Thinking that he knows whats right. Lemonis not only had he made some seriously misguided business decisions. Is this only for girls . Matt yes. Lemonis . But he was always undercutting charlotte and skylers authority. Matt well, now these guys have it that they can do whatever the [bleep] they want. If im acting ceo, we go with my decision until you vote me out. Lemonis he would ignore their ideas. Charlotte i just think we need a leader that puts the Company First and not himself. Lemonis he was nasty. Matt i literally did with charlotte. We stepped the [bleep] out. Lemonis you dont have to get that crazy. And while i tried my best to help the business, even lining up a huge opportunity with tmobile. And were going to bring you designs that are exclusive to you that we will not put in the market. Matt no. Lemonis . He just blew it all, and finally, i reach my boiling point. Youre a smug prick. You have disrespect towards her and disrespect towards him, and theyve done nothing but eat from a bag of [bleep] since i met you. And i walked away. But just a few days later, i got a phone call from charlotte. Oh, really . Well, this is what happened next. My name is marcus lemonis, and i risk my own money to save struggling businesses. Were not going to wake up every morning wondering if we have a job. Were going to wake up every morning wondering how many jobs we have to do. Its not always pretty. Everything is going to change, everything. But i do it to save jobs, and i do it to make money. This. Lets go to work. Is the profit. Charlotte you ready . Skyler im excited. Charlotte yeah, me, too. Lemonis its only been a few days since i walked out on the casery, but i have these two people in charlotte and skyler that have a ton of talent and a lot of knowledge about the accessory business. Charlotte hi. Hows it going . Skyler hey, marcus. Lemonis how are you . And i have this relationship with tmobile where i had a huge meeting set up, and for me to miss out on that opportunity doesnt make any sense, so if i want to really make some money, i have to figure out how to put all of this together in a very short period of time. How you guys feeling . Skyler still nervous. Just before we came over here, actually, we had that conversation with matt and, like, told him our decision, that were not going to be continuing to work with him. Lemonis oh, you did . How did that go . Charlotte yeah. It went pretty well, actually. He didnt seem that surprised, so i dont know if maybe he kind of saw it coming. Lemonis or hes playing poker. Charlotte exactly. Lemonis well, lets go sit down, and we can talk about it. What are sunshine and xavier thinking . Charlotte they want to come with us. Lemonis they do . Charlotte yeah, they want to leave the casery. Lemonis so lets talk about the deal. Skyler well, you know, wed really like to get a couple products developed quickly and, you know, really start generating some revenues. Lemonis you essentially just need somebody to finance your inventory. Skyler exactly. Charlotte yeah. Lemonis i think its going to take 2 million, initially. From my perspective, im putting money in, and you guys are putting money in. Your form of money is, like, your brains and your work, and the 2 million, it cant be equity. Skyler why is that . Lemonis because if i put 2 million in, and you own 51 , itll be like i gave you a gift of 1,000,001. Youll get a tax bill from the irs, and so we have to figure out how to structure it in a way where its not seen as a gift. Its seen as a preferred investment, and so i get my 2 million back before any profits are taken. And if the Company Makes a ton of money, you guys can pay it back in time. In order for a business to start from the ground up, theres a couple of things that you have to factor in startup costs, including payroll, and once the orders start flowing in, you have to buy the inventory. You have to deliver it to the company, and then, ultimately, you have to wait 30, 60, or 90 days for payment. As the orders get bigger, theres more money thats required to finance those receivables, so 2 million sounds like a pretty reasonable amount with getting an account like tmobile. Ill have 49 . Youll have 51 . I dont have to have any operational control, any payroll control, no creative control, but i have to have financial control. Charlotte mmhmm. Lemonis does that make sense to you guys . Skyler that works for us. Charlotte i think so, yeah. You are 49. Were 51, and we, you know, we will split that evenly. Lemonis whos going to be the ceo of the business . Skyler thats what we hadnt really decided, but charlotte well, we talked about it. Lemonis ill do it for you. I think it should be charlotte. Skyler but, like, i do have a lot of background in Product Development, and, you know, a lot of my experience and skills are more so than just being in operations. Lemonis i think it should be charlotte, not because youre not qualified but because i feel like charlotte really is more evenkeeled than you are, and every leader needs a sidekick, and youre that guy. Skyler has a deep knowledge of the manufacturing side, the production side, where charlotte really understands the design component, and candidly, i think shes ultimately better with big clients like tmobile. Shes friendlier. Shes warmer, so they complement each other. So, the meeting with tmobile is scheduled for, like, a little more than a week from now. Skyler yes. Charlotte yep. Lemonis and i did not cancel it because i didnt want to send them into a spin. Charlotte right. Lemonis the time crunch is real. Were talking about boards, a brand, new designs that are totally different than the casery. Charlotte right. Lemonis more genderneutral so that youre addressing the entire phone market. So you guys need to set up a new llc. You should get a quick articles of incorporation set up. What about the name of the business . Skyler thats going to be