WEBVTT - Daymond John 0:00:00.120 --> 0:00:03.040 Jeff Baso spoke up with Mark Cuban's money. He's gonna 0:00:03.120 --> 0:00:05.000 jump out the window. And then Mark Huban woke up 0:00:05.000 --> 0:00:07.680 with my money. He's definitely jumping out the leaving all 0:00:07.760 --> 0:00:12.160 my life and grinding all my life. Sacrifice Hustle, pack Price, 0:00:12.840 --> 0:00:16.480 one slice got the swath all my life. I've been 0:00:16.520 --> 0:00:19.760 grinding all my life, all my life, the grinding all 0:00:19.760 --> 0:00:24.759 my life, sacrifice, Hustle, Pegg Price, one slice got the 0:00:25.640 --> 0:00:30.760 swath all my life. I've been grinding all my life. Hello, 0:00:30.840 --> 0:00:32.720 welcome to another edition of the Club Sha Shay. I 0:00:32.720 --> 0:00:34.880 am your whole Shan and Sharp. I'm also the propriev 0:00:34.960 --> 0:00:36.920 of Club Sha Shake. And the guy that's stopping by 0:00:37.040 --> 0:00:39.920 today for a conversation is Drink is a fashion mogul. 0:00:39.920 --> 0:00:43.960 He's a Brandon Guru, an entrepreneurial expert, savvy business executive, 0:00:44.159 --> 0:00:47.120 a New York Times best selling author, founder, president and 0:00:47.240 --> 0:00:50.200 CEO of Fubu, A shark on the fourth Time award 0:00:50.200 --> 0:00:54.360 winning series Shark Tank The People Shark Damon, John, Damon, 0:00:54.400 --> 0:00:57.440 How you doing, brouh WHOA, thank you for having How 0:00:57.480 --> 0:00:59.800 you doing? I'm doing great? Thanks for coming on the pod. 0:01:00.280 --> 0:01:03.280 Since I got you here, I got a shark, and 0:01:03.320 --> 0:01:04.880 so you know what, I gotta make my pitch. I 0:01:05.000 --> 0:01:07.200 might as well make my pitch. So here I go. 0:01:07.600 --> 0:01:11.240 Tell me what you think. Tell what your think. Hello shark, 0:01:11.680 --> 0:01:14.080 I'm Shannon Sharp, and I'm here to try to raise 0:01:14.120 --> 0:01:17.880 fund a million dollars in revenue to increase our capacity 0:01:18.080 --> 0:01:24.840 for warehouse sizing. We have a product, a Cognact called Laportier. 0:01:25.200 --> 0:01:28.200 The Say edition is named after my grandmother, and we've 0:01:28.240 --> 0:01:32.200 already sold seventy five bottles of this Cognact. But the 0:01:32.240 --> 0:01:35.760 problem that we're running into is warehouse sizing because you 0:01:35.880 --> 0:01:37.720 have to order it online and it takes us a 0:01:37.720 --> 0:01:41.200 while to get the orders come from France and get 0:01:41.200 --> 0:01:44.360 it into into the customer's hand. We felt that if 0:01:44.360 --> 0:01:47.119 we had a warehouse big enough to house save four 0:01:47.200 --> 0:01:50.320 hundred thousand bottles UH, that way we can get it 0:01:50.320 --> 0:01:52.040 on the shelves, we can put it into say a 0:01:52.080 --> 0:01:55.440 Costco and save some of these other stores, and that 0:01:55.480 --> 0:01:58.360 way we wouldn't have to go through the reserve bars 0:01:58.400 --> 0:02:02.200 and these other online shops in order to get it 0:02:02.240 --> 0:02:05.560 to the consumer. So we're trying to raise an additional 0:02:05.600 --> 0:02:08.880 one million dollars to increase our warehouse size costs per unit, 0:02:08.919 --> 0:02:13.320 it's twelve dollars retail costs and seventy two dollars. What 0:02:13.400 --> 0:02:18.760 do you think you know? I think that you you 0:02:18.840 --> 0:02:21.800 want to, you know, take tiny steps, and I think 0:02:22.120 --> 0:02:25.320 it sounds like you've proved the market in our business. 0:02:25.440 --> 0:02:28.080 What we call what you're looking for in your business. 0:02:28.080 --> 0:02:30.280 I think it's an important on our side. It's called 0:02:30.280 --> 0:02:34.080 a three P L. Yes, that is called third party logistics. 0:02:34.200 --> 0:02:37.560 That you probably can handle that. But me not having 0:02:37.600 --> 0:02:41.840 a deep understanding of the distribution aspect of a liquor, 0:02:41.919 --> 0:02:45.359 I could be wrong. You see, Okay, I feel good. 0:02:45.360 --> 0:02:47.359 I feel good. I mean, you didn't say I'm out. 0:02:47.440 --> 0:02:49.640 You heard my pitch. You didn't say I'm out. You 0:02:49.680 --> 0:02:52.919 just say you know what. That's not really my forte. 