1 00:00:01,280 --> 00:00:03,520 Speaker 1: This episode is brought to you by P and C Bank. 2 00:00:03,920 --> 00:00:06,680 Speaker 1: A lot of people think podcasts about work are boring, 3 00:00:06,880 --> 00:00:10,719 Speaker 1: and sure they definitely can be, but understanding a professionals 4 00:00:10,800 --> 00:00:14,040 Speaker 1: routine shows us how they achieve their success little by little, 5 00:00:14,440 --> 00:00:18,079 Speaker 1: day after day. It's like banking with P and C Bank. 6 00:00:18,560 --> 00:00:21,360 Speaker 1: It might seem boring to save, plan and make calculated 7 00:00:21,400 --> 00:00:24,479 Speaker 1: decisions with your bank, but keeping your money boring is 8 00:00:24,520 --> 00:00:27,840 Speaker 1: what helps you live or more happily fulfilled life. P 9 00:00:27,960 --> 00:00:32,800 Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly 10 00:00:32,840 --> 00:00:35,479 Speaker 1: Boring since eighteen sixty five is a service mark of 11 00:00:35,520 --> 00:00:38,760 Speaker 1: the PNC Financial Service Group, Inc. P and C Bank 12 00:00:39,159 --> 00:00:41,360 Speaker 1: National Association Member FDIC. 13 00:00:43,440 --> 00:00:49,320 Speaker 2: So marketing to barbershops, right are you marketing? At the 14 00:00:49,360 --> 00:00:51,639 Speaker 2: beginning you were to face you were going in hand 15 00:00:51,720 --> 00:00:54,600 Speaker 2: in hand, So were you doing that? 16 00:00:54,760 --> 00:00:57,840 Speaker 3: What white barbershops? Also? Absolutely? 17 00:00:58,440 --> 00:00:59,640 Speaker 2: Well, how did that work out? 18 00:01:00,840 --> 00:01:03,680 Speaker 4: So funny enough, when we were first kind of thinking 19 00:01:03,720 --> 00:01:06,200 Speaker 4: through how we're gonna do this, we had a bias 20 00:01:06,240 --> 00:01:07,040 Speaker 4: against ourselves. 21 00:01:07,200 --> 00:01:08,840 Speaker 3: We thought we probably couldn't. 22 00:01:08,480 --> 00:01:11,040 Speaker 4: Go in there and like you know, resonate with with 23 00:01:11,040 --> 00:01:14,200 Speaker 4: with with these like non black barber shops. So we 24 00:01:14,319 --> 00:01:17,880 Speaker 4: ended up hiring a friend of ours who's actually still 25 00:01:18,000 --> 00:01:21,720 Speaker 4: the company, who who's white, and and like his job 26 00:01:21,800 --> 00:01:23,360 Speaker 4: was going to be kind of biz dev like going 27 00:01:23,400 --> 00:01:25,720 Speaker 4: to the shops, so he was doing that, we were 28 00:01:25,720 --> 00:01:28,760 Speaker 4: still doing it. And over time this on experience, we 29 00:01:28,800 --> 00:01:32,000 Speaker 4: started finding out that like, actually we were better even 30 00:01:32,040 --> 00:01:35,399 Speaker 4: at the white shops selling them than he was. And 31 00:01:35,440 --> 00:01:38,000 Speaker 4: some of the bias that we had, you know, the 32 00:01:38,040 --> 00:01:41,480 Speaker 4: preconceived notion that we had these shop owners because we 33 00:01:41,520 --> 00:01:43,080 Speaker 4: didn't look like them, weren't going to want to hear 34 00:01:43,160 --> 00:01:47,000 Speaker 4: us out. Actually it was just totally not true. And 35 00:01:47,000 --> 00:01:49,200 Speaker 4: and then you know, and it turns out, you know, 36 00:01:49,240 --> 00:01:50,720 Speaker 4: the white guy who we hied wasn't good at that, 37 00:01:50,760 --> 00:01:52,720 Speaker 4: He ended up being really good at other things, so 38 00:01:52,760 --> 00:01:55,840 Speaker 4: he moved into like product on the product side. So 39 00:01:55,920 --> 00:01:58,320 Speaker 4: