Transcripts For CNBC The Profit 20240713 : vimarsana.com

Managing the people. And back them up with my own cash. Its not always pretty. First time you ever emptied out poop . But this is business. I do it to save jobs, and i do it to make money. This is the profit. La dogworks is an upscale dog boarding facility located in the heart of hollywood, california. Youre stinky dogs. Founded by Andrew Rosenthal in 2004, this 24hour full Service Center with 36 employees has everything from grooming to training. Sit. In a stateoftheart indoor dog park. This business generates 1. 3 million a year, but recently, their numbers have started to tumble. Sloppy business practices. I dont want to waste your time, and please dont waste mine. Together with lax management. Theres inventory missing . Well, you know, its hard to tell, because stuff slips through the cracks. Has driven down sales and piled up 150,000 of debt. You know, i could lose everything. If they dont make changes, this business will be forced to close its doors. Nearly 50 million households have dogs. Even in a bad economy, the pet industry is recessionproof. I want a piece of that. With the right changes, i can make la dogworks profitable and turn this into a multimillion dollar business in no time. So it comes up to 80. Thank you. Well see you next time. See you later, greg. Marcus. How are you, andrew . Very well. You have a nice place here. Thanks. So how many square feet is this whole thing, front to back . 7,500. We have boarding. Grooming. Daycare, training. Sit. Good boy. And we have our boutique. Can i get a tour . Absolutely so this is the retail and reception area. Is any of this stuff private label . You make any of this . No. [murmurs] purchased it. People buy it . Yes. Interesting. This is where we do our grooming. I go into the dog grooming room, and i notice that theres no signs on the outside of the building kind of detailing what goes on inside this facility, and i dont know how a customers supposed to know we do. Heres alyssa. How are you . Nice to meet you. Is that a customers dog . Yeah. How do you know how to price it . We price based on breed. Condition of the coat is always a factor. Depending on what they want us to do, if theres any special, like, requests. So do you kinda make it up . Pretty much. Okay. This is what i call the centerpiece of la dogworks. Its a 2,500square foot indoor dog park. This is for dogs to play. Very cool. And whos that . Jesse, who is director of animal care. How long has he been working here . Seven years. Hi, guys. Hi, george. This is marcus. To go in and see the thought and the creativity that andrew put into this. Its very wellthought out. Im very impressed. Hi, guys. We call it the dog deck. Its a safe haven. If you notice the bunk beds i createdi invented these. Im the first person to ever do this. You invented the bunk bed . For dogsfor use with dogs. [laughs] okay. Okay. Where are the sweets at . You dont have little sweets, individual sweets we dont do sweets. You dont. What we doits a twostory prefabricated kennel system. Hey, buddy. Some people have said that, you know, the chain link, you know, my dog was in a shelter and its gonna bring back bad memories. First of all, dogs dont think that way. It would nevera dog would never think that way. The first thing i thought of when i got my two cocker spaniels from a shelter. It has the same feel as a shelter. So maybe thats why people say it. Well, people. Not dogs. You build these rooms that look like human roomsyou think the dogs care about this . But its the marketing for the customer, not for the dog, right . I mean, its how i leave the dog and how i think about it. Okay. We do it our way, and it works really well. This is where we do training. Emily is our director of training. Are you emily . I am. Hey, im marcus, how are you . Marcus, a pleasure. Really nice to meet you. And zoe. This is zoe. Training is a very, very important part of la dogworks which fell off greatly. Why do you think that is . You know what, la dogworks isnt for everybody. How does a Customer Contact you if they have a complaint . Theres a website out there that people post business reviews, and weve had some negative stuff put up there, and andrew responds to it in his way. [laughs] what does in his way mean . So read it. You can read em. So heres an example of one. Ive been bringing my dog here for six months. One night, i came to pick him up. What i found was my pup wearing a muzzle, tied to a wall. My own dogi was horrified. Then your response was, after questioning the staff, i believe them and not you. You told the customer that. Yeah. Why . Yeah, why . Ii call it like it is. Andrew, stay the [bleep] off the internet, because youre. Hurting your business. I dont think im hurting my business at all, personally. Im a little worried about andrew so far. The vibe in the place isnt great. Ive seen some stuff online, and his interaction with me, quite frankly, isnt that openminded. So before i do a deal, i need to get a good understanding of these financials. Hi. How are you . Nice to meet you. What do you do here . I take care of the money. What do you have that i can look at . How bout a p l . Yes. This is april. Okay. And this is 2012. So in this month, you know how much revenue you did . 120 . 109. How much did you make on 109 . I have no idea. 78. Sales fell off greatly, and itand it just hasnt blossomed to where it needs to go. Grooming has been underperforming. Training has been lagging. Our top performer is definitely boarding. This year, boardings off quite a bit. What is your occupancy . What do you mean . Were gonna think about this just like a hotel number of beds, number of nights, the rate per night. Thats how a hotel does a budget. They manage their business on some level of occupancy. If all of the runs and all of the beds were occupied, you would have 1,830,000. What do you think your level of occupancy is as a percentage of your total . Do you know that number . No. You know that number . No. The maximum revenue that the kennel system could generate is about 1. 83 if every kennel was full every night at a state of rate. Last year, the kennels generated about 500,000. So very simply, i just divide 500,000, which is what they generated, into the amount that they should have generated, and i come up with an occupancy rate of 27 . Thats not good. So the way i look at this, andrew, is youre at the absolute worst possible level at 27 . Were off. Whats your biggest challenge in your job. When you wake up in the morning . Putting up with me. Dealing with you . Thats good. Are you not easy to deal with . No. How come . Because im very passionate about what i do, i know what i wanna see, i know how i want this place to run. And sometimes people tend to not follow the path and. Does it make you crazy . Yes. I dont walk around yelling every day. I walk around yelling when i need to. For me, if an employee doesnt work out, thats my failure, not theirs. If andrews telling me himself that hes not good with his employees, i have to imagine that it could be much worse. Hey, im marcus, how are you . Hey, nice to meet you. Rene, jesses brother. Oh, youre jesses brother. What do you do here . Animal care tech. Okay. You like it . Its good. What do you love about this