It doesnt seem like youre speaking to me, as a customer. Lemonis he makes terrible investments. This feels like a show that you went to with no research. And hes even using the company as his own personal piggy bank. Skyler i mean, theres so many personal expenses in here. Lemonis what if the business doesnt have the money to pay it . Matthew it does. Were making millions. Lemonis if i cant teach him to respect his people and his company. Theyve done nothing but eat from a bag of [ bleep ] since i met you. The casery will fall apart. My name is marcus lemonis, and i risk my own money to save struggling businesses. Were not gonna wake up every morning wondering if we have a job. Were gonna wake up every morning wondering how many jobs we have to do. Its not always pretty. Everythings gonna change everything. But i do it to save jobs, and i do it to make money. This. Lets go to work. Is the profit. [ cellphone ringing ] [ text message alert ] the casery has been around for about 3 years now, and in that short period of time, well, its had remarkable success. So, im excited to check it out. The mobileaccessory industry is about 100 billion business. So, just a small piece of that well, you do the math. Oh, wow. This place is huge. Hello . Hey, how are you . Im marcus. Matthew hey, marcus. Im matthew. Lemonis matthew . Matthew yeah. Nice to meet you. Lemonis nice to meet you. Matthew im the owner. Lemonis oh, you are . Okay, thats cool. Matthew welcome. Lemonis nice to see you. Matthew yeah. Lemonis its a big building. Matthew yeah. We just moved. And were still kind of transitioning right now, still. We got an amazing rate on the place, but we had to put some work into it, for sure. Lemonis can you introduce me to everybody . Matthew yeah. Absolutely. Lemonis that would be great. Matthew id love to. Lemonis so, who are these folks here . Matthew okay, this is the production staff. Lemonis hey, guys. How are you . Matthew will you all introduce yourself for marcus . Lemonis do you know their names . Matthew i know about half of them. I dont know yours. Mason mason. Lemonis mason. So, you know masons name . How are you . Im marcus. Briana briana. Lemonis nice to meet you. Do you know brianas name . Matthew no, i dont. Lemonis id like to introduce you guys. Matthew yeah. Lemonis my First Impression of matt is that he seems like a nice enough guy, and the company has really grown fast, so hes adding staff on a daily basis. But he should probably learn his employees names. Do you guys use all these products yourselves . Does everybody have one on their phone . Man no. Lemonis do you have one on your phone . Briana no. Lemonis do you . Man no. Lemonis do you have one . Mason i actually dont have an iphone. Lemonis so, just iphone cases . Matthew right now. If youre, like, the type of girl who likes to change their phone case every 6 to 8 weeks, generally, you have an iphone. Lemonis is this only for girls . Matthew yes. This market is basically all women. You do not find this in mens sections anywhere. Lemonis and so, wheres the bulk of your business come from . Matthew wholesale b to b. So, we have small, independent retailers, probably a few thousand, we sell to. Lemonis and so, you go to shows like new york now and stuff . Matthew yeah, we were there. Lemonis you were at new york now . Matthew we do it all. We do about 18 shows each season. Lemonis wow. How much do you spend on trade shows . Matthew probably 350,000 to 400,000 january, february, march, another 350 to 400. Lemonis and what kind of revenue are you generating out of those . Matthew less than that. Lemonis oh, really . Matthew its marketing and revenue. Lemonis look, trade shows are a good idea. But if youre not making money, which is by generating revenue thats greater than the expense, then you shouldnt go to them. Hi. Charlotte hi, im charlotte. Lemonis charlotte . Charlotte yeah. Lemonis im marcus. Charlotte nice to meet you. Lemonis nice to meet you. Charlotte thanks for coming. Skyler skyler. Nice to meet you. Lemonis nice to meet you. And are you the only owner . No. So, i own 90 . Charlotte owns 7 , and skyler owns 3 . Lemonis and what are your roles here . Charlotte im the creative director. Lemonis so, all of the designs . Charlotte yeah. I oversee all of it and come up with all the ideas. Skyler so, im the c. O. O. I also, basically, take on a lot of the c. F. O. Responsibilities. So. Ive been doing a lot of the. Lemonis thats an interesting crossover. Skyler it is. It is. Lemonis as the finance person, youre the steward of the assets, which includes knowing whats there, how much it is, where its moving, how to track it. How do you actually do a physical count . Matthew we did count, and it was a little messy cause we dont bar code. Lemonis but you need bar coding so you know what the hell you have. Skyler thatd be great. Lemonis can you guys pull the different products you have, so i can just understand. Matthew sure. So, lets start with a screen protector. Lemonis okay. Matthew 20 retail. Lemonis 20 retail to the consumer. What are you wholesaling it for . Matthew 10. Lemonis and what does it cost you to make . Matthew 1. 