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The Fixer Season 1 Episode 4
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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.
00:27I don't believe in handouts. I'm a capitalist. This is $15,000. Always looking for ways to
00:34make money. That's why we want you to work with us because we're bad at math. That's a
00:38terrible reason. You should be good at math. I'll work on their people. I don't know why
00:43you're being such a dick about it. Leon, are you mad about something? No. Why the f***
00:47are you singling me out? They're processed. The execution is just like, what is it? Then
00:53their product. We've heard from the clients that it's not so easy. That's f***. Marcus
00:58is an amazing investor, and hopefully we'll invest in our business. In the end, we'll negotiate.
01:03My offer is $500,000 for 10%. To see if a deal can be made so we both can profit.
01:14Tonight, a meeting with businesses from across the country. We created Modi Toys. They're all
01:19looking to take their business to the next level. I need somebody with a better business acumen that
01:24has a good heart to run this business. We're actually not profitable. We have taken some bank
01:29loans out. Our growth is flattening very quickly. So I'm giving direct feedback. It's called keyman
01:35risk. It's when a company is reliant on one specific person, and it dramatically increases the
01:41chances 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 U.S. would see this as a small market. A lot of time has to be
01:53invested. I actually think you're capable by yourself. I don't see an opportunity for me to
01:58invest, but I do have the ability to introduce you to people that I think can help. Thank you so much.
02:06And here he comes. Well, hello. How are you? How are you? I'm Marcus. I'm Aaron. Nice to
02:12meet you. I'm Marcus. I'm Jacob. Jacob. Nice to meet you, sir. I am Jonathan. Jonathan. Nice to meet
02:18you. You brought some popcorn. Yeah, just a little bit. What a beautiful setup. Thank you so much. So tell me
02:23about you guys. So we've been friends for many, many years, and Pop Insanity Gourmet Popcorn evolved
02:31from this popcorn machine. Jacob's wife is like, get rid of the popcorn machine the kids in the room to
02:37play. So he said, you know what? Before I put it at the curb, let me make some popcorn for the kids.
02:42Let me go up to the kitchen. Marshmallow fluff, graham crackers, chocolate. Let me try this nuts,
02:47that nuts. So now he makes nine by 13 pans. He tells his wife, do me a favor. Put it in a teacher's
02:52lounge. She came back on a list of orders. He's crazy. Fast forward a little bit. We're in 12,000
02:59square feet with 20 plus employees. That's what we've accomplished thus far. Beautiful. Can we walk the
03:06booth a little bit? Sure, sure. This is absolutely stunning. The packaging is beautiful. Truffle or
03:15Parmesan on dairy, and that's moving. Mmm. How's that? That's delicious. How about here? I keep seeing
03:24this freeze-dried stuff everywhere. Right. I don't understand it. A big part of the business? 5%, 2%, 1%.
03:31Less than 3%. How much total revenue does the business do? A little bit under $4 million a year.
03:36And how much of it comes from popcorn? 85%. So if I translate that into dollars,
03:41I'm going to take off $600,000. I'm going to be at 3.4 on $4 million. Correct. And bottom line?
03:48$927. Million bucks. Wow. I'm really impressed. Thank you. Okay. Sounds like you guys are doing
03:57great. Do you guys think there's an opportunity for me to make money and contribute? Yes. Absolutely.
04:02It'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
04:15the opportunity. 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. Really? For me.
04:25When I invest in businesses, I have to believe that there's a big market for that. Nice to meet you,
04:31Marcus. Thank you, guys. But before that, I want to understand what their numbers are,
04:36what their process looks like, how their factory functions. And then I also want to be sure that
04:41there's an opportunity to make money. I'm here in New Jersey at the factory for Pop Insanity.
04:52They generate $4 million of revenue. They have great margins. But I'm trying to really understand
04:57what the dynamics are between the three of them. Hi, guys. How are you? Nice to see you again.
05:04How are you? Pleasure. Good to see you. I'd like to get a quick tour. I kind of,
05:08I understand the basic product. So I don't need to understand how popcorn works. But I want to
05:12understand how the process works. Sure.
05:20This is where all the magic happens. This is where it all happens.
05:24Isn't that fun? I love it. Look at that.
05:28Look how cool that is. That's beautiful.
05:31So once it's loaded up, we do batch by batch.
05:34Okay.
05:35Just for freshness, for whatever it is.
05:37This is so good. You have such an attention to detail.
05:42Because that's what makes people want to buy it.
05:45What are the difference between your standards and his?
05:51His level of kitchen grade is that when he walks out of here at night,
05:56every machine gets sterilized. The floor gets power washed.
06:00It takes them an hour plus to clean out the facility every night.