place . Uh, just being with dogs, man. Theres something thats always gonna love you every time you come in whether its a bad day or a good day, you got a happy dog with you. How do you like working with andrew . Uh. It can be a little complicated to explain. Seems like he gets a little. Uh. You gotta work. Yeah. All right, man, well, good meeting you. Ill be seeing you around. Sounds good. All right, buddy. Hey, jesse, can i grab you for a minute, bud . Yeah. Jesses the park manager, and hes a critical staff member. I mean, hes running what i consider 50 of this business, the center of the business. So you and i havent had a chance to talk or anything. Do you wanna be here longterm . Actually, yeah, i love it here. I mean, i been here seven years now. I mean, i been probably the longest one here and worked every shift imaginable here. I mean, i know the place inside and out. How do you like working with andrew . I have to tell you, it seems like you work hard, youre positive. Oh, i mean, i have to be. You have to be. All right, thank you, buddy. Come on, sooks. Neil . Marcus. Marcus. Nice to meet you. Nice to meet you. What would you say would be the single biggest problem in the organization . It starts at the top. Its a really dynamite facility with a wellthought out system. But i dont think andrew is rational. Yeah, erin told me he flies off the handle. [snaps]. In a nanosecond. He has had several explosions in the past few weeks. Why would someone like you put up with stuff like that . I love the animals, but i have my limits. Mantoman. Im planning my exit. Are other people too . Yes. And why do you wanna leave . One of the biggest reasons is i got bit recently. Andrew literally got in my face and yelled at me and blamed me for it. In front of other employees . Yes. And thats the thing. I mean, everybody else responded like normal people would. And if it werent for that, im not a violent guy, but i would have probably left here in handcuffs and andrew in an ambulance. I thought we could maybe just go into the training room and talk. Now . Is that all right . Yeah, sure. I came here to do business, and instead of focusing on business, were focusing on him yelling. Yelling at employees could be the most inexcusable behavior of any kind, and if im gonna make a deal with this guy, theres no way that im gonna let andrew interact with his employees once im here. I looked at 600 businesses, and i like this concept. Im willing to write a check. Mmhmm. And fund what i think needs to happen. Mmhmm. Im not willing to do it i will not do itif youre managing the people. You dont really necessarily. Like people. I mean, thats a very broad statement, because i really am good with people, its youre not as good as you should be as a Business Owner with people. Maybe i dont handle my staff well, ifif thats what youre saying. Im saying that you dont handle your staff well or your customers as well as you should. Hes got a great concept here, and i think i can take this concept and really scale it across the country. But im gonna put a very tight leash on him, and im gonna keep him away from the customers and the employees. Why do you want la dogworks . cause i like the brand, and for me, its creating products and services under the la dogworks brand that are scalable and that are sold in mass retail, online, and opening up multiple locations. Were only gonna open up new locations when im confident that this location is functioning the way its supposed to be. Including the morale. Okay. Andrew, im gonna offer you 1 million. For. I want 50 of the business, you and i are gonna be equal partners. Im gonna control the operations of the business, and you will have no authority over the employees, and you will control the brand. But this is a business that i built, that i came up with, and now im gonna share that with somebody who i dont know. I dont know that i wanna sell 50 of my business for 1 million. Well, thats my best offer. You made 78. 17 last month. Mmhmm. Do you wanna take this business to the next level . Absolutely. Do you wanna be relieved of the burden of dealing with your people . Do you wanna open more stores . Mmhmm. Im offering you 1 million to do that. What i care about in this moment is you and a business that i think has a [bleep]load of potential. Mmhmm. Coming up. If youre happy, the customer will be happy. If youre unhappy, this place is out of business. I trusted people to manage. Thats not fair. What are you talking about . Dont even go there. Just do it jimmys gotten used to his whole room smelling like sweaty odors. Yup, hes gone noseblind. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. Shbecause xfinity mobilehen ygives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 200 off when you buy an eligible phone. Thats simple, easy, awesome. Go to xfinitymobile. Com today. What i care about in this moment is you and a business that i think has a [bleep]load of potential. Mmhmm. The 1 million offer that i make andrew isnt just to have andrew put a Million Dollars in his pocket. No way. The 1 million offer is very simple. Another 150,000 to put working capital in the business. And then 700,000 for any expansion opportunities. Those expansion opportunities are not gonna happen until this place is right. Im gonna want to have complete control for the next week so that i can get the employees in line, get their process in line, and tell them that you dont make any decisions. I make the decisions. If, at the end of this week, you cant do what i think youre supposed to do and this place doesnt function well, the deals off the table. I dont want ever to have to worry about this business suffering. Or not having enough money to pay my staff or not having enough money to pay rent. I wanna fix the business. I wanna transform parts of it that i think we can transform together. But i need to know that you can transform yourself. You gotta let me help you. [ahem]. Okay. Lets go to work. Were shaking on making this work for both of us. But i wanna be clear. Yes. If you mess with any of these employees, i will fire you. For those of you that have not met me, im marcus. I wanted everybody to know that andrew and i have come to a deal. Over the next week, youre going to see some significant changes, but the most important thing were gonna work on is management. Theres over 30 people working here, and they rely on this business to survive. So in that instance, theyll take abuse. Until somebody steps in and stops it. And im gonna be that person. The days of people being yelled at and demoralized and morale being this low are over. If youre happy, the customer will be happy. If youre unhappy, this place is out of business. Youre not gonna be out of business on my watch. We need to raise revenue in order to make money around here. Were gonna get very, very clear about the process. We have to increase occupancy in the kennels. We have to create a Loyalty Program that allows customers to be rewarded for using our different products and services. My other goal is i wanna open up more locations, but we cannot do that. We cannot do that unless this one is right. We have to expand the retail Product Selection by developing private label products. All of the staffing, morale, all of that is my job. Oh, sorry. You