0:02:53.120 --> 0:02:54.880 But it seems like you have a good grasp of 0:02:54.960 --> 0:02:56.200 what you want to do and how you want to 0:02:56.200 --> 0:02:58.600 go about doing it. So I really appreciate that. Let's 0:02:58.639 --> 0:03:01.000 get down. Let's get down to why you're here. You've 0:03:01.040 --> 0:03:03.480 been on Shark Tank. If I'm not mistaking, twelve seasons 0:03:03.919 --> 0:03:10.280 you've invested fifteen seasons, thirteen thirteen, okay, thirteen seasons. You've 0:03:10.320 --> 0:03:13.040 invested over fifteen million of your own dollars in one 0:03:13.120 --> 0:03:16.399 hundred and seven startups. One of the things I wanted 0:03:16.400 --> 0:03:19.720 to ask before you invest into the startup. Obviously you 0:03:19.919 --> 0:03:23.200 don't know anything about these companies. You're hearing what they say. 0:03:23.240 --> 0:03:25.440 What are some of the things you're looking for to 0:03:25.560 --> 0:03:27.799 make you say, you know what? I wanting to invest 0:03:27.840 --> 0:03:31.480 my dollars into this company? Yeah, so you know, there's 0:03:31.480 --> 0:03:35.040 a lot of things that I'm looking for simultaneously. So 0:03:35.200 --> 0:03:37.920 Number one, I want to hear the story of why 0:03:38.080 --> 0:03:41.560 was this product or service created? Okay, where did you 0:03:41.600 --> 0:03:44.280 find the passion in the drive fork Oka? Usually when 0:03:44.680 --> 0:03:48.520 people are successful, they they created something because they thought 0:03:48.560 --> 0:03:50.960 that there was a void in the market that nobody's 0:03:51.120 --> 0:03:52.880 trying to feel, or they would feel it, or they 0:03:53.200 --> 0:03:55.200 brought an extreme amount of joy to people. So I 0:03:55.240 --> 0:03:57.400 want to know where your passion is. Okay. I want 0:03:57.440 --> 0:04:00.080 to know how many times you fail, because if you 0:04:00.160 --> 0:04:02.320 come on there and say, well, I was doing good 0:04:02.560 --> 0:04:04.320 and then I did better than I did better, well, 0:04:04.320 --> 0:04:06.000 then why the hell you're here? You don't need us 0:04:06.160 --> 0:04:10.600 so telling about the failures. Then I want to know 0:04:10.600 --> 0:04:12.600 if you know your customer, If you don't know your customer, 0:04:12.600 --> 0:04:14.840 who exactly they are, where they're located, how much they're 0:04:14.840 --> 0:04:17.120 gonna pay for something, how much they won't pay for something. Well, 0:04:17.160 --> 0:04:20.719 then you're using my money as tuition. And then I 0:04:20.800 --> 0:04:23.760 want to know the numbers on where the margin is, 0:04:23.760 --> 0:04:27.760 like you shared with me that really great margin on 0:04:27.839 --> 0:04:30.720 your product, because then I see this room for profit. 0:04:30.800 --> 0:04:33.480 And last, but not least, I just gotta like you. 0:04:33.760 --> 0:04:36.560 I just gotta feel like you and I can have 0:04:36.600 --> 0:04:40.200 conversations together, solve problems together, learn together, and make money together. 0:04:40.400 --> 0:04:42.680 And you know, and we're gonna keep doing that because 0:04:42.720 --> 0:04:45.440 I'm gonna probably talk to you, you know, often, and 0:04:45.560 --> 0:04:47.480 especially if you work with me, I'm gonna sit next 0:04:47.480 --> 0:04:49.160 to you maybe eight hours a day, five days a week, 0:04:49.160 --> 0:04:50.839 for the next five years of my life. It's got 0:04:50.839 --> 0:04:53.400 to be worth it. You said something very important. You 0:04:53.440 --> 0:04:55.719 said passion, because I think a lot of times people 0:04:55.720 --> 0:04:58.600 get sometimes people get into business for the wrong reason. Well, 0:04:58.640 --> 0:05:01.279 I want to make money. If you're passionate about something, 0:05:01.520 --> 0:05:03.839 that aspect will come. So I