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#CinemaJourney
#The Fixer
#The Fixer
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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've actually invested our entire
00:21life savings into this business I'll pick one and go to work but I'm not a consultant I don't
00:28believe 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 and their product we've heard from the clients that it's not so easy
00:56that's Marcus is an amazing investor and hopefully we'll invest in our business in
01:02the end we'll negotiate my offer is $500,000 for 10% to see if the deal can be made so we both can profit
01:10tonight I'm meeting with businesses from across the country we created Modi toys they're all looking
01:19to take their business to the next level I need somebody with a better business acumen that has
01:25been hard to run this business we're actually not profitable we have taken some bank loans out our
01:29growth is flattening very quickly so I'm giving direct feedback it's called key man risk it's when
01:36a company is reliant on one specific person and it dramatically increases the chances of failure in the
01:42absence of that person and cutting through the noise I don't know who's in charge many people in
01:49the US would see this as a small market a lot of time has to be invested I actually think you're
01:54capable by yourself I don't see an opportunity for me to invest but I do have the ability to introduce
02:01you to people that I think can help thank you so much and here he comes well hello how are you I'm
02:10Marcus I'm Aaron nice to Aaron nice to meet you I'm Marcus I'm Jacob Jacob nice to meet you sir I am
02:16Jonathan nice to meet you you brought some popcorn beautiful setup thank you so much tell me about
02:24you guys so we've been friends for many many years and pop insanity gourmet popcorn evolved from this
02:32popcorn machine Jacob's wife he's 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 crackers chocolate let me try this nuts that nuts so
02:47now he makes nine by 13 pants he tells his wife do me a favor put it in a teacher's lounge she came
02:53back on a list of orders he's crazy fast forward a little bit we're in 12,000 square feet with 20
03:00plus employees that's what we've accomplished thus far beautiful can we walk the booth a little bit
03:07yeah this is absolutely stunning the packaging is beautiful truffle or parmesan on dairy and that's
03:17moving mmm how's that that's delicious how about here I keep seeing this freeze-dried stuff everywhere
03:26right I don't understand it a big part of the business five percent two percent one percent less
03:31than three percent how much total revenue does the business do a little bit on the four million a
03:36year and how much of it comes from popcorn eighty-five percent so if I translate that into dollars I'm
03:41going to take off six hundred thousand I'm going to be at three point four on four million correct
03:46and bottom line nine hundred and twenty seven million bucks Wow I'm really impressed thank you
03:54okay sounds like you guys are doing great do you guys think there's an opportunity for me to make
04:00money and contribute yes absolutely it's very simple I've noticed that our growth is flattening
04:06very quickly okay okay at the same time when our costs are increasing a tremendous amount I've seen
04:12enough so I'm excited to pursue the opportunity at the end of the day I just want to know when I get
04:19there who's in charge and who's making final decisions thank you okay it's a pleasure to meet you
04:24it's an honor as well for me when I invest in businesses I have to believe that there's a big
04:29market for that nice to meet you Marcus thank you guys but before that I want to understand
04:34what their numbers are what their process looks like how their factory functions and then I also
04:40want to be sure that there's an opportunity to make money I'm here in New Jersey at the factory for
04:51pop insanity they generate four million dollars of revenue they have great margins but I'm trying to
04:57really understand what the dynamics are between the three of them
05:00I'd like to get a quick tour I kind of I understand the basic product so I don't need to understand how
05:11popcorn works but I want to understand how the process works sure this is where all the magic happens this is where it all happens
05:22isn't that fun I love it look at that look how cool that is that's beautiful so once it's loaded up we do batch by batch just for freshness for whatever it is this is so good you have such an attention to detail because that's what makes people want to buy it
05:44what are the difference between your standards and his his level of kitchen grade is that when
05:54he walks out of here at night every machine gets sterilized floor gets power washed I take them an hour
06:01plus clean out the facility every night I think it could be done in 35 minutes sometimes there's a middle
