1 00:00:15,316 --> 00:00:23,636 Speaker 1: Pushkin. Back in two thousand and eight, Al Done and 2 00:00:23,756 --> 00:00:28,036 Speaker 1: his siblings helped their mom open a quilt shop in Hamilton, Missouri. 3 00:00:28,156 --> 00:00:30,596 Speaker 1: We fixed up the building and we got it all 4 00:00:30,596 --> 00:00:32,676 Speaker 1: set up, and then mom was ready to start quilting, 5 00:00:32,676 --> 00:00:37,116 Speaker 1: and we opened the doors. And there's nobody opening a 6 00:00:37,156 --> 00:00:39,996 Speaker 1: quilt shop in a town of one thousand people. It's 7 00:00:40,116 --> 00:00:43,356 Speaker 1: not It's not as cool as you're imagining. Since then, 8 00:00:43,396 --> 00:00:46,716 Speaker 1: Al's mom, Jenny Done, has become a huge quilting star 9 00:00:46,836 --> 00:00:50,836 Speaker 1: on YouTube. The family has turned Hamilton, Missouri into this 10 00:00:50,956 --> 00:00:55,156 Speaker 1: like Disneyland for quilters, and their quilt shop, The Missouri 11 00:00:55,236 --> 00:00:58,956 Speaker 1: Star Quilt Company has grown to over one hundred million 12 00:00:58,956 --> 00:01:06,156 Speaker 1: dollars a year in revenue. I'm Jacob Goldstein, and this 13 00:01:06,236 --> 00:01:09,636 Speaker 1: is what's your problem. My guest today is Alne. My 14 00:01:09,756 --> 00:01:12,836 Speaker 1: name is Aldone, and I worked for the Missouri Star 15 00:01:12,916 --> 00:01:15,996 Speaker 1: Quilt Company. What are you now, chairman or something? Were 16 00:01:16,036 --> 00:01:20,236 Speaker 1: you trying not to say chairman? Oh? I am the yeah, yeah, Okay. 17 00:01:20,396 --> 00:01:23,316 Speaker 1: My name is Aldone. I'm the executive chairman of the 18 00:01:23,356 --> 00:01:27,276 Speaker 1: Missouri Star Quilt Company. The Missouri Star Quilt Company sells 19 00:01:27,356 --> 00:01:32,516 Speaker 1: quilting supplies on the Internet. Square's a fabric batting zewing machines. 20 00:01:33,156 --> 00:01:36,196 Speaker 1: But the story of the company is not really about quilting. 21 00:01:36,596 --> 00:01:39,796 Speaker 1: It's about how to combine low tech and high tech 22 00:01:39,916 --> 00:01:45,876 Speaker 1: to build a wildly successful brand. So I'll tell you 23 00:01:45,916 --> 00:01:50,636 Speaker 1: that the story starts with me a long time ago. No, 24 00:01:50,836 --> 00:01:52,716 Speaker 1: it actually it started with my mom. And my mom's 25 00:01:52,716 --> 00:01:56,076 Speaker 1: a cool mom, like she's she's great mom's mom's a 26 00:01:56,116 --> 00:01:58,836 Speaker 1: big goofball, right, Like she's the funnest mom to have 27 00:01:58,956 --> 00:02:02,916 Speaker 1: because everything's everything's fun and a game to her, Like 28 00:02:02,956 --> 00:02:05,036 Speaker 1: we're broke our whole lives. But I never knew it 29 00:02:05,076 --> 00:02:07,836 Speaker 1: because it was always let's see what we can get 30 00:02:07,876 --> 00:02:11,356 Speaker 1: for twenty eight dollars. If food for less, We're all right, kids, 31 00:02:11,436 --> 00:02:13,436 Speaker 1: go look and we're gonna find it. Like so we 32 00:02:13,556 --> 00:02:16,476 Speaker 1: come out with like with like nothing. But but for us, 33 00:02:16,596 --> 00:02:18,436 Speaker 1: it was a great adventure and off we were going. 34 00:02:18,716 --> 00:02:21,196 Speaker 1: And so that's sort of mom's style, right, She's just 35 00:02:21,596 --> 00:02:26,036 Speaker 1: everything's a game, everything's fun, everything's an adventure. And and 36 00:02:26,156 --> 00:02:29,316 Speaker 1: so like when when I'm in business with her, now, 37 00:02:30,556 --> 00:02:32,276 Speaker 1: that's a great person to have by your side when 38 00:02:32,276 --> 00:02:34,476 Speaker 1: you're trying to figure it out, right, And when we 39 00:02:34,516 --> 00:02:38,396 Speaker 1: started doing this quilt company, we started this quilt company, 40 00:02:38,516 --> 00:02:40,636 Speaker 1: and it was you know, it wasn't supposed to be 41 00:02:40,756 --> 00:02:43,396 Speaker 1: The quilt company was supposed to be a cute little 42 00:02:43,396 --> 00:02:46,316 Speaker 1: side business to help mom pay for the house because 43 00:02:46,396 --> 00:02:48,716 Speaker 1: Dad was working for the newspaper and we were all 44 00:02:48,716 --> 00:02:50,756 Speaker 1: afraid he was going to lose his job, which which 45 00:02:51,596 --> 00:02:54,396 Speaker 1: if he would have stayed there, he definitely would have. Right, 46 00:02:54,836 --> 00:02:57,956 Speaker 1: Well was he doing at the paper. He's a machinist 47 00:02:58,276 --> 00:03:01,116 Speaker 1: and so he worked. Yeah, he worked for the Kansas 48 00:03:01,156 --> 00:03:03,956 Speaker 1: City Star, just fixing presses and stuff. And like my 49 00:03:03,996 --> 00:03:07,236 Speaker 1: parents were terrible with money. Uh they well I don't 50 00:03:07,276 --> 00:03:08,716 Speaker 1: know if they were terrible with money or they just 51 00:03:08,796 --> 00:03:11,116 Speaker 1: never add any money. But it sort of went hand 52 00:03:11,116 --> 00:03:14,236 Speaker 1: in hand. And so we started this company just thinking, hey, 53 00:03:14,316 --> 00:03:17,276 Speaker 1: it'll help mom. Mom can chip in a few bucks 54 00:03:17,316 --> 00:03:19,276 Speaker 1: to help pay for the house. And because it was 55 00:03:19,356 --> 00:03:22,996 Speaker 1: such a low impact effort, we were actually able to 56 00:03:22,996 --> 00:03:26,916 Speaker 1: start it. Otherwise, like if we needed revenues and monies 57 00:03:26,916 --> 00:03:28,796 Speaker 1: and stuff I'll put together to get into this, we 58 00:03:28,836 --> 00:03:31,036 Speaker 1: would have never done it. We shouldn't have done it. 59 00:03:31,436 --> 00:03:34,276 Speaker 1: Two questions, what were you doing for your day job 60 00:03:34,316 --> 00:03:37,756 Speaker 1: at the time? End, Like why quilts? So I came 61 00:03:37,796 --> 00:03:40,356 Speaker 1: out of college and took a job with the Semantic Corporation. 62 00:03:40,396 --> 00:03:43,036 Speaker 1: So I'm like a nerdy tech guy. I really liked 63 00:03:43,036 --> 00:03:45,956 Speaker 1: that space. And then in two thousand and eight they 64 00:03:46,596 --> 00:03:49,276 Speaker 1: fired or laid off me and twenty thousand of my 65 00:03:49,316 --> 00:03:51,916 Speaker 1: closest friends, and for the first time in my life, 66 00:03:51,916 --> 00:03:55,236 Speaker 1: I was without a job. And then why quilts? So 67 00:03:55,516 --> 00:03:57,916 Speaker 1: my mom took up quilting when all us kids left. Right, 68 00:03:57,916 --> 00:04:00,036 Speaker 1: when you're used to seven kids at home, you got 69 00:04:00,036 --> 00:04:01,356 Speaker 1: a lot on your plate. And all of the sudden 70 00:04:01,396 --> 00:04:05,476 Speaker 1: she found herself with nothing to do. And mom went 71 00:04:05,516 --> 00:04:08,316 Speaker 1: over to the Votech College, you know, a next town 72 00:04:08,356 --> 00:04:10,196 Speaker 1: over from us. They were doing a class on like 73 00:04:10,276 --> 00:04:13,116 Speaker 1: making a log cabin quilt, and she just fell in 74 00:04:13,156 --> 00:04:15,836 Speaker 1: love with it. It's an art form, right, it's an expression. 