Lemonis . And most of all, learn her numbers. Ana listen, guys. I cant give you exact numbers. Lemonis im not going to write a check for somebody that doesnt have their [bleep] together. I wont do it. Im marcus lemonis, and i risk my own money to help businesses. I love investing in american businesses. Woman these people are here because they care. Lemonis its not always easy, but i do it to create jobs, and i do it to make money. Do we have a deal . Lets rock and roll. Man yeah lemonis this is the profit. I was contacted by a miamibased former lawyer named ana quincoces. She has a marinade and Sauce Company called skinny latina. Ana started the business 6 years ago, but so far, she hasnt been able to make the brand bigger than a regional product. The sauce and marinade industry is a gigantic opportunity, but i have two primary questions. Number one what makes this sauce stand out in a crowd . And number two is this a real business, or is this just a sidehustle . Woman Everything Else was on top of it, right . For the barbecue. Lemonis hi, everybody. Ana of course i would meet you with this on. Lemonis thats all right. How are you . Im marcus. Nice to meet you. All right, so, i want to go through the process of how its made. I would love to understand it. Can you take me around . Ana yeah, sure. Lemonis got to love hair nets. I actually was going to rock this tonight at the club. Woman so, were constantly cooking it and then pumping it into this kettle. We label it, we seal it, coat it, fill it. Lemonis okay. I did like the fact that it was a smallbatch manufacturer. Its almost like craft brewing. Sometimes, the smaller it is, maybe even the better it is. And it there only one recipe . Ana no, i have skus. This is the flagship recipe, the Million Dollar marinade. Then i have a guavefig barbecue sauce, and a mangoapricot barbecue sauce, and a hot sauce. Its a flavorenhancer, and its not only a marinade. It basically a cooking sauce, so you can use it on everything. You can grill with it. You can roast with it. You can add it to soups and stews. Lemonis how did you come up with the idea . Ana im cuban, so for cubans, the mois, like, thats cuban ketchup, right . Lemonis yeah . Ana we put that on everything, and, so, i started making one, and then friends started asking me for it. And i was like, maybe i should bottle this. Lemonis are you a chef . Ana well, im not a chef because i went to the Culinary Institute of my mom, like, you know . But im as much of a chef as most of the people on food network. Ive written three cookbooks, and ive competed on food network. And if you ask bobby flay, the greatest cook ever. Lemonis okay. Ana when the second book came out, they had done this big thing in the miami herald about my new book, so i started getting, like, calls for endorsement deals and things like that. And i got called to do real housewives of miami. Dont hold that against me. Lemonis so, you were on real housewives of miami . How many seasons . Ana yeah, for two seasons. Im a terrible housewife because, to me, everything is attorneyclient privilege, so i dont perpetuate rumors. So, no, it didnt work for me. Lemonis yeah. Ana i think in the year that i trademarked that name, there were more brands with the name skinny than any other brand. Lemonis what are some examples, like, i have popcorn . Ana skinnypop, skinny cow, skinny tea, skinny condoms . I dont know. Lemonis no. Nuhunh. Mnhmnh. Lets stay on the sauce, lady. So, the Million Dollar marinade . Howd you come up with that name . Ana i dont know. It rolls off the tongue. Lemonis whats funny about it is you told me a lot of Different Things about it. Ana yeah . Lemonis it does this. It could do that. It could do this. It could do that. How do i know that . Ana you dont. Lemonis because Million Dollar sauce is, like, i dont does it cost a Million Dollars . Am i going to feel like a Million Dollars . Ana yeah, its going to get you the accolades, and youre going to feel good. Lemonis my First Impression of the bottle itself isnt great. This wouldnt exactly catch my attention. Where do they go from here . Ana the distributor picks them up and takes them. Im in publix, whole foods, milams, and then im at fresh market. Lemonis just in the florida market . South florida . Ana yeah. Lemonis whats the price point . Ana publix has it at 4. 99, fresh market has it at 5. 49, and whole foods has it at 5. 99. Lemonis how many bottles a year are you actually producing . Ana a lot, but not a lot. I mean, it depends what a lot is. Lemonis like, 10,000 bottles . Ana more. Maybe somewhere around 20,000 . Lemonis i never expect, on the fly, for a Business Owner to have an exact number, but how many bottles did you sell . Shouldnt have a range of 10,000. 10,000, maybe 20,000 . Can we get a little closer to the actual number . How long has the Company Actually been bottling and selling . Ana 2013, i think, was the first. Lemonis so, its been a while. Ana i know. I think i havent grown it like i should have because i didnt want to put the company in debt. Lemonis how much money have you invested . Ana probably around 50,000. Lemonis okay. How many employees do you have . Ana everyones parttime. Lemonis no fulltime employees . Ana no. And i just moved to an office, like, two weeks ago. Lemonis and, so, the only thing you do today to make money is the sauces and appearances. Ana and endorsement deals and, you know, whatever my books you know, books dont make a ton of money. Lemonis i like the fact that ana has real skin in the game, 50,000. Thats doesnt include the amount of money she passed up on by not being a lawyer. Shes really committed to this. So, i want to take you to my friends place, woodpecker in st. Augustine. Lemonis well see if ana if skinny latina has legs. Lemonis so, ill see you there. Ana okay. This place is so neat. Lemonis [ laughs ] whats up, hot stuff . Lisa there you are. So good to see you. Lemonis did you get dolled up for me today . Lisa i did. You look so good