room
02:49I get it clearly based on the numbers it's a great cash flow business but if you don't constantly
03:01change the game at some point your ability to retain customers would dissipate and right now
03:08for me I don't think it's scalable so I don't think that it's something that I would invest in
03:14thank you for the opportunity thank you I appreciate you thank you thank you thank you very much
03:19live do this well how are you very good to meet you what is your name Frank nice to meet you
03:33Sean Sean nice to meet you Carlos Carlos nice to meet you Brian how are you so we are brothers guitar
03:42shop we are a retail store in Manhattan we started out of a back of our hardware store our family-owned
03:48business oh wow yeah our parents are immigrants so we're first-generation Americans it's a family
03:54business that's been established for how many years in New York 40 40 years pushing we've been
03:59really focusing on trying to have us spending more time on the guitars guitars it's more of our
04:05passion you know that's what we like to do is it more profitable than the hardware store no it's not
04:10at all the margins are way better in the hardware business it's you know you pack of screws you buy it for
04:1657 cents and sell it for 4.99 here it's 30 margin on all new gear do you guys provide guitar lessons
04:25we do yeah we also love to do the used stuff the used we make the most profit right now I think
04:32you don't well in the guitar lesson business there's no cost associated with it you essentially split
04:38the revenue with the instructor and that's it makes totally it's a hundred percent margin well
04:44the used we'd see the most money out of it in the register generating the most revenue is different
04:48than it being the most profitable yeah it can generate the most gross profit but there's also
04:53expenses against it can I use your guitar as an example consider this like your revenue and then
05:00all the way down you'll have your cost of goods and you'll have all of your expenses and then at the
05:05bottom you'll have your profit or not and I think that if you're running multiple businesses this is one
05:10P&L for used sales and 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 this hobby business still feels like a hobby
05:23because knowing the sectors of revenue and the gross profit and the expenses associated with them is not
05:31as clear for me yet am I wrong no you're absolutely right I mean we're kind of all over the place and
05:38that's why I don't think there's an opportunity here for us together keep your hobby going but
05:45not at the expense of your hardware business thank you for coming today thank you Marcus it's great to
05:51meet you I appreciate it that's it
05:55well that's an interesting way to make an entrance nice to meet a young fella how are you I'm Marcus
06:23I'm Gene Seller so nice to meet you too so what is it that you do I own a store called Jazz Audio
06:29and I do a bunch of accessories on cars you know we do amplifiers and lights underneath the car yeah
06:36power steps rims and tires so your company soups up my ride makes it sound better look better it's
06:44perfect let's maybe put the music on I want to hear how good this bass is I'm gonna give you a demo
06:50cuz I just want to clarify I'm from Miami so bass for me is very different than it is for most people
06:56I know what bass is you do I do and you have a subwoofer behind the seat I got an amp behind the seat
07:02and by the way this is called a downfire box and I'll tell you why a way a what downfire box downfire
07:09right you know why because you can put anything you want on top of it okay hold on get in there
07:14all right all right go ahead okay
07:22you're the same buddy now we're rocking
07:29that's how you drive a car
07:30I thought I was gonna be a rock star it didn't happen so I had an opportunity to open up a stereo
07:37shop and I jumped all over it
07:39so I've been in the car business I know for a long a big part of my life and seeing stuff like this
07:46aftermarket distributor of car accessories that does installation right and there's a million of
07:52them yeah but they're not cheap they're not jazz audio I know you're gonna ask me what separates you
07:57me my whole system my whole procedure you have a process good it's like McDonald's I got a process
08:04so let me let's take a step back if you're not a manufacturer your market is only as big as your
08:11labor reach your basic trade area BTA okay that basically means that this is the area that you can
08:19influence yeah my store will take out a certain amount of you know square miles 100 so it's limited
08:25yeah unless you have a bunch of stores is that your goal that's my goal how many you have now I have one
08:31what's your total revenue bring it in like one three and on the bottom line 400 450 and so how
08:41much money have you saved uh I really want to say that well I mean I think I think I got money saved
08:48no you don't have to give me a dollar amount but what I'm asked what I'm trying to understand is
08:53you've built a heck of a business truly like the American dream yeah definitely so why am I here
09:00what what's the opportunity I want to get another salesperson I want to I want to start training some
09:05people at the location I have now getting ready for the next location my job is to help you navigate