75 00:04:15,916 --> 00:04:18,236 Speaker 1: It's all the great cool stuff, and then at its 76 00:04:18,276 --> 00:04:20,636 Speaker 1: core you're making something to keep you warm, which is 77 00:04:20,636 --> 00:04:24,636 Speaker 1: this very practical thing. And so I called her one time, 78 00:04:24,756 --> 00:04:26,556 Speaker 1: and she had been making these quilts and she had 79 00:04:26,596 --> 00:04:29,796 Speaker 1: taken one into our local quilters. And when I say, 80 00:04:29,956 --> 00:04:32,316 Speaker 1: when I say a quilter, this is the person. When 81 00:04:32,356 --> 00:04:34,036 Speaker 1: you make a quilt, you sew a bunch of pieces 82 00:04:34,036 --> 00:04:36,756 Speaker 1: of fabric together and you have a very thin, big 83 00:04:36,796 --> 00:04:39,516 Speaker 1: piece of fabric now, and the quilting, the process of 84 00:04:39,556 --> 00:04:42,556 Speaker 1: quilting is taking that fluffy middle stuff we call it batting, 85 00:04:42,636 --> 00:04:45,036 Speaker 1: and then the backing and you sandwich all that together 86 00:04:45,076 --> 00:04:47,396 Speaker 1: and stitch around it so it doesn't come part that 87 00:04:47,996 --> 00:04:51,076 Speaker 1: process we call quilting. And so she took her quilt 88 00:04:51,116 --> 00:04:54,036 Speaker 1: in to get it quilted, and just like the last step, 89 00:04:54,196 --> 00:04:56,396 Speaker 1: and you need a machine or something that your mom 90 00:04:56,436 --> 00:04:59,156 Speaker 1: didn't have for that. Yeah, it's a big, like forty 91 00:04:59,196 --> 00:05:02,916 Speaker 1: thousand dollar sewing machine. It's got a big throat on it, 92 00:05:02,956 --> 00:05:04,796 Speaker 1: so we can get all the way into the quilt 93 00:05:04,796 --> 00:05:06,636 Speaker 1: and do all that stuff. Okay, And so she took 94 00:05:06,676 --> 00:05:08,596 Speaker 1: it into this lady and the lady said, great, I'm 95 00:05:08,596 --> 00:05:11,236 Speaker 1: backed up about a year. I'll get it back to you. 96 00:05:11,436 --> 00:05:13,476 Speaker 1: Let s see it a year. And I was like, man, 97 00:05:14,316 --> 00:05:17,276 Speaker 1: there's nothing on this planet Earth that needs to take it. 98 00:05:17,356 --> 00:05:19,196 Speaker 1: You can build a house in eight months if you 99 00:05:19,236 --> 00:05:22,236 Speaker 1: want to. So she she was relaying this story to me, 100 00:05:22,276 --> 00:05:24,516 Speaker 1: and I said, if I bought you the machine, could 101 00:05:24,556 --> 00:05:26,116 Speaker 1: you do this? She said, yeah, I think I could 102 00:05:26,116 --> 00:05:29,116 Speaker 1: figure it out. And called my sister and the like. 103 00:05:29,276 --> 00:05:31,916 Speaker 1: That was my market research and so you bought your 104 00:05:31,956 --> 00:05:36,396 Speaker 1: mom the machine? Did it work? Was that? Oh? Yeah, yeah, okay, 105 00:05:36,716 --> 00:05:39,476 Speaker 1: Uh yeah we did. We bought mom the machine. Uh 106 00:05:39,956 --> 00:05:42,556 Speaker 1: you know, took out a second mortgage on my sister's 107 00:05:42,636 --> 00:05:45,556 Speaker 1: house because she had she had assets. I was still 108 00:05:45,556 --> 00:05:47,436 Speaker 1: single and had nothing to my name at the time. 109 00:05:47,876 --> 00:05:49,916 Speaker 1: And because we're in the middle of nowhere, right Like 110 00:05:50,116 --> 00:05:52,916 Speaker 1: your world doesn't have this up in real cities, but 111 00:05:52,956 --> 00:05:55,836 Speaker 1: out here, we bought an old five thousand square foot 112 00:05:55,876 --> 00:05:59,196 Speaker 1: auto showroom for twenty four thousand dollars and then a 113 00:05:59,276 --> 00:06:01,556 Speaker 1: quilt machine for thirty six thousand dollars. So for a 114 00:06:01,556 --> 00:06:04,836 Speaker 1: total mortgage payment of like four hundred dollars a month, 115 00:06:04,876 --> 00:06:07,316 Speaker 1: we had a full business ready to go. And uh 116 00:06:07,756 --> 00:06:09,436 Speaker 1: we all all the kids chipped in and like we 117 00:06:09,516 --> 00:06:11,756 Speaker 1: fixed up the building and we we got it all 118 00:06:11,756 --> 00:06:13,836 Speaker 1: set up, and then mom was ready to start quilting. 119 00:06:13,836 --> 00:06:18,476 Speaker 1: And we opened the doors and there's nobody right there's 120 00:06:18,956 --> 00:06:21,836 Speaker 1: it's it's sort of a very underwhelming opening a quilt 121 00:06:21,836 --> 00:06:24,396 Speaker 1: shop in a town of a thousand people. Uh it's 122 00:06:24,836 --> 00:06:28,756 Speaker 1: it's not as cool as you're imagining. But uh, but 123 00:06:28,876 --> 00:06:31,436 Speaker 1: we we launch and and so we had this qute 124 00:06:31,436 --> 00:06:34,076 Speaker 1: little quilt shop on the side, and then I lose 125 00:06:34,116 --> 00:06:37,156 Speaker 1: my job shortly thereafter, right, and uh, And I had 126 00:06:37,196 --> 00:06:38,756 Speaker 1: this idea in the back of my head that I 127 00:06:38,796 --> 00:06:42,236 Speaker 1: loved around a daily deal for quilters, right and so 128 00:06:43,036 --> 00:06:45,876 Speaker 1: and so daily deals was it was a thing back 129 00:06:45,876 --> 00:06:49,276 Speaker 1: then more than now right like what today. Right, It's 130 00:06:49,356 --> 00:06:52,956 Speaker 1: like the dailiness of it is right now one day 131 00:06:53,036 --> 00:06:56,716 Speaker 1: only get this great deal on this thing. I'm twenty 132 00:06:56,756 --> 00:06:59,116 Speaker 1: five and I was super hooked, like I loved them 133 00:06:59,556 --> 00:07:02,116 Speaker 1: and uh, but nobody had ever built one for my 134 00:07:02,196 --> 00:07:04,636 Speaker 1: mom's demographic. There was no one that was doing this 135 00:07:04,796 --> 00:07:07,636 Speaker 1: for forty to seventy year old women that were into quilting. 136 00:07:07,636 --> 00:07:10,716 Speaker 1: It was all like outdoor gear. Tech gear is basically 137 00:07:10,756 --> 00:07:13,836 Speaker 1: like the tech kids, tech bros who would build these 138 00:07:13,836 --> 00:07:16,796 Speaker 1: sites are selling stuff essentially to themselves. That's right. And 139 00:07:17,076 --> 00:07:19,596 Speaker 1: nobody had built and marketed and message to that to 140 00:07:19,716 --> 00:07:22,076 Speaker 1: that group. And so I was like, man, this would 141 00:07:22,076 --> 00:07:24,156 Speaker 1: be cool to try. When I lost my job, I said, well, 142 00:07:24,156 --> 00:07:26,356 Speaker 1: we got this cute little quilt shop at home. I 143 00:07:26,396 --> 00:07:28,396 Speaker 1: wonder if I could take it online. So we built 144 00:07:28,716 --> 00:07:31,236 Speaker 1: we built an e commerce store for it, and uh, 145 00:07:31,276 --> 00:07:34,356 Speaker 1: and we did. We we put it all together, launched 146 00:07:34,356 --> 00:07:38,196 Speaker 1: this daily Deal site. Uh and again just crickets, right, 147 00:07:38,196 --> 00:07:41,676 Speaker 1: Like I didn't launching a Launching a site to nobody 148 00:07:41,836 --> 00:07:44,236 Speaker 1: is hard. We didn't have an audience, we didn't have 149 00:07:44,276 --> 00:07:46,116 Speaker 1: we didn't have a customer base yet. But we got 150 00:07:46,156 --> 00:07:49,956 Speaker 1: it out there and just started building this email cadence 151 00:07:50,516 --> 00:07:53,636 Speaker 1: to our list of people that were that were, you know, 152 00:07:53,996 --> 00:07:56,516 Speaker 1: growing it to one hundred people and a thousand people 153 00:07:56,596 --> 00:08:00,556 Speaker 1: slowly and uh and marketing this daily deal that was 154 00:08:00,556 --> 00:08:03,436 Speaker 1: happening every day and leading into that as our sort 155 00:08:03,436 --> 00:08:08,196 Speaker 1: of commerce hook and uh. And it started picking up steam. 156 00:08:08,196 --> 00:08:11,996 Speaker 1: And it wasn't uh, not almost any fault of our own, 157 00:08:12,476 --> 00:08:14,796 Speaker 1: but you know, it started picking up steam. And the 158 00:08:14,796 --> 00:08:17,756 Speaker 1: things that we were trying to do were figure out 159 00:08:17,796 --> 00:08:20,796 Speaker 1: where we could find this audience, because I mean, it's 160 00:08:20,836 --> 00:08:23,796 Speaker 1: funny that the market researches there's twelve million quilters in 161 00:08:23,836 --> 00:08:27,436 Speaker 1: America and uh and on Facebook, with all of my 162 00:08:27,836 --> 00:08:30,276 Speaker 1: parameters wide open, I could find about two million of 163 00:08:30,316 --> 00:08:33,156 Speaker 1: them right, which which you go back to two thousand 164 00:08:33,156 --> 00:08:35,276 Speaker 1: and eight, they just weren't even like they didn't have 165 00:08:35,316 --> 00:08:36,916 Speaker 1: an email address. That was something a lot of my 166 00:08:36,916 --> 00:08:38,916 Speaker 1: customer service people would have to help with. You had 167 00:08:38,916 --> 00:08:42,676 Speaker 1: to have an email address to order from us. They're like, well, Judith, 168 00:08:42,796 --> 00:08:44,836 Speaker 1: let me sign you up for a Gmail account. This 169 00:08:44,876 --> 00:08:46,396 Speaker 1: is what it's gonna do, and we can get y'all 170 00:08:46,436 --> 00:08:49,836 Speaker 