lemonis i want you to meet my friend, ana. Lisa hi, ana. Ana hi, nice to meet you. Lemonis my friend lisa. Lisa nice to meet you. Ana he has said such nice things about you. Lemonis so, shes got some sauces and marinades. I know they sent them to you . Lisa yes. Yes. Lemonis did you have a chance to marinate anything . Lisa we did. Lemonis in order to really understand the marinade better, i asked lisa to marinate something overnight and cook it so that, when i got there, we can actually get right down to business. Are you the smokemaster . Joe yes, i am. Lemonis okay. All right. Lets dig in. Lemonis what should we try first . Im going to follow your lead. Joe why dont we start with turkey . Ana its really good. Lisa that is good. Lemonis who wants to try a few ribs that are marinated . Ana come on, guys. Try it. Lemonis everybody, come on down. Lisa dont be shy. Come on. Lemonis what do you think . Man theyre very good. Lemonis its good, right . Man yeah. Woman fabulous. Joe this one is injected and rubbed. Lisa mmm, now thats got a nice flavor. Ana come on. Lisa its fingerlicking good. Lemonis it actually is pretty good. Lisa mike, what do you think, babe . Lemonis hes busy. Hes like, dont be bothering me. Lisa may i chime in . Lemonis please. Lisa if i put in my barbecue, and i said, im introducing my ribs with skinny latina, all my men that come in here, and some women who are meat eaters, theyre going to go, not for me. You cant say skinny and ribs. It just doesnt work. Theyre going to think, all of a sudden, well, its going to taste lowcal. Not going to be good. You need it to be, like, some beefy latina no, just kidding. Ana but people are buying it, marcus. Lemonis well, theyre not, or i wouldnt be here. Typically, celebrityendorsed products have great branding, but the product itself isnt that great. In the case of skinny latina, the product itself is spectacular. The branding, not so much. Why dont you and i go somewhere else, and well dig into the financials. Ana okay. Lemonis okay . All right. Great. Ana so. Okay. Lemonis thank you so much. Woman welcome. My pleasure. Lemonis so, what financials do you have . Ana just 2019. Lemonis so, you dont have financials from 15, 16, 17 . Ana i didnt have time, and i didnt think it was lemonis you know that thats not going to fly with me. Ana no, i know, but it wasnt making enough money to, you know, warrant the time and lemonis think about it do you know how much revenue you did in the last 12 months . Ana yeah, like 2019, so far, is 41,000. Lemonis okay. Lets just back up here for a second. The cost of the product, raw cost today, 1. 96 for the marinade, 1. 71 for the guava barbecue, 1. 63 for the mango, and then the hot sauce has not yet been returning. Ana not yet, because im working on it. Lemonis but, again, that doesnt include the labels. 14 cents apiece . Ana what, do you have a better label . Lemonis its a sticker. Where are the financials, on a different page . Ana i have no financials. This is all i have. Lemonis okay, well the minute you start a business, its important to start keeping good financial records like how much revenue you do, what your margins are, what your expenses are, are you making a profit or not. In order for you to grow your company, you have to make decisions based on facts, not your gut. Okay, so, lets put the papers away for a minute, and lets just assume that theres not much revenue. Ana no, yeah. Lemonis so, am i supposed to be excited by that or petrified . Ana excited because you know what . Youve got the benefit of my experience, and ive never lost money. Theres always been a profit margin, 30 , 40 . Places like costco are calling. I dont owe anybody money. I dont have partners. Lemonis which is awesome, yeah. Ana i mean, theres some value in that. Lemonis mmhmm. Yeah. Ana its hard for me to that this isnt further along given that ive given up so much for it. Lemonis what do you think youve given up . Ana relationships. Lemonis you feel like you chose this over personal relationships . Ana yes, im going to be crazy cat lady. Im going to have 15 cats, be in a ratty bathrobe, surrounded by my skinny latina empire, you know . Lemonis this is that important to you . Ana cause i dont know. I just believe in it. Lemonis you believe in what youre doing. That definitely counts for something. Ana yeah. I need you to help me think big and help me get to the next level. Lemonis the challenge is i dont know what im investing in because theres no financials, and theres no real revenue, and i dont know what ana i mean, its not real revenue to you. Lemonis its not real revenue because its not on paper because you cant show it to me. So, its phantom, but i know the proof of concept is there. This is one of the rarest occasions where somebody has an amazing product, but they dont have all the other Building Blocks around it to give me or any other investor the confidence to move forward. I want to help her, and i eventually hope to be able to invest, but i feel like, in this moment, it would be irresponsible for me to do so. For Something Like this thats a startup, i think the Company Needs a couple hundred thousand dollars, just to get it moving, right . And im willing to put in a portion of that, but not by myself. I think i need more people in the boat than just you and just me. How many people have you talked to about investing in the business . Ana nobody. Lemonis never . Ana no. Lemonis not one time . Ana no. Lemonis why not . Ana i didnt want them. Lemonis why . Ana because they wouldnt be silent partners. Lemonis numberone rule in negotiating . Know your audience. Silence . Yeah, thats not going to be me. Ana its just more opinions and more stupid people that dont know anything about this, and then im going to have to explain the same [bleep] over and over. Ugh. Woman i think its just so cliche that when we think of latina, we always think they theyre just showing cleavage. Aaron skanky. Lemonis how many people have you talked to paul switch