06:07ground part of it is really understanding what are you spending your time on now what would it take
06:13to open up a second shift and not compromise what I want Jacob to understand is just know what he's
06:20leaving on the table what I want Jonathan to understand is the necessity for things to be
06:25perfect my goal is to get them to advance their business and the only way to do that is to look at
06:30things a little differently so this bag finished in a 55 minute process generates wholesale revenue of how much
06:39$762 so when he when he pushes back on you that hour that you're cleaning is $762 lost you're in
06:48production for 283 days and you multiply that it's $215,000 of wholesale revenue for every hour in a
06:58given year wow 1698 hours of production a year on an annual basis it's almost a quarter of a million
07:08dollars of revenue so when you look at the bottom line that extra hour starts to really matter
07:14Marcus has a way of analyzing a situation and making it a lot simpler than we can every bag is dated so we
07:22know the data was pomegranate this is now going in the garbage that doesn't sell well so why don't
07:27you kill it because aren't you don't you get to decide what stays and goes you specifically not
07:34always one thing that has become really clear to me is that there are two alphas in the room and
07:40there's another one that's a little bit more subservient and Jacob needs to find his voice the fact
07:45that he doesn't say a lot doesn't mean that he doesn't know a lot how you doing brother what do you do
07:50here well everything everything outside of this room is Joe so all the supply chain sourcing the
07:58staffing the scheduling the packaging shipping allowing why did they hide you where have you
08:05been they saved the good to last no best meeting Joe who I'm learning actually runs the operations
08:12here who oversees this group of folks Joe okay and he trained them all yes this machine and the
08:19staff and the process it largely functions that way because of him who's in charge here of the
08:26three of them it's in the kitchen I was gonna him him he's in charge yeah if it's about the kitchen
08:32it's him it's about any other things it's them these two are at odds over a topic who makes the
08:38decision 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 and I was thinking about what you're saying and I don't
08:50know why I'm having such a difficult time of understanding because there are certain decisions
08:56that I don't need him to make there are certain decisions he doesn't need me to make and vice
09:00versa the likelihood of success is typically greater when ultimately somebody has to make a call it happens
09:06but the call is made what is the difference if it's made collectively or one guy decides no we're
09:14doing this that's what I want to understand because leadership isn't just about a decision it's about the
09:18strategy direction 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 the quick
09:45answer is that spot is you know about seven minutes from my house and and five minutes from his house how
09:52far from your house half hour we can take our hats off yeah that's a great idea so we have a freeze
09:58dry candy line which we run over there so we still have a reason to be there there are challenges of
10:03having them there just sometimes when it comes to communication this and that in my opinion yes come
10:10here why tell them why we were sitting right over here the questions are really instead of picking up
10:14the phone hey what do you think about this what do you think about that they're here everything is done
10:17well we could put booths out here there is a solution I know but I want you to hear
10:21something that I think gets lost in business you have a young man here who's driving the business
10:26saying to you I need you your job is to lead them so it's not about wanting to have you drive or
10:34anything else but they want their leader to be near them in the absence of it we sort of just figure
10:40it out on our own that's a good point out of sight out of mind it's that camaraderie and leadership
10:48that they have an obligation to provide to their people I won't invest in this business unless
10:53they're willing to make the changes that are necessary period end of story
10:57I want to visit pop insanity's second location it's where Jonathan and Aaron work out of and
11:08it's separated from everybody else how you doing but they tell me that it's closer to their house
11:13and it's essential for their freeze-dried candy so welcome to the original home of pop insanity
11:19taste money this is a mellow this is a crunchy candy okay not his tastes here you could see there's
11:27um probably 18 different ones but we're only running four four types of candy we don't sell that how much
11:33revenue you don't sell this no good the candy was disgusting it's freeze-dried candy has nothing to do