1: set up, right, Yeah, yeah, right, Like finding finding those 171 00:08:49,836 --> 00:08:51,676 Speaker 1: people was was a little bit of an art form 172 00:08:51,796 --> 00:08:53,756 Speaker 1: and uh and so that's where a lot of my 173 00:08:53,836 --> 00:08:57,356 Speaker 1: attention and interest went after that, because we knew if 174 00:08:57,356 --> 00:08:59,596 Speaker 1: we could get them to our site, like they love 175 00:08:59,676 --> 00:09:02,156 Speaker 1: a deal, they love a deal, and uh, and if 176 00:09:02,196 --> 00:09:04,116 Speaker 1: I could put them in here and show them the 177 00:09:04,156 --> 00:09:06,716 Speaker 1: experience we'd built, that we'd win. I mean, at some 178 00:09:06,996 --> 00:09:09,356 Speaker 1: like the simple abstraction of it is like there's all 179 00:09:09,356 --> 00:09:13,236 Speaker 1: this stuff happening daily deals and e commerce and it's 180 00:09:13,316 --> 00:09:17,316 Speaker 1: growing and Facebook ads, but it's not happening for this 181 00:09:17,476 --> 00:09:20,276 Speaker 1: giant segment of the population, right, It's not happening for 182 00:09:20,876 --> 00:09:24,836 Speaker 1: basically older women. Right. Is that essentially your customer base? Yeah, yeah, 183 00:09:24,916 --> 00:09:29,716 Speaker 1: that's that's exactly right, right, Like, like I mean, and 184 00:09:29,796 --> 00:09:32,476 Speaker 1: there's a bunch of demographics that still live in these 185 00:09:32,476 --> 00:09:34,876 Speaker 1: spaces where like nobody has bothered to build a great 186 00:09:34,876 --> 00:09:38,036 Speaker 1: experience for them. And you know, I was I was 187 00:09:38,076 --> 00:09:40,996 Speaker 1: plunking around with like stained glass window making my Grandpa 188 00:09:41,076 --> 00:09:43,636 Speaker 1: makes stained glass windows, but he's he's too old to 189 00:09:43,636 --> 00:09:46,516 Speaker 1: teach me. And like, nobody's sat down and said, how 190 00:09:46,516 --> 00:09:49,676 Speaker 1: can I make this experience amazing for a beginner and 191 00:09:49,836 --> 00:09:52,476 Speaker 1: great to get into, and how how do I continue 192 00:09:52,516 --> 00:09:54,836 Speaker 1: to support them as they keep going? And like, I mean, 193 00:09:54,876 --> 00:09:58,716 Speaker 1: you can go industry to industry, and so many of 194 00:09:58,756 --> 00:10:00,996 Speaker 1: these have been overlooked. If you just sat down and said, 195 00:10:01,116 --> 00:10:03,596 Speaker 1: can I make a great experience around this, you would 196 00:10:03,596 --> 00:10:06,796 Speaker 1: be ten times better than the incumbent sitting out there 197 00:10:06,876 --> 00:10:08,676 Speaker 1: making most of the money. Well, in terms of the 198 00:10:08,676 --> 00:10:12,036 Speaker 1: great I mean, it seems like one big early move 199 00:10:13,836 --> 00:10:19,396 Speaker 1: is getting your mom on YouTube. Yeah yeah, so well, well, 200 00:10:19,516 --> 00:10:22,036 Speaker 1: getting mom on YouTube. So this was this was two 201 00:10:22,036 --> 00:10:24,236 Speaker 1: thousand and eight that we started going into this, right, 202 00:10:24,276 --> 00:10:27,836 Speaker 1: and we started putting together tutorials that were just like 203 00:10:28,516 --> 00:10:32,036 Speaker 1: how do you make a quilt and putting them up 204 00:10:32,076 --> 00:10:34,516 Speaker 1: on YouTube. And I was recording mom and I'm a 205 00:10:34,596 --> 00:10:36,796 Speaker 1: thirty year old bearded man at that point, so I 206 00:10:36,836 --> 00:10:39,716 Speaker 1: knew nothing about quilting still, and she would she would 207 00:10:39,756 --> 00:10:43,796 Speaker 1: try and record these these tutorials, and because I'm behind 208 00:10:43,876 --> 00:10:45,476 Speaker 1: the camera, I got to be like, Mom, I have 209 00:10:45,556 --> 00:10:48,236 Speaker 1: no idea what you're trying to say, like, I know 210 00:10:48,356 --> 00:10:50,876 Speaker 1: you think you're teaching how to quilt, but like I'm 211 00:10:50,916 --> 00:10:53,676 Speaker 1: your audience, explain it to me. And so she got 212 00:10:53,796 --> 00:10:56,876 Speaker 1: making these tutorials. She had this very approachable feel to her, 213 00:10:57,276 --> 00:11:01,436 Speaker 1: which which even today, man, very few people are teaching. 214 00:11:01,876 --> 00:11:04,516 Speaker 1: Like the instinct is to go and teach the quilter 215 00:11:04,596 --> 00:11:06,476 Speaker 1: that already knows how to quilt, because that means you're 216 00:11:06,476 --> 00:11:10,036 Speaker 1: a good quilter. And so to teach in an approachable 217 00:11:10,076 --> 00:11:12,836 Speaker 1: way that anybody can pick up and watch this and 218 00:11:13,156 --> 00:11:16,796 Speaker 1: uh and then join into the clan is is a 219 00:11:16,876 --> 00:11:18,996 Speaker 1: very rare thing. And so she started going. In the 220 00:11:18,996 --> 00:11:23,676 Speaker 1: early days of YouTube, that became our entire messaging lever. Right. 221 00:11:23,716 --> 00:11:26,996 Speaker 1: We we started an email list that was just sending 222 00:11:26,996 --> 00:11:31,356 Speaker 1: out this video and saying, hey, we released a tutorial, 223 00:11:31,556 --> 00:11:33,996 Speaker 1: you'll love it, and that was that was it, right, 224 00:11:34,076 --> 00:11:36,316 Speaker 1: Like they already they knew, we had the daily deal, 225 00:11:36,356 --> 00:11:38,276 Speaker 1: they knew, and we'd put some of that in there. 226 00:11:38,636 --> 00:11:41,356 Speaker 1: But but like it was very little bye bye bye 227 00:11:41,396 --> 00:11:43,756 Speaker 1: and and a lot more like hey, we did this 228 00:11:43,796 --> 00:11:45,916 Speaker 1: thing for you, we think you'll love it. And it grew, 229 00:11:45,996 --> 00:11:50,356 Speaker 1: like our our marketing list grew to hundreds of thousands, 230 00:11:50,476 --> 00:11:53,516 Speaker 1: now it's millions of people. And back in the early 231 00:11:53,596 --> 00:11:55,156 Speaker 1: days when I was running the day to day, it 232 00:11:55,196 --> 00:11:57,916 Speaker 1: was like seventy three percent open rate. Right today it's 233 00:11:57,916 --> 00:12:02,636 Speaker 1: like fifty six percent open rate. It's still an ab surgery. IM. Yeah, yeah, 234 00:12:02,876 --> 00:12:06,196 Speaker 1: Is it right that your mom broke her leg when 235 00:12:06,196 --> 00:12:10,556 Speaker 1: you were making a first videout? It out a video? No, no, no, 236 00:12:10,636 --> 00:12:12,956 Speaker 1: So this is definitely real. And so we pull out 237 00:12:12,996 --> 00:12:15,076 Speaker 1: this camera and I'm like, mom, just give me, give 238 00:12:15,116 --> 00:12:17,396 Speaker 1: me a tour of the of the shop. She's like 239 00:12:17,636 --> 00:12:20,196 Speaker 1: way over the top and doing like little leg kicks 240 00:12:20,196 --> 00:12:22,716 Speaker 1: and song and dance, and she goes by the quilt machine, 241 00:12:22,756 --> 00:12:24,516 Speaker 1: which has a big chord that runs from the machine 242 00:12:24,516 --> 00:12:26,796 Speaker 1: down to the computer that runs it, and got her 243 00:12:26,876 --> 00:12:30,476 Speaker 1: leg tangled and just like I'm recording data and then 244 00:12:30,556 --> 00:12:34,436 Speaker 1: just boom, she's down, And like I thought she was 245 00:12:34,476 --> 00:12:37,316 Speaker 1: just being overly dramatic, right, And so me and my 246 00:12:37,356 --> 00:12:39,316 Speaker 1: sister are like, get up. Mom. She's like, I think 247 00:12:39,316 --> 00:12:41,236 Speaker 1: I broke my leg. And I'm like, you did not 248 00:12:41,796 --> 00:12:45,316 Speaker 1: break your leg, You're fine, and she's like, no, I really, 249 00:12:45,476 --> 00:12:48,596 Speaker 1: I really did. And uh, And so I was I 250 00:12:48,836 --> 00:12:51,876 Speaker 1: refused to let an ambulance come to our new little shop. 251 00:12:51,916 --> 00:12:54,636 Speaker 1: I just thought that would be bad for business. And 252 00:12:54,756 --> 00:12:57,716 Speaker 1: so finally we load her up into the car and 253 00:12:57,836 --> 00:13:00,516 Speaker 1: drive her to the clinic and they're like, yeah, it's broken. 