75. Lemonis item two. Matthew here we go. Lemonis these wallets. What do you call these . Matthew pockets. Lemonis pockets . Matthew they wholesale for 7, and they retail for 15. Lemonis what does it cost you to make . Matthew probably 2. 25. Lemonis okay. Whats number three . Matthew number three would be the rings. It sticks on the back of your phone. You can use it as a stand. Our cost for these is 1. 95. Lemonis wholesale for. Matthew 7. Lemonis and retailed for. Matthew 15. Lemonis okay. Matthew then, you have your case. Our cost 4. Wholesale for 14. Lemonis 14 . Matthew retail 32. Lemonis okay. This is a nice case. Matthew yeah. Thank you. Lemonis i like it. It feels good in my hand. Skyler its got, really, the good balance of thickness and protectiveness that doesnt actually bother you. Lemonis my phone actually feels lighter. So, im gonna throw my phone on the ground. Matthew 4 feet. Skyler yeah. Lemonis if it breaks, youre buying me a new phone. Matthew sure. 4 feet. Lemonis so, 4 feet . Matthew why dont we do 10 . Not guaranteed on that. Lemonis well, that was 5, so. Matthew pretty good, right . Lemonis yeah, and of the four skus, how much business did you do in the last 12 months . Matthew well, last year, we did 1. 7. Lemonis 1. 7 million . And of the 1. 7 million, make money . Skyler no. Matthew no. Lemonis no . Matthew loss. Lemonis with those kind of margins . Skyler no. Lemonis if 1. 7 million was the amount that went through the till. What was the total margin that went through the till 50 , 60 . Skyler no, it was about 60 percent. Lemonis okay, so, its a million 20 in gross profit. Is there a ton of overhead that im not seeing . Skyler about 1 million overhead. Lemonis okay. And so, you broke even . Skyler it was a small loss for the year. Lemonis how much . Skyler 70 to 90. Lemonis okay. So, a million one in overheads. Matthew and at the same time, were in debt. Lemonis who started the business . You did . Charlotte he started it, but i was there from inception, really. Lemonis how did you guys know each other . Charlotte we went to usc together. Lemonis ah. Matthew we were dating. Lemonis oh, interesting. Matthew yeah. Lemonis not dating now . Charlotte not dating. Matthew not dating now. Lemonis and then, who put money in to start the business . Matthew i did. Lemonis all by yourself . Matthew yes. Lemonis and how much did you put in . Matthew i dont even know the exact number maybe, roughly, a half a million or Something Like that. Lemonis how do you not know that number . Its kind of like not knowing peoples names. Those are two things you should know your employees names and how much money you put in the business. And how did you end up with a 90 and 7 . Charlotte oh. Matthew oh. Charlotte so, the 7 comes from, like, actual funds that i put into the company. Lemonis how much money did you put in . Skyler more than 250,000. Matthew keep in mind, this was much later. This was, like, in the last 6 months. Lemonis who cares when it was . 250,000 you put in . Charlotte well. Matthew well, also, we got another 350,000 loan that was given to us at the lowest Interest Rate possible as, like, a gift without being taxed. Lemonis by who . Charlotte my dad. Matthew. Yeah. It was really nice. [ laughs ] lemonis so, let me just recap for you. You put in 500,000 super admirable starting a business. Charlotte comes around. Shes like, ill put in 250,000. Youre like, great. You can get 7 percent for that. And then, after that, you need more money. And so, you call your dad. How much do you need . 350,000, taking the total to a total of 600,000 coincidentally, more than he put in. And you still have. Skyler seven . Charlotte mmhmm. Lemonis . 