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BRITCOM 3
  • 2 days ago

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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.
00:13Everything will be stationary for when Marcus comes in.
00:16Every episode, I'm meeting businesses at a crossroads.
00:19We've actually invested our entire life savings into this business.
00:23I'll pick one and go to work.
00:26But I'm not a consultant.
00:28I don't believe in handouts.
00:29I'm a capitalist.
00:30This is $15,000.
00:32Always looking for ways to make money.
00:35That's why we want you to work with us because we're bad at math.
00:38That's a terrible reason.
00:40You should be good at math.
00:41I'll work on their people.
00:43I don't know why you're being such a dick about it.
00:45Leon, are you mad about something?
00:46No.
00:47Why the f*** are you singling me out?
00:48Their process, the execution is just like, what is it?
00:53And their product.
00:54We've heard from the clients that it's not so easy.
00:57That's f***.
00:57Marcus is an amazing investor, and hopefully we'll invest in our business.
01:02In the end, we'll negotiate.
01:03My offer is $500,000 for 10%.
01:06To see if a deal can be made so we both can profit.
01:10I'm on the lookout for my next big opportunity, an experiential business.
01:22It's a fun and memorable, immersive experience that you typically do with friends or family.
01:27It's a multi-billion dollar industry, generating rapid growth year after year.
01:35But there's a secret to this industry.
01:38It's knowing how to collect and monetize the customer data, getting consumers to come back over and over.
01:45Here we go.
01:54Well, hello.
01:55Hello.
01:55It's Mary.
01:56How's everybody doing?
01:57Great.
01:58Very well.
01:58I'm Marcus.
01:59Hi, Marcus.
01:59I'm Lisa.
02:00Lisa, nice to meet you.
02:01And I'm Guy.
02:02Guy, nice to meet you.
02:04Kira.
02:05Kira, nice to meet you.
02:06Chris.
02:07Chris, nice to meet you as well.
02:09What's the business?
02:10We are at Field Station Dinosaurs, a brand of dinosaur science education.
02:16So anyhow, let's bring out to you.
02:18I feel like something cool is going to happen.
02:27The mighty T-Rex, the mighty T-Rex, no one forgets the mighty T-Rex.
02:34There's one food-eating monster you haven't met yet.
02:39It's the mighty T-Rex.
02:42The mighty T-Rex, everybody.
02:47So this is the star of our show.
02:50And of course, this is our puppeteer, Chris, who we just met a couple of minutes ago, is inside this guy making it work.
02:56And he's been fantastic.
02:58Chris, I have to tell you, unbelievable.
03:02Unbelievable.
03:04All right, T. Bye-bye, T.
03:08Very special.
03:10Yeah, we're very proud of it.
03:12I came from the not-for-profit world.
03:15So I brought over into the for-profit world all of the real belief in what you're doing is your mission.
03:22Our mission is we use dinosaurs to teach kids important lessons about the world today.
03:29What we have are live shows, musical shows.
03:33We have a lot of great puppetry.
03:37And you've been doing this for how long?
03:3914 years.
03:40This will be our 15th.
03:41It's two parks.
03:43We have a location here in New Jersey.
03:45Okay.
03:45And we have a location outside of Wichita, Kansas, in Derby, Kansas.
03:48Okay.
03:49In New Jersey, we are tenants.
03:52In Kansas, we're the landowner.
03:54We're seasonal.
03:55We only make money in the summer.
03:57Kansas right now is doing okay.
04:00New Jersey has not recovered back to where it used to be since COVID.
04:04So what's at stake is can we find that way to move to that next level, or are we going to close?
04:13How many people visit a year?
04:15100,000.
04:16Okay.
04:1670,000.
04:17In Kansas.
04:18So 30,000 in New Jersey.
04:21How do I think about your target audience and how you generate revenue?
04:25The people who buy our tickets are moms.
04:28It's a challenge every year to figure out where are the moms.
04:32That's a question we do ask every day.
04:33And what's the answer to it?
04:35We're trying to figure that out right now.
04:37What I would love to see you do going forward is to build like a Salesforce CRM.
04:43One of the things that I want Guy to do is to install a Salesforce CRM, a customer relationship manager.
04:50It's a platform that allows you to collect data from each individual customer and communicate to them in a curated way going forward,
04:58motivating them to come back over and over again, or at a minimum, tell their friends.
05:03What does it cost to come?
05:04The tickets are just under $20.
05:07What other revenue exists?
05:09We have a shop that is about 12% of our income.
05:14What about from food and concessions?
05:16A small amount.
05:17The food is less than 10% of what we make.
05:21And how much is total revenue?
05:22Last year was about $700,000.
05:25Just for New Jersey?
05:26Just for New Jersey.
05:26I'm now planning how to make this thing go forward.
05:33Tell me what that means.
05:34So in New Jersey, it means setting up a not-for-profit, a Field Station Education Foundation.
05:40And when is that going to happen?
05:42It already is in process.
05:43The not-for-profit has been formed.
05:44And how much is the operating budget a year?
05:47About $780,000.
05:50About.
05:50And the shortfall on an annual basis between general revenue, concessions, and merch is?
05:55It's like $75,000.
05:57Okay.
05:58And have you started raising any of the $75,000?
06:00Yes.
06:00I've started already making the phone calls to the people who I know have the capacity
06:05to make the larger gifts.
06:06After walking through the numbers with Guy, it's clear to me that he's short $75,000.
06:11So fundraising as a non-profit will help make that up.
06:15But at the same time, he underscores his concessions and he underscores his merchandising
06:20shop.
06:21If he can just get $5 more per guest, buying a hot dog, buying a t-shirt, that's the difference
06:26between losing money and getting to a profit.
06:30The park needs to succeed.
06:32We all want the park to succeed.