wanted to hear. I 0:05:03.880 --> 0:05:06.960 was like, Okay, it's passion one of those things. How 0:05:07.040 --> 0:05:10.000 invested are you into the product? How knowledgeable are you 0:05:10.040 --> 0:05:12.560 about the service that you're trying to sell me on. Well, 0:05:12.560 --> 0:05:14.920 if you're not knowledgeable, how do you expect me to 0:05:14.960 --> 0:05:17.240 invest my money? And you're supposed to be doing this, 0:05:17.279 --> 0:05:19.480 You're supposed to be the expert at it, So why 0:05:19.480 --> 0:05:23.320 would I invest my money? You have to understand, you 0:05:23.360 --> 0:05:25.360 have to see the passion and the drive and somebody 0:05:25.440 --> 0:05:28.240 because you know, I'm guilty of it as well. But 0:05:28.480 --> 0:05:31.160 almost everybody that I met that were doing something, and 0:05:31.279 --> 0:05:34.840 the and the and the concept came purely because of 0:05:34.920 --> 0:05:38.159 the need to make money. And it wasn't followed with 0:05:38.160 --> 0:05:40.520 a passion or a drive or a love or something. 0:05:40.880 --> 0:05:43.440 They ended up either in the wrong place right for 0:05:43.600 --> 0:05:45.800 that money, or they failed at it, or when they 0:05:45.839 --> 0:05:48.240 made the money, it was so difficult that they blew 0:05:48.279 --> 0:05:50.880 it right away because they was they just needed to 0:05:50.920 --> 0:05:52.840 get that money, and then they go out. They had 0:05:52.880 --> 0:05:55.719 no other further drive. And that's what I really see 0:05:55.839 --> 0:05:58.000 some of the biggest challenge in entreroom. Now. You may say, well, 0:05:58.040 --> 0:06:01.400 what about the banking system and venture capitalists. Yeah, money 0:06:01.440 --> 0:06:06.680 isn't after after, you know, money what comes after. But 0:06:06.760 --> 0:06:09.080 they love the kill or they love to see these 0:06:09.120 --> 0:06:12.720 structures come together or understand how to put things together 0:06:12.800 --> 0:06:16.240 and extract the value from it. That's what they really love. 0:06:16.360 --> 0:06:18.520 The money is definitely something that comes up, and it's 0:06:18.520 --> 0:06:20.760 almost like you playing ball. I don't I don't know 0:06:20.800 --> 0:06:23.200 how many you know, I'm showing you, I'm show you, 0:06:23.200 --> 0:06:25.520 you know, listen, better than better than anybody else in 0:06:25.520 --> 0:06:28.120 the world. You probably understand how many kids were just 0:06:28.200 --> 0:06:30.159 thinking about all the cars and all the things they 0:06:30.160 --> 0:06:33.839 could potentially get right. But you know, and practice was miserable, 0:06:34.200 --> 0:06:36.160 you was, you know, it was probably like you know, 0:06:36.880 --> 0:06:38.599 it's like I love I love every day that I'm 0:06:38.680 --> 0:06:40.880 learning something, I'm getting better, and I gotta I gotta 0:06:41.000 --> 0:06:42.960 keep getting better at this because I'm not going to 0:06:43.040 --> 0:06:45.040 let that person challenge. I'm gonna take that person out. 0:06:45.560 --> 0:06:47.320 And that's a whole different story than money. And then 0:06:47.360 --> 0:06:51.400 money came. So obviously there are a lot of things 0:06:51.440 --> 0:06:53.400 like if they do something with fashion, you do something 0:06:53.400 --> 0:06:55.960 with a product, you probably have a general understanding of that. 0:06:56.560 --> 0:07:00.800 But when you invest into a commodity that you have 0:07:01.000 --> 0:07:04.640 very little knowledge of what makes you like, you know what, 0:07:04.760 --> 0:07:06.479 I think this thing could work? And you said, you 0:07:06.560 --> 0:07:09.480 spend six eight hours a day working alongside that person, 0:07:09.920 --> 0:07:12.480 So tell us how shark. So once you said, okay, 0:07:12.640 --> 0:07:17.520 I mean, how does the process go moving forward? Well, 0:07:17.520 --> 0:07:19.560 it all depends on what you need. So I think 0:07:19.600 --> 0:07:21.520 one thing that I left out is a lot of 0:07:21.560 --> 