to sprint everyone is talking about. S the. sprintern the new iphone 11 or iphone 11 pro with amazing allnew camera systems. And you can get both an unlimited plan and the new iphone 11 included for just 35 a month. paul and with sprints 100 total satisfaction guarantee you can try out the network and see the savings for yourself. sprintern ahh its the best season of the year. paul is that your excited dance . sprintern what dance . For people with hearing loss, visit sprintrelay. Com. We know a thing or two because weve seen a thing or two. Even a ernie lost rubber duckie . burke you mean this one . ernie rubber duckie cookie what about a broken cookie jar . burke again, cookie . cookie yeah. Me bad. grover yoooooow oh what about monsters having accidents . I am okay by the way burke depends. Did you cause the accident, grover . grover cause an accident . Maybe. bert how do you know all this stuff . burke just comes with experience. all muppets yup. We are farmers. Bumpadum, bumbumbumbum about investing in the business . Ana nobody. Ugh. Its a waste of time. I dont have that kind of time. Lemonis all right. So, im willing to invest in this business if other people are also willing to invest, and the only way that ill let them invest is if they go through a fullblown investor presentation. Ana by me . Lemonis by you. I want a legitimate business plan. Ana you want me to have even more hurdles. Lemonis no. Ana when is my easy time . Lemonis no, your easy time is after you actually do it the right way. Ana i thought it was by calling marcus lemonis, but, apparently, i have more work ahead. Lemonis well, no, because you called me is why you have more work ahead of you. And im not going to write a check for somebody that doesnt have their [bleep] together. I wont do it. Okay . Ana yes. We got a deal. No money, no whatever, but, yeah. Lemonis no, no. We have a deal. Ana we have a deal. Lemonis and you will have money once you can prove that you can raise money from other people in the orthodox way. Ana im down. Lemonis okay . Ana im game. Im excited about it. Lemonis okay. All right . All right . Were good . Ana yes, were totally good. Lemonis i wanted to really understand how skinny latina lived in the marketplace, so i asked ana to set up a meeting at a local Grocery Store where she sells her product, and i wanted her to bring in a friend because i thought if there were two people there that she may be more openminded to constructive criticism. Do you think your package stands out . Do you think it ana yes, i do think it stands out in this sea of very masculinelooking stuff. Lemonis its the only female character on any bottle. Ana except cholula. Lemonis . Except cholula. Trevor and thats a hot sauce. Ana who is the bestselling sauce in the world. Trevor yes, the packaging is more feminine, but i see a clear messaging with most of them, especially the national brands. If you look at these, i know that, that one right there is garlic and herb. I know that this one is made from lemon, and that one has teriyaki. If i look at yours, i dont know whats in there. I dont know what its going to do for me or for my dish. Lemonis im going to grab the manager and see if they have any feedback. One second. The sauces and condiments business in the United States is roughly 42. 7 billion. Of that, a decentsized percentage of it will be spent on specialty sauces and marinades. Big companies have a lot of money to spend marketing their product and even buying shelf space to dominate the category. For ana to even have a chance, shes going to have to come up with the brand and a look to compete with the big boys on the shelf. Lee, when you saw the product or heard about it the first time, what kind of product did you think it was . Lee definitely get the impression that its a lowercalorietype option. Ana mmhmm. Lemonis and has it been selling through . Lee its been a little bit on the lower end of our sales, what wed expect for the category. Ana you know we have other flavors . When you have more space, it kind of gets people to pay attention. Lemonis your calories are 25 for 1 tablespoon. This competitive marinade is 10 calories. It feels a little misleading that youre calling it skinny. Ana but i dont know right now in this day and age a Single Person that is counting calories as a way of dieting. Its just not done anymore. Lemonis im pretty sure that people still look at calories. Trevor i count my calories. Ana right. I dont know many people that count them. Lemonis well, you know one. Ana didnt know that about him, but lets make something with each of those products. Theres only one of them that youll eat. Guarantee you. Lemonis yeah. Her way of justifying her decisions are to refute everybody elses feedback. You want to be able to be partners with somebody and give them feedback. If every single idea you have is shot down, doesnt it put your money at risk . So, were going to go to a focus group in miami. Ana oh, okay. Lemonis they have the product, and theyre going to give us honest feedback about a list of questions. Ana okay. Trevor you got to be open. Ana yeah. I am. Lemonis is this what open looks like . Ana this is as open as youre going to get today. Im a work in progress. Lemonis trevor, i think it would be good if you come. Trevor of course. Lemonis only because i think i need some backup. Trevor yeah, i got you. Lemonis how are you . Kathleen hi. Welcome to focus groups. Lemonis nice to see you again. So, im taking ana to a focus group today, which is essentially a controlled environment, and it allows people to give real, honest feedback without feeling uncomfortable. Its going to open her eyes. Kathleen so, we have 10 people selected at random. Theres a camera and twoway mirror. So, you can see them, they dont see you. Ana right. So, if theyre here, isnt there this kind of presumption that theyre trying to find whats wrong with something . Kathleen no. Theres going to be people that really like it, as well. Lemonis lets go