06:04I think it could be done in 35 minutes.
06:06Sometimes there's a middle ground. Part of it is really understanding what are you spending your
06:11time on now? What would it take to open up a second shift and not compromise?
06:16What I want Jacob to understand is just know what he's leaving on the table.
06:21What I want Jonathan to understand is the necessity for things to be perfect.
06:25My goal is to get them to advance their business. And the only way to do that is to look at things
06:30a little differently. So this bag, finished in a 55-minute process, generates wholesale revenue of how much?
06:39$762.
06:40So when he pushes back on you, that hour that you're cleaning is $762 lost.
06:47You're in production for 283 days, and you multiply that, it's $215,000 of wholesale revenue for every hour in a given year.
06:59Wow.
07:001,698 hours of production a year on an annual basis.
07:06It's almost a quarter of a million dollars of revenue.
07:09So 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.
07:21Every bag is dated so we know the date it was...
07:23Pomegranate.
07:23This is now going in the garbage.
07:25That doesn't sell well. So why don't you kill it?
07:27Because...
07:28Aren't you... Don't you get to decide what stays and goes?
07:32You specifically?
07:33Not always.
07:34One thing that has become really clear to me is that there are two alphas in the room,
07:39and there's another one that's a little bit more subservient.
07:42And Jacob needs to find his voice.
07:45The fact that he doesn't say a lot doesn't mean that he doesn't know a lot.
07:48How you doing, brother? What do you do here?
07:51What...
07:51What doesn't he do here?
07:53Everything outside of this room is Joe.
07:55So all the supply chain, sourcing, the staffing, the scheduling, the packaging, shipping.
08:02Allowing anybody to come in here.
08:04Why did they hide you? Where have you been?
08:05They saved the good to last, no?
08:07The best.
08:09Meeting Joe, who I'm learning actually runs the operations here.
08:13Who oversees this group of folks?
08:15Joe.
08:15Joe.
08:16Okay. And he trained them all?
08:17Yes.
08:18This machine and the staff and the process, it largely functions that way because of him.
08:24Who's in charge here of the three of them?
08:26If it's in the kitchen, he will be the finalist.
08:28I was going to... him.
08:29Him. He's in charge.
08:30If it's about the kitchen, it's him.
08:33If it's about any other thing, it's them.
08:36These two are at odds over a topic.
08:38Who makes the decision?
08:39Between them two?
08:40Yeah.
08:42I would say him at the end of the day.
08:45I'm going to tell you right now, it's still not clear who's in charge.
08:48I was thinking about what you're saying and I don't know why I'm having such a difficult time
08:53understanding because there are certain decisions that I don't need him to make.
08:57There are certain decisions he doesn't need me to make and vice versa.
09:00The likelihood of success is typically greater when ultimately somebody has to make a call.
09:06It happens to work for you guys.
09:07But the call is made.
09:08What is the difference if it's made collectively or one guy decides, no, we're doing this.
09:14That's what I want to understand.
09:15Because leadership isn't just about a decision, it's about the strategy.
09:20Direction, strategy.
09:21Who sets the strategy.
09:22But that's also discussed.
09:25Yeah.
09:26We'll keep talking about it.
09:29So this is my office back here.
09:32And here is Joe.
09:34So where's your guy's office?
09:36Where we spend most of the time every day is a half hour away from here.
09:40Why?
09:42Why aren't you here with everybody else?
09:44The quick answer is that spot is, you know, about seven minutes from my house and five minutes from his house.
09:52And how far from your house?
09:53Half hour.
09:54We can take our hats off in here.
09:55Yeah, that's a great idea.
09:57So we have a freeze-dried candy line, which we run over there.
10:00So we still have a reason to be there.
10:01There are challenges of having them there.
10:05Just sometimes when it comes to communication, this and that.
10:08In my opinion, you come here.
10:10Why?
10:10Tell them why.
10:11Look, we were sitting right over here.
10:12The questions are related.
10:13Instead of picking up the phone.
10:14Hey, what do you think about this?
10:15What do you think about that?
10:16They're here.
10:17Everything is done.
10:18Well, we could put booths out here.
10:19There is a solution.
10:20I know, I know.
10:21But I want you to hear something that I think gets lost in business.
10:24You have a young man here who's driving the business saying to you, I need you.
10:28Your job is to lead them.
10:30So it's not about wanting to have you drive or anything else.
10:34But they want their leader to be near them.
10:37In the absence of it, we sort of just figure it out on our own.
10:43That's a good point.
10:45Out of sight, out of mind.
10:46It's that camaraderie and leadership that they have an obligation to provide to their people.
10:51I won't invest in this business unless they're willing to make the changes that are necessary.
10:56Period.
10:56End of story.