really hard for us. Lemonis well, what are you telling tmobile . Whats your name . We dont know yet . We need to lay out, like, packaging. Probably need to decide by tomorrow. So, charlotte, what im looking for you to do is be that leader. Charlotte mmhmm. Okay. Lemonis its your business. Charlotte okay. Lemonis matt never gave charlotte the chance to be a leader, and its going to be interesting to see how she handles these new responsibilities, especially under a tight timeline. Charlotte therell be some serious brainstorming, but i think we can do it. Lemonis holy [bleep] theres so much to do. Charlotte yeah. Lemonis after tmobile, we have to actually deliver it. Skyler you have to have a supplier to fulfill, right . Charlotte yeah. Right, right. Lemonis in any account, there are really two parts to actually doing business landing the pitch and getting the yes, and then the hard part, which is actually fulfilling the order. Skyler we still want to go to china, as well, this month. Lemonis before the meeting . Skyler after the meeting. Charlotte it would be after the meeting. We want to be able to go to this show where we can source new products. Skyler is there anything else that you want for your investment . Lemonis yeah, i just want you to treat each other with respect. Skyler okay. Lemonis that is the single biggest reason i couldnt do business with matt. He just wasnt respectful to his people. So, come prepared to work. Charlotte sounds good. Lemonis were going to go long and late. Skyler thats right. Charlotte sounds good. Byebye, pink door. Skyler bye, pink door. Charlotte bye, casery. Lemonis im excited to get the ball rolling on this new project. The team is moving out of their old casery office. Charlotte to get ready for tmobile and stuff, we need a lot of were going to need you guys a lot. Lemonis . And into my office in downtown l. A. Charlotte thanks for having us. Sunshine were here. Lemonis what . Sunshine oh, my god. Lemonis and with 10 days to actually get the pitch ready, there is no time to waste. Okay. Come on. Im going to show you your space. Xavier all right charlotte cool. Oh, my gosh. Xavier thats pretty sweet. Charlotte this is so cool. Lemonis maybe, charlotte, we can start with your tmobile plan, and its, like, literally 10 days from now. Charlotte 10 days. Xavier i aint scared. Lemonis what . I am. [ laughter ] youre not scared, but i am. So, charlotte, well give you the board. Well pull some chairs up, and well start making a list of things we need to do. Charlotte yeah. Okay. Sounds good. Lemonis ooh charlotte first thing we need is a name. We need brand identity. Xavier yeah. Lemonis what about peoples roles . How are we going to get to the finish line if nobody knows what anybodys doing . Charlotte um. Okay. So. I mean, i really want this to be all of us. Skyler right. Charlotte but the people who are going to be truly, truly responsible i mean, ill be completely responsible for it, but im going to really need you, xavier, and you, sunshine, obviously, and then, of course, you, as well. Lemonis what about whoa, whoa, whoa. Whoa, whoa. Everybodys got to have a very specific role between now and 9 days from now. Charlotte yeah, but, i mean, we want it to be a collaborative thing. Like, we want to know what you can be responsible for, what you want to be responsible for, and kind of come to, like, a happy medium on that. So this will be all. Lemonis well, no, but what are the Job Responsibilities . This idea of everybody sort of having a little bit of everything isnt going to work. I think charlotte struggles because she doesnt want to offend anybody. She doesnt want to make a mistake. She wants everybody to feel included. The sign of a good leader is being able to do that and delegate. Whos taking the presentation . Charlotte whos, like, actually doing it . Lemonis yeah. Charlotte i mean, i will. Lemonis okay. Youre the face of the business, and youre the voice of the business. Charlotte okay. Lemonis after the roles were assigned, the team spent the next few days setting up their office. Charlotte anything thats in cardboard boxes, we need to take out. Lemonis . Developing new designs, and coming up with a new name and a branding strategy for the company. You guys had some stuff to show me . Charlotte oh, we just want to show you everything that weve been working on the last couple days. Lemonis okay. Charlotte all right. So, heres our new logo for everkin, because our line is really for everyone, and the swoop really kind of, like its like a hug. It just, like, brings everyone in. I mean, before, it was really for women. Skyler its really accessible for everyone. Lemonis i think you guys did a great job with it. I love the fact that they came up with a name that really represents all of their collective thoughts. I also like the fact that charlotte really led that process for the first time. Charlotte and its a catchy name, and, like, we can really play with it, like, i dont know. Lemonis charlotte, when you say i dont know, theyre going to smell any lack of confidence. Charlotte okay. Got it. Lemonis and i want you to deliver it with, like, deadstop confidence. Okay . Charlotte all right. So, now we have some we kind of just put together boards. So, this is, like, our breadandbutter everkin line, so itll be marbles and textures. Lemonis what do you think im thinking . Charlotte its too similar . Lemonis i think the bottom two, for me, are too close to the old company. Charlotte but, like, there are a lot of companies out there doing marble. Lemonis for me, theyre a no. Charlotte no, i dont agree with you. I think this is really awesome. Yeah. Lemonis is this your guys first presentation like this . Xavier yes. Lemonis it kind of shows. Charlotte marcus. Everyones already freaking out, and, like, we know whats [bleep] lemonis but youre kind of putting it on me as if im bringing the energy down. Charlotte [ chuckling ] you are. Lemonis because youre not ready. Lemonis i think the bottom two Liberty Mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. [upbeat music] no matter how much you clean, does your house still smell stuffy . Thats because your home is filled with soft surfaces that trap odors and release them back into the room. 