09:11to where you want to get to and to use my resources and correct things that I know and the people that
09:17I know and the things that you know and try to put it together to make the road from point A to point B as
09:22straight as possible no matter what we do no matter how much we know that road's not going to be
09:26straight the fire my belly's not out to do what make more money you're a great guy thinking about
09:33what I want to do right now oh listen you can get back to me I could or I can tell you now you could
09:38do both you're a great guy I just thinking about what I want to do right now listen you can get back
09:55to me I could or I can tell you now you could do both I think I think this is an opportunity worth
10:03pursuing I want to do some business with you if Jean's numbers are accurate 1.3 million dollars
10:08in revenue and four hundred thousand dollars in profit well that's interesting to me but I'm not
10:14just gonna write a check I want to look under the hood to find out if the people the process the
10:18product and the profit are legit I guess we're about to find out me and Marcus are getting together this
10:28is happening Marcus got hooked on me there might be a million installers out there but right now
10:33there's only one gene out there until me and Marcus partner up and we make another gene for our next
10:38store so another jazz audio coming soon to a place near you I'm here in Long Island New York to see jazz
10:50audio and its owner gene when I saw the product the other day I saw a couple of things but I want to
10:56understand is this a big business is it even an opportunity how are you how are you good I'm
11:03Marcus I'm well cuz I'm Rob Rob Robert yeah Michael nice to meet Michael nice to meet you the aftermarket
11:09automobile business is really enticing because not only do manufacturers tend to drive price down by
11:15leaving options out but with the used car market being as good as it is it gives consumers the opportunity
11:21to customize the vehicle to exactly what they want and whether that's rims running boards alarms
11:26leather seats a variety of things it's a great business with great margins G Marcus is here to see
11:33Marcus is here for me yep well you want to meet Marcus my buddy hey Marcus how are you how are you
11:39that's my wife Susan how are you nice to meet you surprise visit on me she came to check on you
11:44to make sure you're behaving mm-hmm I guess so is this jazz audio this is jazz audio
11:501985 called and they want their store back what's going on here okay so these are a soundboard these
12:07are speakers why are these empty sold them out of the board so how long ago too long ago how long has
12:13this stuff been in the case uh god that stuff has been in that case so long that none of those radios
12:20are current they all need to be changed how many of these are out of production already probably half
12:25of them so half of them they don't even make any they don't even make anymore it feels like time stood
12:30still in here and that technology changed and then as you sold things you just didn't replace it I mean
12:37there's a lot just just there's there's a lot of empty slots here I agree that's not a good look
12:42it's a terrible look when somebody walks in the front door if they have a good experience and the
12:47parts are in inventory their likelihood of them buying it is increased and if they buy it the
12:52likelihood of it going to the shop and giving those guys the chance to earn money is also increased
12:57that's it sell more service more make more it feels like you're not paying attention to the
13:03business just that's my first impression when I first met Gene the other day he said now on Long
13:09Island my store will take out a certain amount of you know square miles so it's limited yeah unless
13:14you have a bunch of stores is that your goal that's my goal there's this great concept to take
13:19across the nation and um no Michael how long have you been here about two years and what did you do
13:30before this I ran global operations for Alliance Bernstein for 23 years well that's a big deal are
13:35you the manager yes and no um which part is yes which part is no well I handle most of the interactions
13:41with the clients sometimes with the retail but I don't like directly order anything or control
13:47you know that type of stuff who does that uh Gene he was to manage a business a hundred times the
13:54size of this his aptitude and his knowledge of being just a general manager of sorts is probably
14:00greater than Gene gives him credit for and what is the inventory management there really isn't one
14:05there isn't one no running any kind of business without an inventory supply chain system is really
14:12like deciding that you don't want to be in business anymore knowing what you have in real time
14:16knowing what's coming and understanding what to reorder is all about predicting how sales are
14:20going to flow through your business but with Gene not tracking the inventory is a problem that's
14:25headquarters that's me getting ready to put on a show who is that's me I always wanted to be a
14:30rock star tried to get a couple of record deals and it didn't pan out but I love music so I opened up
14:36you know a stereo shop I started out as an installer I did sales so this is mama