06:33Are you worried?
06:34Yeah.
06:35Why?
06:36Because I love the park and I see the kids that come there every day.
06:39And those kids go through that front gate and they're walking towards the first dinosaur.
06:44I don't...
06:45Walking?
06:45No.
06:46They run.
06:46Yeah.
06:47And they're...
06:47And they're just so happy.
06:50I'm fascinated by what you guys do.
06:52You are brighter than life and you're doing God's work and figuring out how to teach kids
06:57how to think differently about themselves.
07:00I don't see an opportunity for me to invest, but I do see the value in what you do and I see
07:08what's in your heart.
07:08So, if you raise $25,000, I'll match it.
07:15I will tell you I have one condition.
07:17Okay.
07:17The $25,000 that I donate has to go into the merch store because I know that you can turn
07:22that inventory and make money doing it.
07:25That solves the problem.
07:26If he takes the $25,000 and he puts it into merchandise in his store, that $25,000 is going
07:32to become $75,000 a year, I honestly believe the donation that I made will actually generate
07:38enough revenue to have him break even.
07:39Is that something that you're open to?
07:42Yeah.
07:42That's going to grow our revenue.
07:44And we're going to need that.
07:44I just want the park to be there.
07:46Yeah.
07:46Because your heart would be broken if it wasn't.
07:48That's true.
07:49And so would a million kids.
07:51Thank you so much.
07:52That's fantastic.
07:52It was really nice meeting you.
07:53Nice to meet you.
07:54I'm so nervous.
07:58Well, good morning.
07:59Good morning.
08:00How are you?
08:01I'm Marcus.
08:02Matt.
08:02Nice to meet you, Marcus.
08:02Matt?
08:03Yeah.
08:03Sam.
08:03So nice to meet you.
08:04Sam, nice to meet you.
08:04This is a lot of plans.
08:05Yeah.
08:06Welcome.
08:07Wow.
08:08Welcome to Spotted Leaf.
08:10First of all, are you guys a couple?
08:12We are.
08:13Husband and wife.
08:13Yeah.
08:14And how'd you meet?
08:15It was 11 years ago now in college.
08:17We didn't get along at first.
08:19You didn't get along at first.
08:20She didn't like me very much.
08:22Why is that?
08:23So we are very different.
08:26You know, I'm very open with people.
08:28I'm like, oh, I love everybody.
08:29And he's all like, I hate everybody, right?
08:31I came off that way.
08:34Well, let's learn a little bit about your business.
08:35I don't have a ton of questions.
08:37All right.
08:37Awesome.
08:37Oh, cool.
08:38We got married during the pandemic on Zoom in our sunroom.
08:42So to make it feel a little less like our home,
08:44we got a bunch of like palm trees, large plants,
08:47to just try to make it feel like we were getting married,
08:49like in the tropics.
08:50So then that gave us the idea to create that space for other people too.
08:54The front half of our store, 66%, is all retail.
08:58And then about 33% is dedicated to classes and events.
09:01So it's like a hybrid business.
09:02Business in the front, party in the back.
09:04That's like the best way to describe it.
09:05What were you doing the day before your wedding?
09:08I used to work full-time as a process engineer.
09:10Holy cow.
09:11Yeah, yeah.
09:12And then what did you do?
09:13You know, like special improvement districts in downtown communities?
09:16So I was a marketing and events coordinator.
09:19Hey, thanks.
09:21Yeah.
09:21Good job.
09:22Let's keep going.
09:24Come on in.
09:25The dichotomy of background and interest that the two of you have
09:29is an unbelievable pairing for business.
09:33Wow.
09:33Because process and creativity rarely find themselves together.
09:37Yeah.
09:37By the way, do I get to make something here?
09:40Yeah.
09:40So you're going to make our, like a special tutorial today.
09:43We do this for special events.
09:44It's just more abbreviated.
09:45All right.
09:45I want a beer glass.
09:46Okay.
09:47Love that.
09:47So the next step is sand, which goes on the bottom.
09:50I'm going to show you an example first.
09:52So the key with the sand is take your time.
09:54All right.
09:55Just take deep breaths as we go through.
09:56We're going to use a little bit at a time.
09:59So how we get this layering.
10:00There's a big difference between Matt and Sam.
10:02She's like a free bird, but he's very specific, organized.
10:07How long does a class last?
10:09Typical class lasts 90 minutes.
10:11Two and a half hour labor altogether for each class.
10:13And how much is it?
10:14It's $44 a ticket.
10:16Take me through the math.
10:17I'm fascinated by your concept.
10:19I want to know if I can make any money.
10:21So how many in a class?
10:22It's a minimum of 12.
10:23Great.
10:24So how much revenue is that?
10:25So for that, oh, Lord.
10:28This matters, by the way.
10:29This is your business model.
10:31And if you don't know your numbers, then I don't know what we're doing.
10:35528.
10:36That's me.
10:36There you go.
10:39And now what is your cost for all the parts and materials?
10:42$13.70.
10:43Okay.
10:43Times 12.
10:45$164.
10:45What's the next thing?
10:46So then we've got to subtract out the teacher costs.
10:48So it's $25 times 2.5.
10:50$62.5.
10:52$301.5.
10:53$301.5.
10:54Okay.
10:55Per class is how much we make if it's 12 people.
10:56What's the margin on that class?
10:58$57.
10:59And what's the margin on your retail sales?
11:01$62 for the business.
11:03That's pretty good.
11:04So the margins in the back are lower than the margins in the front.
11:08Why is that okay?
11:10Because the back brings people in and then they buy stuff in the front.
11:13Okay.
11:14Plants are next.
11:14You have a choice of three plants here.
11:17That one's great.
11:18Okay.
11:19Perfect.