0:07:24.440 times as a shark, we may not be into something 0:07:24.480 --> 0:07:27.240 because we may feel that we don't add value to it. 0:07:27.240 --> 0:07:29.800 It's something that I don't know. And you don't only 0:07:29.800 --> 0:07:32.440 want money if you have something great. You want smart money, 0:07:32.520 --> 0:07:35.520 somebody who can also help you and not just give 0:07:35.600 --> 0:07:37.679 you some money. Because if I only gave you money 0:07:37.680 --> 0:07:40.440 and I really care about what you're doing, well, then 0:07:40.480 --> 0:07:42.840 if I can't show up, then I'm taking a seat 0:07:42.880 --> 0:07:45.520 at somebody at the table as somebody else will give 0:07:45.520 --> 0:07:47.800 you the money and put in sweat equity and give 0:07:47.840 --> 0:07:50.280 you contacts and give you knowledge. And I feel like 0:07:50.360 --> 0:07:53.040 I'm doing you a disservice. Okay, So I have to 0:07:53.040 --> 0:07:56.520 find you know, a true pitch resonates with somebody, And 0:07:56.560 --> 0:07:59.320 it's very similar to an informercial. A lot of times 0:07:59.360 --> 0:08:02.120 you don't even know when you want something until you 0:08:02.160 --> 0:08:04.640 find these key moments in a pitch. Right. So it's 0:08:04.680 --> 0:08:07.560 like somebody saying your home, they go has this ever 0:08:07.640 --> 0:08:11.040 happened to you? And You're like, yeah, it has. Yes, well, 0:08:11.040 --> 0:08:13.280 it's happened to me too, and I found a better way. 0:08:13.320 --> 0:08:15.400 My name is Damon John. I failed several times and 0:08:15.480 --> 0:08:17.760 making this better way both but the eight time this 0:08:17.760 --> 0:08:20.240 thing is working out. And if you buy this better 0:08:20.280 --> 0:08:22.640 way by midnight tonight, I'm gonna give you two better 0:08:22.680 --> 0:08:24.400 ways for the price of one. And if you don't 0:08:24.440 --> 0:08:26.600 like it, send me your money. I'm gonna send me 0:08:26.600 --> 0:08:28.400 your product. I'm gonna send it back to you. And 0:08:28.480 --> 0:08:30.520 that's the way that the real pitch goes. You resonate 0:08:30.520 --> 0:08:34.240 with somebody, they go, wait a minute, I didn't think 0:08:34.240 --> 0:08:36.240 of that, and then you find a way to make 0:08:36.280 --> 0:08:39.040 them buy in at a low cost. And if they 0:08:39.200 --> 0:08:42.600 buy in and they don't really love it, you try 0:08:42.640 --> 0:08:44.320 to find a way to say, all right, don't worry 0:08:44.320 --> 0:08:45.839 about I love the fact you had trusted me. I'm 0:08:45.840 --> 0:08:47.640 gonna make it easy for you to get out of this. 0:08:47.920 --> 0:08:50.200 And that's the best way of pitches. That's how it 0:08:50.320 --> 0:08:52.120 was with the air fryer. With me, I didn't really 0:08:52.120 --> 0:08:53.839 know I needed the air fry until I bought two 0:08:53.880 --> 0:08:58.360 of them. Tell me about it. That's how it goes 0:08:59.200 --> 0:09:02.760 with but the thing you so okay, you obviously you're 0:09:02.840 --> 0:09:05.520 very successful at what you did. What you do. You 0:09:05.600 --> 0:09:07.959 started a company from ground floor and you built it up. 0:09:08.240 --> 0:09:10.640 So how do you, I mean, how did you do 0:09:10.840 --> 0:09:14.319 like the three companies that you had the most success 0:09:14.360 --> 0:09:17.920 with investing your money? What was it about what they 0:09:18.000 --> 0:09:22.760 said that resonated so much with you? It's a story 0:09:22.800 --> 0:09:25.640 that I shared right there. So the best, the best 0:09:25.679 --> 0:09:29.280 company that I have that's done the best from Shark 0:09:29.320 --> 0:09:32.800 Tank is the number one invested company in Shark Tank. 0:09:32.840 --> 0:09:35.600 So I have the number one company in Sharkkank history 0:09:35.720 --> 0:09:39.280 that has grossed the most money. Now, ring Doorbell did 0:09:39.320 --> 0:09:42.280 not get an investment. They did one point three billion 0:09:42.360 --> 0:09:45.240 dollars in sale I mean as a sale to Amazon. 