14:41who does the installations my installers in the shop one Rob Richie so there's three installers correct
14:50and one salesperson correct and me the installers listen I love them as people and whatnot what do
14:56do they need help they need to get here on time they need to be more assertive instead of just sitting
15:01on their ass waiting for a car to come in yep and if I tell them I've said anything to them they'll just walk
15:06out and I need a mechanic you know so they're not listening to me so that's still real why don't
15:13they listen they don't because they don't care they just want a paycheck they're welcome to America
15:18they don't want to work it infuriates me when a manager or an owner of a business thinks that
15:23people are just sitting on their ass guys this is Marcus I just experienced no inventory on the shelf
15:29but now you're accusing your technicians of sitting on their ass because there's no work there's no work
15:33because there's nothing to buy so the technician is my most favorite person in the whole world it's
15:40been since I was a little kid that would be me I grew up in the auto business I grew up in the shop
15:45okay I grew up in the parts department I was an assistant tech I was a service advisor so I understand
15:50the plight of the manager inside and the technician outside so I get it technicians are the most important
15:58labor pool for me in the entire world they are the driving force of everything that happens in this
16:04country and they are underappreciated and they are under recognized and they are underpaid the other
16:09thing that I know about technicians they don't say a lot but when they do you better listen how long
16:15have you worked here 25 years what you've been with him for gene with for 25 years 25 years I've been
16:22here in 15 years so you guys like it here if you've been here that long it's okay sometimes sometimes
16:32there's just too much tension what it what drives that who came up with such a stupid idea where was
16:39the brain power to come up with that there's two genes I always say is it happy gene and there's an
16:46evil gene there's the gene that will insult you I'm saying you look cranky did you have a bad night
16:53did you get into a fight with your husband or something berate you Richie I'm killing myself and
16:59you're sitting on your ass you don't know what you're walking into he'll blow up on some of the
17:04dealers and we lost a couple of dealerships which is a lifeline of the business yeah there are two
17:10distinct streams of revenue in an aftermarket business individual customers who walk in and
17:15wholesale customers like dealerships so no product to sell at the front of the store and now you've
17:21pissed off all the dealers in your local area how are these guys supposed to make a living Richie
17:26I'm Marcus nice to meet you how are you good how long have you been here I started in 93
17:32it's a long time getting the sense from Michael and from the other guys that most of you are unhappy
17:39100 he has good days a lot of bad days what are his good days like he could be fun and his bad days
17:47just berated um it's not right I don't know why anybody would do that to somebody especially somebody
17:55that's worked for you for that long made you money how hard he is on Richie it's just it upsets me
18:03I think it'd be helpful if you guys are open to it where the five of us have an honest conversation
18:10once and for all that would be tremendous let's so see if Gene's available this is a bigger challenge
18:16than I ever thought that I was signing up for and it's a smaller opportunity than I thought I was
18:22signing up for do I care at this point no because I'm so pissed off and I'm so fired up about the
18:28way the guys in the shop are treated that I don't care how much time I have to spend here I'll feel
18:33good about it and that's all that matters what I think is broken is the relationship between you guys
18:38they have a lot to say you have a lot to say best thing to do is flush the toilet so the doesn't sit
18:44in the bowl anymore yeah I have no problems started my big thing has always been to him mutual respect
18:53we've had this conversation many times is there a lack of respect for each other I don't think you
18:58respect any of us why why do you feel that way the way you are I feel like you guys some of you guys
19:04you come in and you just want a paycheck and that's it no matter how it is that's not true I'll tell you
19:10what you put yourself in that shoe right there and you own the damn store would you pay me to sit
19:15on my ass to do nothing god no way you would never pay me to do that never you would throw me out and
19:22tell me to go to home and you guys know you would Richie get off your fat ass sitting in the corner
19:26when I got no work going on come up to my office hey you got anything you want me to do I'd bite the
19:32boy you single me out right now Richie get off your fat ass sitting in the corner when I got no
19:42work going on come up to my office hey you got anything you want me to do I'd bite the boy you
19:47single me out right no I'm just looking at the whole crew I'm just looking at the whole crew about
19:51that's all not just you I'm looking at the whole crew well you did call him a fat ass well I apologize