11:20How much revenue will you do on an annual basis?
11:23Last year we did $679,000.
11:24And what was the bottom line?
11:26Bottom line was $142,000.
11:29Great.
11:30So.
11:30All right.
11:31You feel good about it?
11:32You like it?
11:32I do.
11:33I like it.
11:33It's perfect.
11:33What do you think the opportunity is here and why did you want to talk about the opportunity
11:41with me?
11:42Maybe opening up more, maybe just being able to have a bigger space to allow more gatherings
11:48because right now we're doing a lot of no's, like saying no to a 50th birthday party and
11:53the answer is no.
11:54We just want to share it with more people and I think that's part of the reason why,
11:58you know, we're here, but I feel like we could really reach the next level with you.
12:04It's not just our business, but it's like ourselves at stake because that's how invested
12:07we are in it.
12:08Yeah.
12:08It's an extension of us.
12:13Yeah.
12:14I kind of like the idea.
12:25I just had to think about it for a minute.
12:27That's okay.
12:27I kind of like the idea.
12:29I just don't think that there's an opportunity for me.
12:32I feel like you guys have it figured out.
12:36When I work with people, it's because I feel like they need help, but I don't know if I
12:40could really help you guys much.
12:43We really push ourselves to the edge all the time and I think that's where on the back
12:48end is, you don't see that on the front end.
12:50Surface level things look great.
12:53Like, but behind the scenes, oh, um, sorry.
12:59It's okay.
13:00It's just tough for us behind the scenes.
13:02Uh, sorry.
13:08That's okay.
13:09Um.
13:09Listen, you're feeling your business.
13:12It's just.
13:12And you're feeling your work.
13:13Yeah.
13:14And you're feeling your passion.
13:15Let it go.
13:16I appreciate that.
13:17I appreciate that.
13:18I think it's just like.
13:19I cry all the time.
13:20This.
13:20Okay, cool.
13:21Nice.
13:21Yeah.
13:22I anticipated this to be very much like a small mom and pop shop vibe.
13:26Like the growth is just not something that we anticipated.
13:29Just trying to navigate that.
13:31I think you got to give yourself a little more credit than you're giving yourself.
13:35You guys have a great business and there's other people that I think could use more help.
13:40That's.
13:41That means.
13:41It actually just means so much.
13:42Yeah.
13:42Like if anything, like you saying that.
13:44Yeah.
13:47I feel weird with my hands.
13:48I don't know how to stand.
13:49Just do this.
13:51Unless you want to do jazz hands.
13:52Jazz hands.
13:53Well, hello.
13:55Hi.
13:55Hi.
13:56How are you?
13:56How are you?
13:56Good.
13:57I'm Marcus.
13:58Hi, I'm Katie.
13:59Katie, nice to meet you.
14:00Kevin, nice to meet you.
14:01Kevin, what do you do?
14:02We are Tipsy Tie-Dye.
14:04It's a paint and sip concept for tie-dye where you drink and do tie-dye.
14:08Let's do it.
14:08Okay.
14:09All right, so we are the tag team.
14:11And just to give you a little bit about our background, Kevin is an analytical and physical
14:15chemist.
14:16And a garment tire.
14:17And I've been in the fashion, particularly denim manufacturing industry, for the last 21 years.
14:21Went to Parsons School of Design.
14:23Well, I like the fact that you have a background in fashion because you understand how garments
14:27work, the actual garment, the textile itself.
14:30What's your relationship between the two of you?
14:31Oh, sorry.
14:32We're siblings.
14:32We're siblings.
14:33We are all about fun in growing our franchise, you know, giving business owners to have that
14:39opportunity as well.
14:40Well, congrats.
14:42Do you want to expedite to the next?
14:43Yeah, okay.
14:44Okay.
14:44Okay.
14:45We're going to show you more tie-dye.
14:47Okay.
14:48That's actually pretty clever.
14:49Yeah, so when people come in, it's BYOB at our location.
14:52Other locations, if we do get to open those, we'll be able to have a liquor license provided
14:56as, you know...
14:57You have a liquor license now?
14:59We do not.
14:59So Hoboken is a BYOB town because of the liquor license laws.
15:03But why did you pick a location that you couldn't get a liquor license if that was your concept?
15:07We wouldn't want to have the liquor license be the limiting factor to growth.
15:10But isn't Tipsy in your name?
15:12Yeah.
15:12But that's why they named BYOB.
15:13We're BYOB.
15:14Okay.
15:14Cool.
15:15Yeah.
15:15So do you want to do a little tie-dye with us?
15:20I would love to learn.
15:21All right.
15:22This is not a good representation of what our stores will look like.
15:25Yeah, so you just want to give separate colors, separate sections.
15:27Try not to overlap your colors too much and cover everything all the way.
15:30You can do whatever you want.
15:31You're set up for success.
15:32No, what you can't see is not going to be dyed.
15:35So everything inside here that you can't see is going to be white, just to keep that in mind.
15:39Okay.
15:39Yeah, yeah.
15:40What do I do now?
15:41You can just leave it there if you want.
15:42Do you want to finish it?
15:43Can I see what it looks like?
15:45Oh, no.
15:45Oh, no.
15:46This is just a demo.
15:47So our customers, when they're done with their dyeing, we bag it up or we also have...
15:52Wait, wait.
15:52We don't just open this up and I wear it?
15:54No.
15:54No.
15:55I get it that tie-dye needs time to marinate.
15:59That's how the process works.
16:00But to be honest, with an experiential business, I want instant gratification.
16:05When you go to a cooking class, you make the food and you eat it.
16:07When you go to a painting class, you make the painting and you can see it.
16:11When you go to a tie-dye class, you make it and I guess we'll talk about it tomorrow.
16:16I'm kind of unsatisfied.