0:09:45.840 --> 0:09:50.000 But my company, Bomba Socks is the number one product 0:09:50.040 --> 0:09:52.679 invested in Sharkkank history. But I gotta tell you this 0:09:52.720 --> 0:09:56.120 pitch they they found angle is to work with me. 0:09:56.200 --> 0:09:58.520 That I didn't realize I had I go into Shark 0:09:58.559 --> 0:10:01.319 Tank because I had ten companies and nine of them 0:10:01.320 --> 0:10:05.320 were dead after two thousand and six, two thousand and seven, 0:10:05.360 --> 0:10:07.800 nobody's buying another shirt or jeans and they couldn't pay 0:10:07.800 --> 0:10:10.400 their rent. So the last thing I ever wanted was 0:10:10.559 --> 0:10:14.080 another clothing company because I wanted to diversify my portfolio. 0:10:14.600 --> 0:10:16.960 But these young men came in and said, we have 0:10:17.040 --> 0:10:20.120 socks and number one. Number two is the real reason 0:10:20.240 --> 0:10:24.280 we love to sell these SOCCA. Every time we buy 0:10:24.679 --> 0:10:26.360 you buy a pair of sock, we give one to 0:10:26.440 --> 0:10:28.760 those that needed the homeless shelter. These socks and underwear 0:10:28.760 --> 0:10:32.120 t shirts are their number one request and we are 0:10:32.160 --> 0:10:35.600 selling directly to our customer. This is a high margin product. 0:10:35.640 --> 0:10:37.280 It is a great product. It took the steam out 0:10:37.280 --> 0:10:40.280 of the toe, and so there's enough money to sell 0:10:40.320 --> 0:10:43.280 directly the customer and give the pair away. And why 0:10:43.280 --> 0:10:46.600 did that make this attractive to me? Because I used 0:10:46.600 --> 0:10:48.640 to always say, you have to make it, then you 0:10:48.679 --> 0:10:50.880 have to be able to master it, then you can matter. 0:10:50.960 --> 0:10:53.520 How can you help people who're not helping yourself? But 0:10:53.800 --> 0:10:57.480 simultaneously they showed me that first of all, Daton retail 0:10:57.559 --> 0:10:59.320 is suffering. You don't know where retail is going. They 0:10:59.360 --> 0:11:00.800 don't even know who they want to be when they 0:11:00.840 --> 0:11:03.319 grow up. We're talking directly to our customer, and we're 0:11:03.320 --> 0:11:05.680 also helping those in need. Because I know you're big 0:11:05.679 --> 0:11:09.600 into philanthropy and charitable organizations, and they switch that whole 0:11:09.640 --> 0:11:12.040 thing around on me, and I couldn't wait to invest 0:11:12.080 --> 0:11:15.880 in that company. And that's because they understood what the target, 0:11:15.920 --> 0:11:18.840 who I was the target, really wanted to see in life. 0:11:19.000 --> 0:11:21.440 Helping people at the same time as dealing direct to 0:11:21.480 --> 0:11:24.840 my consumers. You're known as the people's shark, and you 0:11:24.920 --> 0:11:30.760 place an emphasis on people over the product. Why because 0:11:30.800 --> 0:11:32.959 products come and go and there's nothing new in this world. 0:11:33.000 --> 0:11:35.600 I mean, Facebook's a nasty chain letter, the Snuggie is 0:11:35.600 --> 0:11:37.760 a blanket with two holes in it, and Uber is 0:11:37.800 --> 0:11:41.000 a limousine service. But it's the people behind that. It's 0:11:41.040 --> 0:11:42.600 the people in front of it, the people who are 0:11:42.640 --> 0:11:45.200 the customers. It's the people who operate these things daily 0:11:45.679 --> 0:11:48.320 that is critical. If I want to spend, if I 0:11:48.320 --> 0:11:51.320 want to make money and not have to talk to anybody, 0:11:51.760 --> 0:11:53.520 and I send my money over to Apple, I send 0:11:53.520 --> 0:11:55.240 my money over to Tesla, and I send my money 0:11:55.240 --> 0:11:58.600 over to Shopify. I was Shopify twenty eight dollars the 0:11:58.760 --> 0:12:02.480 high in five years it hit. It hit eighteen hundred. Okay, 0:12:02.480 --> 0:12:04.520 today it's half off, and I think everybody should buy it. 0:12:04.640 --> 0:12:06.480 But they're not calling me asking me how to fix 0:12:06.559 --> 0:12:08.960 the back end of a website. Elon