19:57for that well my people process product model is a little busted right now because there is no
20:04product in inventory they have zero process zero and the people are how about when I go out and do
20:13fifteen sixteen hundred dollars and four o'clock you want to get rid of me because it's now it's dead
20:18I think my fault you're so fast you're getting paid so I'm productive is what I'm saying
20:22dysfunctional should we go with that but there's no reason for you to get I'm not agitation on me
20:30one idea to get paid for nothing I need you to get here at 9 30. I mean yeah I know you think it's
20:35funny but that's costing me money I'm a businessman what's your thought on what he's saying no I just
20:42say he's right you know you agree with him yeah I do right but you can deliver that same message
20:48a totally different way and the fact that he just acknowledged it is a pretty good thing the fact
20:55that he's productive it's a pretty good thing the fact that you called him names not a good thing
21:02got it 25 years 30 something years 15 so there's some reason against their better judgment that they
21:12stay with you can you imagine if they actually liked working here how much better the business
21:18could be well I'm hoping you're right oh I know I'm right okay I know I'm right but the machine is not
21:25working it's broken so either we fix the machine and you fix it my way or I'm gonna leave and never
21:32come back those are the choices we'll make it right now you want me to help you fix it or do you want to
21:38just let it just die I'm with you 100% I'm with you okay come prepared to work your ass off okay
21:45I'm ready me and my guys you know we're button heads I don't really hate them but they do aggravate the
21:51crap out of me sometimes and Marcus does see that and Marcus is gonna help me try to fix it
21:57jazz audio could use an infusion I'll change the name to Marcus car stereo
22:02no problem with that everybody's coming to see gene as far as I'm concerned
22:09anytime I walk into a business I always want to go under the premise that I'm going to leave it
22:19better than I found it and this business is broken with people that's gene has no process no inventory
22:24system and literally has no product and so we're gonna have to rebuild the basic building blocks of
22:30any business bring inventory in renovate the store put a system in place and then I can figure out if
22:35there's even a deal here at all we're gonna start over we're gonna get this business back on track
22:40with the right inventory and we're gonna start chucking any of these parts and pieces that don't
22:44work that we know are obsolete for as much time as it takes to get the store renovated I'm gonna cover
22:50the payroll all right let's get to work
22:53what's going on Marcus is me and the boys are tearing apart jazz audio my Marcus you don't know
23:07how bad I've been wanting to do all that well why haven't you he won't let me touch anything I've
23:13been wanting to redo the shop and get this place ship shape you know so having Marcus come in and get the
23:19ball rolling was a big plus I feel like I had him on my side Michael can we throw this out I don't even
23:25care what's in here I never go through it I do that's bothering you that is bothering you yes ma'am oh my god
23:35oh yeah that's right there's wires it's gonna I knew Marcus was gonna do something I didn't know it was gonna be this
23:41extreme somebody's gotta grab one when I seen him tip over the soundboard I knew the showroom was in trouble
23:49yeah 16 years later this is it's empty now
23:56oh
23:58see that was better that's why you do it
24:02nobody knows half the I do nobody knows half the stuff that's life that's life that's my choice I picked
24:10that I chose to open this door I chose to open this door I chose to open a taco door they call
24:14dealership you have a taco place I do and what else do you have shell and bagel okay what else
24:19well you just call it up the street too I forgot to tell you okay who runs the used car place
24:22oh I have people for that I got a partner who runs the bagel shop Benny's there every day he runs it okay
24:27maybe this particular business shouldn't have so much gene in it I love that I would love that maybe
24:33it should just be about these guys you should put a manager in place can you pop in and out I would
24:40love to okay look I understand that this is gene's first business after being a rock star and I
24:45understand the love affair that everybody has with their first business but for this business to
24:50actually survive and prosper gene's gonna have to put somebody else in charge so basically what's
24:56gonna happen here is is I'm gonna remove myself a little bit from the store Michael is gonna be
25:03general manager he's gonna be running everything up front he's gonna be doing it all you know the
25:08buck's gonna stop with him with customer satisfaction efficiency of the shop my inventory you're gonna
25:15have to deal with me more oh it's all right I'm fine I love my fun fine or it's a good thing okay
25:23when Michael is the manager now I'm gonna step back and it's very hard it's very hard to step back
25:28I'm gonna tell you something because I got 45 years of my life into this store but gene's got
25:33enough work if you can turn the camera around and look at gene's desk he's got enough work to keep