11:00I want to visit Pop Insanity's second location.
11:06It's where Jonathan and Aaron work out of.
11:08And it's separated from everybody else.
11:10How you doing?
11:11But they tell me that it's closer to their house and it's essential for their freeze-dried candy.
11:16So welcome to the original home of Pop Insanity.
11:20Tastes funny.
11:20This is a mellow.
11:21This is a crunchy candy.
11:24Okay.
11:24Not his tastes.
11:26Here, you can see there's probably 18 different ones, but we're only running four.
11:31Four types of candy?
11:32Four types.
11:32We don't sell that.
11:32And how much revenue?
11:33You don't sell this?
11:34No.
11:34Good.
11:35The candy was disgusting.
11:37It's freeze-dried candy.
11:38Has nothing to do with Pop or Insanity.
11:41Maybe Insanity.
11:42The candy, to me, feels very off-brand.
11:45There's nothing popcorn about it.
11:47What do you have to do with this?
11:49Honestly, not a lot.
11:50Shut it down.
11:52Just do popcorn.
11:53Okay.
11:56That's not the kind of company this is.
11:58I don't know that I agree with you 100%.
12:01I don't think you should have this space.
12:04How much is the rent between these two?
12:06Four.
12:06Four thousand.
12:07Four thousand dollars?
12:08And the other space, that giant warehouse, was how much?
12:11Twelve.
12:12And how much revenue gets generated out of here?
12:14They're talking about production?
12:16This is three percent of our revenue.
12:19They're taking on a $4,000 rent factor to do $200,000 in revenue.
12:23Where the other place is $11,800 to do $4 million?
12:27It's a math equation.
12:28Like, we don't even have to spend five minutes on it.
12:31Bye-bye.
12:32Close this whole thing down and move on.
12:35Everybody in agreement?
12:38Who is in charge if the three of you don't agree?
12:41Our rabbi.
12:42Rabbi Brody.
12:43We should let the rabbi decide.
12:45I like the fact that the rabbi ultimately has the final say.
12:49Because with these three guys, they need somebody to make the decision.
12:53And I don't have that seat yet.
12:54The rabbi at least gives them the credibility and the credence to make that decision and
12:59do it quickly.
13:00When's the next time you're going to see the rabbi?
13:02Supposedly Sunday.
13:04Am I going to be able to meet him?
13:05I would like to invite you to lunch with the rabbi.
13:08Okay.
13:09The next step for me is I want them to confirm that they're going to wind this place down.
13:14And I want to meet the rabbi to understand what his influence is over them and how I need
13:20to factor him into the decision-making of me wanting to make an offer.
13:25Thank you, Marcus.
13:26Bye.
13:26Bye.
13:32Should be here.
13:34Opposed.
13:35I wonder if that's him.
13:36I'm really nervous.
13:38Hello.
13:39Shalom.
13:41Welcome.
13:42It's nice to see you.
13:43Come on.
13:45Let me have your coat.
13:46How are you?
13:49I'm Marcus.
13:50Hello, Marcus.
13:51Nice to meet you, rabbi.
13:52Nice to meet you, too.
13:53This is a real privilege for me.
13:54I'm a little nervous, so I apologize.
13:56I'm more nervous.
13:57No, no.
13:58I'm very nervous.
14:02Rabbi, who's the leader of the business?
14:05It's a joke to say, as I am the leader.
14:07I am not the leader, you know.
14:09So my concern and what I would like your help with is I see Jonathan as the engine.
14:15And he'll do anything and everything to get the results.
14:19I see Aaron as more of a people person.
14:22He's a little more empathetic.
14:24He doesn't get upset.
14:26I see Jacob as the roots of the tree, making sure that it's rooted in its foundation without compromise.
14:37He says it's very correct.
14:38Did I get it right?
14:39It's very correct.
14:40When you take those three, it works.
14:44But somebody still has to be the ultimate leader in a business.
14:55He said in every business there has to be one soloist.
14:58Who should the leader be?
14:59Who should be the face of the company?
15:01If you know your best, if you don't do it, I'll do it again.
15:05He said we have to make a decision amongst ourselves.
15:08And if we can't come with a decision, you need to speak to me.
15:11If we can't agree, then he'll give us a pin.
15:15He said if you spoke the same language, you'd love to spend time talking to him.
15:21I'm always available and I love to learn.
15:23I love to learn too.
15:24We're all learning.
15:26Whoops.
15:26We're all learning.
15:38I'm back at Pop Insanity today to ensure that everything that the guys have agreed to do has gotten done.
15:46Come on in.
15:48So I just want to give you an update.
15:49Okay, great.
15:50Enumerate them.
15:51Be specific.