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Lemonis yeah, but we know that white and pink was sort of their they dont own marble, but they sort of had the corner on whiteandpink marble. Charlotte sunshine was up till 3 00 a. M. Last night working. Lemonis i know that you guys came up with those. Xavier yeah, yeah. Lemonis so i know thats like, wait a minute. That came out of my head. It did, but what i want to avoid, charlotte, is any possibility of anybody, including the customer, feeling like you hijacked something. Charlotte right. Lemonis i dont want anybody ever questioning your integrity. My job is to protect you guys. Charlotte i yeah. No, i get that. Lemonis go get some sleep. Skyler whoo charlotte sunshine. Lemonis thanks, guys. Xavier awesome. Thank you. Lemonis hey, guys. Sunshine hello. Charlotte hi. Lemonis have you gotten any sleep . Sunshine no. Xavier no, no. Lemonis you look like death, but im glad that youre working hard. Do you guys want to do a presentation . Charlotte okay. Lets get it set up. Lemonis all right. Lets go through it. Charlotte okay. So, thank you guys for having us today. Were really excited to be here. So, the last time we saw you, jon. Lemonis my name is. . Charlotte jon and john . Lemonis no. No. Charlotte oh, thats right. I didnt do that. Lemonis your name. Charlotte im charlotte. Im the ceo, and im excited to tell you about the brand that weve been developing. We, um. [bleep] lemonis okay. I just want to tell you guys something. Any of you at any point throughout the presentation, pipe in. Anytime you seem them fade, keep their attention. Im not going to give charlotte a pass here. I know shes tired, but if you want to be the ceo, thats what comes with the territory. Charlotte so, weve been working to create this brand. Its a case for everyone, and the name is everkin. Lemonis it looks like the customer skews female. I wouldnt necessarily put them on my phone particularly, but i like the fact that they all have a different feel to them. And it feels like theres some genderneutral designs here. Im not totally in love with the designs. What worries me are some of the same issues that worried me at casery. They skewed very female, but i feel like telling them now will take them off their game. I just hope that tmobile doesnt feel the same way i do. Lemonis okay. I think we should stop. Okay. All right. Get some rest. Charlotte okay. Thank you. Lemonis good job, guys. Skyler how big are the easels . Can the easel hold that many boards . Were going to have to open the easels up here and test it out first. Charlotte i dont want to open all of them. Theyre, like, in tight, little boxes in my tapedup thing. The easels are the easels at this point. [ chuckles ] skyler all right. Xavier were too tired. Charlotte we just got to hustle. Lemonis today is a bigger day than i think they even realize. And while i hope that theyre rested, what i hope for more than anything is that theyre prepared. Xavier oh, geez. They didnt even label the pieces. Charlotte they split. Look. Sunshine oh, no. [ laughs ] xavier yeah, maybe its like this, sunshine. Lemonis hi. Charlotte hi. Skyler hey, marcus. Lemonis how are you . You guys know that were starting in like 5 minutes. Xavier we are aware of that information. Charlotte we didnt get up into this room until a few a minutes ago, so were trying to just hustle it together. Lemonis okay. But you are just setting up the easels now . You didnt preset them up . Charlotte they were supposed to be really easy to set up, and theyre not as easy as lemonis okay. I think, actually, you guys, were going to have to abandon the easels. Skyler i wouldnt be opposed to that. Lemonis well, we just dont have a choice. Ill just ill be your easel. Skyler kill the easels. Lemonis but were out of time. Xavier kill it. Lemonis so, put them away. Lets get this stuff put away. Did you guys bring this up . Charlotte yes. We need to put it away. Lemonis [bleep] is this your guys first presentation like this . Xavier yes. Lemonis okay. Because it kind of shows. Charlotte this is for you, marcus, if you want it. Lemonis okay. I definitely want it. And what time is it right now . Skyler 12 02. Lemonis and what time was the meeting supposed to start . Skyler 12 00. Lemonis so we need to, in the future, be ready, even if you have to get stuff ready downstairs. Charlotte marcus, everyone is really down and freaking out, and i need your help to pump them up. Can you help me do that . Lemonis you need to do it. Charlotte i know, but i need you to come in here and also really everyones already freaking out, and, like, we know whats [bleep] and we just need to lemonis okay. Well, you guys need to charlotte thank you. All right. So lets get these boards in the right lemonis charlotte. Dont put it on me. I dont really care that charlottes frustrated with me. Shes the leader. She asked for this job, so dont get frustrated with me because you dont have your act together. Charlotte i just lemonis youre kind of putting it on me as if im bringing the energy down. Charlotte [ chuckling ] you are. Lemonis because youre not ready. Charlotte no, were not, and we know. Lemonis no, i know, but what im not going to do is tell you how wonderful you are when you guys arent ready. If your business is in trouble, and you need my help, log on to theprofitcasting. Com. Only one things more exciting than getting a lexus. Ahhhh giving one. The lexus december to rembember sales event lease the 2020 nx 300 for 329 a month for 27 months. Experience amazing at your lexus dealer. For 329 a month for 27 months. Itso chantix can help you quit slow turkey. Along with support, chantix is proven to help you quit. With chantix you can keep smoking at first and ease into quitting. Chantix reduces the urge so when the day arrives, youll be more ready to kiss cigarettes goodbye. 