254 00:13:00,596 --> 00:13:03,276 Speaker 1: And so about I don't know, four or five months 255 00:13:03,316 --> 00:13:07,036 Speaker 1: into this business, Mom's hold up in her bed and 256 00:13:07,676 --> 00:13:10,356 Speaker 1: my sister Natalie, who was also working for no payment 257 00:13:10,396 --> 00:13:12,196 Speaker 1: at the time, I was like, well, you got to 258 00:13:12,276 --> 00:13:14,356 Speaker 1: learn how to run this because we've got to be 259 00:13:14,436 --> 00:13:18,636 Speaker 1: putting out this product. So okay, so you got your 260 00:13:18,676 --> 00:13:22,276 Speaker 1: mom on YouTube, you got the daily deals. I mean, honestly, 261 00:13:22,436 --> 00:13:25,356 Speaker 1: things things start going and like we're growing at about 262 00:13:25,356 --> 00:13:28,316 Speaker 1: two hundred percent a year um. In the early days 263 00:13:28,356 --> 00:13:31,076 Speaker 1: we went we went one hundred thousand to a million 264 00:13:31,556 --> 00:13:37,436 Speaker 1: to four million to eight million. Yeah, it's just it's 265 00:13:37,476 --> 00:13:39,876 Speaker 1: just going up, right, and uh and it's going up 266 00:13:39,916 --> 00:13:42,556 Speaker 1: because like, I mean that sounds great. Is it super hard? 267 00:13:42,636 --> 00:13:44,196 Speaker 1: I mean, is it hard to even to finance? Like? 268 00:13:44,196 --> 00:13:46,516 Speaker 1: Are you have to buy the fabric before you sell it? 269 00:13:46,596 --> 00:13:49,876 Speaker 1: Is it? Are there moments when you're jammed up in there? 270 00:13:49,876 --> 00:13:51,796 Speaker 1: Like are there particularly? Yeah? No, the I mean the 271 00:13:52,596 --> 00:13:56,436 Speaker 1: tough parts about this are are definitely the finance. We're bootstrapped. 272 00:13:56,476 --> 00:13:59,396 Speaker 1: Nobody was putting money into a quilt company. Um, and 273 00:13:59,436 --> 00:14:03,316 Speaker 1: so we're we're like financed off of the very safe 274 00:14:03,356 --> 00:14:05,716 Speaker 1: space was was when we were buying things and I 275 00:14:05,756 --> 00:14:07,556 Speaker 1: could just pay it off with my credit card if 276 00:14:07,596 --> 00:14:10,876 Speaker 1: things went bad, right, But pretty soon we outgrow that. 277 00:14:10,996 --> 00:14:13,996 Speaker 1: We're starting to talk millions of dollars of inventory that 278 00:14:14,036 --> 00:14:16,956 Speaker 1: we need to hold. And the way my industry works 279 00:14:16,996 --> 00:14:19,756 Speaker 1: is you've got to buy fabric six months before you 280 00:14:19,796 --> 00:14:21,836 Speaker 1: get it. So you look at it and they say, 281 00:14:21,836 --> 00:14:23,556 Speaker 1: we're going to print this, we'll have it in six months. 282 00:14:23,556 --> 00:14:25,676 Speaker 1: How much do you want? And you place your order 283 00:14:25,716 --> 00:14:28,676 Speaker 1: for say a million dollars worth of fabric. Right, So, 284 00:14:28,716 --> 00:14:30,956 Speaker 1: when we would get the product, we owed the money 285 00:14:30,956 --> 00:14:33,756 Speaker 1: and we had to turn that product into dollars in 286 00:14:33,756 --> 00:14:36,076 Speaker 1: that first thirty days because we couldn't afford to pay 287 00:14:36,116 --> 00:14:38,796 Speaker 1: for it otherwise, right, And so we have to immediately 288 00:14:38,836 --> 00:14:41,796 Speaker 1: turn that inventory into money. It's to cover our cost. 289 00:14:42,116 --> 00:14:44,996 Speaker 1: And all the while you're growing at two hundred percent 290 00:14:45,116 --> 00:14:47,436 Speaker 1: year over year. And so when I placed the order 291 00:14:47,516 --> 00:14:50,636 Speaker 1: to when I'm gonna sell the fabric, I need to 292 00:14:50,676 --> 00:14:53,396 Speaker 1: plan for hopefully double the amount of customers I think 293 00:14:53,796 --> 00:14:56,156 Speaker 1: I think they're going to show up. And then as 294 00:14:56,196 --> 00:14:59,396 Speaker 1: you're holding it, double the customers again, and I hope 295 00:14:59,436 --> 00:15:02,036 Speaker 1: they show up because if not, I'm stuck with all 296 00:15:02,076 --> 00:15:04,556 Speaker 1: this inventory, nobody to buy it, and I've killed my 297 00:15:04,676 --> 00:15:07,196 Speaker 1: entire business. We literally it felt like we were bet 298 00:15:07,196 --> 00:15:11,196 Speaker 1: in the farm every three months. So when do you 299 00:15:11,276 --> 00:15:14,396 Speaker 1: buy the town where you started? Somewhere along the line, 300 00:15:14,436 --> 00:15:17,236 Speaker 1: you wind up sort of buying up most of the 301 00:15:17,276 --> 00:15:20,956 Speaker 1: downtown in this town where you where you live. Right, Yeah, 302 00:15:20,956 --> 00:15:22,956 Speaker 1: I feel like I maybe buried the lead here. We 303 00:15:22,956 --> 00:15:27,236 Speaker 1: we did buy the town. Yes, that's such a fun 304 00:15:27,276 --> 00:15:29,436 Speaker 1: part of the story because we're in this small town 305 00:15:29,476 --> 00:15:34,036 Speaker 1: where where we grew up, Hamilton, Missouri. And we bought 306 00:15:34,076 --> 00:15:36,516 Speaker 1: just this old auto show room off the off the 307 00:15:36,556 --> 00:15:39,236 Speaker 1: main street to start. And then about a year or 308 00:15:39,236 --> 00:15:43,716 Speaker 1: two in this family in town was selling. They had 309 00:15:43,756 --> 00:15:46,036 Speaker 1: an old antique shop there and it was right on 310 00:15:46,076 --> 00:15:47,916 Speaker 1: the main drag, and we said we should get that. 311 00:15:48,396 --> 00:15:50,596 Speaker 1: Um actually she came to us and said, you should 312 00:15:50,596 --> 00:15:54,316 Speaker 1: get this location. Location location. So we we go in 313 00:15:54,356 --> 00:15:58,676 Speaker 1: and we buy this old antique store and uh, you know, 314 00:15:58,676 --> 00:16:01,636 Speaker 1: it's like paneling on the walls and eight foot ceilings, 315 00:16:01,636 --> 00:16:04,156 Speaker 1: and we we remodeled it. We pulled everything out, all 316 00:16:04,156 --> 00:16:08,076 Speaker 1: the asbestos siding, and uh, but like we we remodeled 317 00:16:08,116 --> 00:16:12,956 Speaker 1: this into this great cool space and then turned that 318 00:16:12,996 --> 00:16:14,796 Speaker 1: into our quilt shop. And now we had this quilt 319 00:16:14,796 --> 00:16:18,316 Speaker 1: schop on Main Street. But as we kept growing our inventory, 320 00:16:18,556 --> 00:16:22,956 Speaker 1: we had more and more need for space, and so 321 00:16:22,996 --> 00:16:25,596 Speaker 1: we bought another small building, an old salon, a hair salon, 322 00:16:25,996 --> 00:16:29,356 Speaker 1: and turned that into a quilt shop and split out 323 00:16:29,396 --> 00:16:32,156 Speaker 1: a theme of fabric. It was like Christmas and holiday 324 00:16:32,196 --> 00:16:34,636 Speaker 1: stuff went over there, and then we filled up again, 325 00:16:34,916 --> 00:16:37,516 Speaker 1: right this five thousand square foot shop of ours, It 326 00:16:37,596 --> 00:16:39,316 Speaker 1: just builled up with fabric again, and then we bought 327 00:16:39,316 --> 00:16:41,676 Speaker 1: the next one and moved batique fabric over there. And 328 00:16:41,716 --> 00:16:44,476 Speaker 1: so that's why we started and continued to lean into it, 329 00:16:44,676 --> 00:16:46,436 Speaker 1: even to the point where once we got three or 330 00:16:46,436 --> 00:16:50,756 Speaker 1: four quilt or different shops open, I was googling around, 331 00:16:50,796 --> 00:16:52,836 Speaker 1: like I want to know who had the most quilt 332 00:16:52,916 --> 00:16:55,156 Speaker 1: chops of any town in the world, And it was 333 00:16:55,196 --> 00:16:58,116 Speaker 1: like some town in Germany had four, right, and like 334 00:16:58,196 --> 00:17:00,436 Speaker 1: it's not a lot. And I was like, man, what 335 00:17:00,556 --> 00:17:03,356 Speaker 1: if we got to say, what if our marketing stick 336 00:17:03,596 --> 00:17:06,036 Speaker 1: was we have the most quilt chops of any town 337 00:17:06,076 --> 00:17:08,636 Speaker 1: in the world, Like that's worth pulling off the highway 338 00:17:08,676 --> 00:17:11,916 Speaker 1: for let's be that. And so we we leaned into this, right. 