25:38him busy till he's 75 even though we butted heads up till last Friday whatever I still believe we got
25:44the best stereo shop on Long Island we got the best installs and if there's a problem you can come to me
25:51okay but just don't come to me with a stupid problem you were doing good you were doing so well
25:58you're doing so well uh okay just back that up yeah just back that up all right so you guys are awesome
26:05you guys are awesome we've been here together for 30 years you know what I mean you guys can work
26:08anywhere you don't need to work at jazz order you can work anywhere but somehow you guys all choose to
26:14work with me and I appreciate that and I thank you now that Michael is the general manager I have
26:19a high expectation that he's going to drive business through the front door or finding dealerships to
26:24do business with all while managing the inventory at the store all right let's finish the work guys
26:29let's do it let's finish the shop you're disappointed with the bottom line well yeah like you're working
26:36your ass off for that yes I am something's got to change
26:49jean you ready to say goodbye to the old jazz floor here it goes
26:55bubble coming down Michael I want to walk you through the upgraded QuickBooks that I want to put
27:02in the system okay I need somebody to track all of the assets all of the cash all of the liabilities
27:08at all times how do you track your receivables today yeah for argument's sake and then I saved
27:14the paperwork here so they sent me to check I print it out but is all that recorded in QuickBooks no
27:20needs to be okay that's what I'm saying no I use just this so you bring in inventory you log it into
27:25QuickBooks you sell inventory you record it in QuickBooks because all this paper craziness
27:31is what leads to things being out of stock parts missing you not feeling comfortable if things are
27:37being walking away out the back door it's a tracking mechanism it's an analytical mechanism yeah no we
27:42can eliminate a lot of steps there's a lot of room for error in that there's a lot of steps I think when
27:48I was 12 and I had my candy business I had a better system than you what are you trying to say
27:54so part of the reason why I wanted to come here is that I'm looking for margin expansion for the
28:04business is there somewhere we could look at product absolutely yeah can we go into the warehouse yeah
28:10one of the first moves I want to make is to improve the way the company thinks about inventory so I'm
28:16taking them to a regional distributor that'll give them access to innovation real-time inventory and much
28:22better margins can we pull stuff and absolutely so we understand what we're doing one of the side
28:27benefits to doing this with Michael and Jean is so I could see how Jean behaves this is Michael's first
28:32opportunity to step up as the leader to build that relationship with the distributor and to show Jean
28:37that he's qualified this 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 Jean can zip it so I was thinking you know the JVC the Alpine that those
28:50are great uh you got a wireless one 6.95 I appreciate Jean getting up in there but I think you have to
28:58remind him not to go back to his old ways he's doing it right now don't want to spend the extra money
29:04what I would ask you to do is politely say to him listen Jean I'm gonna I'm gonna handle this
29:12and if and then I would ask them what are the things do you guys recommend what are you seeing
29:17what's new what's innovative I want to pull from their knowledge so go ahead and jump in
29:25so what I was thinking was what the client base has been looking for and see if they can give us
29:31some recommendations and what the best you know uh options are for us that's fine um difference between
29:39having just a regular bt screen that didn't make you see what categories are emerging come here for
29:46a second what's hard for you about this letting go what's hard for you yeah because I'm a control guy
29:51I I put 35 years of my life into it it's like you walking away from the camp world after you did all
29:58that so here's the thing that I learned tell me my own advice for years I thought I was the only person
30:04that could do anything there okay and what I learned over time is that when I brought in
30:09people that were so much smarter than me they had a different perspective than me they approached
30:14people differently than me the business actually flourished more and my job was to organize and
30:22collect all the smartest brains in the world to run the business that I had started
30:29Mike is going to be your sales guy okay I appreciate the fact that you're letting Michael
30:34represent your business he's going to place the order you're going to take a deep breath
30:41Mike just so when we when we're done we just pay okay I want Gene to understand how committed I am
30:47to improving his business with him and paying for the inventory right now is a good way to make a good
30:53faith effort towards that but I want to see how they handle it it's the final step in determining
30:58whether I even want to do a deal here or not Mike look forward to working with you thank you so much
31:03now that Michael's taking control of rebuilding the inventory I want him to develop new relationships