you just never you never know. And sometimes there's a 40 00:01:58,360 --> 00:02:01,120 Speaker 4: tendency to sell yourself short because you know, you think 41 00:02:01,160 --> 00:02:03,360 Speaker 4: somebody's going to think something about you. But if you 42 00:02:03,360 --> 00:02:04,920 Speaker 4: have a great product and you go there and you 43 00:02:04,960 --> 00:02:07,160 Speaker 4: meet them, I I. You know, we found that for 44 00:02:07,200 --> 00:02:11,119 Speaker 4: the most part, customers are willing to hear you out, 45 00:02:11,160 --> 00:02:12,720 Speaker 4: you know, regardless of what you look like. 46 00:02:13,000 --> 00:02:16,600 Speaker 5: Yeah, are you solving the hair on fire problem, you know, 47 00:02:17,080 --> 00:02:19,480 Speaker 5: and if you're solving that problem, I don't care whatever 48 00:02:19,520 --> 00:02:21,520 Speaker 5: you are. I think they're gonna listen to you because 49 00:02:21,520 --> 00:02:24,480 Speaker 5: it's you're addressing a real pain point in their lives. 50 00:02:25,040 --> 00:02:27,040 Speaker 1: All right, correct me if I'm wrong in these numbers. 51 00:02:27,600 --> 00:02:31,520 Speaker 1: Thirty two thousand barbershops, thirty two thousand barber shops. 52 00:02:31,560 --> 00:02:36,400 Speaker 4: Yet barber's barbers ten million clients last time I checked 53 00:02:36,400 --> 00:02:37,440 Speaker 4: that somewhere in that right? 54 00:02:37,760 --> 00:02:38,760 Speaker 3: How are we like? 55 00:02:38,960 --> 00:02:41,760 Speaker 1: This is because like you're talking from twenty sixteen to 56 00:02:41,919 --> 00:02:45,079 Speaker 1: this point, how are we scaling year to year? 57 00:02:45,200 --> 00:02:47,520 Speaker 3: Like? Are you like what trends are you watching? To say? 58 00:02:47,560 --> 00:02:50,000 Speaker 1: All right, here's an opportunity, his opportunity. This is a 59 00:02:50,040 --> 00:02:52,360 Speaker 1: potemographic this is we haven't touched this place. How are 60 00:02:52,440 --> 00:02:56,080 Speaker 1: y'all going about that? That's a lot. Congrats, Thank you, 61 00:02:56,120 --> 00:02:59,480 Speaker 1: thank you, thank you. It's never enough, though, you lord 62 00:03:00,080 --> 00:03:00,800 Speaker 1: it to the next. 63 00:03:02,200 --> 00:03:04,519 Speaker 4: So what we learned is a super what's super important 64 00:03:04,720 --> 00:03:08,160 Speaker 4: to scales that you really have to scale your team. 65 00:03:08,200 --> 00:03:10,280 Speaker 4: So you know, in the early stages, you know it 66 00:03:10,560 --> 00:03:13,639 Speaker 4: us and then a few other early employees, but as 67 00:03:13,680 --> 00:03:16,760 Speaker 4: you get bigger, you really have to bring on folks 68 00:03:16,919 --> 00:03:20,080 Speaker 4: who have the experience of kind of getting to the 69 00:03:20,120 --> 00:03:23,560 Speaker 4: next level where you're trying to get. And over time, 70 00:03:23,639 --> 00:03:27,360 Speaker 4: we've built up a really incredible kind of bench of 71 00:03:27,360 --> 00:03:30,840 Speaker 4: our executives, uh and that that has helped, you know, 72 00:03:31,160 --> 00:03:34,239 Speaker 4: helped tremendously. And in the early days, you do you know, 73 00:03:34,280 --> 00:03:36,480 Speaker 4: it's called doing things that don't scale, like walking into 74 00:03:36,520 --> 00:03:39,520 Speaker 4: the barbershop yourself and pitching them like that's great, but 75 00:03:39,680 --> 00:03:41,520 Speaker 4: like you can't that's not going to get you to 76 00:03:41,560 --> 00:03:43,640 Speaker 4: where we are now. So