339 00:17:11,956 --> 00:17:15,196 Speaker 1: It was sort of happened by happenstance, and then we 340 00:17:15,236 --> 00:17:17,716 Speaker 1: realized that we had this really great thing on our hands, 341 00:17:18,116 --> 00:17:20,596 Speaker 1: and uh and leaned into it. Now we're fourteen quilt 342 00:17:20,636 --> 00:17:24,556 Speaker 1: chops and we have three restaurants. We have a sleep 343 00:17:24,596 --> 00:17:27,076 Speaker 1: and so sort of retreat center that you come with 344 00:17:27,116 --> 00:17:29,516 Speaker 1: your girlfriends for a slumber party and spend a week. 345 00:17:29,956 --> 00:17:32,676 Speaker 1: And we have we have a man's land where you 346 00:17:32,716 --> 00:17:35,876 Speaker 1: park your husbands they sit and watch, you know, sports 347 00:17:35,876 --> 00:17:38,956 Speaker 1: and playpool while your wife's shops and like, we have 348 00:17:39,076 --> 00:17:41,996 Speaker 1: all we built this entire experience around it. That sort 349 00:17:42,036 --> 00:17:44,836 Speaker 1: of stemmed from the fact that we had cheap real 350 00:17:44,956 --> 00:17:50,396 Speaker 1: estate here because nobody's opening commercial enterprises and two that 351 00:17:50,396 --> 00:17:53,516 Speaker 1: that like we were willing to go through and like 352 00:17:54,036 --> 00:17:57,756 Speaker 1: build an experience that nobody had ever really done before. 353 00:17:57,876 --> 00:18:00,756 Speaker 1: It's not a big box. It's like a town that 354 00:18:00,836 --> 00:18:03,316 Speaker 1: we sort of cobbled together into this thing. It's cool 355 00:18:04,156 --> 00:18:07,036 Speaker 1: and how much of well, how big is your company now? 356 00:18:07,076 --> 00:18:10,796 Speaker 1: In terms of revenue, we're north of one hundred million. 357 00:18:10,836 --> 00:18:12,916 Speaker 1: We uh, we we get up there a little bit. 358 00:18:12,996 --> 00:18:17,676 Speaker 1: It's fun it's about four hundred employees. Uh, we're yeah, 359 00:18:17,716 --> 00:18:19,956 Speaker 1: it's full time. How much how much of the revenue 360 00:18:20,036 --> 00:18:25,036 Speaker 1: is from people coming to your town? About eight about 361 00:18:25,076 --> 00:18:28,196 Speaker 1: eight million, I'd see, Yeah, it's it's not it's not 362 00:18:28,356 --> 00:18:30,676 Speaker 1: like it's it's somewhere around five percent. It's not a 363 00:18:30,676 --> 00:18:34,956 Speaker 1: ton and uh but like it's it's media enough that 364 00:18:35,076 --> 00:18:38,636 Speaker 1: like it represents such a small check of revenue, but 365 00:18:38,636 --> 00:18:41,316 Speaker 1: it's like an outsize, like ninety percent of our marketing 366 00:18:41,316 --> 00:18:45,596 Speaker 1: message is built around this town and the people here 367 00:18:45,596 --> 00:18:49,076 Speaker 1: and the customers coming right right, well, and your mom right, 368 00:18:49,076 --> 00:18:52,476 Speaker 1: So instead of being just some like random place where 369 00:18:52,476 --> 00:18:54,716 Speaker 1: the fabric is cheap, You've got like your mom, who's 370 00:18:54,756 --> 00:18:57,556 Speaker 1: an actual person in this actual town, in a real shop. 371 00:18:57,756 --> 00:19:00,756 Speaker 1: Like it seems like that is a huge part of 372 00:19:00,796 --> 00:19:03,396 Speaker 1: the of the the town that you have bought and 373 00:19:03,476 --> 00:19:05,916 Speaker 1: of your mom. Right, it's like a real place and 374 00:19:05,996 --> 00:19:09,356 Speaker 1: real people. Yeah, I mean mom, Mom is our key 375 00:19:09,436 --> 00:19:11,796 Speaker 1: for sure, right, which is which is tough because like 376 00:19:12,516 --> 00:19:14,676 Speaker 1: I mean, I always talked to her. I'm like nobody 377 00:19:14,796 --> 00:19:17,916 Speaker 1: lets you know, sleeping Beauty have a bad day at Disneyland. 378 00:19:17,956 --> 00:19:21,316 Speaker 1: You've got to be on You're smiling, you're happy, you 379 00:19:21,356 --> 00:19:24,676 Speaker 1: know for thirteen years, you've got to really shine keep going. 380 00:19:25,796 --> 00:19:28,436 Speaker 1: I mean, we get such distance out of this online 381 00:19:29,076 --> 00:19:32,316 Speaker 1: because you're not buying from a faceless warehouse. You're buying 382 00:19:32,436 --> 00:19:35,036 Speaker 1: from us. You know us. You can come and talk 383 00:19:35,076 --> 00:19:36,356 Speaker 1: to us, you can come and give us a hug, 384 00:19:36,396 --> 00:19:39,196 Speaker 1: you can come out and visit. And you got a 385 00:19:39,276 --> 00:19:42,076 Speaker 1: question like we'll come and chat with you about it, 386 00:19:41,716 --> 00:19:49,716 Speaker 1: which which you don't have in most businesses. Amazing story 387 00:19:49,836 --> 00:19:52,276 Speaker 1: and so fun. We didn't even get into any problems, 388 00:19:52,836 --> 00:20:04,956 Speaker 1: but we will in a minute after the break. Now 389 00:20:05,196 --> 00:20:08,716 Speaker 1: back to the show. So, okay, So congratulations on all 390 00:20:08,716 --> 00:20:17,276 Speaker 1: your six um. But I'm right, it's interesting. It is cool. No, 391 00:20:17,436 --> 00:20:19,836 Speaker 1: it's a it's a wonderful story. It's a happy story. 392 00:20:19,876 --> 00:20:23,116 Speaker 1: I'm happy for you and your family. But I'm also curious. 393 00:20:23,156 --> 00:20:26,316 Speaker 1: I mean, like, what are you pushing on now? So 394 00:20:26,436 --> 00:20:28,756 Speaker 1: what we're working on now, let's see, there's probably two 395 00:20:28,836 --> 00:20:31,836 Speaker 1: or three things that I think are super interesting. One, 396 00:20:31,916 --> 00:20:35,396 Speaker 1: we we bought a second town, because once you have one, 397 00:20:36,036 --> 00:20:39,196 Speaker 1: the first thing you want is a second town. So 398 00:20:39,276 --> 00:20:41,956 Speaker 1: seven miles to the south of US is a town 399 00:20:41,996 --> 00:20:44,836 Speaker 1: called Kingston, and it's population three hundred people and they 400 00:20:44,916 --> 00:20:47,956 Speaker 1: literally have no revenue, right, there's no budget for the town. 401 00:20:47,996 --> 00:20:51,276 Speaker 1: There's nothing there. Um, it's it's just a few houses 402 00:20:51,276 --> 00:20:53,676 Speaker 1: in our county courthouse. And then I'm trying to like 403 00:20:53,716 --> 00:20:56,396 Speaker 1: get the Missouri Department of Transportation to let me do 404 00:20:56,436 --> 00:21:00,436 Speaker 1: a run walk trail. And my wife's building a you know, 405 00:21:00,436 --> 00:21:03,556 Speaker 1: we're putting in like a like a rec center because 406 00:21:04,036 --> 00:21:07,636 Speaker 1: out here, you know that it's not the culture isn't 407 00:21:07,636 --> 00:21:09,756 Speaker 1: built around fitness and health and stuff, and so there's 408 00:21:09,796 --> 00:21:11,516 Speaker 1: a lot of distance still to go on that and 409 00:21:11,596 --> 00:21:13,956 Speaker 1: to convince people to move out here. We have a 410 00:21:13,956 --> 00:21:16,716 Speaker 1: lot of branding and messaging to do around that. The 411 00:21:16,796 --> 00:21:20,076 Speaker 1: challenge inside of that is, like we need more warehouse employees. 412 00:21:20,076 --> 00:21:22,436 Speaker 1: We're probably fifty employees short of where we need to be, 413 00:21:23,036 --> 00:21:26,956 Speaker 1: and so we're trying to solve like the housing challenge here, 414 00:21:27,436 --> 00:21:30,356 Speaker 1: which is there's been no new development since the seventies, 415 00:21:30,396 --> 00:21:33,316 Speaker 1: and nobody really wants to develop here because why would you, 416 00:21:33,796 --> 00:21:35,836 Speaker 1: And so me and my sister, I'm like, I'm like 417 00:21:35,956 --> 00:21:38,076 Speaker 1: trying to build a subdivision and I'm googling where do 418 00:21:38,196 --> 00:21:41,756 Speaker 1: roads come from? How do street lights happen? Now, that 419 00:21:41,836 --> 00:21:44,756 Speaker 1: kind of stuff, just trying to stumble through it. So 420 00:21:44,796 --> 00:21:48,276 Speaker 1: that's so like the physical the physical in town retail 421 00:21:48,476 --> 00:21:51,756 Speaker 1: like multi town experience stuff I think is super interesting. 