11:39with pop or insanity maybe insanity the candy to me feels very off-brand there's nothing popcorn about
11:47it what do you have to do with this honestly not a lot shut it down just do popcorn okay that's not
11:56the kind of company this is I don't know that I agree with you a hundred percent I don't think you
12:02should have the space how much is the rent between these two four four thousand dollars and the other
12:09space that giant warehouse was how much twelve and how much revenue gets generated out of here
12:14they're talking about production this is three percent of our revenue they're taking on a four
12:20thousand dollar rent factor to do two hundred thousand in revenue where the other place is eleven
12:25thousand eight hundred to do four million it's a math equation like we don't even have to spend five
12:29minutes on it bye-bye close this whole thing down and move on everybody in agreement who is in charge
12:39if the three of you don't agree now rabbi rabbi brody we should let the rabbi decide I like the fact
12:46that the rabbi ultimately has the final say because with these three guys they need somebody to make the
12:52decision and I don't have that seat yet the rabbi at least gives them the credibility and the credence to
12:57make that decision and do it quickly when's the next time you're going to see the rabbi um supposedly
13:03Sunday am I going to be able to meet him I would like to invite you to lunch with the rabbi okay
13:09the next step for me is I want them to confirm that they're going to wind this place down and I want
13:15to meet the rabbi to understand what his influence is over them and how I need to factor him into the
13:21decision-making of me wanting to make an offer thank you Marcus you should be in oh yeah you wonder
13:36how are you I'm Marcus nice to meet you rabbi nice to meet you too this is a real privilege for me I'm a
13:54little nervous so I apologize no no I'm very nervous rabbi who's the leader of the business it's a joke to
14:06say as I am the leader I'm not the leader no so my concern and what I would like your help with is I see
14:13Jonathan as the engine and he'll do anything and everything to get the results I see Aaron as more of
14:21a people person he's a little more empathetic he doesn't get upset I see Jacob as the roots of the
14:30tree making sure that it's rooted in its foundation without compromise he says it's very correct did I
14:39get it right yes okay when you take those three it works but somebody still has to be the ultimate
14:48leader in a business he said in every business there has to be one soloist but who should the leader be who
14:59should be the face of the country we should decide amongst ourselves and if we can't come with a
15:09decision you need to speak to me if we can't agree then he'll he'll give us a pin he said if you spoke
15:18the same language you'd love to spend time talking to you I'm always available and I love to learn
15:23we're all learning whoops 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 okay great numerate them be specific
15:52freeze-dry candy is being closed as of March 1st great okay we are giving up locations over there
15:57for sure how many people are coming here three three yes so I think the conference room should go we
16:02should go get some desks at the other place bring them over and start to bring that together so that
16:07everybody understands that progress is happening okay the third item is we we now have a definitive
16:13boss and who is that myself you're okay with that I was the one that voted for him how about you
16:21I'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
16:42work walk me through like what's the best selling flavors this top seller top seller top seller this
16:53is everything can't be a top seller this is this is not gangbusters okay we have seven core flavors
17:00that makes up what percentage of the total revenue 80 percent 80 percent we have a total 15 flavors so
17:06more than half of your skews make up 20 percent of your revenue this particular one which is eighth
17:11and this particular one which is ninth and this particular one is tenth what if this got to 95 percent
17:18just hypothetically now these are really like kind of bums I'm leaving with these because these suck
17:27now give me new ones but they don't suck they don't have the sales number as those but those are sold
17:33every week he's saying is if we're going to do 15 maybe there'll be five new ones that will do better
17:39than those 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
17:50Nut Factory they have 40 locations and they're putting up five to six every couple of months I called
17:57the guy and you guys are going to pitch having you guys be integrated into their business
18:02business I did the math in my head there's 40 locations that's $25,000 a year for a million
18:08dollars that's $2,000 a month is all that business has to do from us to do a million dollars a year
18:16wow wow wow that's amazing however comma we got to go with our best foot forward and it's okay if we