over time you have to 77 00:03:43,640 --> 00:03:47,080 Speaker 4: figure out how do you build like repeatable motions, repeatable 78 00:03:47,080 --> 00:03:52,240 Speaker 4: processes that's like scalable and you know, that's essentially essentially 79 00:03:52,280 --> 00:03:53,160 Speaker 4: what we've been able to do. 80 00:03:54,600 --> 00:03:57,360 Speaker 2: So so as far as this number of seven hundred 81 00:03:57,360 --> 00:04:02,040 Speaker 2: fifty million dollar evaluation, what can you break that down 82 00:04:02,120 --> 00:04:04,000 Speaker 2: as far as like what does that actually mean in 83 00:04:04,080 --> 00:04:07,120 Speaker 2: layman terms for somebody that just they hear that. 84 00:04:07,240 --> 00:04:10,960 Speaker 5: But it's like that is the enterprise value or the 85 00:04:11,240 --> 00:04:15,160 Speaker 5: kind of like market cap of your business. So if 86 00:04:15,160 --> 00:04:19,039 Speaker 5: somebody were to purchase the building business, they would have 87 00:04:19,160 --> 00:04:22,440 Speaker 5: to pay seven hundred and fifty million dollars for entire business. 88 00:04:22,720 --> 00:04:26,040 Speaker 5: And if somebody is investing, you know, based on a 89 00:04:26,120 --> 00:04:30,280 Speaker 5: dollar a mount they invests. That's percentage amount of the 90 00:04:30,960 --> 00:04:32,159 Speaker 5: seven hundred and fifty million, and. 91 00:04:32,160 --> 00:04:34,960 Speaker 2: That seven hundred and fifty million would come from investors 92 00:04:35,200 --> 00:04:37,600 Speaker 2: valuing the company at that as far as Okay, I'm 93 00:04:37,600 --> 00:04:40,240 Speaker 2: gonna point this amount of money in per percentage and 94 00:04:40,279 --> 00:04:42,520 Speaker 2: then that equals to seven fifty or does that come 95 00:04:42,560 --> 00:04:46,120 Speaker 2: from revenue that is projected to be like okay, ten 96 00:04:46,200 --> 00:04:46,839 Speaker 2: ex revenue? 97 00:04:46,920 --> 00:04:47,800 Speaker 3: Like what it? 98 00:04:47,880 --> 00:04:51,880 Speaker 5: I mean, there's some formula that they create, but that's 99 00:04:51,960 --> 00:04:54,880 Speaker 5: essentially the former is like, hey, look, you know, for 100 00:04:55,000 --> 00:04:59,159 Speaker 5: one percent, it's seven point five million, so the times 101 00:04:59,200 --> 00:05:01,920 Speaker 5: that by ten. If you want ten percent, you got 102 00:05:01,920 --> 00:05:04,520 Speaker 5: to put up seventy five million. So that's kind of 103 00:05:04,520 --> 00:05:09,000 Speaker 5: how the math works. And it's just supply and demand. Uh, 104 00:05:09,360 --> 00:05:12,359 Speaker 5: you know, if you have a great product, if you 105 00:05:12,400 --> 00:05:16,280 Speaker 5: have some proprietary technology that they think might you know, 106 00:05:16,400 --> 00:05:20,000 Speaker 5: transform the world, they're gonna they're gonna pay whatever they're. 107 00:05:19,800 --> 00:05:20,320 Speaker 3: Gonna pay for. 108 00:05:20,400 --> 00:05:23,640 Speaker 5: It's just like, you know, what the company, what people 109 00:05:23,680 --> 00:05:24,599 Speaker 5: think the company is worth. 110 00:05:25,800 --> 00:05:27,520 Speaker 3: How does the ownership table look right? 