16:17Are you throwing this in the garbage?
16:19No.
16:20No.
16:20Not today.
16:20I'm making sure it doesn't get all dirty in your house when I give it back to you.
16:24You get a care instruction card to take home.
16:26Okay.
16:26So, you know, do it the next day.
16:28Wait a second.
16:28If I'm in your class, it's going to be better than that, right?
16:32Yeah.
16:32100%.
16:33So, I don't know, Marcus.
16:35Do you guys ever argue about anything?
16:37Oh, hell yeah.
16:38Oh, of course.
16:39She's really stubborn, man.
16:40I was stubborn that I didn't want to do this.
16:44I have a concern.
16:46Sure.
16:46I love the fact that you guys are this creative, but I think the concept's honestly a little
16:52janky.
16:53Well, keep in mind, though, this isn't actually our...
16:56Don't get...
16:56Don't kung fu me.
16:57Because this is janky.
16:58This is janky.
16:59This is not a representation.
16:59And I think that tie-dye is not that hip anymore.
17:03Do we have that debate?
17:04Don't even try to tell me that it is.
17:06Okay, I mean...
17:07I wouldn't go to it in its current form.
17:10And I don't want to bring my own beer because I don't want to stop at the liquor store.
17:14You know what?
17:14Do you know how many people have told me, oh, you shouldn't go to New York.
17:18Oh, you can't get into persons.
17:20You can't get a business loan.
17:22I don't know that this will make money.
17:23I don't really...
17:24Because I don't get it.
17:26But at the end of the day, if I let everybody's negativity and mmm, I don't mmm get in my way
17:32of my vision.
17:35I love working with people that fight back.
17:38I'm also pushing you right now.
17:40I really want to pursue something here.
17:43I love her knowledge of garments.
17:46I also love her passion and her energy.
17:48And I love that she provides a great place for her brother and her brother provides support
17:52for her.
17:52I like those dynamics.
17:54I don't think your concept's that great.
17:57So the reason that I want to pursue this opportunity with you isn't because I think I'm going to
18:01make a million dollars.
18:02I'll make money.
18:03I'm a capitalist.
18:04It's because I think that I can change the way you think.
18:08You have to receive information differently.
18:11You want to come and experience it and see what it's like?
18:13I'm going to come and experience it.
18:15I love the foundation of the house.
18:18I've never seen anything like it.
18:19You come and have a drink and do tie dye.
18:22It's fun.
18:23And it's a way to spend time with your family.
18:25It's a way to go out on a date or have a girl's night out.
18:27But it needs help.
18:29I think that they're smart enough to figure out how to pivot the business enough to be
18:33more relevant.
18:34Well, this is exciting.
18:42Anytime I get involved in a business like Tipsy Tie-Dye that wants to expand, I approach
18:47the business like a customer or a potential franchisee.
18:51So I'm going to have to be tough.
18:53Anytime you're going to be selling something, you're going to have objections.
18:56And the key to closing that transaction is to be open-minded to listening.
19:02All right.
19:02This is cool.
19:03This is a really cool spot.
19:08Hey.
19:08Hi.
19:08How are you?
19:09Good.
19:09How are you?
19:10Good to see you.
19:10Nice to see you.
19:11How are you?
19:12Nice to see you.
19:12Nice to see you.
19:13This is the location you guys were telling me about.
19:15This is the only one.
19:16Yeah.
19:16Yeah.
19:16It's really cool.
19:18Different look, right?
19:19It's actually nice.
19:21Yeah.
19:21We felt weird about the presentation little bin on the table, too.
19:25That's why this is so important.
19:28Can you guys walk me through just the general vibe from the front door, just to be helpful?
19:33Well, so it starts with a ticket, right?
19:35So people buy tickets online for $55.
19:38Okay.
19:39And then what we do is we bring them all back here, and we go through our retail options
19:43where they get to select whatever type of item that they'd like to dye.
19:46So each ticket comes with merchandise already included in it?
19:49Can you buy already finished retail goods?
19:52You can.
19:52Absolutely, yeah.
19:53We are not a retail-heavy store.
19:57So when you were talking to us about, you know, the trend of tie-dye, it was kind of hard
20:01for Kevin and I were like, uh, we don't sell tie-dye, right?
20:05Yes, you do.
20:06We sell an experience.
20:07Yeah, we sell some.
20:07No, no.
20:08Technically speaking, you do.
20:10Our retail is really not even secondary.
20:14Probably about 10% of what our sales actually are.
20:18We sell parties, we sell tickets, we sell the experience of making your own.
20:24Take it easy.
20:25Don't be so defensive.
20:27Can we do a tie-dye?
20:29Yeah.
20:29Yeah.
20:30Absolutely.
20:30This is our trademarked dye bar.
20:33All of our dyes are on tap.
20:36And you get to make whatever color you want.
20:37You can...
20:38Right now, I'm going to make a hunter green.
20:39And are you taking people through that process?
20:42Yes.
20:43And what if kids just want to get up here and make their own?
20:45We have rules, but we also let kids do it, too.
20:47Tell me about the rules part.
20:50Well, I mean, when kids come over, if they're going to start messing with it, we go, please
20:54don't mess with that.
20:55You know, like a rule.
20:58But...
20:58So you blew through the chemistry of it all.
21:02Walk me through that.
21:03Sure.
21:04Do you want to show...
21:06I'm not a chemist.
21:07I mean, so...
21:07I don't know what's supposed to happen next.
21:09Playing around and testing things out.
21:10Yeah.
21:11Would you like to wear some gloves?
21:12Do I need to?
21:13Is that the protocol?
21:13Well, I don't want you to mess with me.
21:15But is that the protocol?
21:16I mean, you don't want to get that Dolce & Gabbana messed up.