18:23do a little research Jacob of what they do and the flavors they have because we want to make sure
18:30that it fits for their customer profile not for ours Jacob and I are going to work on just some
18:36ideas and we'll come back to you guys later what I don't think that the guys understand is that going
18:42to the nut factory is different than dealing with the distributor they're going to go to one meeting
18:46to meet with one guy for a million dollar account and they have one shot at it hey Joe yeah list off
18:54all the things that you do here manufacturing bagging shipping inventory management what about
19:01all the staff management I'm in charge of the staff who does all the hiring of the staff oh me do you
19:06think you should make more I know I could make more how much more let's say I'm making about 120 a
19:12year yeah I think I can 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
19:38have been addressed and Joe not being secured and locked down is a risk
19:42okay I want to understand how your flavor development works okay and I'm going to be candid as I can
20:05okay Jonathan and Aaron are big personalities when they lean in they sort of take over everything
20:13you're the founder of this business you're the creator of this business so I think you have to
20:18maintain your control of that process as much as you can if the business doesn't constantly have
20:24development that at some point it's gonna fade away so how many new flavors do you develop a year
20:32so when we were smaller I would develop try to work on you know five six different flavors every
20:37year and why does the size of your business because dictate that you can't have that many I don't have
20:44a test kitchen and I'm doing it at home so it becomes a little challenging why isn't this a test
20:50kitchen Jonathan doesn't want any downtime if he wants to get as many batches out as we can
20:57in the time that everyone's here but when are you supposed to develop new ideas it's it's challenging
21:02nobody in this building knows more than Jacob about popcorn his knowledge his expertise and his
21:10opinion have to actually come to the forefront I'm going to grab the guys real quick do you mind if I
21:15come back Jonathan and Aaron they have to be mindful not to put him in the background in anticipation of
21:23seeing nut factory I thought we could make something and there's no test kitchen there's
21:28there'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
21:54have spent the 50 000 there are times right when 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 room
22:06for 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
22:21you're listening to him I'm just being honest I don't think anybody listens to him just let the
22:25guy win once in a while and listen to him once in a while okay
22:30not everybody is the same he's a people pleaser you guys are not people pleasers you don't give a
22:43thank you I take your drivers your drivers but he's different we will do anything to protect
22:51him he doesn't need to be protected let him just say what he thinks it's it's a passion of mine that
22:57you know to create and it's just it's hard to create when I don't have what to create with
23:03so I'm gonna apologize that we haven't made that decision and built you it built you a lab where
23:12you can create so we will step to the plate to give you the kitchen that you need awesome 100%
23:19I feel hopeful the test kitchen is going to allow us to build our company and hopefully
23:29they're going to start listening to me there's two things that I'm concerned about in this business
23:35and why I want you to have the super duper version of this QuickBooks account okay one is it has great
23:42inventory management of raw materials what I like about this dashboard is that you can play in this
23:49all day long what did we sell today why isn't this receivable getting collected ready for this one
23:54how come these people haven't paid in 90 days who's 92 000 over 90 days old in receivables who's
24:02waking up and thinking about that every day I have a hard time doing business with people that don't
24:08see the value and having a platform like QuickBooks ready on their fingertips on their phone so they wake
24:13up every morning they just know where their money is this platform takes the guesswork out of decisions
24:20you guys say that you want to make sure that you survive I want to make sure and the reason
24:24I'm spending my time here is so you thrive that's why this platform matters to me
24:36do you want to do the history of the company for you want everything do everything I don't care
24:40how you guys do it I want to I want to also see how you do because I've never seen you sell you
24:45say you're a good salesperson we're going to see I want to bring the guys from pop insanity to nut
24:50factory today largely because I believe they need that million dollar account what I don't know is