do it. Kathleen itll be a learning experience. Lets go. Hi. Thank you all for coming. I would like you to circle what you like on that label, cross out what you dont, and put a question mark by anything that you are confused about. Done . So, now what id like you do, just without thinking, give me one word what are your First Impressions . Lemonis oh, boy. Kathleen what did you write . Aaron i actually wrote skanky. Her she takes over the whole image. Alice i agree with aaron. Its great that theres a woman on the label, but we can put a woman differently and no so. Skanky. It makes it looks like if a latina woman is supposed to look like that. Woman 1 i think its just so cliche that when we think of latina, we always think that theyre just showing cleavage. Kathleen okay. Tell me something that you liked on this. What did you circle . Giancarlo glutenfree, for health reasons. Kathleen okay. Woman 2 i circled skinny and the allnatural because i try not to use marinades that have a lot of sugars. Kathleen okay. Somebody else . Woman 3 id like to see lowsodium and maybe how many calories on the front. Kathleen okay. Lemonis what . Im sorry, did she want to know what the calories were . Trevor its so weird. Do you think she counts that . Lemonis how rude. Trevor nobody does that anymore though, marcus. Kathleen okay. What else . Rivly i crossed out allnatural because it doesnt say much. It doesnt mean much to me. Kathleen okay. What would make that mean something to you . Rivly it would have to say organic, glutenfree, no preservatives, no added sugar, low sugar, you know, all of that. Ana oh, dude, really . Like, what else do you want me to put on the label, you know . Thats just one of the those people that, for me, likes the sound of her own voice, is just a knowitall. Lemonis im disappointed that somebody gives feedback she doesnt like, oh, they dont know what theyre doing. Ana i hate that the little womans not there at all. Lemonis lets try to be objective. Ana okay. [ voice breaking ] its really hard. Its just so different. Tmobiles newest most powerful signal is here. Experience it with the amazing, new iphone 11. And right now, tmobile has the best deal on iphone. Get 4 lines of unlimited with 4 iphone 11 included for only 35 a line. All on a signal that goes farther than ever before. Thats right. Get 4 unlimited lines and 4 iphone 11 for 35 a line. Only at tmobile. For a limited time, get a outb4course meal your holidays even better starting at 15. 99. Treat yourself to the perfect gift today, because the aussie 4course wont last long and now, get a 10 gift with every 50 in gift cards. Peyton, what abrad, welcome to peytonville. Whats this for . Song inspiration. I started in my garage, but nationwide protects so much i had to expand. Nationwide helps protect everything you see in here, brad. Every family, every business, every dream. See mrs. Hoffman . Nationwide protects her home and car, but also her dream of retiring to become a yoga instructor. Oh, they have backstories. Of course they do. Here, i got more to show you. Keep up, now. A little hustle. What do we wburger. Inner . I want a sugar cookie. Wait. I want a bucket of chicken. I want. Its the easiest because its the cheesiest. Kraft. For the win win. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Ana thlikes the soundf those peof her own voice, is just a knowitall, and i dont think when they say, oh, its skanky, that its coming from a place, really, about the label. I think that everybody brings themselves into it, and its like that bothers me. Lemonis ana cant help herself but to react negatively when somebody gives feedback. Its literally got to stop. Kathleen how many think its a diet, kind of lowcalorie product . Aaron i would think that immediately. Kathleen yeah. Aaron just by the name. Woman is this Bethenny Frankels brand . Kathleen so, you think its skinnygirl . What would you think if it was not . Woman youre just getting a free ride off the skinny brand. Rivly i had that same issue, too, because i felt like it was a ripoff of skinny margarita. Lemonis the logo, the look, the name, and the fact that theres a woman with red on, its tripping people up between anas skinny latina and skinnygirl, the brand. Kathleen guess what we get to do now. All taste it. Kathleen so, if you want to pass it around, thats fine. Lemonis come on, baby. Bring it home. Its going to be excellent. Ana it worries me because its supposed to be on food. Lemonis everybodys going to love it. Giancarlo um, excellent. The flavor is great. Man its got a great taste, but it is light, so i could see it being the skinny deal. Woman i like that theres little chunky pieces of, like, vegetables or whatever the product is. Like, to me, i know that makes it the natural part. They want you to see it. Alice its tangy. Its definitely latino flavor. I can just eat it up like this. Kathleen okay. Rivly one of the things that i questioned was whether or not you could use it as, like, as sauce. And it says right here, you can bring it to a boil, and it becomes a delicious sauce, so im really happy about that. Kathleen anybody going to try this when you go home . Aaron im going to try it. Woman im definitely going to try it. Rivly im going to publix after this so, yeah. Ana wow. Kathleen really appreciate everybodys honest opinion, and good deal. Lemonis i thought the feedback was very honest, and in some cases, it was a little harsh. But even though you may not like the feedback, you still have to absorb it. This was excellent for you to get validation on something youve worked so hard for, and we should spend the time and the money to go through the process of seeing what would tell the message better. Ana yeah. Lemonis what i want ana to take away from the positive comments is if people are willing to be complimentary, and you love it, and you accept it, and believe it, then you have to give credence to the negative ones, as well. Ana when my daughter went to versailles in france, she