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While im frustrated that theyre not prepared, i do like the fact that charlotte is standing up for herself, because the sign of a good leader, in my mind, is one that is willing to not just be a yesperson. Charlotte hi. Xavier yo. Sunshine hi. Charlotte how are you . Woman good. Thanks. Skyler welcome, welcome. Man so. Charlotte well, thank you guys. First of all, thank you so much for having us. Im the ceo, charlotte. Skyler im the coo, skyler. Sunshine designer, sunshine. Xavier also a designer. My name is xavier. Charlotte so, i just want to let you know whats been going on the last couple of weeks. We kind of realized the company was not being run the way that we wanted it to be run, cause we were really focused on one single customer. And we wanted to break out on our own, and weve been doing this for 3 years. Skyler and even though that were a new company, like, were totally ready to go with any of the requirements that you guys might have, whether its logistically or anything like that, so, you know, were ready to fulfill. Xavier so, first off, thanks for coming to see us. We really appreciate it. And when it comes to everkin, we really wanted to make a case for everybody, a product for everybody. We wanted everyone to feel like kin. Jon i think its great. Sarah i especially like that it has a story and that theres meaning to it. Sunshine cool. So, what we really want to do at everkin is take whats hot and new and make it more special and make it ours. But were not just slapping marble textures onto cases. Were doing something more. Lemonis what do you think of the designs . How does this feel to you, genderwise . Sarah very skewed female. Jon yeah, i agree. Lemonis heavily skewed . Jon not heavily. Not for me. Sarah really . Jon yeah. I would say sarah youd wear okay. Come on. Youd put that on your case . Jon id, um. Sarah honestly. Lemonis is there anything on this board that you would put on your phone . Jon i would put that one, the lower right. Sarah i actually would say, my l. A. Friends, if you were to think about our l. A. Team, many of the men might go for that. Jackson i totally agree. Sarah the gold is so ontrend. And the mixing the marble with the gold, i havent seen anything like that. It looks fantastic, and i think that these have a sophistication to them. Xavier aside from that, we really wanted to, you know, make sure we hit that tmobile magenta in the designs that we made, because it would be really cool for the customer to get something that is branded tmobile but doesnt, like, feel like it to them so that theyre Walking Around showing off this cool case, while at the same time, your brand is being extended. Sarah this was smart of you, because there are the people who are fans, and that was nice. Jon wow. Thats impressive. Jon hey. How are you . Charlotte hi. Lemonis how are you . Charlotte welcome. Hi. Im charlotte. John hi, charlotte. Im ceo. Nice to meet you. John oh, cool. Yeah. Young, smart people. Lemonis look, the fact that the ceo of tmobile comes into the meeting is a very big deal. Charlotte this is probably a good time for us to take off our hoodies and fit in a little bit better. Sarah oh, nice. Xavier were all kind of part of the team. Lemonis and i like the fact that charlotte was smart enough to know how to be clever with the branding and whips out these tmobile shirts. Charlotte so, this is how we look at our business and our designs. We really want to fill each and every one of these buckets so that anyone that walks into tmobile, theres a case for them. Men and women and then, the different age groups. John thanks for acknowledging that there is a righthand side to that chart for those of us. Lemonis just out of curiosity, what box are you in . John im where shes standing. [ laughter ] but we have high disposable income, and we buy and we have children down there that were buying. We could sell so many of these. I like it. Lemonis thats fine. Thank you. John im in. Thank you. I look forward to working with you. Ill see you before you leave. Lemonis thank you, sir. The designs passed the test, barely, but im concerned that they still skew a little too female. The good news is, is that we still have a few months before they get in stores to tweak the designs and make sure that we have a good balance between male and female. But i am happy to say that everkin has its first account. Sarah we have a launch coming up in august that wed want to have you take a look at that and see if you could make those deadlines. Jackson great job. Jon were excited for the next steps. Charlotte we are, too. Sarah thank you so much. Lemonis they got a order for 38,000 cases with 18 designs, and theyre going to be able to be in all the stores nationwide. This is a huge accomplishment. Heres the problem. We have the order, but we dont have the product to fulfill it. Lemonis lot of work to do charlotte thank you. Lemonis well see you soon. Charlotte thanks, marcus. Lemonis in order to get this order fulfilled, our first step is to get these cases manufactured by professionals. So the team is heading to hong kong. Charlotte yay, hong kong lemonis . To one of the largest trade shows in the world. Im expecting them to find the latest and greatest in cellphone cases, accessories, and the newest technology, but theyre also there to work on their teamwork, something that definitely didnt exist at the casery. Now that the team is back to los angeles, xavier and sunshine are working on allnew designs, so they can be printed by the manufacturer in hong kong, and skylers working with the 3pl, a thirdparty