Musk is not 0:12:09.000 --> 0:12:10.800 calling me asking how to fix a damn car, and 0:12:10.840 --> 0:12:12.960 Steve Jobs, even if he was alive, wouldn't call me 0:12:12.960 --> 0:12:14.880 and ask how to fix a computer. So if I 0:12:14.920 --> 0:12:16.720 want to make money, I send my money over there 0:12:16.840 --> 0:12:19.480 or real estate. So if I'm going to deal with people, 0:12:19.520 --> 0:12:22.040 I'm going to invest in people. I'm gonna want to 0:12:22.080 --> 0:12:24.120 get to know them. I'm gonna want to learn from them. 0:12:24.120 --> 0:12:26.319 We're both gonna have an education and have a good time. 0:12:26.360 --> 0:12:29.320 In this business fails, we'll just start another one together. 0:12:29.360 --> 0:12:31.920 Because I like the way that you get down, So 0:12:32.160 --> 0:12:35.080 you're more into the relationship. You like the per you 0:12:35.160 --> 0:12:38.000 like the you liked it like, Okay, we're in this together. 0:12:38.360 --> 0:12:40.320 I got something to lose. You got something to lose. 0:12:40.400 --> 0:12:42.200 You're gonna work your tail off. I'm gonna work my 0:12:42.240 --> 0:12:44.880 tail off. We're gonna make this grow. We grow together, 0:12:45.200 --> 0:12:48.000 or we fail together. As you mentioned earlier, Okay, we'll 0:12:48.000 --> 0:12:51.480 start something else together. Absolutely, that's the way it is. 0:12:51.520 --> 0:12:57.040 It's a partnership. Your mom was your first investor, So 0:12:57.240 --> 0:12:59.760 your mom was the very first shark before that was 0:12:59.840 --> 0:13:01.840 the shark take. So how did you pitch your ball? 0:13:04.120 --> 0:13:06.720 Oh you know, mom saw me putting in the work. 0:13:08.400 --> 0:13:10.680 She saw me putting in the work, and I had 0:13:11.679 --> 0:13:15.079 She saw me working on fooboo for about five years prior. 0:13:16.120 --> 0:13:18.320 I went to Vegas and I got three hundred thousand 0:13:18.360 --> 0:13:21.200 dollars worth of orders from stores with one of the goods. 0:13:21.240 --> 0:13:23.760 I come home, I go to twenty I go to banks. 0:13:23.800 --> 0:13:25.640 I get turned out by twenty seven banks. It's not 0:13:25.679 --> 0:13:28.560 their fault. I didn't have financial intelligence. I didn't have 0:13:28.800 --> 0:13:31.559 much to collateralize things with, and something like a Foo 0:13:31.640 --> 0:13:35.240 boo was only done maybe by Carl canin Cross Colors 0:13:35.240 --> 0:13:37.360 earlier than me, so it wasn't really something that people 0:13:37.360 --> 0:13:39.280 could see value in. I go to my mother, I said, 0:13:39.280 --> 0:13:41.240 I turned out by twenty seven banks. She said, damon, 0:13:41.840 --> 0:13:43.840 you've been, you know, trying to contribute to this house 0:13:43.880 --> 0:13:45.920 as long as since you were a kid. I wouldn't 0:13:45.920 --> 0:13:47.760 do this if you didn't have the money. Let's take 0:13:47.800 --> 0:13:50.199 all the money we can out of the house, you manufacturer, 0:13:50.200 --> 0:13:52.400 and deliver the clothes and put the money back into 0:13:52.440 --> 0:13:55.600 the house. And that's how she you know, she gave 0:13:55.640 --> 0:13:57.000 me the funny and my mother went out and got 0:13:57.000 --> 0:13:59.320 one hundred thousand dollar alone on my house. And I 0:13:59.400 --> 0:14:02.400 have no idea how because the houses were seventy five 0:14:02.800 --> 0:14:04.440 till today. I haven't asked on what she did for 0:14:04.440 --> 0:14:06.240 the rest of the money, but shout out to mom's 0:14:07.400 --> 0:14:11.600 she did that twice. So let message this, how did 0:14:13.520 --> 0:14:15.760 because food? Because normally a lot of times that's a 0:14:15.760 --> 0:14:18.080 lot of money. And for mom to take out, you know, 0:14:18.160 --> 0:14:20.400 that's your home, and you know, here's the thing. I 0:14:20.440 --> 0:14:22.640 can't fail or me and Mom both gonna be on 0:14:22.640 --> 0:14:26.880 the street. That's right. So you you really had to 0:14:26.920 --> 0:14:29.800 put your head down. You really had to grind to 0:14:29.840 --> 0:14:33.800 see this thing through to make sure that Mom didn't 0:14:33.800 --> 0:14:36.120 go belly up and you didn't go belly up, because 0:14:36.120 --> 0:14:40.200 we're both gonna be belly up. So how confident were you? 0:14:40.200 --> 0:14:42.000 You said you've been working at this for five years. 