7 . Skyler yeah. Lemonis and then, how did you get 3 . Skyler just for the immense value i provide to the company. Lemonis okay. Id like to spend a little bit of time with you. Charlotte sure. Lemonis and so, ill just well just chat in your office. Charlotte oh, sure. Lemonis all right . Charlotte sounds good. Lemonis okay. So, is this where the design magic happens or starts . Charlotte it is. Lemonis and so who does the designing . Charlotte sunshine does. Lemonis that is your name . Sunshine that is my name. Lemonis that is freaking awesome, and so, who comes up with the artwork . Sunshine i would say charlotte, mostly, and then, we kind of tag team. Charlotte i mean, we do Work Together really closely. We usually, like, look at other products and other packaging. Lemonis ooh, i like that one. That is sick. Sunshine oh, thanks. Lemonis how come you only do stuff for women . Theyre nice cases, but it doesnt always have to be bubble gum with unicorns. This could be something unisex. Charlotte yeah. Lemonis you know, im not that surprised that the company is skewing female. We know the female consumer makes up more than 50 of the marketplace. But id like to see some level of balance. It feels like, maybe, theres some opportunity. Lemonis and so do, you guys start with a color board of, these are the type of fonts we want to work with, and these are the type of imagery we want to work with . Charlotte honestly, the second we get assigned to it, were already behind schedule. Lemonis and whos making it fast . Charlotte matthew. Sunshine yeah. Charlotte hes very, like, impulsive. Lemonis does he listen . Charlotte no. Not very well. I mean, a lot of times, we just do what needs to be done, even though he doesnt want us to. Lemonis i dont ever fault the owner of the business for wanting to be involved in the different steps. But if the company is gonna grow, you have to be able to hire people and respect what theyre doing and not break their deadlines. Because, ultimately, what youre gonna do is, youre going to break morale, and once morale breaks, particularly in the design department, there goes your creativity. Are you eric . Eric yeah. I am. Lemonis eric, im marcus. Eric nice to meet you. Lemonis so, do you run the whole print shop . Eric yeah. Lemonis whats the capacity of the shop . Eric on a good night, i would say we could get about 600 cases. Lemonis and so, thats a pretty big number. Eric yeah. Lemonis im impressed with everybody im meeting at the casery. You handle all of the online imaging . Xavier yeah. Lemonis and you did all of this . Xavier yeah. Lemonis this is one of the best flip books ive ever seen. Xavier thank you very much. Lemonis matt may not know the names of his employees, and he may not know how much money he put in, and he may not be generous with his equity when somebody else puts in a lot of money, but he has hired some good people. Howd you guys meet . Skyler honestly, i just applied through the usc career board. Lemonis is that where you went to school . Skyler yeah. I was a 3year graduate. Lemonis wow. Skyler yeah, so im. Lemonis its not like youve been out of. Skyler im 23. I run the office daytoday. You know, matt is not here most of the time, so. I found the suppliers. Lemonis you do . Skyler yeah. And i think that matt is really overconfident with a lot of his business knowledge, and thinking that he knows whats right always, and so, that, kind of, in combination with charlotte being kind of uncertain of her business knowledge, it puts us in a situation that is, financially, really poor for the company, you know, because were not profitable every month. Lemonis you have a pretty good head on your shoulders for being out of school for a couple years. Skyler thank you. Lemonis all right. Lets go look at the financials. What do you say . Skyler sounds good. Lemonis all right. Okay. Skyler all right. So, this is the cashflow estimation. Here is the profit and loss, and the balance sheet. Lemonis so, you go through these expenses. Advertising and promotion 110,000. Education and training. Whats that . Matthew that would be, like, any sort of personal development or coaching or things like that, too. Lemonis whos being coached for 27,000 . Matthew i took a course last year. I started taking on, like, meditation and being, like, taught about that. So, it really changed my. Lemonis why would the business pay for that . Skyler i mean, theres so many personal expenses in here. Lemonis your personal expenses . Skyler matts personal expenses. Matthew hes talking about mine. cause i wasnt paying myself salary, so a lot of things