422 00:21:52,076 --> 00:21:55,196 Speaker 1: I really like that as an opportunity. I like it 423 00:21:55,196 --> 00:21:57,596 Speaker 1: because it's a little bit harder. But but like there's 424 00:21:57,636 --> 00:22:00,156 Speaker 1: no saturation in that branding message, right, Like if you 425 00:22:00,236 --> 00:22:03,076 Speaker 1: heard somebody somebody bought three towns and turned it into 426 00:22:03,076 --> 00:22:07,716 Speaker 1: a quilting trifecta. Like it's just more interesting and everybody's 427 00:22:07,716 --> 00:22:10,076 Speaker 1: not doing it, so it's worth going to see. Okay, 428 00:22:10,076 --> 00:22:13,796 Speaker 1: so uh buying slash building another town. That's one of 429 00:22:13,796 --> 00:22:16,036 Speaker 1: the one of the things you're working on. You said 430 00:22:16,036 --> 00:22:18,276 Speaker 1: there were two, What's what's the other one? I mean, 431 00:22:18,596 --> 00:22:23,636 Speaker 1: I'm just chewing on what content looks like for my 432 00:22:23,756 --> 00:22:27,276 Speaker 1: industry in the next iterations, right, Like, if you think 433 00:22:27,316 --> 00:22:29,596 Speaker 1: about content, I think about in three buckets where there's 434 00:22:29,596 --> 00:22:34,876 Speaker 1: like education, entertainment, and inspiration. And we got inside of education. 435 00:22:35,276 --> 00:22:37,236 Speaker 1: You know, there's like a thousand different ways to do 436 00:22:37,356 --> 00:22:41,596 Speaker 1: education content, and we picked ten minute tutorials for quilting, 437 00:22:41,636 --> 00:22:44,556 Speaker 1: and like we have nailed that, but there's the fifty 438 00:22:44,596 --> 00:22:47,196 Speaker 1: other ways that content can be done that like we 439 00:22:47,276 --> 00:22:49,516 Speaker 1: have yet to address or build into. And that's the 440 00:22:49,516 --> 00:22:52,396 Speaker 1: other thing that, like, I think, is a huge opportunity 441 00:22:52,436 --> 00:22:55,236 Speaker 1: and worth us staring really hard at. I think we 442 00:22:55,276 --> 00:22:59,436 Speaker 1: should own you know, the twenty minute. If you're into quilting, 443 00:22:59,436 --> 00:23:01,156 Speaker 1: what do you watch while you're sitting on the treadmill 444 00:23:01,196 --> 00:23:03,756 Speaker 1: on Netflix? Right, It's it's that kind of stuff, And 445 00:23:03,796 --> 00:23:06,716 Speaker 1: I'm like, man, we would kill that. I want you 446 00:23:06,756 --> 00:23:09,596 Speaker 1: to tell me a story of something where you brewed up, 447 00:23:09,636 --> 00:23:12,436 Speaker 1: something went wrong, something didn't work. I mean, I'm sure 448 00:23:12,436 --> 00:23:15,356 Speaker 1: there's a million of those. Yeah, Okay, no, I mean 449 00:23:15,396 --> 00:23:17,516 Speaker 1: I mean I've got two big failure stories that I 450 00:23:17,516 --> 00:23:19,196 Speaker 1: think of when I think of what we what we've 451 00:23:19,236 --> 00:23:21,196 Speaker 1: done here, right, And the first one was when we 452 00:23:21,556 --> 00:23:24,956 Speaker 1: built a warehouse and we built we built our first warehouse. 453 00:23:24,996 --> 00:23:27,956 Speaker 1: We did everything out of our five thousand square foot 454 00:23:28,036 --> 00:23:31,676 Speaker 1: auto show room that was our warehouse, which which it's 455 00:23:31,716 --> 00:23:34,236 Speaker 1: easy to organize. I mean, you get a lot in there. 456 00:23:34,236 --> 00:23:35,876 Speaker 1: It was a lot going on, but for a big 457 00:23:35,876 --> 00:23:38,196 Speaker 1: company that was sending I think we're like thirty million 458 00:23:38,236 --> 00:23:40,316 Speaker 1: a year before we moved out of there. I mean, 459 00:23:40,356 --> 00:23:44,036 Speaker 1: we had a lot of inventory and no forklifts. Just 460 00:23:44,076 --> 00:23:48,116 Speaker 1: our poor guy am and was just moving stuff. So 461 00:23:48,396 --> 00:23:51,116 Speaker 1: we built this warehouse and I was like I was 462 00:23:51,196 --> 00:23:53,636 Speaker 1: too cheap to know that you're supposed to hire like 463 00:23:53,876 --> 00:23:56,956 Speaker 1: partners and consultants to help you do this stuff. And 464 00:23:56,996 --> 00:23:59,036 Speaker 1: so I just I found the only guy that like 465 00:23:59,196 --> 00:24:02,836 Speaker 1: would build off of my notepad drawing and didn't stress 466 00:24:02,876 --> 00:24:05,756 Speaker 1: out about like not having blueprints because I was like, 467 00:24:06,116 --> 00:24:07,996 Speaker 1: it's a big box, and he's like, well, where do 468 00:24:08,036 --> 00:24:09,756 Speaker 1: you want the toilet? I was like, do a wall 469 00:24:09,836 --> 00:24:12,116 Speaker 1: that's ten foot here and it would be lunch room 470 00:24:12,156 --> 00:24:14,396 Speaker 1: and toilet and all. You know, Like I'm just trying 471 00:24:14,436 --> 00:24:15,796 Speaker 1: to solve it in two minutes because I had a 472 00:24:15,836 --> 00:24:19,116 Speaker 1: thousand other things going on. So anyway, this guy builds 473 00:24:19,116 --> 00:24:23,836 Speaker 1: a warehouse, and simultaneously I had built all the software, 474 00:24:23,876 --> 00:24:25,836 Speaker 1: like we had a little team. I wasn't me alone, 475 00:24:25,876 --> 00:24:28,156 Speaker 1: but like we'd built all the software for this company, 476 00:24:28,156 --> 00:24:30,796 Speaker 1: and so we had to build this new fulfillment software 477 00:24:30,836 --> 00:24:34,836 Speaker 1: now again because I thought that we were so unique 478 00:24:34,836 --> 00:24:37,036 Speaker 1: and so customed that we couldn't get anybody Like we 479 00:24:37,036 --> 00:24:38,716 Speaker 1: can go and buy a thing off the shelf and 480 00:24:38,716 --> 00:24:41,356 Speaker 1: pay somebody to do this, we had to build it ourselves. 481 00:24:41,396 --> 00:24:45,316 Speaker 1: And then like I ordered the racking, right, the Pallette racking, 482 00:24:45,556 --> 00:24:47,436 Speaker 1: and they were like, hey, for ten thousand dollars, we'll 483 00:24:47,436 --> 00:24:48,956 Speaker 1: set it up. And I was like, ah, I'll save 484 00:24:48,996 --> 00:24:50,956 Speaker 1: the ten grand. I'll set it up myself. I know 485 00:24:51,076 --> 00:24:52,956 Speaker 1: how to do that. So I get this pallet racking. 486 00:24:52,996 --> 00:24:54,476 Speaker 1: Me and Dad are there until three in the morning. 487 00:24:54,476 --> 00:24:56,756 Speaker 1: And then we also had a hundred computers we had 488 00:24:56,756 --> 00:24:58,676 Speaker 1: to set up in there for shipping stations, all this stuff. 489 00:24:58,716 --> 00:25:00,556 Speaker 1: And I'm a computer guy. I know how to do this, 490 00:25:00,596 --> 00:25:02,116 Speaker 1: and so I'll order to put it all in there. 491 00:25:02,516 --> 00:25:04,596 Speaker 1: And then the big day comes and we go to 492 00:25:04,636 --> 00:25:07,916 Speaker 1: move everything over and everything breaks and it like it's 493 00:25:07,956 --> 00:25:12,036 Speaker 1: a disaster and like completely down. We can't ship orders 494 00:25:12,276 --> 00:25:16,116 Speaker 1: the phone, like we've got eight thousand tickets in our email. 495 00:25:16,476 --> 00:25:18,996 Speaker 1: The phones are ringing off the hook. Nothing works, and 496 00:25:20,236 --> 00:25:23,476 Speaker 1: it was terrible. And I stuck around for like two days. 497 00:25:23,516 --> 00:25:25,796 Speaker 1: We tried, you know, we get it cobbled together. They're 498 00:25:25,796 --> 00:25:29,396 Speaker 1: almost getting stuff out, everything's still broken. And I remember 499 00:25:29,436 --> 00:25:31,116 Speaker 1: I went to my I had a mentor at the time, 500 00:25:31,116 --> 00:25:32,956 Speaker 1: and I just went to his house in tears. It 501 00:25:33,036 --> 00:25:36,836 Speaker 1: was just like what do I do? Man? Like I 502 00:25:37,876 --> 00:25:40,076 Speaker 1: like this is too hard, this is too hard, and 503 00:25:40,196 --> 00:25:45,636 Speaker 1: just to like just to land the specific warehouse story, 504 00:25:46,076 --> 00:25:51,036 Speaker 1: like yeah, is there a lesson there, No, it just sucked. 