0:14:42.000 --> 0:14:46.840 How confident were you this thing's gonna work. I was 0:14:46.880 --> 0:14:51.000 one hundred and twenty percent confident that it was gonna work, 0:14:51.080 --> 0:14:59.560 and I was absolutely wrong. The story goal is that 0:14:59.680 --> 0:15:03.000 honest sleep. I turned around and I had turned my 0:15:03.040 --> 0:15:05.040 house until factory. My friends and I was sleeping and 0:15:05.160 --> 0:15:07.640 sleeping bags next to the machines. We had all machines 0:15:07.680 --> 0:15:10.760 in there. My mother moved out because she was like yo, 0:15:10.840 --> 0:15:14.280 guys are crazy. We hired seamstresses. I was renting out 0:15:14.320 --> 0:15:16.440 the top rooms to strangers to keep the mortgage. I 0:15:16.480 --> 0:15:20.000 was working out Red Lobster still at the same time 0:15:20.000 --> 0:15:22.440 as doing Fooboo. And I turned around and one hundred 0:15:22.440 --> 0:15:25.640 thousand dollars almost three months later, was only five hundred 0:15:25.680 --> 0:15:27.800 dollars left, and they were talking about taking my house. 0:15:27.840 --> 0:15:31.560 And I was risking losing my mother's most valuable possession. 0:15:31.920 --> 0:15:34.160 And it wasn't that I was It wasn't that I 0:15:34.200 --> 0:15:36.560 was spending on lavish things, but I didn't know how 0:15:36.560 --> 0:15:39.120 money worked. And I was paying ninety days ahead of 0:15:39.120 --> 0:15:40.760 time for real goods. Then I was paying for a 0:15:40.840 --> 0:15:43.960 staff and manufacturing, and then I was paying for shipping, 0:15:44.360 --> 0:15:46.960 and then the customers wouldn't paying me for thirty sixty 0:15:47.080 --> 0:15:50.840 ninety days terms. So it really got bad. And it 0:15:50.880 --> 0:15:53.360 was my mother again who said I had one last idea. 0:15:53.520 --> 0:15:57.200 She took add in the newspaper for two thousand dollars. 0:15:57.200 --> 0:15:58.800 I gave her the money. I went to Red Lobster 0:15:58.800 --> 0:16:01.480 and went back to work, and the ad said million 0:16:01.600 --> 0:16:04.600 dollars in orders need financing. She was looking for what 0:16:04.640 --> 0:16:07.680 we call today strategic partner and thirty three people call 0:16:07.760 --> 0:16:11.440 that ad, but thirty of the one named Pooky and 0:16:11.480 --> 0:16:15.120 Liquida qua a short salad of sausage tony two times. 0:16:15.880 --> 0:16:19.400 I think one fifty percent interest living the attic with collateral. 0:16:19.440 --> 0:16:21.480 I think one person was named Kevin O'Leary with a 0:16:21.560 --> 0:16:23.960 royalty deal in perpetuity. I think I'm talking about real 0:16:24.000 --> 0:16:27.040 scumbags were calling, right, but three of them were real, 0:16:27.120 --> 0:16:30.160 and we ended up doing a deal for manufacturing and 0:16:30.160 --> 0:16:35.280 distribution with Samsung's textile division. So did you ever get discouraged? 0:16:35.320 --> 0:16:38.520 Did you say, mandat this up? I'dn't missed my mama's 0:16:38.640 --> 0:16:40.960 good name up. I'd have missed this loan up. I'd 0:16:41.000 --> 0:16:45.080 have missed this, I'd have missed up everything. Yeah, there 0:16:45.120 --> 0:16:47.440 were some dark times, and that's the best part about 0:16:47.720 --> 0:16:50.080 I have three amazing partners, and every time they were down, 0:16:50.160 --> 0:16:51.800 I picked them up, and every time they were down, 0:16:51.840 --> 0:16:54.040 they'd picked me up, I mean or vice versa. Excuse me. 0:16:54.480 --> 0:16:56.360 And my mother was still there saying you got this, 0:16:56.800 --> 0:16:59.840 and my community was behind me, and I realized that 0:17:00.280 --> 0:17:02.040 I had to make it work. Everything goes on the line. 