15:52Freeze-dry candy is being closed as of March 1st.
15:55Great.
15:55Okay, we are giving up locations over there for sure.
15:58How many people are coming here?
15:59Three.
16:00Three, yes.
16:00So I think the conference room should go.
16:02We should go get some desks at the other place, bring them over and start to bring that together
16:06so that everybody understands that progress is happening.
16:09Okay?
16:10The third item is we now have a definitive boss.
16:15And who is that?
16:16Myself.
16:17You're okay with that?
16:19I was the one that voted for him.
16:20How about you?
16:21I'm great with that.
16:22Look, 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 get executed.
16:33What's more important to me is that they've made a decision.
16:36And quite frankly, I think they made the right one.
16:38Aaron is the perfect leader with the right temperament.
16:41Okay, we need to get to work.
16:42Walk me through, like, what's the best-selling flavors?
16:50This top seller, top seller, top seller.
16:53This is a staple.
16:53Well, everything can't be a top seller.
16:55This is not gangbusters.
16:58Okay, we have seven core flavors.
17:00That makes up what percentage of the total revenue?
17:0380%.
17:0380%.
17:04We have a total of 15 flavors.
17:06So more than half of your SKUs make up 20% of your revenue.
17:10This particular one, which is eighth, and this particular one, which is ninth, and this particular one is tenth.
17:15What if this got to 95%?
17:18Just hypothetically.
17:20Now these are really, like, kind of bums.
17:24I'm leaving with these because these suck.
17:28Now give me new ones.
17:29But they don't suck.
17:30They 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 those.
17:40Love it.
17:41Jacob and I are going to work on starting to develop some new flavors.
17:44Here's why.
17:45On Sunday, we're going to go into Manhattan.
17:48We're going to meet with the owner of a company called Nut Factory.
17:51They have 40 locations, and they're putting up five to six every couple of months.
17:56I called the guy, and you guys are going to pitch having you guys be integrated into their business.
18:03I did the math in my head.
18:04There's 40 locations.
18:06That's $25,000 a year for a million dollars.
18:09That's $2,000 a month.
18:11It's all that business has to do from us to do a million dollars a year.
18:16Wow, wow, wow.
18:18That's amazing.
18:19However, Kama, we got to go with our best foot forward.
18:22And it's okay if we do a little research, Jacob, of what they do and the flavors they have,
18:29because we want to make sure that it fits for their customer profile, not for ours.
18:34Jacob and I are going to work on just some ideas, and we'll come back to you guys later.
18:39What I don't think that the guys understand is that going to the Nut Factory is different than dealing with the distributor.
18:44They're going to go to one meeting to meet with one guy for a million-dollar account, and they have one shot at it.
18:53Hey, Joe.
18:54Yeah.
18:54List off all the things that you do here.
18:56Manufacturing, bagging, shipping.
18:59Inventory management.
19:00What about all the staff management?
19:02I'm in charge of the staff.
19:03And who does all the hiring of the staff?
19:05Oh, me.
19:06Do you think you should make more?
19:08I know I could make more.
19:09How much more?
19:10Let's say I'm making about $120 a year.
19:12Yeah.
19:12I think I could make $250.
19:14I do think so.
19:16Wow.
19:17How many kids do you have?
19:18Six now.
19:19So that's a lot to be responsible for.
19:21In my head, I'm always thinking, oh, maybe I'll meet someone, and he'll give me an amazing offer.
19:27So I'll go, right?
19:28Somewhere else.
19:29Yeah, because it's better.
19:30Do you still think about it today, if you're being honest?
19:32Yeah.
19:35With any investment, I have to know that all the risks have been addressed, and Joe not being secured in lockdown is a risk.
19:44Okay.
19:44I want to understand how your flavor development works.
20:03Okay.
20:03And I'm going to be candid as I can.
20:05Okay.
20:06Jonathan and Aaron are big personalities.
20:09When they lean in, they sort of take over everything.
20:13You're the founder of this business.
20:15You're the creator of this business.
20:16So I think you have to maintain your control of that process as much as you can.
20:22If the business doesn't constantly have development, then at some point it's going to fade away.
20:29So how many new flavors do you develop a year?
20:32So when we were smaller, I would try to work on, you know, five, six different flavors every year.
20:38And why does the size of your business dictate that you can't have that many?
20:43I don't have a test kitchen, and I'm doing it at home, so it becomes a little challenging.
20:48Why isn't this a test kitchen?
20:50Jonathan doesn't want any downtime, and he wants to get as many batches out as we can in the time that everyone's here.
20:59Well, when are you supposed to develop new ideas?
21:01It's challenging.
21:04Nobody in this building knows more than Jacob about popcorn.