24:56how they're going to handle the process hi there hi how are you thank you yep after you today's meeting
25:02meeting is a big deal for me because this is truly going to decide if I want to be in business with
25:06them or not if they do a great job I'm definitely want to be in business if they do an okay job
25:14um hello how are you how you doing buddy nice to see you these are my friends hi Jacob so the idea
25:24that I had after I met you guys and understanding how you particularly think about things Jacob he's
25:31just as insane about quality about the process so I saw the similarity between the two of you so from this
25:39point it's up to the three of you to convince him first of all um we are actually looking for a popcorn
25:46thing so that's kind of like comes to your advantage right now I want to show you something what is it
25:52this is taste it yeah just taste it it's popcorn oh okay it's very good what what is it so it's the
26:01equivalent of like a muddy buddy buddies with popcorn there's a good crunch I think it's a perfect fit for
26:07your type of store I guess what is the pricing of this so we have three sizes okay right so the UPCs
26:15the case pack it's all there I tell you what the thing by this item I would hope that someone gonna
26:23buy it on a weekly basis and that's why the pricing is basically my biggest concerns I would hope to get
26:30this one at around ten dollar to the customer 999 is a problem for me because that puts you at 40 percent
26:40below what every of the my other customers are selling it on what what are you guys thinking right
26:47now I'm not going to now hurt all my customers that have been loyal to him for the last eight years
26:53years and undermine their price by four dollars minimum a bag there have one perspective I have
27:02a different perspective okay I think you're wrong at 995 okay and I want to tell you why because 995
27:08and 1095 are kind of the same and I don't want this to I don't ever want our brand or your brand to
27:16become a bodega so 395 yep 6.95 yep and 10.95 in a nine or 10 ounce bag reverse this is like a 12 ounce
27:30that's right okay and if we invest the time to develop the product you're not going to sell any
27:35other popcorn here either I'm good with that I feel like a compromise Aaron what's your decision here
27:41I love for I appreciate the opportunity I love the opportunity and I love the store and the
27:47environment but it's something that I really need to analyze but just to say yes I can do it and yes and
27:56yes I'm not that guy I'm not doing that I'm just not doing that I've never been in a situation where
28:02I set up a million dollar meeting and the other people are doing a lot to maybe ruin it what's the
28:09frustration be honest it's it's this this whole thing you want boom boom boom you're telling me to
28:15change everything and it's a I'm I'm and it's a lot I never like to say no I'm a salesman by heart
28:21I want the order but once you go into changing the actual product changing the ounces or prices or labels
28:30or things it's not something that I normally would do unless it really made sense sometimes you can't
28:39close there's so many variables so what do you want to do right now it's up to me you want to
28:43leave with nothing and come back and try your way you emotionally did not come prepared
28:59you emotionally did not come prepared for what he was going to do even though you knew he was going
29:03to do it I told you he was a grinder you have to be a good listener and the first time that the other
29:10the buyer says yes stop thank you these guys struggle with that maybe because they feel like
29:18they need to process it when you don't leave with a confirmation the chances of it actually getting a
29:24second meeting a third meeting are low they just are that's just life
29:29yes he's he he's challenging us with a price point that he's not comfortable so I'm saying
29:35put it on the side let me try one time to take it away from him what's the worst that could happen you
29:41lose a million dollar opportunity you'll find it somewhere else i i i don't know i don't see that's me i
29:46disagree with this this this thought process but you're a lot more experienced than i am marcus
29:52hey guys i wanted to leave with a yes when i pulled aaron aside i said to him listen let me try
29:59it a different way i'm going to take away the opportunity from the buyer it's called the takeaway
30:05what i don't want to do is to leave here and have them feel that they got asked to do something
30:10that is outside of their norm and i don't want you to do something that you think isn't going to work
30:15for you i don't feel this way i want to do it right and i want to do it too let's not talk about the
30:21price let's put it on the shelf for four weeks if it's not selling you're taking it back and if it's
30:27selling then we're gonna a little talk about the price what do you think about that let's just do it