guys are gonna be reporting in to me. All right, lets get back to work. Okay . [energetic music] hey, im marcus. Stefano. Stefano, nice to meet you. Youre here to talk about the painting . Yeah. Im looking just to accent stuff. Right. That wall right there and this wall right here could be your accent wall, as well as that one right there. In order for me to move forward with my marketing plan, i wanna see any and everything that andrew has. So andrew wanted to take me back into the garage to show me his delivery vehicle. Oh, this is cool. This is the fetchmobile. They wrapped and the whole deal . Uhhuh. And look. And look, and look. Well, i mean no. Wait a minute. There is no well. Its a scratch. So a team member did that . Yeah. Carelessness. Its called an accident. I mean, andrew, you do understand that things happen, right . Oh, i understand, but not constantly. The question is do you have enough patience and tolerance to educate them, to train them, to forgive them . [scoffs] i have seen my employees whittle away at the integrity of la dogworks. By stupidity, by laziness. By notnot coming to work. You hire people. And thats where your problem starts. The personalities, the laziness, the bad work ethic all these variables drive me crazy. How many times do i have to ask you to do something . How many times do i have to ask you . Its like the water torture boom, boom, boom. Were working together here, were a team, were a hierarchy. Were just like the dogs. Whos the top dog, whos the alpha male . Me. You gotta do what i say when i say it. I mean, if i could fire the entire staff and start from scratch, i would do that too. So who wrecked the van . Well, neil. What do you do, just yell at him . I dont talk to neil, as a matter of fact. Why . You dont like him . I hate him. Hes a [bleep]. Hes aill give you 8. 50 or 9 worth of work and not a [bleep] penny more and not any more effort. Okay . Thats neil. When he got bit by the dog and was bleeding, were you concerned about him or the dog . Ha ha ha ha ha ha ha ha okay andrew, i gotta tell you your laugh scares the [bleep] out of me. Because its a farce. What neil did was reach down and push the dog back, at which point, the dog bit him. It sounds like he was just trying to stop the dog from running in the street. I was horrified. Whywhy would you do that . As andrews ranting and raving, neil walks in. Instead of andrew using some sort of decorum or discretion or shutting his mouth, he continues. He actually gets even more amped up. And then he comes up to my office yelling and screaming at me that i should have shown more compassion. But i think when that happens, i think what people are looking for is some level of sympathy. Thats notagain, my staff has to function a right way. I know. When neil started working here, and i told him to this to his facei had big hopes for him. When you say that to somebody, i had high hopes for you. Neil did not hear that from me until we had a huge argument in the kitchen when he got in my face with his wide eyes ii got in your face . You dont remember that . I dont remember it that way. Well, my back was to the door and you were standing here staring me down and i said, who the [bleep] do you think you are staring me down . [inhales] dont remember that . I remember it differently. Okay, well. In that instance where he pulled the dogdid you think neil was out of line . No, not out of line, just doing a stupid thing. He just did the wrong thing. A thing that nobody else would do. Have a good night. Okayno, nois there a problem . [dogs barking] hes gonna get fired anyway. Whys that . Because i [bleep] cant stand him. Hes insubordinate, hes obnoxious. Dont let him manipulate you, because im telling you, he is just worthless. Absolutely worthless. Coming up. You dont know the history of whats gone on here. The history is that the people that work here dont [bleep] want to do it anymore andrew, this is dr. Rivera. Shes worked with me in other companies in trying to help bring people together. Ha ha ha ha ha we need to gather everybody together. We need to talk as a group now. As soon as i saw the extent of andrews rage for his employees, i realized i needed to get all the employees together immediately. This is the timethis is like a Andrew Rosenthal<\/a> in 2004, this 24hour full Service Center<\/a> with 36 employees has everything from grooming to training. Sit. In a stateoftheart indoor dog park. This business generates 1. 3 million a year, but recently, their numbers have started to tumble. Sloppy business practices. I dont want to waste your time, and please dont waste mine. Together with lax management. Theres inventory missing . Well, you know, its hard to tell, because stuff slips through the cracks. Has driven down sales and piled up 150,000 of debt. You know, i could lose everything. If they dont make changes, this business will be forced to close its doors. Nearly 50 million households have dogs. Even in a bad economy, the pet industry is recessionproof. I want a piece of that. With the right changes, i can make la dogworks profitable and turn this into a multimillion dollar business in no time. So it comes up to 80. Thank you. Well see you next time. See you later, greg. Marcus. How are you, andrew . Very well. You have a nice place here. Thanks. So how many square feet is this whole thing, front to back . 7,500. We have boarding. Grooming. Daycare, training. Sit. Good boy. And we have our boutique. Can i get a tour . Absolutely so this is the retail and reception area. Is any of this stuff private label . You make any of this . No. [murmurs] purchased it. People buy it . Yes. Interesting. This is where we do our grooming. I go into the dog grooming room, and i notice that theres no signs on the outside of the building kind of detailing what goes on inside this facility, and i dont know how a customers supposed to know we do. Heres alyssa. How are you . Nice to meet you. Is that a customers dog . Yeah. How do you know how to price it . We price based on breed. Condition of the coat is always a factor. Depending on what they want us to do, if theres any special, like, requests. So do you kinda make it up . Pretty much. Okay. This is what i call the centerpiece of la dogworks. Its a 2,500square foot indoor dog park. This is for dogs to play. Very cool. And whos that . Jesse, who is director of animal care. How long has he been working here . Seven years. Hi, guys. Hi, george. This is marcus. To go in and see the thought and the creativity that andrew put into this. Its very wellthought out. Im very impressed. Hi, guys. We call it the dog deck. Its a safe haven. If you notice the bunk beds i createdi invented these. Im the first person to ever do this. You invented the bunk bed . For dogsfor use with dogs. [laughs] okay. Okay. Where are the sweets at . You dont have little sweets, individual sweets we dont do sweets. You dont. What we doits a twostory prefabricated kennel system. Hey, buddy. Some people have said that, you know, the chain link, you know, my dog was in a shelter and its gonna bring back bad memories. First of all, dogs dont think that way. It would nevera dog would never think that way. The first thing i thought of when i got my two cocker spaniels from a shelter. It has the same feel as a shelter. So