Logistics Company that will receive the cases after they get airshipped from hong kong. Once received, theyll get inventoried and packaged and then shipped out to the tmobile stores. Skyler we just got word that the iphone xr, one of the sizes is getting pushed back, the release date. Karlo ooh. Skyler so were going to have to relabel basically all 7,000 of those units before we deliver. Karlo thatll be cutting a little close. Lemonis ive also brought in clickup. Theyll provide software to charlotte so she can help manage her teams tasks and deadlines. Zeb really, we just try to bring everything to do with productivity into one central location. So, like, if youre a manager, your homepage is going to be what we call box view, so you can see what each person is working on. Man its a tree diagram essentially of everything that needs to be done. Charlotte yeah, this is what ive been looking for. Lemonis this has been one of the most brutal months that any company, let alone a startup, could handle. Theres pressure on money, delivery dates, a large customer, and with all this pressure, im hoping that charlotte and skylers relationship can withstand this tension. Charlotte i want to talk to you about something, cause i feel like a lot of times, you kind of keep me out of the loop. Like, if youre coming out here, like, id like to come with you. You know, like, i want to have a relationship with these people, too. There are a lot of gaps in my mind of how things are working, cause the information is kind of being withheld. Skyler a lot of times, i feel like i dont know what youre really working on, either, so obviously, like, you know, doing a lot of accounting right now and other things like that, and im not sure always if its the best use of time for us both to be working on that. Charlotte i need to be in the loop. I need to know whats going on. Skyler yeah, i mean, sure. Lemonis hey, guys. Skyler hey, marcus. Charlotte hey, marcus. Charlotte hey. Good to see you. Lemonis and so, this is all thats in . Skyler yep. Lemonis whats left to come . Skyler so, theres 12 more designs that are coming. Lemonis uhhuh. The fact that were a week away from the tmobile launch has me feeling pretty anxious, so i wanted to head to the 3pl just for a little insurance to make sure that every last detail is handled. Skyler spent a lot of time looking at different 3pl facilities. We found that this was actually a really good deal for us in addition to the convenience. Lemonis so, what are the economics . Skyler so it would be 2. 70 plus 10 cents per lemonis 2. 70 per item . Skyler no, for the first item, to get the box. Lemonis so, i need to think about the pricing as the action to come over to do it and then any incremental action is 10 cents. Skyler yes. Lemonis 2. 70 feels high to me. You know what it is . Charlotte well, is it the lemonis its 2. 35 . So, whats the pricing, now . Edward so i believe its 2. 35. Lemonis okay. So why did you think it was 2. 70 . Skyler i mean, i just dont have it actually written out lemonis i know, but you got to know that [bleep] like, thats a big number to know. Okay. So, i want to understand this, so get an empty box and just walk me through the economics. I just want to visually see that. Edward so, 2. 35. Lemonis so, theyre going to pick an item. Edward so, were going to pick these items. Lemonis 2. 35, boom. Edward and then each additional item is 25 cents. Skyler i thought it was only 10 cents. Naim the way we billed before, its 25 cents a unit. Lemonis okay. You know what frustrates me about skyler . He always talked a big game, and he always had a lot of confidence, and right now, its game time, and hes looking at me like hes a deer in the headlights. If this order and this relationship doesnt get executed properly, then its game over for this business. Lemonis skyler, how much is this how much is their bill on 21 items . Skyler so, lets see, 21 lemonis no, no, no. Let him do it, cause this is what im frustrated about. Skyler so well have 2. 35, and that includes two units, so weve got 19 remaining. Charlotte so then 19 times skyler so 19 times 25 plus 2. 35 is 7. 1. Lemonis great, and how many items are in here . Skyler 21. Lemonis great, and so whats the average cost per item . Skyler 33 cents. Lemonis great, so its 33 cents. So, what like, youre in charge of the supply chain and understanding where it comes and when it comes and how it turns, and i neyou to know it, too. What i dont like is the fact that skyler doesnt know the number. And while im putting all of it on skyler, by the way, charlottes not exempt. You want to be a leader, you have to know these details. Unfortunately, you have to have your eye on everything. Charlotte yeah. Lemonis and then we need to figure out, what business are you getting outside of tmobile . cause thats giving me charlotte yes. Yeah. Lemonis giving me anxiety for sure. Xavier ive got all the jewel stones. Charlotte i think you have to make that part first. And this is not trash. Charlotte so, that, you fold into shape. Skyler id really like to try and get it figured out sooner so that were not rushed. Lemonis im headed to the tmobile store in new york city, where charlotte and the team are getting ready to launch all of their new products. And im anxious to see the new display and how the products are working and customers reactions. Charlotte insert body into base. This is a learning experience. Lemonis is this, like, the launch case . Charlotte this is the shipper that all the stores got. I think we have to fold them, right . Lemonis the same thing that happened at the tmobile presentation is happening right now again. This is a multibilliondollar company that awarded you a huge contract, and youre sitting in the middle of their new york city store putting it together like this is an artsandcrafts exercise. Xavier isnt there a piece that goes charlotte i mean, everything happened