texted me. She goes, this is not versailles. Theres no croquetas here. Lemonis [ laughs ] exactly. Any time im in miami, i love going to versailles. Its a place where you can feel the Community Come to life. Theres a lot of energy there, and i thought it would be a fun place for ana and i to sit down and just share a meal. That focus group today for me, it was like in a vacuum, it was your personality. You went in expecting the worst. The lady made some comments, youre like, pfft, what does she know . Then, the minute you heard positive reinforcement, youre like, i like that lady. Ana yeah, but i was surprised by the positive. Its so funny. Lemonis why were you surprised . Ana i dont know. Lemonis but everybody has told you the product is good, so what are you surprised about . Ana i know. I dont know. Lemonis do you not have selfconfidence . Ana i do, but its just that comes from my upbringing. My whole life. My mom would compare me to all her friends daughters. She doesnt like people that are overweight. Like, she thinks its a. Lemonis like a lack of selfrespect. Ana . Lack of character, yeah. And, so, when i went to law school, during that time, i, like, gained a lot of weight, and she would just tell me, but look at this one. Why does she whatever. So, the weight thing was a big issue. I just thought that if i weighed 5 more pounds, she loved me less. Lemonis peoples behavior today is a product of their history, and if ana felt criticized as a child, that is why she reacts the way she does to criticism. Normally, at this point, i would have made a deal with the Business Owner. Ana oh, i know. Lemonis okay, and i havent because i have to mitigate the risk. The liability in this particular business is the way you look at people. I think what has to happen know, were going to do the Investor Conference. You have to put a 15minute, lively, animated presentation together. Its going to bring your personality to life so people are like, i want to be part of that. I need you to show me that its possible. Lets get into the numbers. In 2018, this is what i sold at these kind of margins. I want to make sure that, with ana, i allow her passion and her vibrance and her enthusiasm and her love for her product to live, but most importantly, i want her to have the numbers. Im 100 positive, and i would not say this to you if i didnt mean it, 100 positive that youre going to kick ass, okay . Ana thank you. Nice. Lemonis yeah, it is cool, isnt it . I made a call to black dog, which is one of the best branding agencies in all of miami to help me show ana some new ways to think about her product, and what im hoping they can do is show her the possibilities of what could be done if she was openminded. Ana oh, boy. Im a little nervous. John you shouldnt be nervous. This is exciting. We were tasked to kind of evaluate your product label. Ana okay. John but i dont think that we can do that without looking at your overall brand, and it is slightly all over the place. Ana [ chuckles ] yes. John youve got a very popular instagram where you have ana qooks with a q. Skinny latina does not have your name forefront on there at all. We want people to be able to recommend your product or recommend your brand. John and i have a concern of the scalability of your product when you have an illustration that is almost exactly like skinnygirl. Were thinking about taking your script and really playing up on the q part. We think its fun. We think theres some elegance to it. Now the drum roll can happen. And this is very different. Its bright, colorful. Ana um. [ sighs ] okay. I dont like this. I think its really busy. I hate that the little woman is not there at all, you know . I love her. Lemonis does it look bold and flavorful . Ana it does. Its appealing. I just dont know that its me. Lemonis okay. You know, you become attached to something, and so it kind of freaks me out. John yep. Ana oh, im going to start crying. [ voice breaking ] oh, god, its really hard. Lemonis i get it. Ana its just so different. Would you invest in my product . Man 1 i dont think so. Man 2 uh, no. Ana no . Man 3 no. Ana no . Man 4 no. Ana no . Woman no. No. Man 5 no. Lemonis if youre looking to take your business to the next level, log on to theprofitcasting. Com. A wealth of information. A wealth of perspective. A wealth of opportunities. Thats the clarity you get from fidelity wealth management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity wealth management. To help you grow and protect your wealth. For a limited time, get a outb4course meal your holidays even better starting at 15. 99. Treat yourself to the perfect gift today, because the aussie 4course wont last long and now, get a 10 gift with every 50 in gift cards. [ chuckles ] so, what are some Key Takeaways from this commercial . Did any of you hear the bundle your home and auto part . 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Its like im losing myself. Its just so different. I just worked really hard without knowing anything, and thats what i came up with. And if its [bleep], its [bleep], but its me. Lemonis any time im looking at a business, i want to see emotional stakes that show me that this business is everything to people. Anas reaction proved to me how much this thing means to her. Lets try to be objective for a minute. Ana okay. Lemonis okay . What i like about what they did, ana, is that they clearly marked out the calorie content, which people in the focus group said, tell me that its healthy. Ana right. Lemonis tell my why its skinny. And they understood who the brand really was, which was you. From a business standpoint, ana q is the brand, and skinny latina is a product inside of ana q. Ana i mean, i want the girl somewhere, even if shes tiny. Maybe a more refined version of that girl. John the use of illustration is not a problem, but it has to be done well lemonis it looks a little bit like clip art. If you did a live instagram, will people comment . Ana yeah, i think so. Lemonis