21:08His knowledge, his expertise, and his opinion have to actually come to the forefront.
21:13I'm going to grab the guys real quick.
21:15Do you mind if I come back?
21:16Jonathan and Aaron, they have to be mindful not to put him in the background.
21:21In anticipation of seeing Nut Factory, I thought we could make something.
21:26And there's no test kitchen.
21:27There's nowhere for him to develop new ideas.
21:32So he has been asking for a test kitchen, and at the end of the day, based on the cost of these machines...
21:40Which is how much?
21:41$50,000.
21:42We weren't comfortable doing that.
21:45But you've got to really understand, the core of the business is innovation and creativity.
21:49He's got to have a place for him.
21:51I want him to be happy.
21:52Well, if you did, you would have spent the $50,000.
21:55There are times, right, when I've asked for certain...
22:00No, we're not spending that kind of money.
22:01It was just, no, it's so expensive.
22:03Right?
22:04And we didn't really have the room for it.
22:06So between being expensive and no room for it, how are we doing it?
22:09Right.
22:10So...
22:10That's what it was.
22:12That's what it was.
22:13Can I just tell you what he just said to you?
22:14Yeah.
22:14Yes, Aaron, you do say no to me sometimes, and I don't like it.
22:18That's not what he said.
22:19That's what I heard also.
22:20You guys think you're listening to him.
22:21I'm just being honest.
22:22I don't think anybody listens to him.
22:24Just let the guy win once in a while.
22:27And listen to him once in a while.
22:29Okay.
22:30Not everybody is the same.
22:39He's a people pleaser.
22:41You guys are not people pleasers.
22:43You don't give a s**t.
22:45I take that.
22:45You're drivers.
22:46You're drivers.
22:48But he's different.
22:49We will do anything to protect him.
22:52He doesn't need to be protected.
22:53Let him just say what he thinks.
22:55It's a passion of mine to create, and it's hard to create when I don't have what to create with.
23:03So I'm going to apologize that we haven't made that decision and built you a lab where you can create.
23:13So we will step to the plate to give you the kitchen that you need.
23:18Awesome.
23:19100%.
23:19I feel hopeful the test kitchen is going to allow us to build our company, and hopefully they're going to start listening to me.
23:33There's two things that I'm concerned about in this business and why I want you to have the super-duper version of this QuickBooks account.
23:40Okay?
23:40One is it has great inventory management of raw materials.
23:45What I like about this dashboard is that you can play in this all day long.
23:50What did we sell today?
23:51Why isn't this receivable getting collected?
23:53Ready for this one?
23:55How come these people haven't paid in 90 days?
23:57It was $92,000 over 90 days old in receivables.
24:02Who's waking up and thinking about that every day?
24:04I have a hard time doing business with people that don't see the value in having a platform like QuickBooks ready on their fingertips, on their phone, so they wake up every morning and they just know where their money is.
24:15This platform takes the guesswork out of decisions.
24:20You guys say that you want to make sure that you survive.
24:23I want to make sure, and the reason I'm spending my time here is so you thrive.
24:28That's why this platform matters to me.
24:34Do you want to do the history of the company first?
24:38Do everything.
24:39Do everything.
24:39I don't care how you guys do it.
24:41I want to also see how you do, because I've never seen you sell.
24:45You say you're a good salesperson.
24:46We're going to see.
24:48I want to bring the guys from Pop Insanity to Nut Factory today, largely because I believe they need that million-dollar account.
24:55What I don't know is how they're going to handle the process.
24:58Hi there.
24:59Hi, how are you?
25:01Yep.
25:01After you.
25:01Today's meeting is 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 definitely want to be in business.
25:13If they do an okay job.
25:17Hello.
25:17How are you?
25:18How you doing, buddy?
25:19Nice to meet you.
25:20Nice to see you.
25:21These are my friends.
25:21Dean, nice to meet you.
25:23So the idea that I had after I met you guys and understanding how you particularly think about things, Jacob, he's just as insane about quality, about the process.
25:34So I saw the similarity between the two of you.
25:38So from this point, it's up to the three of you to convince him.
25:42First of all, we are actually looking for a popcorn thing.
25:46So that's kind of like comes to your advantage right now.
25:49I want to show you something.
25:51What is it?
25:52This is...
25:53Taste it.
25:53Yeah, just taste it.
25:54It's popcorn.
25:54Oh, okay.
25:58It's very good.
25:59What is it?
26:00So it's the equivalent of like a Muddy Buddy, but it's with popcorn.
26:06It has a good crunch.
26:07I think it's a perfect fit for your type of store.
26:09I guess what is the pricing of this?
26:12So we have three sizes.
26:14Okay.
26:14Right.
26:14So the UPCs, the case pack, it's all there.