maybe thats why people say it. Well, people. Not dogs. You build these rooms that look like human roomsyou think the dogs care about this . But its the marketing for the customer, not for the dog, right . I mean, its how i leave the dog and how i think about it. Okay. We do it our way, and it works really well. This is where we do training. Emily is our director of training. Are you emily . I am. Hey, im marcus, how are you . Marcus, a pleasure. Really nice to meet you. And zoe. This is zoe. Training is a very, very important part of la dogworks which fell off greatly. Why do you think that is . You know what, la dogworks isnt for everybody. How does a Customer Contact<\/a> you if they have a complaint . Theres a website out there that people post business reviews, and weve had some negative stuff put up there, and andrew responds to it in his way. [laughs] what does in his way mean . So read it. You can read em. So heres an example of one. Ive been bringing my dog here for six months. One night, i came to pick him up. What i found was my pup wearing a muzzle, tied to a wall. My own dogi was horrified. Then your response was, after questioning the staff, i believe them and not you. You told the customer that. Yeah. Why . Yeah, why . Ii call it like it is. Andrew, stay the [bleep] off the internet, because youre. Hurting your business. I dont think im hurting my business at all, personally. Im a little worried about andrew so far. The vibe in the place isnt great. Ive seen some stuff online, and his interaction with me, quite frankly, isnt that openminded. So before i do a deal, i need to get a good understanding of these financials. Hi. How are you . Nice to meet you. What do you do here . I take care of the money. What do you have that i can look at . How bout a p l . Yes. This is april. Okay. And this is 2012. So in this month, you know how much revenue you did . 120 . 109. How much did you make on 109 . I have no idea. 78. Sales fell off greatly, and itand it just hasnt blossomed to where it needs to go. Grooming has been underperforming. Training has been lagging. Our top performer is definitely boarding. This year, boardings off quite a bit. What is your occupancy . What do you mean . Were gonna think about this just like a hotel number of beds, number of nights, the rate per night. Thats how a hotel does a budget. They manage their business on some level of occupancy. If all of the runs and all of the beds were occupied, you would have 1,830,000. What do you think your level of occupancy is as a percentage of your total . Do you know that number . No. You know that number . No. The maximum revenue that the kennel system could generate is about 1. 83 if every kennel was full every night at a state of rate. Last year, the kennels generated about 500,000. So very simply, i just divide 500,000, which is what they generated, into the amount that they should have generated, and i come up with an occupancy rate of 27 . Thats not good. So the way i look at this, andrew, is youre at the absolute worst possible level at 27 . Were off. Whats your biggest challenge in your job. When you wake up in the morning . Putting up with me. Dealing with you . Thats good. Are you not easy to deal with . No. How come . Because im very passionate about what i do, i know what i wanna see, i know how i want this place to run. And sometimes people tend to not follow the path and. Does it make you crazy . Yes. I dont walk around yelling every day. I walk around yelling when i need to. For me, if an employee doesnt work out, thats my failure, not theirs. If andrews telling me himself that hes not good with his employees, i have to imagine that it could be much worse. Hey, im marcus, how are you . Hey, nice to meet you. Rene, jesses brother. Oh, youre jesses brother. What do you do here . Animal care tech. Okay. You like it . Its good. What do you love about this place . Uh, just being with dogs, man. Theres something thats always gonna love you every time you come in whether its a bad day or a good day, you got a happy dog with you. How do you like working with andrew . Uh. It can be a little complicated to explain. Seems like he gets a little. Uh. You gotta work. Yeah. All right, man, well, good meeting you. Ill be seeing you around. Sounds good. All right, buddy. Hey, jesse, can i grab you for a minute, bud . Yeah. Jesses the park manager, and hes a critical staff member. I mean, hes running what i consider 50 of this business, the center of the business. So you and i havent had a chance to talk or anything. Do you wanna be here longterm . Actually, yeah, i love it here. I mean, i been here seven years now. I mean, i been probably the longest one here and worked every shift imaginable here. I mean, i know the place inside and out. How do you like working with andrew . I have to tell you, it seems like you work hard, youre positive. Oh, i mean, i have to be. You have to be. All right, thank you, buddy. Come on, sooks. Neil . Marcus. Marcus. Nice to meet you. Nice to meet you. What would you say would be the single biggest problem in the organization . It starts at the top. Its a really dynamite facility with a wellthought out system. But i dont think andrew is rational. Yeah, erin told me he flies off the handle. [snaps]. In a nanosecond. He has had several explosions in the past few weeks. Why would someone like you put up with stuff like that . I love the animals, but i have my limits. Mantoman. Im planning my exit. Are other people too . Yes. And why do you wanna leave . One of the biggest reasons is i got bit recently. Andrew literally got in my face and yelled at me and blamed me for it. In front of other employees . Yes. And thats the thing. I mean, everybody else responded like normal people would. And if it werent for that, im not a violent guy, but i would have probably left here in handcuffs and andrew in an ambulance. I thought we could maybe just go into the training room and talk. Now . Is that all right . Yeah, sure. I came here to do business, and instead of focusing on business, were focusing on him yelling. Yelling at employees could be the most inexcusable behavior of any kind, and if im gonna make a deal with this guy, theres no way that im gonna let andrew interact with his employees once im here. I looked at 600 businesses, and i like this concept. Im willing to write a check. Mmhmm. And fund what i think needs to happen. Mmhmm. Im not willing to do it i will not do itif youre managing the people. You dont really necessarily. Like people. I mean, thats a very broad statement, because i really am good with people, its youre not as good as you should be as a Business Owner<\/a> with people. Maybe i dont handle my staff well, ifif thats what youre saying. Im saying that you dont handle your staff well or your customers as well as you should. Hes got a great concept here, and i think i can take this concept and really scale it across the country. But im gonna put a very tight leash on him, and im gonna keep him away from the customers and the employees. Why do you want la dogworks . cause i like the brand, and for me, its creating products and services under the la dogworks brand that are scalable and that are sold in mass retail, online, and opening up multiple locations. Were only gonna open up new locations when im confident that this location is functioning the way its supposed to be. Including the morale. Okay. Andrew, im gonna offer you 1 million. For. I want 50 of the business, you and i are gonna be equal partners. Im gonna control the operations of the business, and you will have no authority over the employees, and you will control the brand. But this is a business that i built, that i came up with, and now im gonna share that with somebody who i dont know. I dont know that i wanna sell 50 of my business for 1 million. Well, thats my best offer. You made 78. 