great. Get your phone out. Ana hi, everyone. Im here with the team from black dog ad agency. These are the new suggestions for evolving skinny latina, and i want to know what you guys think. Lemonis what are people saying . Ana love the new one. Really like the ana q focus. Like the new label. I like the new label with no girl. What . lemonis stunning you a little bit . Ana so shocking. Lemonis what i dont want you to do is just compromise because everybody else loves it. Theres a balance between everybody else love it and what you love, and, somehow, youve got to find the middle of that. Thank you very much. Amazing work. Lemonis so, today, im at the Biltmore Hotel in miami for anas investor presentation. Are you freaking out . Ana theres a part of me thats excited, but mostly im terrified. Lemonis i told ana that i wanted to put a roomful of investors together, and if she can convince them about her product, about her process, and about her financials, it theyre in, ill be in. Ana hi. Man hi. Ana welcome. Man thank you. Ana i really want you to try some food. Lemonis yeah, lets do that. Ana ive made a few Different Things for you because i wanted to show you the versatility of the sauce. Lemonis im kind of blown away by what ana put together. She actually put out a whole section of food so people can actually taste the product and validate it. She looks like shes ready to really kill it. Ana i really came up with this sauce when i was a young mom juggling a growing law practice and these little girls, and it was really a timesaver for me. And now this has become skinny latina is my third child. Lemonis she knows her story. She can very well explain her passion, but for an investor, they care about your numbers because people arent going to write a check into a black hole. Theyre just not going to do it. Ana the condiment market is growing exponentially. Its expected that by 2025, its going to hit about 174 billion. I mean, we want a piece of that, right . Were on the shelves next to some of the biggest brands. Im at fresh market. Im also at whole foods and at 400 publix stores. Man 1 is it a sugarfree marinade, or is lower calories . Ana yes, it absolutely has lower calories, and it has ingredients that you can pronounce. Man 2 how attached are you to the current branding . Ana im attached to the name because i think its a great name. Man 2 im just thinking, whos going to, like, go after this sauce. I believe itd be, maybe a woman like you that worked, that dont have a lot of time. But how about a guy thats like me . Ana actually, i do think men buy skinny latina. Lemonis its interesting watching anas evolution, because as people are firing questions at her, theres some that shes handling with ease, and shes not being defensive and judgmental. Man 3 what is the Growth Potential that you see in your sauce, you know, if we invest, you know . Ana okay, well, thats a very good question. I have a threeyear growth plan, and part of it is expanding to more skus. I think thats really important to present to new retailers, to develop new products, but i cant do that without an injection of capital. Man 4 so, last year, what were your total sales . Ana last year we sold 200,000 units. Man 5 do you know the profit of that . Ana i think it was about 116,000. Man 6 whats your anticipated net profit for 2019 . Ana were kind of on track for very similar, maybe a little more. Lemonis do you have a forecast in your presentation . Do you have a slide for that . Ana i dont have a slide for that. Lemonis while ana has done well so far, as we turn the corner into financials, the wheels are falling off the bus, and theyre falling off the bus fast. Are there any financial slides in here that show revenue per year and then profit per year . How much inventory are you sitting on . How much cash are you sitting on . What are your payables . How is it going to grow . How much capital do you need to actually grow into that . Ana no. Lemonis nothing like that . Ana no. Lemonis for exclusives, extras and business advice, visit theprofit. Cnbc. Com. [ [kristina] when i seees, i cadversity i find a way. [john] when i hear never, i say now. [narrator] Southern New Hampshire university is education made to fit your goals. With over 200 degree programs, flexible class schedules and some of the lowest online tuition rates in the nation. [sierra] so when i face barriers i can break through. [narrator] break through at snhu. Edu. burke at so we know how to cover wealmost anything. Verything bert even a notsohandy monster. johnson what is going on in here i cant hear myself think grover what does it look like, sir . I am here to help you with your water heater. johnson oh [sighs defeatedly] grover do not worry sir. I also fix cars [johnson groans] bert grover is a monster of many talents burke and we covered it. At farmers, we know a thing or two because weve seen a thing or two. bert mmm. We are farmers. Bumpadum, bumbumbumbum for a limited time, get a outb4course meal your holidays even better starting at 15. 99. Treat yourself to the perfect gift today, because the aussie 4course wont last long and now, get a 10 gift with every 50 in gift cards. May your holidays glow bright and all your dreams take flight. Lease the c 300 sedan for just 399 a month at the mercedesbenz winter event. Hurry in today. Lemonis are there any financial slides in here that show revenue, margin, expenses . Ana no. I mean, i can listen, guys. I cant give you exact numbers because ive been this is just me. I havent been great at, you know, just doing all this, you know, perfectly financial things, and hes wincing, and im sorry. But im not going to lie to you, either, because, you know, i have to be honest. Lemonis i told her that if other people didnt buy into what she was doing, i wouldnt move forward, and right now, nobody in the room is buying off on this. What i thought we could do now, this is where its a little awkward, but id like ana this is a little awkward now . Lemonis