26:18I tell you what.
26:18The thing, by this item, I would hope that someone's going to buy it on a weekly basis.
26:25And that's why the pricing is basically my biggest concerns.
26:29I would hope to get this one at around $10 to the customer.
26:34$9.99 is a problem for me because that puts you at 40% below what every of my other customers
26:43is selling it on.
26:45What are you guys thinking right now?
26:47I'm not going to now hurt all my customers that have been loyal to him for the last eight
26:53years and undermine their price by $4 minimum of bags.
27:00They have one perspective.
27:01I have a different perspective.
27:03Okay.
27:03I think you're wrong at $9.95.
27:06Okay.
27:06And I want to tell you why.
27:07Because $9.95 and $10.95 are kind of the same.
27:11Okay.
27:11And I don't want this to, I don't ever want our brand or your brand to become a bodega.
27:18So $3.95.
27:20Yep.
27:22$6.95.
27:23Yep.
27:24And $10.95 in a nine or 10 ounce bag.
27:28This is like a 12 ounce.
27:30That's right.
27:30Okay.
27:31And if we invest the time to develop the product, you're not going to sell any other popcorn
27:35here either.
27:38I'm good with that.
27:39Does that feel like a compromise?
27:40Aaron, what's your decision here?
27:41I love, I appreciate the opportunity.
27:44I love the opportunity and I love the store and the environment, but it's something that
27:51I really need to analyze.
27:53But just to say, yes, I can do it.
27:54And yes.
27:56And yes.
27:57I'm not that guy.
27:58I'm not doing that.
27:59I'm just not doing that.
28:00I've never been in a situation where I set up a million dollar meeting and the other people
28:05are doing a lot to maybe ruin it.
28:09What's the frustration?
28:11Be honest.
28:12It's this whole thing you want, boom, boom, boom.
28:14You're telling me to change everything and it's a lot.
28:19I never like to say, no, I'm a salesman by heart.
28:21I want the order.
28:22But once you go into changing the actual product, changing the ounces or prices or labels or things,
28:31it's not something that I normally would do unless it really made sense.
28:38Sometimes you can't close.
28:39There's so many variables.
28:40What do you want to do right now?
28:42It's up to me.
28:43You want to leave with nothing and come back and try your way?
28:46You emotionally did not come prepared for what he was going to do, even though you knew
29:03he was going to do it.
29:04I told you he was a grinder.
29:07You have to be a good listener.
29:08And the first time that the buyer says, yes, stop.
29:15These guys struggle with that, maybe because they feel like they need to process it.
29:20When you don't leave with a confirmation, the chances of it actually getting a second meeting,
29:25a third meeting are low.
29:27They just are.
29:28That's just life.
29:31He's challenging us with a price point that he's not comfortable with.
29:35So I'm saying put it on the side.
29:36Let me try one time to take it away from him.
29:40What's the worst that could happen?
29:41You'll lose a million dollar opportunity.
29:43You'll find it somewhere else.
29:45I don't know.
29:46See, that's what I disagree with this thought process.
29:49But you're a lot more experienced than I am, Marcus.
29:52Hey, guys.
29:54I wanted to leave with a yes.
29:56When I pulled Aaron aside, I said to him, listen, let me try it a different way.
30:00I'm going to take away the opportunity from the buyer.
30:03It'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.
30:12And I don't want you to do something that you think isn't going to work for you.
30:16I don't feel this way.
30:17I want to do it.
30:18Right.
30:19And I want to do it, too.
30:20Let's not talk about the price.
30:22Let's put it on the shelf for four weeks.
30:25If it's not selling, you're taking it back.
30:26And if it's selling, then we're going to a little talk about the price.
30:30What do you think about that?
30:31Let's just do it.
30:32Now you have a deal.
30:33I'll put it on consignment.
30:35You're welcome.
30:37Yeah.
30:37Got a deal.
30:37Let's do it on consignment.
30:39We got a deal.
30:41Let's do it.
30:42I love it.
30:44Dean's already started processing how much revenue they're going to do, where it's going
30:47to go, how excited they are.
30:48I love the flavor.
30:49I love the whole idea.
30:50And when we took it away, first thing that happened is the guy compromised on everything
30:55that we had been spending an hour talking about.
31:01Very happy with the outcome.
31:03And you know who's going to decide?
31:04The customer.
31:06Thank you, Marcus.
31:06Thank you, buddy.
31:07Appreciate you.
31:07I think the most important thing that you can learn from Marcus from today is never walk
31:12away until you have a deal.
31:21Okay, so you use the bigger box, and I'm going to use the smaller box, okay, if you don't
31:25mind.
31:26Whoa.
31:27I can't believe I'm packing up my office.