505 00:25:51,076 --> 00:25:53,316 Speaker 1: And then we figured it out and fine, And still 506 00:25:53,116 --> 00:25:55,996 Speaker 1: fulfillment is the hardest thing that you'll ever do any commerce. 507 00:25:56,036 --> 00:25:57,716 Speaker 1: It's the worst thing. And like, so much of my 508 00:25:57,876 --> 00:26:00,196 Speaker 1: time energy is still in that, Like, should you not 509 00:26:00,356 --> 00:26:03,196 Speaker 1: have just paid somebody to like do some of the 510 00:26:03,236 --> 00:26:05,276 Speaker 1: things that you thought you could do yourself? I mean, 511 00:26:05,716 --> 00:26:07,276 Speaker 1: so if I were doing it again, and we did 512 00:26:07,316 --> 00:26:09,716 Speaker 1: do it again, we immediately then started on other warehouse. 513 00:26:09,716 --> 00:26:11,796 Speaker 1: We've got like two hundred thousand square feet of warehouse 514 00:26:11,836 --> 00:26:16,156 Speaker 1: in there now and uh, so we immediately started this 515 00:26:16,196 --> 00:26:18,756 Speaker 1: other one and uh and we paid a guy, a 516 00:26:18,796 --> 00:26:21,156 Speaker 1: consultant to come in and design it and place all 517 00:26:21,156 --> 00:26:23,316 Speaker 1: the stuff and pick the flows and do all that stuff. 518 00:26:23,316 --> 00:26:25,756 Speaker 1: And like, I mean, really, really the lesson out of 519 00:26:25,796 --> 00:26:29,396 Speaker 1: any out of any business person's experiences, start using the 520 00:26:29,476 --> 00:26:32,156 Speaker 1: leverage that you've built so that your life gets easier. Right, 521 00:26:32,156 --> 00:26:33,956 Speaker 1: And I've got an assistant now and she does a 522 00:26:33,956 --> 00:26:36,756 Speaker 1: lot of you know, and I and like, then you 523 00:26:36,756 --> 00:26:38,796 Speaker 1: you you have enough money to hire consultants. But when 524 00:26:38,796 --> 00:26:41,596 Speaker 1: you're bootstrapped, I think you you don't feel like you've 525 00:26:41,596 --> 00:26:43,676 Speaker 1: earned your way into a lot of that stuff yet, 526 00:26:43,716 --> 00:26:47,316 Speaker 1: because we didn't have enough money to pay, like my 527 00:26:47,396 --> 00:26:50,556 Speaker 1: mother a decent wage, and so why would I ever 528 00:26:50,636 --> 00:26:52,316 Speaker 1: think we could pay somebody to come and do this. 529 00:26:52,356 --> 00:26:54,836 Speaker 1: And I had to do it all myself. And so 530 00:26:54,996 --> 00:26:58,156 Speaker 1: like the lessons learned are just leverage, it's it's using 531 00:26:58,156 --> 00:27:00,116 Speaker 1: the assets and the knowledge and the skills that you've 532 00:27:00,116 --> 00:27:02,796 Speaker 1: built over time to do this. It's the hard part 533 00:27:02,836 --> 00:27:04,916 Speaker 1: about starting a company as a twenty six year old 534 00:27:05,316 --> 00:27:08,476 Speaker 1: schmow that doesn't know anything, is like I had no leverage. 535 00:27:08,476 --> 00:27:11,116 Speaker 1: I had to build it all up through these really 536 00:27:11,156 --> 00:27:13,996 Speaker 1: hard moments. But yeah, that would be a hard moment. 537 00:27:14,436 --> 00:27:16,556 Speaker 1: The other hard moment where I felt like I failed 538 00:27:17,116 --> 00:27:20,036 Speaker 1: was the UH was actually when I when I stepped 539 00:27:20,036 --> 00:27:21,876 Speaker 1: out of the day to day of the company, because 540 00:27:21,916 --> 00:27:24,876 Speaker 1: like I was, I started at twenty six, grew it. 541 00:27:25,036 --> 00:27:27,636 Speaker 1: This company grew really fast and got really big, and 542 00:27:27,676 --> 00:27:30,596 Speaker 1: soon I was managing hundreds of people. But I wasn't 543 00:27:30,596 --> 00:27:33,236 Speaker 1: a great manager. I'd never been managed in a in 544 00:27:33,276 --> 00:27:34,596 Speaker 1: a big thing like this. I didn't know what you're 545 00:27:34,596 --> 00:27:37,316 Speaker 1: supposed to do. And so what I built was an 546 00:27:37,436 --> 00:27:40,676 Speaker 1: organization that was a hundred employees that were all extensions 547 00:27:40,676 --> 00:27:42,836 Speaker 1: of my own hands. And I would ask for like 548 00:27:42,956 --> 00:27:45,396 Speaker 1: daily reports, like what'd you get done today? And I 549 00:27:45,436 --> 00:27:46,876 Speaker 1: was trying to keep tabs on if you were working 550 00:27:46,916 --> 00:27:48,676 Speaker 1: hard enough, because I wasn't going to get screwed, You're 551 00:27:48,716 --> 00:27:50,756 Speaker 1: not going to take advantage of And so I found 552 00:27:50,756 --> 00:27:55,756 Speaker 1: myself just exhausting myself, micromanaging and being a really crappy leader. 553 00:27:56,276 --> 00:28:00,316 Speaker 1: And so the you know, like that that moment where 554 00:28:00,316 --> 00:28:02,356 Speaker 1: all of a sudden you find yourself like you're yelling 555 00:28:02,396 --> 00:28:05,516 Speaker 1: at people and you're not normally a yeller, and you know, 556 00:28:05,596 --> 00:28:08,036 Speaker 1: you you start lobbing bombs back into your business to 557 00:28:08,036 --> 00:28:10,836 Speaker 1: blow it up so that you you're needed and you're 558 00:28:10,876 --> 00:28:13,156 Speaker 1: good at fixing these things. If if it's broken, I 559 00:28:13,276 --> 00:28:15,276 Speaker 1: really see how need to die, like how much they 560 00:28:15,316 --> 00:28:18,476 Speaker 1: still need and uh, and what you should be doing 561 00:28:18,636 --> 00:28:20,636 Speaker 1: is being very comfortable working your way out of your 562 00:28:20,636 --> 00:28:22,956 Speaker 1: own position and spitting in your chair for a couple 563 00:28:22,996 --> 00:28:24,716 Speaker 1: of months having nothing to do, and then go do 564 00:28:24,796 --> 00:28:27,156 Speaker 1: other big stuff. But I wasn't there yet, and so 565 00:28:27,276 --> 00:28:30,076 Speaker 1: like that was that part really really broke and was 566 00:28:30,156 --> 00:28:34,076 Speaker 1: really hard emotionally, and uh, and my my fix for 567 00:28:34,116 --> 00:28:36,996 Speaker 1: that as I went and like you know, scaled myself 568 00:28:37,076 --> 00:28:42,116 Speaker 1: up emotionally through through some coaching and UH and therapy 569 00:28:42,156 --> 00:28:44,396 Speaker 1: and stuff like that, and then UM, for me, the 570 00:28:44,436 --> 00:28:47,156 Speaker 1: outcome was I ended up needing to step away from 571 00:28:47,156 --> 00:28:49,476 Speaker 1: our company UH from the day to day, and we 572 00:28:49,596 --> 00:28:53,396 Speaker 1: hired in as CEO, and my job became to support him, 573 00:28:53,396 --> 00:28:54,596 Speaker 1: and I had to learn how to now be a 574 00:28:54,596 --> 00:28:58,196 Speaker 1: good governor to manage the manager. And eventually I'll learn 575 00:28:58,236 --> 00:29:01,276 Speaker 1: how to be a good owner who manages the governors 576 00:29:01,316 --> 00:29:04,596 Speaker 1: who managed the management. Um. But I'm not quite there 577 00:29:04,676 --> 00:29:06,756 Speaker 1: yet and so we're still working our way through that. 578 00:29:06,796 --> 00:29:09,436 Speaker 1: But like, yeah, those are those are those are the 579 00:29:09,476 --> 00:29:11,356 Speaker 1: scary ones that I think of when you say, what 580 00:29:11,596 --> 00:29:20,316 Speaker 1: was a hard moment? In a minute, it's a lightning round. 