0:17:02.080 --> 0:17:04.040 There was nothing else to discuss. It was just I 0:17:04.080 --> 0:17:06.359 had to make this work. You mentioned you got turned 0:17:06.359 --> 0:17:09.640 down by twenty seven banks. Were you using the exact 0:17:09.680 --> 0:17:11.520 same pitch or where you're going there with a different 0:17:11.520 --> 0:17:14.800 pitch each time and they still turned you down? You 0:17:14.840 --> 0:17:16.359 know what, I've never been asked that before. I mean, 0:17:17.160 --> 0:17:19.440 the pitch got a little sex here after a while, 0:17:19.600 --> 0:17:22.960 but I think I think probably by the twentieth the 0:17:23.000 --> 0:17:24.919 pitch got worse. Like, come on, man, I just got 0:17:25.000 --> 0:17:26.800 turned down by twenty people. Why did you tell me 0:17:26.840 --> 0:17:29.080 that twenty one? Get out of here, so you know, 0:17:32.040 --> 0:17:34.080 but you remember you listen. I was, I was eighteen, 0:17:34.320 --> 0:17:36.960 and I know I was twenty one at the time. 0:17:37.000 --> 0:17:41.080 I didn't know what I was talking about, right, I 0:17:41.119 --> 0:17:43.200 heard a lot of business people say, and I don't 0:17:43.240 --> 0:17:44.960 know if you can attest to this, because you say 0:17:44.960 --> 0:17:47.119 you was working out of your house, you had the machines, 0:17:47.160 --> 0:17:49.159 You're sleeping on a sleeping bag, he said. One of 0:17:49.200 --> 0:17:52.080 the biggest mistakes startups make is they go get this 0:17:52.200 --> 0:17:57.360 lavish office space, they get furniture for that space, the pen, 0:17:58.320 --> 0:18:02.280 a mortgage or a lease, and they've made no money. 0:18:02.440 --> 0:18:05.760 When some of the most profitable businesses, the apples, the Google, 0:18:05.920 --> 0:18:11.560 the hps, Amazon started up in a garage with no overhead. 0:18:12.680 --> 0:18:15.760 Then you get going. Once you start making money, you 0:18:15.800 --> 0:18:18.640 can go get office space as needed. Do you think 0:18:18.680 --> 0:18:22.439 that's one of the biggest mistakes. That is the biggest mistakes. 0:18:22.480 --> 0:18:26.320 Small businesses generally failed due to overfunding, and people like, 0:18:26.359 --> 0:18:30.119 what do you mean overfunding? Just like you said, you 0:18:30.119 --> 0:18:31.920 know you want to eat. Listen, if your grandmother made 0:18:31.960 --> 0:18:35.760 really great cupcakes, you don't go and sign a seven 0:18:35.840 --> 0:18:38.679 year lease and have a cash machine looks like a 0:18:38.800 --> 0:18:42.320 cupcake and the la looked like a cupcake and the 0:18:42.440 --> 0:18:44.159 council look like the cup Again, you ain't never so 0:18:44.560 --> 0:18:47.120 damn me in one cupcake? Right, you get you get 0:18:47.119 --> 0:18:49.600 a kiosk. You know that you can rent for a 0:18:49.640 --> 0:18:53.520 weekend in them, all right, and you sell cupcakes? Right, 0:18:54.320 --> 0:18:57.280 And that's how it works. So and also the understanding 0:18:57.400 --> 0:19:01.760 is that money costs the more. The earlier you take 0:19:01.760 --> 0:19:04.639 in money, the more it costs. Right, Because if you 0:19:04.680 --> 0:19:07.200 ask me now for one hundred thousand dollars for fifty 0:19:07.200 --> 0:19:09.679 percent year business, and I think it's great, and you know, 0:19:09.760 --> 0:19:12.360 I'm like, okay, here you go. Well, then let's say 0:19:12.400 --> 0:19:14.439 that business grows to ten million, and now you need 0:19:14.480 --> 0:19:16.600 to raise another two million. Well, I ain't give it 0:19:16.640 --> 0:19:19.200 up my fifty percent, so you're gonna get that from home. 0:19:19.600 --> 0:19:22.440 So he's gonna have to work, have to work on 0:19:22.520 --> 0:19:24.520 his fifty percent. Can you good? You strayed over here 0:19:24.520 --> 0:19:27.600 where you are all good? But if you prove your 0:19:27.640 --> 0:19:31.159 business well enough, well then you go and get a 0:19:31.200 --> 0:19:34.000 loan from the bank, because they see the cash revenue 0:19:34.000 --> 0:19:36.359