did probably get grouped in here that probably shouldnt be. Lemonis does it bother you that his personal expenses are in the business . Charlotte only because its, like, not quantifiable. Like, we have no idea how much youve been, like, paid. You know what i mean . Matthew because i wasnt paying myself a salary. So, if i pay myself a salary, it wouldve been fine. So, thats what we decided to do, marcus. So, i am now officially on payroll. So, i didnt pay myself for the 2 years before that. I still didnt want to take a salary to any capacity, so i charged, literally, what i had to. Lemonis lets go through the p l. Revenue of 1,798,000. Gross profit of 1,102,000. Total expenses of 1,129,000. 27,000 loss. Add depreciation in 66,000 its a 93,000 loss. Skyler yeah. Lemonis how are you funding that loss . Skyler we are not funding it. Charlotte were not. Skyler it is going unfunded. Matthew but thats not the track were on. You can see that as the growth has gone up. Charlotte but we dont have money to pay the 93,000. Matthew thats correct. Right now, were not. Charlotte you got to wrap your head around that. Matthew oh, i do. Also wrap your head around that i did 500,000 in sales this month, and its gonna keep going up. Were going to do 5 million to 10 million this year. Money is of no issue. Lemonis matt, i get all that, and i can sense youre getting frustrated with the three of us. Matthew i get frustrated because these two are not on the same page with me, as you can tell. Were doing international distribution. We have distributors hounding us. Weve got the capability to do massive numbers. Lemonis your assets and your liabilities arent far apart from each other. Matthew yes. Lemonis and your earnings are not positive. And thats what theyre freaked out about. Matthew oh, i got that. Lemonis and when she says to you, you have to wrap your head around that, shes not trying to insult you. Shes saying, you need to just change your thinking a little bit. To lose 93,000 on a product that you buy for 1. 50 and sell for 7 is not so great. But you guys took a very simple concept a cellphone case and you made it attractive. 2 million in a very short period of time is a hell of a job. So, im gonna make an offer. I want to invest 700,000. I dont want to invest a penny more than that, cause i dont think the Business Needs it. This Business Needs to be workingcapital rich and debtfree. And it needs to understand where it wants to distribute, who it wants to distribute to. And it could have multiple identities, because the one thing about this particular product is that everybody in this building is a consumer of it, as well, and they have their own perspective. You should make products for more than just iphones because not everybody has an iphone. Matthew i know. Lemonis whats important to me is where i see the value of the business today. I dont see the value, probably, as high as you do. And so, for that 700,000, i would want 41 of the business. Matthew thats a very high percentage. Lemonis its huge. Matthew together, you would have 51 combined, and, like, you guys could overturn me. Lemonis ill also buy the loan out that her father has, and ill put a longer term on it, so she doesnt have to call her dad and tell him that he got screwed. Matthew well, look at what we were able to accomplish with me leading it. We went into the most oversaturated market in the world, and we are killing it. Trust me to keep 51 . Go down to 39 . Lemonis no. Not a chance. You have put in the least amount of money of the three of us, and youll still be the largest shareholder. Like, that, to me, seems odd. Matthew i got that. And, like, i steer us well. Are you willing to move at all . Lemonis no. Matthew well, i dont know. I dont know. Its tough. Lemonis if your business is in trouble and you need my help, log on to theprofitcasting. Com. Lemonis you have put in the least amount of money, well you can always i thibring it backy it. Within seven days for a full refund for any reason. Like, if i become allergic to yellow . Sure. Or my turtle hates it . Okay. That is good to know because reggie is very opinionated. Im sure he is. This is not just a headache. This is not just a fever. This is not just the flu. Its meningitis b. And youre not there to help. While meningitis b is uncommon. Once symptoms appear, they can progress quickly and can be fatal. Sometimes within 24 hours. Before you send your teen to college. 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