17 last month. Mmhmm. Do you wanna take this business to the next level . Absolutely. Do you wanna be relieved of the burden of dealing with your people . Do you wanna open more stores . Mmhmm. Im offering you 1 million to do that. What i care about in this moment is you and a business that i think has a [bleep]load of potential. Mmhmm. Coming up. If youre happy, the customer will be happy. If youre unhappy, this place is out of business. I trusted people to manage. Thats not fair. What are you talking about . Dont even go there. Just do it jimmys gotten used to his whole room smelling like sweaty odors. Yup, hes gone noseblind. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables<\/a> for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. Shbecause xfinity mobilehen ygives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 200 off when you buy an eligible phone. Thats simple, easy, awesome. Go to xfinitymobile. Com today. What i care about in this moment is you and a business that i think has a [bleep]load of potential. Mmhmm. The 1 million offer that i make andrew isnt just to have andrew put a Million Dollars<\/a> in his pocket. No way. The 1 million offer is very simple. Another 150,000 to put working capital in the business. And then 700,000 for any expansion opportunities. Those expansion opportunities are not gonna happen until this place is right. Im gonna want to have complete control for the next week so that i can get the employees in line, get their process in line, and tell them that you dont make any decisions. I make the decisions. If, at the end of this week, you cant do what i think youre supposed to do and this place doesnt function well, the deals off the table. I dont want ever to have to worry about this business suffering. Or not having enough money to pay my staff or not having enough money to pay rent. I wanna fix the business. I wanna transform parts of it that i think we can transform together. But i need to know that you can transform yourself. You gotta let me help you. [ahem]. Okay. Lets go to work. Were shaking on making this work for both of us. But i wanna be clear. Yes. If you mess with any of these employees, i will fire you. For those of you that have not met me, im marcus. I wanted everybody to know that andrew and i have come to a deal. Over the next week, youre going to see some significant changes, but the most important thing were gonna work on is management. Theres over 30 people working here, and they rely on this business to survive. So in that instance, theyll take abuse. Until somebody steps in and stops it. And im gonna be that person. The days of people being yelled at and demoralized and morale being this low are over. If youre happy, the customer will be happy. If youre unhappy, this place is out of business. Youre not gonna be out of business on my watch. We need to raise revenue in order to make money around here. Were gonna get very, very clear about the process. We have to increase occupancy in the kennels. We have to create a Loyalty Program<\/a> that allows customers to be rewarded for using our different products and services. My other goal is i wanna open up more locations, but we cannot do that. We cannot do that unless this one is right. We have to expand the retail Product Selection<\/a> by developing private label products. All of the staffing, morale, all of that is my job. Oh, sorry. You guys are gonna be reporting in to me. All right, lets get back to work. Okay . [energetic music] hey, im marcus. Stefano. Stefano, nice to meet you. Youre here to talk about the painting . Yeah. Im looking just to accent stuff. Right. That wall right there and this wall right here could be your accent wall, as well as that one right there. In order for me to move forward with my marketing plan, i wanna see any and everything that andrew has. So andrew wanted to take me back into the garage to show me his delivery vehicle. Oh, this is cool. This is the fetchmobile. They wrapped and the whole deal . Uhhuh. And look. And look, and look. Well, i mean no. Wait a minute. There is no well. Its a scratch. So a team member did that . Yeah. Carelessness. Its called an accident. I mean, andrew, you do understand that things happen, right . Oh, i understand, but not constantly. The question is do you have enough patience and tolerance to educate them, to train them, to forgive them . [scoffs] i have seen my employees whittle away at the integrity of la dogworks. By stupidity, by laziness. By notnot coming to work. You hire people. And thats where your problem starts. The personalities, the laziness, the bad work ethic all these variables drive me crazy. How many times do i have to ask you to do something . How many times do i have to ask you . Its like the water torture boom, boom, boom. Were working together here, were a team, were a hierarchy. Were just like the dogs. Whos the top dog, whos the alpha male . Me. You gotta do what i say when i say it. I mean, if i could fire the entire staff and start from scratch, i would do that too. So who wrecked the van . Well, neil. What do you do, just yell at him . I dont talk to neil, as a matter of fact. Why . You dont like him . I hate him. Hes a [bleep]. Hes aill give you 8. 50 or 9 worth of work and not a [bleep] penny more and not any more effort. Okay . Thats neil. When he got bit by the dog and was bleeding, were you concerned about him or the dog . Ha ha ha ha ha ha ha ha okay andrew, i gotta tell you your laugh scares the [bleep] out of me. Because its a farce. What neil did was reach down and push the dog back, at which point, the dog bit him. It sounds like he was just trying to stop the dog from running in the street. I was horrified. Whywhy would you do that . As andrews ranting and raving, neil walks in. Instead of andrew using some sort of decorum or discretion or shutting his mouth, he continues. He actually gets even more amped up. And then he comes up to my office yelling and screaming at me that i should have shown more compassion. But i think when that happens, i think what people are looking for is some level of sympathy. Thats notagain, my staff has to function a right way. I know. When neil started working here, and i told him to this to his facei had big hopes for him. When you say that to somebody, i had high hopes for you. Neil did not hear that from me until we had a huge argument in the kitchen when he got in my face with his wide eyes ii got in your face . You dont remember that . I dont remember it that way. Well, my back was to the door and you were standing here staring me down and i said, who the [bleep] do you think you are staring me down . [inhales] dont remember that . I remember it differently. Okay, well. In that