so fast that we didnt even have a sample of it in our office. Lemonis so thats a problem. Charlotte does have to actually figure it out. Charlotte hey, marcus. Skyler and i had a call with tmobile. Skus that were selling are not selling as well anymore, so they want us to pay 300,000. And my lack of impulse control, is about to become your problem. Ahh no, come on. I saw you eating poop earlier. Hey my focus is on the road, and thats saving me cash with drivewise. Whos the dummy now . Whoof whoof so get allstate where good drivers save 40 for avoiding mayhem, like me. Sorry hes a baby [upbeat music] no matter how much you clean, does your house still smell stuffy . Thats because your home is filled with soft surfaces that trap odors and release them back into the room. So, try febreze fabric refresher febreze finds odors trapped in fabrics bubbles popping and cleans them away as it dries. Use febreze every time you tidy up to keep your whole house smelling fresh air clean. Fabric refresher even works for clothes you want to wear another day. Make febreze part of your clean routine for whole home freshness. La la la la la. That we didnt even have eva sample of it in our office. Lemonis so thats a problem. Charlotte, you guys have to actually figure it out. Skyler and the whole display cost us 23. Lemonis come on. It looks like its way better than that. Charlotte okay. Lemonis i still think the designs are not good. Sorry. So, pineapples are great, but we need to get a little more masculine. Have you gotten any feedback from any customers . Charlotte no. Lemonis maybe we grab some and get some feedback. Man colorful. Charlotte ladyish . Yeah. So, would you wear this case . Man yeah, i would. Its just very ladyish. Ladyish, ladyish, ladyish. Charlotte mmhmm. Man like, im a construction guy, so. Lemonis i know that tmobile is happy that they were able to meet all the deadlines and be instore, but i still feel like they need to skew more masculine, and im done asking. But i think if you can be proactive in saying, wed like a selling report, and we want to swap out the poorest performing one. Send them back to us. Were going to send you a replacement thats in this family. Dont wait for them to tell you. [ phone line ringing ] charlotte hey, marcus. Lemonis hi. How are you . Charlotte so, basically, skyler and i had a call with tmobile. Skus that were selling decently are not selling as well anymore, so what they want to do is that we help them with some markdown support, and basically, they want us to, you know, pay the difference. Lemonis when you sell product into a retailer, and the product doesnt sell, theyre going to come back to you and ask you for markdown money, which refers to funds that youre going to give to them to allow them to take the retail price down. And theyre essentially saying to you, were dropping the price, and youre paying the difference. Charlotte so theyre taking it from 40. Lemonis 40, okay. Charlotte . To 30, and they want us to pay that 10 cost, and what that would be at this point is about 300,000. Lemonis the way a retailer would think about it is when they give you a specific area to sell something, they are assigning an expected revenue amount from that area. So in this particular case, they were retailing the product for 40. They want to mark it down to 30, but they want the vendor, me, to pay the difference. Theres 30,000 cases in question. Thats a 300,000 check. All of this could have been avoided if charlotte would have followed up with them to switch out the slowmovers, the nonsellers right away. So why would anybody in their right mind do that . Charlotte skyler and i really wanted to do what we can to keep the relationship alive. Lemonis the fact that you guys would even think thats a good option makes me not want to do business. It doesnt make any sense. Well just take the product back, and well go a different route. Charlotte sounds good. I guess theres no way that we can afford to do this. Lemonis i dont want to write a check for 300,000, and by the way, whats the Company Going to do now . This was their one and only account. All right. Thank you. Byebye. Whats happening . Charlotte hey. Hows it going . Lemonis with the tmobile deal falling apart, i wanted to stop by the office to find out if charlotte knows what the next step is, cause she wanted to be the ceo, and she wanted to have her own business, so im looking forward to hearing what its going to be. Charlotte yeah, the tmobile thing was you know, it was hard to hear. It was a bummer. I think we really learned that things need to be a lot more masculine than we realized. Lemonis so things have to be more masculine . Charlotte yeah. Lemonis so, im going to take you guys back in history to a time where i told you guys that you needed to have more male stuff. Charlotte yep. Lemonis why didnt you follow that advice . Charlotte honestly, i thought we did have more male stuff. Not fully male, but, like, we went more, like, genderneutral than we ever did. Skyler what we learned this time is that what we need to be doing for male stuff isnt anything prints. It should be totally functional and materialsbased. For a client like tmobile, thats whats going to work and get the sellthrough that theyre looking for. A lot of stuff has been going not the way that we wanted to. Definitely some frustrations the past month. Lemonis okay. Charlotte we had a couple weeks where we just were not getting along. Skyler im still frustrated that were not really getting anything figured out with sales. Like, thats the constant source of frustration for me. Charlotte thats frustration with me, right . cause im doing sales. Its okay, like skyler im frustrated about the sales, but it is your responsibility. Lemonis im frustrated with you guys that youre not selling. Skyler right. So, some things get i think a lot of times, charlotte doesnt think as bigpicture as she needs to, necessarily. I feel like no one is running the business, a lot of times. Lemonis do you think you should be running the business . Skyler um. Lemonis okay. So, this probably is the biggest meeting you guys have had. Charlotte yeah. Lemonis . A really big deal. Tmobiles newest signal reaches farther than ever before. With more engineers, more towers, more coverage. Its a network that gives you. With coverage from big cities, to small towns. Introducing tmobiles 600mhz signal. No signal reaches farther or is more reliable. And its built 5g ready. I am the twisting thundercloud. Power. In its most raw form. Speed in its most natural. I am royalty of racing,. Defender of the checkered throne. I am alfa romeo. 