21:20Felt very judgy, didn't she?
21:22It was judgy.
21:23I did it on purpose.
21:24At least it's not judgy.
21:25I want to make something here.
21:29Please do.
21:29Um, Paloma.
21:31Great, you're doing it.
21:32Why does it come out dark when it's actually supposed to be peach?
21:35Well, that's about the opacity of water with diet.
21:38I'm not...
21:38I have no idea what language you just use.
21:40Well, so you're looking at it through a lot of stuff.
21:44If this were flat on, let's say, white or glass, it looks differently because it's reflecting
21:49light differently.
21:50So there's an opportunity here to teach people something fun.
21:53Okay.
21:53There's nothing tipsy about this place.
21:57The fundamental concept here is art meets science.
22:01When I go into something like an experiential business, I either want ideas, information,
22:06or inspiration.
22:08And if I'm not going to leave with the finished good, then teach me something.
22:11It could be fun.
22:12Tell me how colors work, how you mix them together.
22:15Give me something where I'm like, oh my God, I'm smarter than when I came.
22:18So when we left each other the other day, I got the sense that you were a little more resistant
22:25to the concept of us working together and you were a little more open.
22:30I think you have that switched.
22:34Tell me about that.
22:35Our last experience kind of gave us a moment of, do we actually continue?
22:40Because what we are trying to do is self-franchises.
22:42It's like, why would you want to do business with us if you think we're janky anyway?
22:48I have a concern.
22:49Sure.
22:49I think the concept's honestly a little janky.
22:53I do.
22:55Is that a question?
22:56Uh-huh.
22:56So, the idea of selling franchises is being put on the hot seat.
23:03Have you sold one?
23:14The idea of selling franchises is being put on the hot seat.
23:18Have you sold one?
23:19No.
23:20And how long have you been trying to sell them?
23:23Oh, about a year and a half.
23:24And have you had any hot leads?
23:26Oh, yeah.
23:27We had 16 waitlist franchisees when we were ready.
23:34And they just never reached back again.
23:36Here's the challenge that I have in talking to the two of you.
23:40I would ask you to be more spongy and less cactus-y.
23:45The number one key for business owners is to accept responsibility for the good things
23:51and accept responsibility for the things that could use improvement without taking it personally.
23:56I'd like to actually go through the class to see what needs to be tweaked from the moment I come in the door.
24:03Okay.
24:04Two things that I'd like you to try to get prepared for.
24:06What is the total revenue per person today?
24:10Okay.
24:11And what do we think that it could become?
24:13Okay.
24:15Are you...
24:16I'm writing it down.
24:17Oh.
24:17See you soon.
24:19Thanks for stopping by.
24:20All right.
24:20Thanks for stopping by.
24:20Yep.
24:21Jinx.
24:22I wanted to come to their actual location to validate that I thought it was a good idea.
24:28I do today, as I stand here, think it's a good idea.
24:31What I don't know is if they're capable of modifying their mindset or modifying their behavior enough
24:38to actually make me money.
24:40Hey, welcome.
24:51How are you?
24:51Hey, buddy.
24:52Good to see you.
24:52Hi.
24:53So nice to see you.
24:54Good.
24:55How are you?
24:55I'm great.
24:56Welcome.
24:56I am just a participant today.
24:58Yeah.
24:58Yes, absolutely.
24:59I just want to immerse myself.
25:00I want to check in.
25:01Does this where I check in?
25:02Yes, it is.
25:03I am Dan.
25:04Beautiful to meet you.
25:04I wanted to come to Tipsy Tide Eye today because they kept saying to me that I didn't understand
25:09their concept, and I wanted to come as an observer and as a participant and really just
25:13watch and listen.
25:15Have you guys been here before?
25:17No, we've never been here.
25:18Have you?
25:19Well, I came to visit them, but I've never gone through the class.
25:22It looks really cool.
25:23I love the vibe.
25:25How are you doing?
25:26I'm Marcus.
25:27Hi, Marcus.
25:27Honeybee.
25:28What is Honeybee?
25:29Yeah.
25:29All right.
25:31Fantastic.
25:31I would like everybody to come up front with me.
25:33Come on over.
25:34We're going to do some Tide Eye.
25:37All right.
25:38So this is how this works.
25:39We have different tiered items to choose from.
25:41We've got sweatshirts, sweatpants, hoodies, and Turkish towels.
25:44Pick twos are all down here.
25:45We've got v-neck and regular t-shirts, dog outfits, string bags, market bags, and bucket hats.
25:50And the pick fours are the accessories in the baskets, things like scrunchies, bandanas,
25:53headbands, and shoelaces.
25:54Go for it.
25:56What do you think?
25:57I don't know.
25:58How do you know the size again?
26:00So these are all color-coded, so I can quickly visualize.
26:03No, but how do we know?
26:05Yeah, I'm going to pull it down for you.
26:06What would you like?
26:07I'm a medium.
26:09There you go.
26:10Perfect.
26:12Do I just take this?
26:13Is that the right size for you?
26:14Yeah.
26:15I'm going to get you one of those then.
26:15Okay.
26:17You're welcome.
26:18Of course.
26:18Like, can I just grab a shirt and make that my shirt?
26:22No, no, no.
26:23You cannot do that.
26:24We have a whole system here.
26:25It's a total buzzkill.
26:27What did you pick?
26:28So I went with the bucket hat, and I got a onesie for my daughter.
26:31So is that a pick two?
26:33Absolutely.
26:34You get to match with the little one.
26:35Yeah.
26:35But it's a pick two.
26:36This is a pick two skew?
26:38Absolutely, yeah.
26:38So how do you know the pick two versus three again?
26:41So as you can see, this bucket hat, it had this sticker on it.
26:43Very easy.
26:44I didn't even see the sticker.