111 00:05:27,520 --> 00:05:30,560 Speaker 1: Because a lot of times startups, you know, we don't 112 00:05:30,600 --> 00:05:33,680 Speaker 1: have money, right, we haven't goten venture capitals, and so 113 00:05:34,520 --> 00:05:37,200 Speaker 1: a lot of times people will offer equity right like 114 00:05:37,680 --> 00:05:40,240 Speaker 1: as an exchange or collateral to say hey, I need 115 00:05:40,279 --> 00:05:41,000 Speaker 1: you a part of the team. 116 00:05:41,360 --> 00:05:43,479 Speaker 3: How does ownership look then? How does it. 117 00:05:43,480 --> 00:05:45,960 Speaker 1: Look now obviously you've got a board, you've got investors, 118 00:05:46,320 --> 00:05:46,640 Speaker 1: are you. 119 00:05:46,600 --> 00:05:51,200 Speaker 3: Guys majority owners? Still? Like, how does this work? Yeah? 120 00:05:51,240 --> 00:05:53,080 Speaker 4: So as far as the equity, like all of our 121 00:05:53,080 --> 00:05:55,760 Speaker 4: employees have some degree of equity. 122 00:05:55,760 --> 00:05:56,680 Speaker 3: We think that's important. 123 00:05:57,120 --> 00:06:00,360 Speaker 4: We think it's important want to align incentives, and it's 124 00:06:00,400 --> 00:06:04,880 Speaker 4: also important as a wealth building mechanism. Our company is 125 00:06:05,760 --> 00:06:07,320 Speaker 4: I don't know for sure, but I would say it's 126 00:06:07,320 --> 00:06:10,440 Speaker 4: probably maybe the most diverse and one of the most 127 00:06:10,440 --> 00:06:12,760 Speaker 4: diverse of a company like at our scale in terms 128 00:06:12,800 --> 00:06:15,039 Speaker 4: of like the breakground of our employees. So we think 129 00:06:15,080 --> 00:06:16,520 Speaker 4: it's you know, it's really important for them to have 130 00:06:16,560 --> 00:06:18,160 Speaker 4: skin in the game. And like when we do have 131 00:06:18,200 --> 00:06:20,440 Speaker 4: the big exit, you know, hopefully we'll be creating a 132 00:06:20,480 --> 00:06:22,320 Speaker 4: lot of millionaires and creating a lot of wealth in 133 00:06:22,320 --> 00:06:27,360 Speaker 4: the community. So so that so that's important. The second 134 00:06:27,440 --> 00:06:30,160 Speaker 4: was the second part of the question ownership. I think, oh, yeah, yeah, 135 00:06:30,680 --> 00:06:33,800 Speaker 4: you get diluted. I mean it's natural, you know, it's 136 00:06:34,200 --> 00:06:37,880 Speaker 4: the pie gets gets bigger. But you're you know, year 137 00:06:37,880 --> 00:06:40,120 Speaker 4: a percentage of the pie goes down over over time. 138 00:06:40,440 --> 00:06:43,479 Speaker 4: So you know, unfortunately I wouldn't say we have we 139 00:06:43,520 --> 00:06:46,600 Speaker 4: have majority, but you know that's just kind of the 140 00:06:46,920 --> 00:06:47,520 Speaker 4: name of the game. 141 00:06:47,760 --> 00:06:51,680 Speaker 5: Yeah, but you know, control, I think is also super important. 142 00:06:51,800 --> 00:06:55,200 Speaker 5: Like you know, you know, when you go through this fundraising, 143 00:06:55,720 --> 00:06:59,039 Speaker 5: take on more more investors, you know, you lose control. 144 00:06:59,120 --> 00:07:02,360 Speaker 5: But we still, like a board can't get rid of 145 00:07:02,480 --> 00:07:04,880 Speaker 5: us if they if they wanted to, because of the 146 00:07:06,240 --> 00:07:12,160 Speaker 5: structure we have in place, and that's equally important control earners. 147 00:07:12,160 --> 00:07:12,480 Speaker 3: What's up? 148 00:07:12,640 --> 00:07:15,080 Speaker 1: You ever walk into a small business and everything just 149 00:07:15,240 --> 00:07:18,440 Speaker 1: works like the checkout is fast, their seats are digital, 150 00:07:18,960 --> 00:07:21,920 Speaker 1: tipping is a breeze, and you're out the door before 151 00:07:21,960 --> 00:07:26,080 Speaker 1: the line even builds odds are they're using Square. 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