31:29At the Nut Factory meeting, Aaron and Jonathan learned that any time you slow things down,
31:34you could kill momentum.
31:35Make a decision and do it quickly.
31:40Whoa.
31:40So when the team said they wanted everyone under one roof, they didn't hesitate.
31:45They're moving.
31:46It looks like we got to say goodbye to our origins.
31:53Here we go.
31:55We're getting some desks in.
31:57So today we are creating our take on Dubai chocolate.
32:04I have one job for Jacob.
32:06Create an exclusive flavor for Nut Factory.
32:09And with his new test kitchen coming together, there's no reason he can't deliver, and deliver
32:15fast.
32:19Hold on, that is good.
32:29Faking like you're busy.
32:31It's always good.
32:32Hey, good morning, Marcus.
32:32How are you?
32:33How you doing, buddy?
32:33You guys looking pretty professional here.
32:35You like our new place?
32:36I do.
32:37Yeah?
32:38I do like it.
32:39So here we're going to put in our product development area.
32:42Yeah.
32:42Because we move the conference room outside.
32:44Hey, buddy.
32:44Hey.
32:45How you doing?
32:45How you doing?
32:45So a couple of things that I wanted to check in on.
32:48What's the status of Nut Factory?
32:50So, as of Thursday, we're ready to go.
32:56Okay, good.
32:57That's good.
33:00Here's the other piece that's missing for me.
33:01Do you know every customer that you have that's ever bought online from you?
33:04We have our IT guy retargets them.
33:08Wow.
33:09There's an email blast that goes out.
33:10You see how you use the word blast?
33:12It makes me crazy.
33:14If we end up doing a deal, which we're going to find out today if we're going to do one.
33:18Okay.
33:19We're going to install a system in here.
33:21It's a little tool that I use.
33:22It's in my pocket.
33:23It's Salesforce.
33:24And what it does is it takes all the customer data and it builds a persona and a profile curated
33:30and custom specifically to them based on their buying patterns and what they've looked at on the website.
33:36And it becomes a single persona relationship.
33:40Tonight, I'd like to sit 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.
33:51And then I'll tell you this is what I think.
33:53We'll agree on that or not agree on that.
33:55I'll tell you what I want to do.
33:56You tell me yes or no.
33:57And if we do something great and if we don't, I'll still love you guys.
34:00And then I'll go buy another popcorn company and kick your ass.
34:05Okay.
34:05We'll see you later.
34:06Okay, guys.
34:07We'll see you.
34:08Come prepared.
34:10Come prepared.
34:11I'm prepared.
34:12I know that.
34:27We'll see you later.
34:28We'll see you later.
34:29Hi there.
34:30I'm here to see Aaron.
34:32Is Aaron back here?
34:33Yeah, he's right.
34:33Great.
34:34What a beautiful restaurant.
34:38Guys?
34:39Hey.
34:39How are you?
34:40Good to see you.
34:41Good to see you, Marcus.
34:43Nice to see you.
34:44Nice to see you.
34:44Okay.
34:45Who's excited?
34:47We all are.
34:47We all are.
34:48We all are.
34:48Marcus, there's one thing.
34:51When we talk about an investor, there was always one word that we always said.
34:56And it's called a strategic investor.
35:01So whether it's Rolodex, experience, know-how, whatever, we were always, always open to a strategic partner.
35:08So I want to give you a little bit of a counter argument to that.
35:11Okay.
35:11Every business needs capital.
35:14And every business doesn't need to have a strategic partner.
35:19Money is money until money becomes control.
35:22I have no interest in being a significant holder of the business.
35:26I have none.
35:27It's your family's business.
35:29When the market gives you an opportunity to get cash and they have no rights over what you're doing, who cares?
35:37You've done the same revenue for the last three years.
35:40You're sort of like stuck in this like under $4 million range.
35:44Why is that?
35:45I'm not going to tell you.
35:46The consulting's over.
35:48What do you think the business is worth?
35:50I put a value of $12 million.
35:52You think the business is worth $12 million?
35:54Correct.
35:55Okay.
35:56How much debt does the company have today?
35:57Can I see the financials?
35:59It says all the assets and all the liabilities, including cash, inventory, SB, LA, loan, everything, has a net positive of $464,000.
36:11$464,000.
36:13So you're not swimming in cash.
36:16If everything works out with the nut factory.
36:18You wouldn't have nut factory if it wasn't for me.
36:20I'm not saying that.
36:21So I'm not paying you.
36:23I'm not putting a value on your business for something that I gave you.
36:27$500,000 of earnings.
36:29So it's worth 24 times earnings.
36:31Mark is.
36:34I'm just trying to get clarity.