30:32now you have a deal i'll put it on consignment yeah got a deal let's do it on consignment i got a deal
30:39let's do it i love it dean's already started processing how much revenue they're going to do
30:46where it's going to go how excited they are i love the flavor i love the whole idea and when we took it
30:51away first thing that happened is the guy compromised on everything that we had been spending an hour
30:57talking about very happy with the outcome and you know who's going to decide the customer thank you
31:06mark thank you i think the most important thing that you can learn from marcus from today is never
31:12walk away until you have a deal okay so you use the bigger box and i'm going to use the small box okay
31:24if you don't mind whoa i can't believe i'm packing up my office at the nut factory meeting aaron and
31:31jonathan learned that anytime you slow things down you could kill momentum make a decision and do it
31:37quickly whoa i'll do what's happening so when the team said they wanted everyone under one roof
31:44they didn't hesitate they're moving it looks like we got to say goodbye to our origins
31:51here we go we're getting some desks in so today we are creating our take on dubai chocolate
32:05i have one job for jacob create an exclusive flavor for nut factory
32:11and with his new test kitchen coming together there's no reason he can't deliver and deliver fast
32:16hold on that is good
32:29faking like you're busy hey good morning marcus how are you how you doing buddy you guys looking
32:34pretty professional here you like our new place i do yeah i do like it so here we're going to put in
32:40our product development area yeah because we move the conference room outside hey buddy hey how you
32:45doing how you doing so a couple things that i wanted to check in on what's the status of nut factory
32:51so as of thursday we're ready to go den has the product okay good that's good
33:00here's the other piece that's missing for me do you know every customer that you have that's ever
33:03bought online from you we have uh our it guy retargets down there's an email blast that goes out see how
33:11you use the word blast makes me crazy if we end up doing a deal which we're going to find out today
33:17if we're going to do one okay we're going to install a system in here it's a little tool that i use it's
33:22in my pocket it's salesforce and what it does is it takes all the customer data and it builds a persona
33:28and a profile curated and custom specifically to them based on their buying patterns and what
33:35they've looked at on the website and it becomes a single persona relationship tonight i'd like to
33:41sit down and meet and have a real conversation about what are the real financials of the business
33:48and then establish what you think the value of the business is and then we'll i'll tell you this
33:53is what i think we'll agree on that or not agree on that i'll tell you what i want to do you tell
33:57me yes or no and if we do something great and if we don't i'll still love you guys and then i'll go
34:01buy another popcorn company and kick your ass okay we'll see you later okay guys we'll see you come
34:08prepared come prepared i'm prepared i know that
34:27we'll see you next time
34:29hi there i'm here to see aaron is aaron back here great what a beautiful restaurant
34:38guys hey good to see you good to see you how are you nice to see you nice to see you okay who's
34:46excited we all we all are we all are so marcus there's one thing when we talk about an investor
34:53there was always one word that we always said and it's called a strategic investor so whether
35:01it's rolodex experience know-how whatever we were always always open to a strategic partner so i want
35:08to give you a little bit of a counter argument to that okay every business needs capital and every
35:14business um doesn't need to have a strategic partner money is money until money becomes control
35:22i have no interest in being a significant holder of the business i have none it's your family's
35:27business when the market gives you an opportunity to get cash and they have no rights over what you're
35:35doing who cares you've done the same revenue for the last three years you're sort of like stuck in
35:41this like under four million dollar range why is that i'm not going to tell you the consulting's over
35:47what do you think the business is worth i put a value of 12 million dollar loan you think the
35:53business is worth 12 million okay how much debt does the company have today can i see the financials
36:01it says all the assets and all the liabilities including cash inventory yesb lay loan everything
36:07has a net positive of 464 000. 464 000 so you're not swimming in cash if everything works out with
36:17the nut factory but you wouldn't have nut factor if it wasn't for me i'm not saying that i'm not paying
36:22you i'm not putting a value on your business for something that i gave you 500 000 of earnings so it's