26:45It's simple for us because we're the only ones who touch into these cubbies.
26:48Everybody else kind of works with the fit samples.
26:51Honestly, it would be much easier if they just said, pick one thing.
26:55Whatever you want.
26:56It doesn't matter.
26:56Just go pick it.
26:57Make step one the easy part.
27:00All right, guys.
27:01So I'm going to do a couple of quick demonstrations.
27:03Once I'm done, feel free to then get started.
27:05This is the crunch pattern.
27:07Don't overthink it.
27:08Next, we're going to do the classic swirl.
27:09All right, when we do a swirl, we want to make sure that we're not starting off with a grab.
27:13If you're starting off with a mess, the whole thing is going to be a mess, and we don't want that.
27:17Lastly, we're going to do stripes.
27:19Okay, so I'm lost.
27:20So are you trying to do a vertical stripe?
27:22I think so.
27:23You want a stripe right here?
27:24Yeah.
27:24You need the front and back engaged at the same time.
27:28Any questions?
27:29What are you thinking?
27:33I feel like I'm just going to try.
27:36You're bleeding nicely.
27:37You're doing great.
27:38Except something's popping up.
27:39So if you have a problem with popping, just make them bigger.
27:43Then you can rubber band, and you'll have a nice vertical stripe.
27:45You're right here.
27:47Okay, now I think we have enough people to start the die bar.
27:50All right, guys, go ahead over there.
27:51Katie's going to take you through the die bar.
27:53Finally, we get drinks.
27:56Actually, it says, do not drink.
27:58What?
27:59False advertisement.
28:01My main rule in business is that if you don't know your numbers, you don't know your business.
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28:13Live experts help us interpret reports so that we can make data-backed decisions.
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28:25I'm not just looking for businesses to survive.
28:28I expect them to thrive.
28:31So this is where you get to choose any color your heart can imagine.
28:39Feel free to use these paper towels to get a look at what your color will look like, right?
28:44Put it on there.
28:45That's a little bright.
28:47I'd like it kind of a little more burgundy.
28:49I can just add.
28:51Oh, fun.
28:53Hit a black and create a new color.
28:57Right?
28:57Yes, color theory.
28:59See that burgundy?
28:59It is color theory.
29:01What's color theory?
29:01Any single color theory?
29:02Okay, we'll get to it.
29:05Particularly after my previous visit with them, I would have thought that they would have leaned in to what I suggested around,
29:11tell me a little bit more about the art and the color and the dye.
29:14And then on the science side, tell me about the dye bar and how colors work and the color spectrum.
29:19I think at the end of the day, I think at the end of the day, you don't need to be a kid to think it's cool to learn.
29:25You did great.
29:26Can't wait to see what it looks like.
29:27Yeah, it's even more like a roll.
29:30So where is it going now?
29:32I'm going to give it to you in a nicely packed bag.
29:35That one's cool.
29:36All right, guys, I'm out.
29:40You guys enjoyed the rest of your time.
29:40Thank you so much.
29:41Have a great rest of your weekend.
29:43Peace.
29:44Can I see ya?
29:46So, it was good for me to go through the process.
29:51I really appreciate the creativity and the out-of-the-box thinking that you guys have established.
30:00On the people side, you guys did a really great job.
30:04I think you were disarming when people were frustrated.
30:07I think you were helpful when people were clumsy.
30:11In that regard, I would give you a high mark.
30:12I would say that the process is, it needs work.
30:18The process when you came in was fine.
30:21The process at the wall is not fine.
30:25It's clunky.
30:26You got to have like a simple version.
30:28Like maybe there's five SKUs instead of 12.
30:30Right now, we have six core for both adult and for kids.
30:34Yeah.
30:34We have accessories.
30:35I got it.
30:35We like to also be fully.
30:36We're not going to resolve it today though, Katie.
30:38I just want to take you through my steps.
30:39So, that was a little clumsy.
30:41I think you have to just trim everything down and just make people not feel, I'm going
30:46to say how I felt, I felt stupid.
30:48Like I just didn't know how to do it.
30:50It's good to hear the feedback.
30:51I'm not done yet.
30:52Oh, sorry.
30:52I'm not done yet.
30:53Then we go over to the dye bar and that's where I was expecting the science lesson.
30:58And I don't feel like I got that.
31:00So, this is our first location.
31:02And so, you're right.
31:03This one is not as refined as the business that we are actually building.
31:09We're expanding now.
31:10Are you...
31:11What does that mean?
31:11Are you building out another one right now?
31:13We're in lease negotiations.
31:17You can't sell a franchise until you have your concept perfect because nobody would buy
31:23this franchise this way.
31:24I don't think you should open up another one until you fix this one.
31:29It's going to be a big location.
31:30So, we're definitely going to open it.
31:31But why though?
31:32If you're not ready with this one, why would you do a second one?
31:35We are ready with this one.
31:36You're not though.
31:37You just acknowledged all the things that I...
31:38That's your opinion.
31:39That's okay.
31:39Just because we have things that we need to optimize does not mean that this does not
31:42function very well.
31:44Okay.
31:44I'm not going to...
31:45I'm not going to try to argue.
31:46I'm trying to give you feedback.
31:48I'm trying to tell you you're not ready to open up a second location.
31:51So, because of that, for me, I don't see an opportunity to invest or move forward.
31:59You got to be a better listener.
32:01You're honestly a terrible listener.
32:03I'm sorry.
32:04And you're being as condescending as you can be right now.
32:06I'm trying not to be.
32:06But you are being.
32:07I don't know why you're being such a d*** about it.
32:09I'm trying to be complimentary.
32:11I gave you a whole host of things that I thought were amazing.
32:14I don't know what to do in this situation at the moment.
32:16Marcus, we appreciate your feedback.