instance where he pulled the dogdid you think neil was out of line . No, not out of line, just doing a stupid thing. He just did the wrong thing. A thing that nobody else would do. Have a good night. Okayno, nois there a problem . [dogs barking] hes gonna get fired anyway. Whys that . Because i [bleep] cant stand him. Hes insubordinate, hes obnoxious. Dont let him manipulate you, because im telling you, he is just worthless. Absolutely worthless. Coming up. You dont know the history of whats gone on here. The history is that the people that work here dont [bleep] want to do it anymore andrew, this is dr. Rivera. Shes worked with me in other companies in trying to help bring people together. Ha ha ha ha ha we need to gather everybody together. We need to talk as a group now. As soon as i saw the extent of andrews rage for his employees, i realized i needed to get all the employees together immediately. This is the timethis is like a Group Therapy<\/a> session. I mean, listen, a lot of times things can be solved if people can just talk them out. Its impossible, andrew, for you to dismiss how these people feel anymore. You cant do it anymore. I dont dismiss. You do. No, i dont dismiss. Im sorry, but you do. No, i dont. Im sorry, but you do. No, i dont dismiss. You dont try to empathize or feel what theyre feeling. Everything is justhandle it. Do it, fix it. For me to get you guys to do things wasnt always so easy. cause we had other things to do. Theres always something to do. Youre saying the whole problem was we had no organization, things werent getting done that you wanted us to get done. But you expect three people to take care of 50 dogs a day plus do dropoffs and pickups, making sure they get medication, they get their food, and we clean the whole building. All that stuff with three people is not possible. We all have to make things work. No, i know, but utilizing our time properly. You focus so much on what doesnt get done that it makes people feel that theyre worthless. You complain about having to pay anybody anything, and people work really hard. I feel you dismiss it. Its justits not okay, youre incorrect in your feelings. I have tried, and ive tried to communicate, and ill tell you somethingit doesnt work all the time. Theyre scared of how youre gonna react. And thats a big one too, cause a lot of people see you ranting and yelling at me when im inside dog area, so then youre just like, oh, [bleep], im not gonna go talk to him. People avoid you. Everybody here knows my personality, knows the way i am. Im a reactionary, okay . Ill yell and scream, and then its fine. Yeah, but i mean, for you. And thats what i need to do for my health. And for my health, im sorry, its not working, cause im stressed outi go home stressed as hell, dude, i dont see my wife as much, cause i have to do these extra hours. You dont think i work enough. This job has really stressed me out. Thats not true. Andrew, you gotta listen youre not listening i listen to everything. No, youre not does he listenyes or no . No. Its okay. Youre frustrated, right . Yes. Okay, just tell him how you feel. Hes not gonna get mad. Im listening. Okay. Go ahead. Its our livelihood here. [crying] and its just never been considered. Emily, what does that have were working so hard. But explain whats been going on so marcus understands. No, no, i understand. I want you to understand. No, no, you dont understand. No, because you dont understand. What do you mean, i dont understand . cause you dont know the history of whats gone on here. The history is the people that work here dont [bleep] wanna do it anymore thats what matters. Thats the easy way out. Thats the easy way out, marcus. You know what the easy way out for all them is . Whats the easy way out . Leave. Whats the easy way out . To leave. Whats the i quit. To leave. To leavethats their easy way out. And then youll be totally up [bleep] creek. Now, thatthats ridiculous. Im not gonna let these people suffer because youre a [bleep] communicator. Were gonna fix it. They are loyal to you for some crazy reason. I have no idea. But im surprised they all havent left. Andrew continues to be ignorant to the fact that these employees have something to say. He doesnt seem to understand that these are real people with real feelings who have a passion for his business. And that these people, if treated properly, will make him a lot of money. We are gonna leave the past. We got a lot of work to do. Lets you and i spend some time together. Guys, thank you, okay . No, no, no, no. No. I didnt like being ambushed today. You know, its kind of like when somebody falls or somebody gets knocked down and then you kick them and then, oh, look, and then the next one kicks them and theyre kicking and then im like, whoa you know . Enough is enough. I created this business. And i showed everybody how to do it. This is my happiness. Im gonna make you the best Business Owner<\/a> thats ever lived. Thank you but you have to shut up once in a while. And let em just talk. Its so difficult for me. Im sorry. It is, but whats the disadvantage of letting them get it out . Andrew has what i call delusions of grandeur. He thinks hes bigger and better than he actually is. He has no respect for his employees, and the smallest of things set him off. Instead of counseling his employees and teaching them and training them and being a good leader, hes just an angry man. Can i have a few minutes by myself, please . Sure. This guys a [bleep] lunatic. [laughs] wheres jesse . Hes not here. Hes off today . I came into the business this morning hoping to have a fresh start, hoping to really develop all these great plans. Instead, i walked in to some really big problems. Jesse quit. Yeah. He was having a conversation with erin, and he got up and quit. I made a decision what happens if all these people quit . Then we hire new people. Andrew, youre still struggling to see that these are people. Youre managing them. Like servants. And without them, were closed. This is a moment that ive worried about, and ive warned andrew about this. If people arent treated properly, theyre gonna rebel at some point. And what im starting to sense is theres mutiny about to happen at this place. [dramatic music] talk about jesse for a minute . Okay. Can we have jesse come in . What . Sit down and talk about all this . Why . Because i think its unfair that he left. Without having a chance to say anything. Jesse has emailed me the schedule three or four times in the entire time hes worked here, okay . He refuses to do it. Hes been a dedicated employee who has he hasnt been. Yes, he has he has not been. Dedicated to who . Who is he dedicatednot me were not all here for you we are here for this place then well neverthen thenno, no, no, no. Im not gonna put up with that. Jesse failed miserably. He wouldnt listen to a [bleep] thing i said. [shouting] i dont have to ask him time and time and time and time again email me the [bleep] schedule just do it thats the answer to everythingjust do it. Well, just do it when you do it, do it. And again, weve had this talkthe false threats, and this and that and yelling and screaming gets nowhere because people dont take it seriously i trusted people to manage. Thats not fair. What are you talking about . Dont even go there. Im