31:08so I'm taking him to a local dealership so I could see how he performs
31:14hi Aaron hey Michael Aaron how are you Marcus I've been running this dealership for 12 years we don't even
31:21know all of the the services and accessories that you guys provide so we're going to put a marketing
31:26deck together that gives you everything that we believe we can provide to you yeah you give us a
31:31fair price and make it quick easy and efficient we're all in I'm going to teach Michael how to use
31:37technology to actually understand who his whole customer base is salesforce is a technology platform
31:44that will allow Michael to understand every single customer that walks through the door how to manage the
31:49account how to communicate with them and how to get the most out of that relationship bye thank you
32:04I have to be honest I think the space looks really good one of the benefits of Marcus coming here was
32:10getting everybody to work together to refresh the store we tried to make it like more inviting
32:19I love the way it turned out it feels so much better it feels like a whole new store you guys have to
32:24move back a little bit because I'm gonna I'm gonna I'm gonna show you what's behind the curtain one of
32:29the things that I think is important is that a business never forgets where it started and it
32:34understands where it's going with Michael being the general manager and the shop being cleaned up and new
32:39inventory coming it's a fresh start but I also think it's important to recognize the work gene that you've done
32:44to get us here thank you and whether there was twists in the roads and bumps in the road you still
32:51have had a business that's lasted for a long time and I think a lot of people dismiss the fact that a
32:56business can last for 25 30 35 years despite all of its dramas so I'm going to show you something that
33:03that I hope you enjoy
33:06okay you're ready I'm ready
33:08that good looking guys awesome that is awesome Marcus give me a hug that is awesome
33:34nobody he loves more than himself look at gene he's always showing people that picture which one
33:40they always say that's not you and then i got to show him my tattoo we believe you don't have to
33:46take your clothes off we're good one of the things that i wanted to accomplish in addition to paying
33:51homage to your past thank you is that if this is the sales counter and people are coming in
33:57this is a conversation starter shows that you're in the business that you believe in
34:01him and the rest of the guys are going to lay out the floor okay the three of us are going to go
34:08next door to the bagel store i want you to bring your financials with you okay print out like last
34:14year's numbers okay okay i can do that let's do that and then we're going to meet next door and sit
34:18down and talk a little turkey talk turkey okay i don't like turkey too bad yes you do now that i
34:26spend time with gene working on the people the process the product it's time to sit down to
34:30really understand is there an investment opportunity here and what i'm thinking about
34:34is the kind of deal that would be unlike anything i've ever done before
34:39what's the business need besides the people process and product profit needs money needs some money it
34:52looks like last year the business did almost 900 000 in sales uh 239 000 in gross profit so that puts
35:02the margin at around 27 percent
35:07total expenses of 190 000 against 239 000 in gross and a profit of 48 000 call it 50 000
35:17not a lot of money in the bank no not not too much i'll put some money into the store
35:24he made fifty thousand dollars this year the company did really that's it you're disappointed
35:31with the bottom line well yeah like you're working your ass off for that yes i am okay something's got
35:39to change it's clear to me that gene doesn't know his numbers because when i met him he told me that his
35:44business was doing 1.3 million dollars in sales and it had profit of 400 000 that would normally
35:50be on the bottom line what's your total revenue bring it in like one three and on the bottom line
35:57what our net profit yeah 400 450 what gene misrepresented is that he meant gross profit
36:04that's the number right underneath the revenue number then there's all the expenses and then there's
36:10the bottom line the bottom line the bottom line is not four hundred thousand dollars it's fifty
36:14thousand dollars and i'm going to maneuver my offer around fifty thousand dollars because it would be
36:19worth way more if it actually made four hundred thousand how much is the inventory that was just
36:24purchased right now i think you spent about third third i think item that 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 grand now right you might be
36:36close to 50 how much i have in right i'd like the fifty thousand dollars to stay in the business
36:42that i put in the inventory well that's very kind of you and i'd like to have some equity for it
36:49okay um i'd like to think about that you think about it right now no i can't make a decision
36:55that quick marcus i'm not that not to be disrespectful i'd love to have yours upon i'd love to do
37:00well i made the decision to put the 50 grand in you did because i knew that the business needed it
37:05and i knew you needed it and i knew the people that work there needed it and i didn't even hesitate