no, what were going to do now. Ana okay. Because its been awkward the whole time. [ laughter ] lemonis not for me. Im fine. Ana i just dont youre right. Of course. Lemonis what id like you to do is go around the room. We want to understand from people, would you invest in this Company Based on this presentation. Its a yes or a no. Ana based on my presentation, would you invest in my product . Man 1 yeah, i dont think so. Man 2 uh, no. Ana no . Man 3 no. Ana no . Man 4 no. Ana no . Woman 1 no. Woman 2 no. No. Man 5 no. Lemonis okay. So, if you asked the question differently and said, take the numbers out of the equation, would you invest in me and the product . Ana okay. Paul, would you invest in me and the product . Paul yes. Ana yes. Would you invest in me and the product . Woman 3 yes. Man 6 yes. Ana yes . Man 7 yes. Ana yes . Man 8 yes. Ana yes . Man 9 yes. Ana really . Yes. Woman 4 absolutely. Man 10 its be a yes with some conditions. Ana yes. Lemonis okay, so, what okay, but what is the difference between the noes and the yeses . Ana the fact that i wasnt solid on my numbers. Lemonis people in the room were excited by what was there the fact that she was in public, the fact that they liked the way it tastes. She had had a lot of success, but what people kept saying to her is the same thing im saying when you get your numbers together, well take a look at it. The one thing that i thought you did really well today is for the first time that weve been together, you didnt judge anybody that was asking you questions, and that, to me, was the biggest win. I feel like weve made progress, but in terms of me investing right now, im not there yet. Ana okay. Im okay with yet. Lemonis well. Thats good. I assigned ana a variety of things to do while i was gone. I want her to work on refining the packaging with black dog, and i really want her to get to a conclusion that everybody can live with, including her. I also want her to go back to the drawing board and start working on her numbers to put the forecast together to get the margins right so that she is dialed in. The last thing i want to do before we move forward is to have ana submit her product to a food lab because in order for me to invest or for me to be comfortable with being associated with it, i want to know that everything thats in the bottle and on the label is factually correct. Man the nutritional content, caloric content was 18. 5. Lemonis okay. Man it tested negative for the presence of soy, and expressed to gluten is less than 5 ppm. Lemonis so, it would qualify. . Man as glutenfree. Lemonis well this is great. Now i feel more legitimate. Ana hi, how are you guys . Mike how are you . Ana nice to meet you. Mike hi, mike. Lemonis contemporary marketing is a company that i use to launch products to market. If ana can land this meeting and have contemporary agree to rep her marinade, shell have exposure to Grocery Stores across the country. Not selling 100,000 bottles, she has the potential of selling a million bottles. Ana okay. So, four skus of a brand called skinny latina, and theyre marinades and sauces. Lemonis this is a one, last try because if she cant get the numbers right here, i may have to just move on. Ana the label was kind of confusing. Its like, skinny latina, what does that mean . What does it do . What does it taste like . Mike it is a little weak. Yeah. Lemonis i connected her with a Marketing Agency in south florida that worked on a rebranding, and id like her to show you where were thinking about going. This is what is and what its transformed into. Man all of them pop better. Mike yeah, thats weak. Thats confusing. I mean, this clearly states the brand and the product. You know, the hot sauce, the barbecue sauce, the marinade. I like it. Lemonis so, i want you to take mike and the team through your numbers so they can understand the financials to understand how strong the business is. Ana so, in 2018 our total revenue was 94,824. 80, which left us a gross profit of 35,056. 03. I sell all three of these products for 3. 30 a unit. A bottle of marinade from the copacker costs me 1. 91, including labels and costs, and the margins on this is 42. 12 . The barbecue sauces, the mango, its 1. 72 to make it, so its 47. 88 . Lemonis the way that youre speaking about your margins and the costs, youre like a whole different person. Ana thank you. So, is this something you guys would consider taking, skinny latina and me on as a customer and helping me grow this thing . Mike we definitely would. Ana yes. Mike yeah. Ana thank you so much. That really means a lot. Lemonis i was stunned by this meeting her professionalism, the presentation of the new branding, the quality of Financial Data that she brought. I was even wondering if it was, like, an ana impersonator. Awesome job. Ana i had a positive attitude, and it went well. Lemonis you get a high five on that one. You did it. Im proud of you. Very proud of you. Ana thank you. Im ready to sit down with ana and really consider doing a deal with her because i feel like shes done every single thing that ive asked her to. How are you . Ana im good. Lemonis good to see you. And while she maybe rolled her eyes a few times or pushed back, in the end, she made the changes. She made the progress. She deserves a shot. And, so, for me, when i look at a business and i think about a proof of concept, with no real resources and no real training, you were able to get into major retailers and do almost a quarter of a million bottles of some sauce that nobody has ever heard of. Ana [ chuckles ] right. Lemonis and, so, heres the thing. You have earned the badge as a successful entrepreneur. So, one of the things that i said to you was, through this process, is if you can get somebody else to invest, ill invest. Ana yeah. Right. Lemonis so, hows that working . Ana its working okay. I mean, theres somebody here that wants to meet with us. Lemonis one of the people that ana invited to her Investor Conference a few weeks ago was