not going anywhere. Thats a waste of [bleep] you. Coming up. He told me he was quitting. You say the wrong thing to him, and its, holy [bleep] i dont care. Who are the employees, if you had to guess, who are the employees you think youve hurt the most . Im very excited about all these ideas that we have for la dogworks. But i continue to be concerned about andrews behavior. When i get voicemail messages that sound like this hey, marcus, this is neil. Im calling to ask if you can hire me into one of your other businessesi dont even care. Whatever you got. Im distressed at the harassment level. Its just getting to be overwhelming at dogworks. So i decided to bring in dr. Rivera, a workplace psychiatrist. Ive worked with her in the past, and shes been very successful in helping create Common Ground<\/a> between employees and owners. Hey, marcus. Hey, how are you, dr. Rivera . How are you . Good to see you again. Good. How are you . Hows everything . Big sigh. Yeah. This is a big challenge. Let me give you a little tour, introduce you to a few people. Okay. [dog yipping] isnt this beautiful . Wonderful yeah. Hi. How are you . Im andrew. Im erica. Hi, erica. Nice to meet you. Pleasure. Andrew, this is dr. Rivera. Shes worked with me in other companies in trying to help bring people together. So ha ha ha ha ha ha im kidding. I thought maybe the three of us can go back and chat. Sure. I think my biggest concern is to help him manage people. Its not a thing that he loves to do. Employees have been the bain of my existence. Okay. I hear you say bain of your existence, and in our discussions, we think about employees actually being the key to a successful business. Your employees need to know that you trust in them, value them, and believe in them. Or its gonna cost you. In the bank, its gonna cost you. Theres one person here that i thought it would be helpful for him to be brought into the equation for you to interact with him in his presence. Okay. And to watch the visceral reactions that bubble from both. Right. Because if andrew can learn to work through this particular one, i think hes got the potential for being an amazing. Amazing Business Owner<\/a>. Lets go see neil. If dr. Rivera can find some Common Ground<\/a> between the employees and andrew, we are well on our way to making a lot of money. This is neil, buddy of mine. Hi. Ni, neil. Its nice to meet you. So andrew, can you tell me what qualities you see in neil. I dont see anything in neil now because he doesnt exist. We had a falling out, and i wouldnt say im a grudge holder, but im a grudge holder. So whats been going on with you and andrew . There was an incident. I got bit by a dog. This dog started charging out of the run. My first instinct was, protect this dog from running down the street, and the dog latched onto my arm and literally he said to me, well, look how youre handling the dog and i was like, uhuhyou know, i mean, its like damage control. I said what are you doing . Is what i said. Neither of those statements any way to me sound like they have any, um, level of concern in your employees health, though. Lets be honest, right . This is important, because neil, you felt you werent being taken care of by your employer in that moment. Well, when you work in a place like this, biting can be inevitable with that many dogs, but its just how you handle it. I went up into the office and i said, next time i get bit, please show some compassion. At that point, he started screaming at me, and he was being so toxic and hostile in my face. Thats not what happened at all. He was very angry and. Really challenged me in front of people. And i said, what is your problem . And he goes like this. [whispers] oh, my god. Not oh, my god. Not oh, my god. I did not get in his face. This is the energy that i had when he was screaming the f word in my face. What the [bleep] it justthere was no stopping it. Thats not what i said, you fricking moron for Business Advice<\/a> and extra scenes from the show, go on to. Thats not what i said, you fricking moron you just threw a pretty rough insult at neil. Thatsi dont care i have heard more stories about neil and neil complaining about this and calling me names and im quitting and hes out of his [bleep] mind and nah, nah, nah, nah, nah. You say the wrong thing to him and its, holy [bleep] im thinking that probably this isnt the first insult youve gotten, neil. So im wondering. Wow neil, why are you here . He told me he was quitting. Are you waiting for that . Im not firing him. Why not . cause i dont deal with him every day. He does his job. He adds value as an employee. He adds value as an employee. Okay. So you dont have an intention of firing him. I never did. Theres just a difference of opinion about a lot of things, and, quite honestly, its his responsibility. To what . To make it worknot his. Neil, im sorry. Is there any way we can move past this . How hard is that . Well, maybe well do it another time. Why another time . Because maybe ititll be real. I dont want you dont need to use marcuss wordsyou use your own words. Lets go aheadill help you with dinner, neil. Talk to andrew. He needs to learn that its okay to say, im sorry. Whos gonna teach him . I cant helpi need your help because hes never gonna move on, ever. Right. Slack, slack, slack. How many times do i have to ask somebody to do something . Its gotta stop. So one of the important things i heard was marcus talk about the qualities he sees in neil. I feel like you really need to hear that. I see qualities, and ive told him i see qualities in him. Lets hear it. I see qualities in you. And i told her that. Come a little closer, neil. Thatthats enough. Thats not enough. No, thats greatno, thats stopover the line. Thats great. Stop it. [laughing] is this stop. Stop. If you put your arm around me, youre doing it because you really mean it. And you really want to make amends. If you really want to make amends, i can deal with it. Okay. Okay . Im willing to. Open myself up to you if youre willing to open yourself up to me. All right. Do you want to shake hands . Yes. When i accepted his apology, when i apologized to him, did i mean it . Absolutely. The one thing i will say for neil is he would never do anything to hurt a dog, and thats all i care about. I am exhausted. After andrew made up with neil, we went into the Training Facility<\/a> and he had what i would call a human moment, one that he doesnt have very often, where he was reflective and he realized the pain and suffering that he has caused to other people. After la dogworks opened, so many people came up to me and said, you did it. Whew. Feel proud, right . Its a proud moment. I honestly felt people worked really hard. Everybody pitched in, everybody. Pulled their weight. I mean, it was really a beautiful thing. Somewhere. Things fell apart after that. Who are the employees, if you had to guess, who are the employees you think youve hurt the most emotionally . In reflection. I want you to reconcile with the people that matter, and somehow that same resolution that you had about pulling people together and everybody striving for a common goalwe are at that point as we sit here right nowthat that same tenacity, that same will to win, that same energy that you used is what has to happen right this