37:11i can make the argument and you did it because you wanted to help those a small business i don't do
37:15anything in business for charity i don't believe in handouts so basically you want a piece of my
37:21stuff well i put money in right you want a piece of it right that's fine i put money in i got how much
37:26equity are you looking for what's the 50 000 that i put in worth ten percent so the business is worth 500
37:34grand my business took 35 years of my sweat and blood to to get it here you know you gave
37:40me 50 grand i'll give you a 50 grand back you know if that's what you want i'll hand you a 50
37:44grand back i got you know that's what it takes that's what it takes but i'm not giving up half
37:48my store for 50 grand took 35 years of my sweat and blood to get it here but i'm not giving up half
37:57my store for 50 grand did i ask for half no but i'm just why would you accuse me of asking for half you
38:02reacted to me as if i was reaching into your pocket trying to take something from you i don't
38:07i think that's wrong i don't think so i just said 50. i'm telling you how i perceive it it's the same
38:12way 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 a hundred really fast instead of just taking it slow and having a dialogue and just
38:25talking about it so now i'm asking you what is everything that we've gone through plus the 50 grand
38:30worth you because the 50 000 is just money out of the account yeah the time that i've spent with you
38:37and the things that you say that you've learned from me have to be worth 50 grand then 100 okay so
38:44do i get any credit for flipping your ass like a pancake and getting you to think a different way
38:50well okay so i'll go up to 20 if you're interested is 20 something you could live with 100 love to
39:03have you as a partner okay great love to have you as a partner okay fantastic can we go talk to your
39:08team sure okay you know i don't like making spur of the moment decisions i don't do that but i didn't
39:16want to lose the deal and i believe he can still bring a lot to the table so i believe the 20 i gave
39:22up it's fair why don't you tell them what uh what just happened uh i'm gonna give marcus so you're
39:32gonna team up you're not giving me no marcus bought in
39:35marcus now owns 20 of jazz audio uh he's coming aboard
39:45we did make a deal for me to buy 20 of jazz audio but i like to buy and sell things so do any of you
39:53have any money in your pocket uh you have a dollar you got a dollar for one two can i have your money
40:01please one dollar two dollar three dollar four dollar i just sold my interest to them for four
40:10dollars you guys now own my 20 percent
40:15here you go today's your lucky day richie rob michael and juan you will equally own the 20
40:22percent five percent a piece and no more nonsense about you're the owner and they're the workers
40:30this is your business too i'm excited because i think it's always a good motivation to say you're
40:37part of something i'm glad you did that these guys the way you flipped it right you flipped it and you
40:43did an awesome job there's a pot of gold at the end of the rainbow we just got to get there now we're
40:47getting there together you guys should actually have a monthly financial review and michael's
40:53going to help lead that because he's going to have access to salesforce you're going to have all
40:59the data that you need to understand how to run the business the business makes 300 grand that's 15
41:04grand a piece extra for everybody the more money you guys make the more money i'm going to make
41:09that's the right way to think about it i said something right that's finally finally
41:14these individuals who have been with him for 15 20 and 30 years are the backbone of his
41:21business and i wanted him to see value i also wanted them to recognize the value that i see
41:27in that type of labor force i also wanted the employees to understand that it's your business
41:32and your shop and your customer and your inventory and when people take an ownership mentality
41:38they have a totally different mentality thank you for for giving me the chance i appreciate it
41:43thanks marcus thank you nice meeting thank you very much it's a great investment because it's an
41:48homage to every technician that i've ever worked with since i was a little kid who taught me the
41:53value of hard work and a long day that was a small price to pay to recognize an audience that i think is
42:01underappreciated thank you mark thank you for working on oh thank you marcus thank you so much
42:08appreciate it nice to meet you by the way everybody's got my number they will when i leave if you
42:13misbehave oh give me your number see you guys what's the business a new experience in the pet space
42:25organic bedding company we created modi toys pop insanity gourmet popcorn dry ice depots we're frozen
42:31dessert business that's delicious you don't really know the math of your business i disagree you've lost a
42:37million dollars a year our growth is flattening very quickly how much longer can you survive if
42:42the business keeps losing money maybe another six months i've seen enough i don't know who's in charge
42:49do you guys think there's an opportunity for me to make money and contribute then i'm your guy