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Skyler i dont think its something that is really best for either one of us to do alone because we have different areas of expertise. Charlotte i can totally see where thats coming from. I dont feel like im running the business. Lemonis you dont . Charlotte no. I feel like i have no idea what im doing sometimes, and its really scary, and, like, thats sometimes why i get your a lot of the time, why i get your input and your opinion. Skyler just need some more structure. I mean, we are making some progress. Its definitely taking longer than, i think, wed like. Lemonis team effort. Charlotte yeah. Lemonis right . You own a big chunk of the business. You own a big chunk of the business, and so its not like youre some employee. I dont know what kind of grade i would give charlotte right now as the ceo, but im noticing that shes not listening on the design side, didnt manage the relationship with tmobile like i wanted to, and it seems like shes having a difficult time even communicating with her people. And i dont know what skylers issue is right now, but what im sensing is hes got a little bit of an attitude. And i dont know if its from a, maybe i should have been the ceo or not. Heres a news flash. Youre not, and you need to be supportive. I need to see that from him right now. Whats the coolest thing happening right now . Charlotte i think our Product Development is the coolest thing happening right now. I mean, we got a ton of new ideas. Weve been doing a lot of Product Development. We want to have kind of a utilitarian line. This is, like, a super slim wallet case. But also, we have these wireless chargers, which are going to be a really awesome way to go. Lemonis okay. Charlotte weve also got a meeting with marvel set up, which i think is going to be awesome. Lemonis seriously . Charlotte yeah. Skyler thats kind of one of the ways were approaching the more masculine stuff. Lemonis thats super cool. Lemonis the fact that youre stepping up and getting these meetings and finding new alternatives and not getting discouraged is progress. I like the fact that charlotte is working on skewing more male with things like marvel, but what i dont want her to do is put all of her eggs in one basket. Ive given charlotte a contact at Major League Baseball, and heres why. Tmobile and Major League Baseball have a very strong relationship, and i know that tmobile is looking for some of their cases to skew more male. Charlotte needs to make the phone call. She needs to set up the meeting, and she needs to land the account. If she can do it, then maybe she can save tmobile. And if she cant, then the business is probably going to close. This company essentially started a few months ago, and all of a sudden, were now in new york city, heading to the Commissioners Office of Major League Baseball. And im fairly confident that if we can secure this license, tmobile will allow these cases and accessories to be sold in all of their stores. But making the meeting and securing the license, well, thats a whole different ball game. Are you getting more comfortable leading . Charlotte yeah. I think just getting that, like, out in the open, clearing the air was really good for me and for our communication, and, yeah, ive been just, like, pulling the trigger on decisions a little bit more than i was before. Skyler im getting good communication with charlotte, and were kind of figuring out what we need to do. Lemonis this probably is the biggest meeting you guys have had, because normally, you would go through a licensing agency. Charlotte yeah. Lemonis but to be able to roll right into Major League Baseballs offices and do a deal directly with them is a big deal. Charlotte its crazy. Yeah. Lemonis by the way, you look pretty snazzy today. You dressed appropriately for the meeting. Skyler okay. Good. Lemonis i cant get over how different you look. Lets go inside. This is awesome, all the way down to the last detail. Theyre going to want to hear why its a good fit for them. Like, why should they do this . Charlotte yeah. Lemonis the Major League Baseball license is one of the most coveted things in all of licensing, and if they could somehow figure out a way to become one of a very few that can have access to this, itll be a home run. Lemonis how are you . Marcus. Noah good. How are you . Noah. Nice to see you. Lemonis nice to see you. Noah hi. Charlotte hi. Im charlotte. Noah charlotte. Noah garden, nice to see you. Skyler skyler. Noah thanks for coming in. Charlotte yeah, so, we were just putting up some samples, so you can kind of see the quality, but lemonis thanks for meeting with us, by the way. Noah oh, of course. Lemonis . On short notice. Were in the big leagues. Charlotte i know. The major leagues, literally. Yeah. As far as product, we do phone cases. We have these wireless chargers, which i think are going to be a really awesome way to go. Theyre kind of a different product that lemonis wanted you to see the quality and the weight, and i wanted you to see the cases. Noah whats generally the price point . Charlotte theyll be 29. Skyler we think thats the right price point. Charlotte thats a better price