36:35So I don't necessarily disagree that your business is worth a lot.
36:40I don't disagree at all.
36:42I wouldn't be sitting here.
36:43And it's worth more because of its potential than it is because of its current state.
36:49Do you agree with that?
36:51Agreed.
36:51For me, I can't invest into something that is valued at $12 million.
36:58So what is your sweet spot or your comfortability to be doing?
37:03I want to invest enough money in the business to do the things that need to be done without putting pressure on the current bank account.
37:13I think you do need an inventory slash shipping and receiving manager because that would relieve Joe.
37:19That's $80,000.
37:20I think that Joe is a flight risk.
37:23I think he's going to quit if you don't do something different.
37:25If I wanted to make Joe an equity stakeholder in the company, what would be the proper number to offer him to retain him?
37:34I would do it on a vesting schedule over time where he would earn 2% a year.
37:40Up to a maximum of 10?
37:42Yep.
37:42I mean, if you leave at any time, you lose it all.
37:46Let's just say that's $30,000 from profit participation.
37:49You probably need to spend $200,000 more a year on driving the web business.
37:56I think you do need to put in business software.
37:58You do need to put in Salesforce.
38:00I think you do need to refine your packaging.
38:02So when I add all that up, I feel like the business needs like $400,000 of cash in the business.
38:10Does $400,000 sound like it would solve a lot of things in the business?
38:14You're on target.
38:15I'm going to make it an even $500,000 because there's probably something we're not thinking about.
38:20Okay.
38:21Okay.
38:21My offer is $500,000 for 10%.
38:25I don't want to pay for what's going to be in the future when what exists today is this.
38:39That's my opinion.
38:40I'm going to step out because you guys have to talk about it on your own.
38:43But it's $500,000 for 10%.
38:45Okay.
38:48I'm not talking like this.
38:49So then tell them to cut the cameras off.
38:52Let's go out.
38:53Let's go out.
39:23You heard my opinion.
39:24I'm not in agreement.
39:31So the short answer is without having the time, it's a huge decision for us.
39:38It's not something that I can answer right now simply because there are details or things that we need to understand better.
39:49We're basing the offer on an evaluation which is lower than you.
39:53It's lower than me.
39:55It's still 10 times your earnings.
39:57I understand that.
39:58It doesn't mean you have to agree with it, but it's still 10 times your earnings.
40:01I do understand that.
40:02Your earnings.
40:03I'm not saying it's a flat out no.
40:05I'm saying based on everything, we really, really appreciate the offer.
40:09And I want to spend some time thinking about it and discussing it.
40:13So I appreciate that you guys don't want to make a decision, but I have to make a decision.
40:20I spent all the time doing the calculus in my head.
40:23You should have been doing the same calculus in your head.
40:25You 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.
40:32I'm sure it will.
40:34Hopefully sooner than that.
40:35It won't from a business standpoint.
40:40Because as much as I've wanted to respect your process and the things that you do, you knew why ultimately I was here.
40:47So at some point, you should have been prepared for it and you weren't.
40:51For me, it's a little inconsiderate.
40:54And you did the same thing at DIN's where you're like, we need to think about it.
40:59It's something that I really need to analyze.
41:01But just to say, yes, I can do it.
41:03And yes, and yes, I'm not that guy.
41:07I'm not doing that.
41:08I would have much preferred a no than a we need more time.
41:12That I understand.
41:14Because it feels like a no to me.
41:16No, and 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.
41:21All right.
41:23Thank you, guys.
41:25Thank you, buddy.
41:26I really appreciate it.
41:30I think the fact that he evaluated the company as $5 million made it very, very difficult for us to say, yes, we have a deal.
41:39I don't know if he's done.
41:41I don't know his process.
41:43I don't know what's in his mind.
41:45Will he want to understand why we couldn't give him an answer?
41:49I don't know.
41:50Take care, Mac.
41:51While my $500,000 offer was rejected, the one thing that I will measure is the return on investment of my time.
42:02When I go into a business, my primary objective is to help the business and to make money.
42:06But it's also to focus on helping the people who work in the business improve their lives.
42:12In the case of Joe, who actually 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 is being memorialized.
42:28In the end, maybe I did get a win after all.
42:31Hello.
42:35Hi, how are you?
42:36How are you?
42:37You pulled your mom into the business?
42:38She's my right-hand woman.
42:42We are a dinosaur science education.
42:45We're a dope ass ice cream shop.
42:48Okay.
42:49What's the opportunity for me?
42:51Because I also like to make money.
42:53Oh, Lord.
42:54The concept's honestly a little janky.
42:57I don't take that lightly.
42:59I really want to pursue something here.
43:01How many locations do you have now?
43:03None.
43:04Oh.