moment. You have to. Absolutely. Thats my dog. Oh, my boy. Between what happened with dr. Rivera and his breakthrough with neil, im now watching him actually pitch in. I think he realizes that if he does the job of the rest of his employees, hell have a better appreciation, a higher level of respect, and a better understanding of what it takes to work here. Felicias water. Felicias water . Yeah. [dogs barking] yamma coming in. Go on. Now that things are starting to look up and im noticing a change in andrews attitude, i wanted to take him out front and show him some of the changes that ive made to the front of the store. The building has been repainted. We had a lot of the holes patched, and we added these things. It says grooming. Grooming and training. Looks very nice. We needed to tell people what we do. The lightings all working. The flags are all up, and it looks good. I think its brilliant. Did you see the logo inside . Let me show you that. This logo that was made came out great. I love it. It is very beautiful. Thats great. I think that is a spectacular logo to be on the business cards with the grooming department. I mean, its fantastic. Beautiful. I also had some private label products marked up so andrew and the team can see the kind of ideas that we have and the kind of products that we can take to market. When we first met, i talked about ways to kind of make the brand bigger and stronger. These are nothing more than mockups. But im looking for products that are approved, that have the la dogworks stamp of approval. So the first thing i had created. Is a new pet fence. This is more of a mass marketed product. You like that . Yes. Its pretty nice. Its a very useful tool. Its also great for training dogs. This is a foldable pet bed. Its a cot, its a dog cot. Yeah. I like that. Thats a good idea. Thats great for the summer. A little portable pet drinker. So whether its this or 20 other things or 30 other things, as you open up more locations across the country, la dogworks products will be sold there. And itll also be online. Here, come here. See, the beauty of this relationship is being able to collaborate and make stuff like this and take it to the mass market. Thats what i thinks great. Coming up. I can make this business work with or without you. You dont know how to treat people. Oh, yeah, i do. No. Oh, yeah, i do look, in the last week, weve done some thingsat least weve tried to. Weve painted the front of the store, weve rebranded the retail store, weve worked on ways to improve the efficiency of the grooming department. Look, were at the point where andrew needs to get very focused if his business wants to survive. One of the things that i wanted to do is talk to you about the boarding. I had an idea that may or may not work, but if we went to animal shelters in the Greater Los Angeles<\/a> area and we said for every individual or family that adopts a pet, your first grooming or your first training or your first boarding is complimentary. Thats our gift back to you for loving dogs as much as we do. Although its a great thing to do for the community, its also a great way for people to come in. I would call it a loss leader. Does that make sense . Yeah, youre absolutely right, but this has all been discussed before. But it didnt its all been planned before, and it was attempted. Followthrough. I cant ask somebody 10 times, 20 times to do something when people arent following through. Im not sure i understand. There are employees that work here, okay, and a lot of them arent meeting the mark. Okay. I dont get it. Look, i see great possibilities with this brand and this business, but andrew cant get past blaming everybody else for every single mistake thats made. The people that need to go need to go. The people that are causing the problems need to go. How do you feel about that . Im just listening for right now. Im not sure what to say at this point. If i have to come up with newnew rules every day to get people to function properly, thats wrong. No, its called the evolution of business. Things change. No, no, no, no. No, no. So your solution is to get rid of all the people because they all suck. What people . The staff . Us people. Ha ha ha ha ha ha ha ha ha im not a moron. And i can make this business work with or without you. This isnt good sam, this isnt camping world, this isnt you know why its not . If this was good sam and camping world, your [bleep] would be outta here. Why dont you let me finish dont bring up my business ever ill bring whatever i want to. I treat my people the right wayyou dont know how to treat people. Oh, yeah, i do. No. Okay, i have changed. Oh, my god. Okay, i have changed. I know what i have to do and i know what i have to see happen here in order for la dogworks to oh, my god, you dont though, you keep saying that, over and over and over again. All ive heard for the last year is about getting rid of this, that, and the other, andrew, and youve never done it. Im sorry, youve never done it, and you lambaste a lot of hardworking people who come in here and they work their [bleep] off. There are a lot of good people who work here. Everybody ensures the safety and well being of these dogs every day. Thats bull[bleep]. Weve had a lot of great staff whove come through here, and a lot of great people whove left because of you. Because of me . Because of you. Not true. Nobodys left for that reason. You are so full of [bleep] im sorry. No. You are in such denial. No, im not. You are in denial, my friend no. You are. Absolute bull[bleep. ] you know, im just not in the mood to do this right now. You with me . Are you with me . [dog barks] are you with me . That doesnt do anything for me. Okay. I had a partner many years ago. The only reason my partner is alive is because murder is illegal. Okay . So. I dont do well with partners. I dont think im a bad person. I dont think im a bad boss. I justi have animals, you know . Its not like i own some [bleep] camping world. You know, camping store where somebody puts the tents where the skis are. Nobodys gonna die, nobodys gonna get sick, and nobodys gonna get hurt. So. Its a big difference. Anyway. Were on camera right now. I just noticed. This level of unpredictability is too scary. I cant move forward and do business with somebody that cannot treat his people right. The 1 million offer that i made to andrewthat deals off the table. I wont be a part of it. Man we need to reset at all . Man 2 that looks pretty good. Woman might as well keep rolling. Lemonis tonight, were going to give you an inside look at an episode from season 5 called tankfarm in seal beach. John california. Mike california. Lemonis california. Now, whos the betterlooking one . John i guess probably me. Mike i dont think so. [ laughter ] amber marcus, you want to introduce them . You didnt say their names. Lemonis oh, no, theyll say why dont you introduce yourselves . John so, where am i looking at you . Amber no, just [ laughs ] lemonis just talk. Mike be regular. So, im mike anderson, this is my brother john anderson. John hi. Amber oh, my god. Wow. John im john im john anderson. Lemonis by the way, their names are mike and john anderson. Theyre the anderson brothers. John design and supply company. 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