32:18You actually don't.
32:19And I'm disappointed and I'm saddened by it because I like you as people.
32:23And when somebody points out something that isn't quite perfect, rather than getting upset,
32:28you should just embrace it.
32:31Thank you, Marcus.
32:33All right.
32:35Oh, my God.
32:36We disagree with Marcus's perspective because we wanted him to come in and be like, wow, okay, you did take it this far.
32:45You have all these seeds sown.
32:47This is where I can come in and help you just get to that growth a lot faster.
32:51The amount of resistance that I got almost felt like, give us all the compliments and any observation that you have about what we could do differently, we don't want them.
33:03In business, what you don't invest in is just as important as what you do.
33:07When I started on this process, I was held then determined to find an experiential business because I loved the concept.
33:23I went with Tipsy Tie-Dye and that didn't work out so well.
33:27I've learned over the years that even if I like the concept that I think I can make money, it really is about the people in that business.
33:34So what I've decided to do is I know where Spotted Leaf is.
33:39I'm just going to drive there and surprise them.
33:41And I want to talk to the two of them about moving forward.
33:45I'm fascinated by your concept.
33:47I want to know if I can make any money.
33:48When I went through the process with Spotted Leaf, I think I was maybe just not a, didn't have a clear head about it.
34:08This guy.
34:11Oh my God, I love this place.
34:14Surprise.
34:19Surprise.
34:21Hello.
34:21Hello, welcome.
34:22I'm just going to welcome you, but it's you.
34:24How are you?
34:25We're good, how are you?
34:26Nice to see you.
34:27How are you doing, boss?
34:27Good to see you.
34:28What's happening?
34:28Working.
34:29Surprised to see you.
34:30I wasn't expecting that.
34:31I wanted to see what it looked like.
34:33You know, when you guys left, I said to everybody, I think there's something more there.
34:39Will you walk me through?
34:40Of course.
34:40Can we start from the front door?
34:42Because I like to understand how the customer sees it.
34:44Yeah.
34:44Are you going to come with us?
34:45Do you need to, like, chill out?
34:47It's on me.
34:47No, I've got to take care of some stuff here.
34:48Do you need to, like, engineer something?
34:49Well, we're busy today.
34:51We're working.
34:51You know what I mean?
34:52It's just like, well, you know, I was just ready to work today.
34:55So, we're just not prepared for that.
34:56All right, so I walk in.
34:59Yes.
35:00Am I greeted anywhere?
35:02So, us at the front right here.
35:04We just recently redesigned this a little bit because originally it was here.
35:07We just had one register.
35:08Yeah.
35:09But we just built this out.
35:10So, we have two registers and then two potting stations attached.
35:13Like, Matt's tied up with somebody now.
35:15Let's say you were tied up and I walked in.
35:17Would I just have to be patient and wait for you?
35:20Yeah, essentially, as you browse, like, you would start to get the cues.
35:23Like, you see the plant signs.
35:24Everything's labeled.
35:25You know, the pots are all labeled.
35:26Yeah.
35:27But there could be more signage, 100%.
35:28The one thing I would think about is even if you, you know what a shelf talker is?
35:32Yeah, like one of those little table talkers?
35:34Yeah, a shelf talker is essentially something that would mount to a shelf that would just be a brief description of what it was or what they were doing.
35:43Just to say, like, in case you're wondering, I'm one of the three parts of your journey.
35:48That could really be a good idea for people.
35:50Especially with this, like, the store being, like, as busy as that's been and people buying the things that they're buying.
35:55Like, right now, it's all coming from...
35:57Are people bringing stuff back?
36:01Sometimes people will bring their own pots.
36:03Matt is basically advising them which pot would fit.
36:06Okay.
36:07Would you mind grabbing, like, a little piece of paper and a pen?
36:09Yep.
36:10So that when we're ideating stuff, even if it... even if they all suck, we don't forget them.
36:17Okay.
36:17Yeah.
36:18I'd love to maybe, like, think about, like, what are some fun facts about plants, but subtle.
36:22Like here.
36:24Yes.
36:25The only thing is, I'm saying, like, you're a little more relaxed than him.
36:29He's super intense.
36:30He is intense.
36:31So I think you have to just put a little levity just so that the place doesn't feel too serious.
36:36So that's really important to me, too, actually, because I feel like the more, like, fun and friendly we are, the better things are.
36:43Yeah.
36:43Like, I'll write that down.
36:43I like that.
36:45Do you know what I would have probably done differently with the layout?
36:48Yeah.
36:48I would have put this in the middle.
36:51We thought about that.
36:51Because when you're buried in here, you can't see a problem that's happening over there.
36:57But if you're here, you can almost see what's happening over there.
37:02Think about, like, a casino and a pit boss.
37:04Yeah, yeah, yeah.
37:05That's how you should think about this as opposed to that.
37:08Interesting.
37:08There are basically two financial principles that will drive revenue in this business.
37:15One is conversion, the ability to take every guest that walks in the door and get them to buy something.
37:21The second is, how are we growing our average order, our average ticket size?
37:26All you're ultimately trying to do is take your captive audience and get more out of their wallet.
37:31Have you been here before?
37:33Yeah, I've come here a couple of times.
37:35The first time buying plants.
37:36Is it for your house or...?
37:38Yeah, for my house.
37:39I'm excited to put this in my bedroom and stare at them.
37:42You pick some pretty cool vibes.
37:43Will you get a pot as well or will you just get it like that?
37:46I think I'll probably stick it with just like this and put it in one of my bowls just to water it.
37:50Do you guys offer a different price if I buy the plant alone, the pot alone, or them together?
37:56No.
37:56If someone gets the plant and the pot and then we pot it up, the potting service is always free.
38:00Yeah.