581 00:29:20,956 --> 00:29:23,956 Speaker 1: Including the most fun you can have in Hamilton, Missouri 582 00:29:24,476 --> 00:29:34,316 Speaker 1: is making quilts is not really your thing. That's the 583 00:29:34,396 --> 00:29:39,356 Speaker 1: end of the ads. Now we're going back to the show. Great, Okay, 584 00:29:39,436 --> 00:29:41,756 Speaker 1: let's do a lightning round. Give it to me man, 585 00:29:41,796 --> 00:29:46,756 Speaker 1: I'm ready, okay, okay, Um. What's the best thing about 586 00:29:46,796 --> 00:29:51,596 Speaker 1: working with your family? The best thing about working with 587 00:29:51,636 --> 00:29:54,996 Speaker 1: my family, I think is just having having a very 588 00:29:55,076 --> 00:29:58,076 Speaker 1: common thing that keeps us pulled together as we all 589 00:29:58,076 --> 00:30:01,076 Speaker 1: get older. Right like most most families, I think it's 590 00:30:01,116 --> 00:30:04,516 Speaker 1: just turns into Sunday dinner if you're lucky, and we 591 00:30:05,076 --> 00:30:06,716 Speaker 1: still put ourselves in a room and try and be 592 00:30:06,756 --> 00:30:09,036 Speaker 1: creative and come up with great things and solve problem 593 00:30:09,236 --> 00:30:12,956 Speaker 1: and stuff, and that's that's really fun to me. Worst 594 00:30:12,956 --> 00:30:17,316 Speaker 1: thing about working with your family you got to fire 595 00:30:17,396 --> 00:30:21,116 Speaker 1: him sometimes. Have you fired? Have you fired family members? Yeah? 596 00:30:21,156 --> 00:30:23,396 Speaker 1: I fired my little brother. He wasn't showing up. So 597 00:30:23,516 --> 00:30:27,076 Speaker 1: then his sweet wife of three little kids calls me crying, 598 00:30:27,116 --> 00:30:28,556 Speaker 1: and my mom calls me and says, you did not 599 00:30:28,636 --> 00:30:31,516 Speaker 1: just fire your brother. My pride stands up. It says, 600 00:30:31,516 --> 00:30:35,516 Speaker 1: absolutely I did. And you know, well it's hard man, 601 00:30:35,556 --> 00:30:38,996 Speaker 1: because like he actually came back and we figured it 602 00:30:39,036 --> 00:30:41,596 Speaker 1: all out. He worked with us for a decade and 603 00:30:41,636 --> 00:30:46,116 Speaker 1: it's great. How has being a YouTube quilting star changed 604 00:30:46,156 --> 00:30:53,836 Speaker 1: your mom? Very sincerely, I would say, I would say 605 00:30:53,876 --> 00:30:58,076 Speaker 1: anytime there's any level of fame that comes into somebody's life, right, 606 00:30:59,276 --> 00:31:03,036 Speaker 1: you start to shift some of your inputs a validation 607 00:31:03,196 --> 00:31:06,276 Speaker 1: and that's a challenge. Thankfully, she's got a great heart 608 00:31:06,436 --> 00:31:08,916 Speaker 1: and is very willing to like go back to center 609 00:31:08,956 --> 00:31:12,716 Speaker 1: with me, But she gets really used to people clapping 610 00:31:12,716 --> 00:31:14,396 Speaker 1: for and telling her how amazing she is and how 611 00:31:14,396 --> 00:31:18,276 Speaker 1: great she is, and that'll change somebody. What is one 612 00:31:18,316 --> 00:31:22,796 Speaker 1: thing besides going to Hamilton and buying quilting supplies that 613 00:31:22,876 --> 00:31:27,996 Speaker 1: everybody should do when they go to Missouri? Um, let's 614 00:31:27,996 --> 00:31:33,676 Speaker 1: see what's something everybody should do? Covin ride some motorcycles 615 00:31:33,716 --> 00:31:36,156 Speaker 1: with us. We play motorcycle soccer at the fourth of 616 00:31:36,236 --> 00:31:39,076 Speaker 1: July celebration every year and it's maybe the most fun 617 00:31:39,116 --> 00:31:41,636 Speaker 1: I've ever had in my life. How many quilts have 618 00:31:41,716 --> 00:31:46,196 Speaker 1: you made in your life? I am working on my second. 619 00:31:48,116 --> 00:31:50,996 Speaker 1: If everything goes well, what problem will you be trying 620 00:31:51,036 --> 00:31:53,996 Speaker 1: to solve in five years? Well? The big I think, 621 00:31:53,996 --> 00:31:56,116 Speaker 1: the big one, the big one that weighs on me 622 00:31:56,316 --> 00:31:59,596 Speaker 1: in five years is what do we do with this company? Right? 623 00:32:00,636 --> 00:32:03,436 Speaker 1: And it's I mean the options are IPO How cool 624 00:32:03,436 --> 00:32:06,636 Speaker 1: would it be to ipo a billion dollar business in Hamilton, Missouri? 625 00:32:08,436 --> 00:32:11,396 Speaker 1: Or its sell it's some private equity folks that are 626 00:32:11,436 --> 00:32:14,756 Speaker 1: going to maximize profits and and who knows what will 627 00:32:14,756 --> 00:32:17,316 Speaker 1: happen in the town or do we keep private and 628 00:32:18,196 --> 00:32:22,516 Speaker 1: just live off our fat ibadah checks that will continue? 629 00:32:22,596 --> 00:32:25,076 Speaker 1: We'll turn this thing into just being a cash cow 630 00:32:25,156 --> 00:32:28,756 Speaker 1: and generate money. Um. And and there's different weights that 631 00:32:28,836 --> 00:32:30,836 Speaker 1: come with all those right, like if I hold onto it, 632 00:32:30,956 --> 00:32:33,036 Speaker 1: never cash out. Like I'm great at buying low, I'm 633 00:32:33,076 --> 00:32:36,076 Speaker 1: bad at selling high. And so I like, I worry that, 634 00:32:36,236 --> 00:32:37,796 Speaker 1: you know, did I try and ride this too long? 635 00:32:38,036 --> 00:32:39,956 Speaker 1: I think I think in five years that's what I'm 636 00:32:39,996 --> 00:32:43,556 Speaker 1: staring at and saying, Mom's, mom's sixty five now, like 637 00:32:43,796 --> 00:32:46,396 Speaker 1: she she doesn't want to wait for another twenty years 638 00:32:46,396 --> 00:32:48,236 Speaker 1: to get a payout. Like what do we want to do? 639 00:32:48,836 --> 00:32:51,436 Speaker 1: And how how do I represent everybody's interests and help 640 00:32:51,516 --> 00:32:53,956 Speaker 1: us all feel like we accomplished a thing. I think 641 00:32:53,956 --> 00:32:56,196 Speaker 1: that's the big one that I'm trying to solve. This 642 00:32:56,276 --> 00:32:59,316 Speaker 1: is this is like the hardest thing I've ever tried 643 00:32:59,356 --> 00:33:01,156 Speaker 1: to solve. And I think anybody has sold a company 644 00:33:01,196 --> 00:33:05,116 Speaker 1: has probably stared at the same thing, and very few 645 00:33:05,196 --> 00:33:08,516 Speaker 1: people I think, I don't know a lot of people 646 00:33:08,676 --> 00:33:11,516 Speaker 1: regret it. A lot of people regret selling and sort 647 00:33:11,516 --> 00:33:13,796 Speaker 1: of letting it. I think if I sold the company 648 00:33:13,796 --> 00:33:16,116 Speaker 1: and all of a sudden, the town like they move 649 00:33:16,156 --> 00:33:18,196 Speaker 1: out of here and it's all a ghost town in 650 00:33:18,276 --> 00:33:21,676 Speaker 1: vacant buildings, it's not much of a legacy to leave. 651 00:33:21,956 --> 00:33:24,636 Speaker 1: So I don't know, I don't know, man, it's this 652 00:33:24,676 --> 00:33:26,556 Speaker 1: is a this is a very real one that I 653 00:33:26,596 --> 00:33:34,236 Speaker 1: don't exactly understand how to solve. Yet, what's your mom think? Dude? 654 00:33:34,036 --> 00:33:37,356 Speaker 1: My family, My family is fantastic because they love me 655 00:33:37,396 --> 00:33:40,556 Speaker 1: and they say whatever you think. El like, like, you know, 656 00:33:40,916 --> 00:33:44,116 Speaker 1: if I gave mom a million dollars tomorrow, she is pumped. 657 00:33:44,756 --> 00:33:47,276 Speaker 1: She's pumped, you know. And I'm not trying to create 658 00:33:47,316 --> 00:33:49,316 Speaker 1: a million dollars. I'm trying to create hundreds of millions 659 00:33:49,316 --> 00:33:52,356 Speaker 1: of dollars and so and so. Most of the weight 660 00:33:52,396 --> 00:33:54,756 Speaker 1: of that is sort of is sort of set up 661 00:33:54,756 --> 00:33:57,156 Speaker 1: and felt by me. It's not it's not for mom. 662 00:33:57,596 --> 00:34:00,636 Speaker 1: There's no right answer. This is this. It's a nightmare 663 00:34:00,676 --> 00:34:03,636 Speaker 1: one because if you're right, everybody loves you. You did 664 00:34:03,676 --> 00:34:06,516 Speaker 1: a great thing. Your life's work is is preserved, and 665 00:34:06,556 --> 00:34:10,316 Speaker 1: the legacy is enshrined. And if I'm wrong, it's a 666 00:34:10,356 --> 00:34:14,796 Speaker 1: huge disaster. Big dummy. I ruined my family's outcomes and mine. 667 00:34:15,316 --> 00:34:18,396 Speaker 1: How could I? It's the worst. Welcome to the life 668 00:34:18,396 --> 00:34:21,756 Speaker 1: of family businesses. Even when you win, you feel like 669 00:34:21,836 --> 00:34:33,076 Speaker 1: you could still lose. Yeah, how to present? Aldon is 670 00:34:33,116 --> 00:34:37,396 Speaker 1: the executive chairman of the Missouri Star Quilt Company. Today's 671 00:34:37,396 --> 00:34:40,916 Speaker 1: show was produced by Edith Ruslow, engineered by Amanda kay Wong, 672 00:34:41,196 --> 00:34:44,596 Speaker 1: and edited by Robert Smith. I'm Jacob Goldstein, and we'll 673 00:34:44,596 --> 00:34:51,716 Speaker 1: be back next week with another episode of What's Your Problem.