36:29worth 24 times earnings marcus i'm just i'm just trying to get clarity so i don't necessarily disagree
36:38that your business is worth a lot i don't disagree at all i wouldn't be sitting here and it's worth
36:45more because of its potential than it is because of its current state do you agree with that agree for me
36:52i can't invest into something that is valued at 12 million so what is your sweet spot or your
37:01or your comfortability to i want to invest enough money in the business to do the things that need
37:08to be done without putting pressure on the current bank account i think you do need an inventory slash
37:15shipping and receiving manager because that would relieve joe that's 80 grand i think
37:21that joe is a flight risk i think he's gonna quit if you don't do something different if i wanted to
37:27make joe a equity stakeholder in the company what would be the proper number to offer him to retain
37:33him i would do it an investing schedule over time where he would earn two percent a year up to a maximum
37:41of 10 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 on
38:14target i'm gonna make it an even 500 000 because there's probably something we're not thinking
38:19about okay uh my offer is 500 000 for 10 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 talk
38:42about it on your own but it's 500 000 for 10 percent okay i'm not talking about this so then tell them
38:50to cut the cameras off let's go out
39:06i think it's an offer that i would like to consider so what's i think it's what's the question we just
39:12we just we're in eight years business we haven't got an opportunity like this so let's talk like
39:16mention let's not get pissed at each other let's talk nicely you're giving away 10 of your company
39:21for 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
39:39i can answer right now simply because there are there are details or or or things that
39:47we need to understand better we're basing the offer on a on an evaluation which is lower than you lower
39:54than thing it's still 10 times your earnings i understand that it doesn't mean you have to agree
39:59with it but it's still 10 times i do understand that your earnings i'm not saying it's a flat out no
40:05i'm saying based on everything we really really appreciate the offer and i i i want to spend some
40:11time great thinking about it and discussing it so i appreciate that you guys don't want to make a
40:17decision but i have to make a decision i spent all the time doing the calculus in my head you should
40:23have been doing the same calculus in your head you didn't think i was there to hang out with you
40:28listen it was nice meeting you and our paths will cross hopefully in the next couple years
40:33it will hopefully sooner than that it will it won't from a business standpoint
40:39because as much as i've wanted to respect your process and the things that you do you knew why
40:46ultimately i was here so at some point you should have been prepared for it and you weren't for me
40:52it's a little inconsiderate and you did the same thing at dins where you're like we need to think about
40:57it it's something that i really need to analyze but just to say yes i can do it and yes and yes
41:05i'm not that guy i'm not doing that i would have much preferred a no than a we need more time that i
41:13understand because it feels like a no to me i no and it's you know i've hurt my feelings a little bit
41:18but i've been over it i hate what you're saying all right thank you guys thank you buddy really
41:27appreciate it i think the fact that he evaluated the company as five million dollars made it very
41:35very difficult for us to say yes we have a deal i don't know if he's done i don't know his process i
41:43don't know what's in his mind will will he want to understand why we couldn't give him an answer i
41:49don't know take care mac thank you while my five hundred thousand dollar offer was rejected the one
41:57thing that i will measure is the return on investment of my time when i go into a business
42:03my primary objective is to help the business and to make money but it's also to focus on
42:08helping the people who work in the business improve their lives in the case of joe who
42:15actually runs the day-to-day operations it was my belief that the owners didn't recognize his value
42:21now i can walk away knowing that joe is being properly paid and the equity that he was promised
42:26is being memorialized in the end maybe i did get a win after all
42:31hello hi how are you how are you you pulled your mom into the business she's my right hand woman
42:42we are a dinosaur science education we're a dope ass ice cream shop okay what's the opportunity for me
42:51because i also like to make money oh lord the concept's honestly a little janky i don't take that
42:58lately i really want to pursue something here how many locations do you have now none oh
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