38:00But it's no upcharge or anything like that.
38:02So everything's the same.
38:04Awesome.
38:04Do you know what's interesting about this place is the amount of engagement between the team behind the counter and the customer is creating this intimate environment where your ability to upsell other products feels really, really well set up.
38:19And I don't even think they realize it.
38:20I also thought it was interesting that they didn't see the need to give anybody an extra deal, a special deal, if they got the plant and the pot.
38:29So I think that when I look at it, you can see the unbelievable opportunity, but there's also some tweaks that I think could make it better.
38:37How are you guys doing?
38:41Welcome.
38:41You guys here for the class?
38:43Yeah.
38:43You did a class?
38:44I did an aquarium class for a friend's cookbook.
38:46It was so much fun.
38:46It looks like a lot of fun.
38:47You lay it out in the back and some wine.
38:49It was kind of fun.
38:50Yeah, please do.
38:53I'm sorry to bust in on you guys.
38:55I just wanted to see the room.
38:56Is that okay?
38:57Totally fine.
38:58I love to get customer feedback.
39:01It's considered a green shoot for me, some sign of something growing, some sign of positivity for the future.
39:08And getting this customer feedback over and over again makes me want to make a deal.
39:13Hey, Matt.
39:13Yeah.
39:14So I'm sorry that I popped in on you guys today.
39:17Yeah.
39:18Well, we're working.
39:19You're a little stressed.
39:20It's okay.
39:21Just, you know.
39:22We want to give the customers a good experience.
39:24That's a big thing.
39:24So I'm going to get out of your hair.
39:25Yeah, yeah.
39:26I actually do want to work with you because I think there's a bigger opportunity here franchising it or whatever it may be than I originally thought.
39:34So I apologize for not having clarity around it that day.
39:38It maybe just wasn't thinking clearly.
39:41Yeah.
39:41And then all night long I was making notes and, like, that's why I came in with a bunch of stuff.
39:45Yeah.
39:45Ready to go.
39:46Yeah.
39:47Would you guys want to continue down that journey and see if there's something there?
39:54I think we'd have to talk about it.
39:55You know what I mean?
39:56Would you guys want to continue down that journey and see if there's something there?
40:09I think we'd have to talk about it.
40:10We just have to understand, like, you didn't see the opportunity before and just understand, like, understanding more in depth where you see the opportunity now.
40:16I felt like I got a pretty decent understanding of what was there.
40:21I couldn't piece it together in my mind because scalability is something that you guys have not done.
40:28You guys are the key to the thing.
40:32So how do you put yourselves in a bottle and how does somebody else think, behave, and execute like you do?
40:38And so I probably didn't ask that question.
40:40Yes.
40:41That that was my concern.
40:43Was that, like, some of the questions I felt like you understood where the business was at, but some of those questions you didn't ask.
40:52Yeah.
40:52Like, you that, you understood, like, we saw that it was a certain way and you saw it a different way.
41:02I'm sorry for making a mistake.
41:04Yeah.
41:04Since the opportunity has passed.
41:08We're good.
41:08Yeah, yeah, yeah.
41:09Okay.
41:10Thank you, guys.
41:11It's so good to see you, though.
41:11Thanks for coming through.
41:16Okay.
41:18That didn't go how I thought it was going to go.
41:24Maybe their feelings were hurt by last week, me telling them that I didn't think there was an opportunity.
41:29And maybe they're holding a grudge against me.
41:32I just don't think that there's an opportunity for me.
41:36I feel like you guys have it figured out.
41:37But honestly, once somebody comes back, like, you should get on the rebound.
41:42I told them I was wrong.
41:44I thought that Matt was bothered by the fact that I came by.
41:47We had to deal with something we didn't plan with that negatively affected our customers' experience, in my opinion.
41:54Right?
41:55Yeah.
41:55Yeah.
41:56He made this comment to me about, oh, I want to make sure that our customers are getting the great experience.
42:01There's four people working there.
42:04I don't know.
42:04I think that their concept's great, but I just got validation that I made the right call the first time.
42:11It's the same issue I ran into with Tipsy Tie-Dye.
42:19For me, business is about relationships.
42:22And when someone shows you who they are, you have to believe them.
42:25And for years, I would ignore all the signs.
42:28And I would just chase the deal, chase the deal, chase the deal.
42:31Ultimately, what I've learned is that if the relationship isn't workable, the business isn't workable.
42:38And it's honestly not worth fighting for.
42:43Good morning.
42:45We specialize in making gourmet hot chocolates.
42:48I'm the owner and founder of Sleepover Party Shop.
42:51We're a dope ass ice cream shop.
42:52How many locations do you have now?
42:54None.
42:54What is it that you have this fear of?
42:57Just losing everything.
42:58Is this a business or is it a hobby?
43:00Do you understand how close you're living to the edge of death?
43:03I get 25% of the sales of vanilla forever.
43:06I get 25% of the sales of vanilla forever.
43:07I get 25% of the sales of vanilla forever.
43:08I get 25% of the sales of vanilla forever.
43:09I get 25% of the sales of vanilla forever.
43:09I get 25% of the sales of vanilla forever.
43:10I get 25% of the sales of vanilla forever.
43:11I get 25% of the sales of vanilla forever.
43:12I get 25% of the sales of vanilla forever.
43:14I get 25% of the sales of vanilla forever.
43:15I get 25% of the sales of vanilla forever.
43:16I get 25% of the sales of vanilla forever.
43:17I get 25% of the sales of vanilla forever.
43:18I get 25% of the sales of vanilla forever.
43:19I get 25% of the sales of vanilla forever.
43:20I get 25% of the sales of vanilla forever.
43:21I get 25% of the sales of vanilla forever.
43:22I get 25% of the sales of vanilla forever.