point. Skyler . Because our focus is on, how can we provide that level of sellthrough but also provide that level of quality that we want, because its our brands on the line, both mlb, of course, and everkin, right . Charlotte well go through some stuff that we put together for you guys. I see them as kind of complementary designs. So, we can do stuff with team logos, but we can also make it really fun and interactive. I love, like, the, you know, making it feel dirty and really making it feel real. Like, these complement this, so its not like your phone is exactly the same as your charger. But they go together well, and you can get both. Noah just looking at it, i wonder if you can bring a little bit more of baseball in it. Like, if you use, like, stadium shots and stuff thats sort of iconic to each team that, you know, people identify with maybe might make some sense. Charlotte we also did this line. This is a little bit more subdued. Its embossed with, you know, your team. We can do simple, just the coloring, or we can even have, like, the stitching on there. Noah anybody can slap a logo on anything. Charlotte right. Noah id like some more authentic picture on it. Lemonis for exclusives, extras, and business advice, visit theprofit. Cnbc. Com. 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Gillette skinguard. Charwe can do simple,sed wijust the coloring, or we can, you know, even have, like, the stitching on there. Noah anybody can slap a logo on anything. Charlotte right. Noah id like some more authentic picture on it. Skyler a lot of the way that we think is, how can we design and make unique products . And we dont want to just slap a logo on a case, right . Anyone can do that, and thats not why were here, so we want to figure out, what are the right ideas that are going to make something really unique . Lemonis and thats leather, right . Charlotte we can do it real leather or pu leather. Yeah, this is kind of, like, for the guy that goes into an Office Every Day kind of, like, exactly like your case, but its embossed with your team, and theyre still super protective. Noah listen. I like this. Its fashionforward from my standpoint if you see whats going on in caps, which is always our barometer. You see the contrast on contrast, and its very popular, so i definitely think the same way here is and listen. The license that you get from us affords you stuff that other people cant have. Pictures of the stadium, its all part of our intellectual property, and so we encourage our partners to use that, cause that will separate you. Lemonis i could tell the meeting was going really well when noah started offering charlotte licensed images and had all sorts of ideas. But then charlotte wanted to take it one step further and swing for the fences. Charlotte we also wanted to give women the opportunity to show off their team. So this was kind of more of our womens collection, you know, just to make it fun and still girly, but, like. Noah i like it. Charlotte . Showing off your team, you know . I mean, we live in l. A. , and every single girl i know has a dodgers hat. Noah yep. Looking at the people that are coming through the turnstile for us, its right around 45 male to female right now. Charlotte really . Good. Lemonis thats awesome. Noah so definitely think taking a little different approach to it like youve done here will appeal to a broader audience. Charlotte yeah. Noah i think it makes a lot of sense for us, and theres definitely room here to be very successful. Lemonis well, thanks so much. We really appreciate it. Noah thank you. Thanks for coming in. Lemonis thank you very much. Were excited to get started. Charlotte so nice to meet you. Thank you. Noah you need anything, just call me directly. Charlotte sounds good. Skyler well talk soon, then. Noah looking forward to it. Lemonis i thought it was, like, a totally different company, two totally different people. The level of professionalism is just it feels different. High five. Charlotte thanks, marcus. Lemonis great job. Very proud of you. Charlotte thank you. Lemonis super proud. To start a company and, in a matter of months, get a license from Major League Baseball, this was like winning the world series for Small Business. Okay. Well, you guys started a brandnew business from zero no customers, no designs, no cash, no ideas, and then you just walked out of a meeting at the Commissioners Office for Major League Baseball. In all the businesses ive invested in, its really the first time that we started from scratch, like, on a dryerase board. Charlotte i love this city. Lemonis in the time since the mlb pitch, charlottes continued to develop the company, preparing the team for a pitch to marvel, and shes in negotiations with a number of Companies Like striker entertainment. Charlotte we mocked up some cases and chargers with a couple of your properties. Man nice work, by the way. Man 2 fantastic. Man sounds great. Lemonis and to see what theyve gone through and how theyve learned and how theyve stubbed their toe and picked themselves back up, their personal growth is really what makes Small Business so fascinating. The skys the limit. Im gonna just tell you, that cornbread is legit. At a packagedfood business, known for its flavorful mixes. Erica we have flavors like berry cobbler, bourbon salted pecan. Lemonis . The owner has bitten off more than she can chew. Andre if youre not capable of running the business and making it successful erica who says im not capable of running the business . Lemonis she spent way too much money. Andre shes been running the business for five years, and the profitability is close to zero. Lemonis now, colossal debts have clogged her cash flow. How much debt do you have . Erica its probably about half a million. Andre shoot. Half a million dollars. Lemonis . Bringing her business and her family to the brink. Erica why should i share information with him