her friend, nick molina. Ana hi, nick. Thanks for coming. Nick hi, how are you . Lemonis nick, how are you, sir . Nick good to see you. Lemonis nick is miamibased and has a track record of successful startups. This is a real serial entrepreneur. Im curious to see if ana can actually negotiate with the both of us. Ana so, weve already talked about the possibility of nick investing. Lemonis yeah . Ana so, do you think you want to invest in my business. Nick well, i mean this in the nicest way, but i think you need me to be honest with you. Youve got a great product. I think i can add a tremendous amount of value. Ana my next concern is, like, numbers and percentages, and lemonis well, lets back up for a second. Whats the Company Worth in your mind today . Ana skinny latina is worth 500,000 based on five times revenue, which last year was close to 100,000. Lemonis a half a Million Dollars . Ana yeah. Theres risk for everybody here, marcus. Lemonis not for me. I havent written a check yet. Ana we need to do a rebranding. We need to do a full rollout, but lemonis the first amount of money needs to go into what . Ana into inventory. Lemonis okay, great. So, start there. Ana i dont think 75,000 is enough money. Lemonis that is the best youre going to get from me. The holidays are easier. When you can do this. Post this. And be there like this. So we give you that. And right now, buy a Samsung Galaxy s10 or note 10. And get one free. Nationwide hso you can plan for your futfor retirement and save for college. Oh, that explains this. The nationwide dome. Stateoftheart venue. 80yard screen. Fantasy sports lounge. Climate controlled seats. Sushi bar. Club level pool. Really . Lastly. Retractable roof. Whoa. Touchdown peytonville just runnin away with this one. Go peytons. pop kind of lackluster. Eh, still working out some kinks. Who they playing . The brads. Worst team in the league. Of course. vo thewith every attempt, strto free itself,piders web. It only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. The holidays are easier. When you can do this. Post this. And be there like this. So we give you that. And right now, buy a Samsung Galaxy s10 or note 10. And get one free. Introducin beep, beepdelivery, just in timwwrrrr e holidays beep, beep ssshhhh beep, beep errrrr bading shlrrrp bark, bark beep, beep sshhh shrrrp ding crrrnch, crrrnch beep boop errrr hey get free ingarage delivery from key by amazon when you connect your myq app or get the universal smart garage hub, now just 29. 98. Lemonis a half a Million Dollars . Ana yeah. Theres risk for everybody here, marcus. Lemonis not for me. I havent written a check yet. Ana the way that you invest, to my understanding, is that you invest in the process and the product and the people. Its a great product. Whats my value, right . Lemonis are you asking me that . Ana no, i know what it is. Lemonis well, what is it . Ana its a lot more than 500,000. Lemonis that confidence is what i love about you. What do you think the investment should be . Ana i think 200,000 for 40 . We need to do a rebranding. We need to do a full rollout. Lemonis when i first met you, you said to me, i have Grocery Stores who want the product, and i dont have the capital to give it to them. The first amount of money needs to go into what . Ana into inventory. Lemonis okay, great. So, start there. Okay . The deal that im willing to make is to agree to your 500,000 number. I would want to lock that valuation up for 12 months, and i would want to have the right to invest up to 125,000 for 25 of the company and no less than 75,000, 15 of the company. So, what it does for me is it gives me the flex to go from 75,001 to 125,000, but if at some point, i feel like the wheels are coming off the bus, i can mitigate my risk for the other 50. And your progress and your performance and your results would determine whether i would go from 75,000 to 80,000 to 90,000 to 125,000. Ana right. Lemonis that is the best youre going to get from me. Ana i do think its a fair offer. The only problem i see there is that i dont think 75,000 is enough money. Nick listen, ana. Let me jump in here for a second. Youre short 75,000 from the 200,000 you were asking for, right . Hes committing up to 125,000, okay . Ill jump in for the remaining 75,000 with the same premise. I want to mitigate through the same percentages as marcus. Ana okay. That sounds. Like a good plan, and i feel kind of really fortunate to have both of you. Lemonis i think ana really proved herself, and there are plenty of entrepreneurs who just need a shot, and they need a chance. In this case, she needed the opportunity, but she also needed some tough love and some direction. I think this idea of her feeling like she was a victim turned into her feelings like she was a champion of her own product, and, honestly, i think shes a badass. So, do we have a deal . Ana yes, we have a deal. Lemonis okay. We have a deal . Nick we have a deal. Lemonis great. Ana thank you. Neiman marcus, here i come. Lemonis thats i wouldnt lead with that. [ laughter ] ultimately, what i want ana to have is a milliondollar business, not a milliondollar marinade. Cheers. Ana cheers. Thank you. Lemonis you did good, lady. Leat one of the most tensenna episodes that ever happened. Its fuel foods. It was based in west palm beach, and it was from season three, and it was the only time in the entire shows series that i actually feared for my safety. Amber that was the only time i was never on set. Lemonis what would you have done . Amber i couldve gotten security if it was really that. Lemonis oh, i thought you were gonna protect me. Amber oh, wow. What would i do . [ laughs ] the guy was big. Lemonis right, but you have a mean left hook. Amber yeah. Well, i have a bigger mouth. Lemonis i was going with left i was going with left hook. Amber i could verbally mess him up. Lemonis over the years that ive been making the profit, ive visited countless businesses. Lets go make some money. [ car honks ]