awesome. what happened? who did you get it with? lori. are you serious? we're so happy for you. majmundar: lori believe in me and believed in my product, and lori and i are gonna make this the best product it will be. lemonis >> tonight on a special episode of "the profit." >> there's a new sheriff it's me. >> my blueprint, success in business >> if you don't like money, don't follow my profits. >> i look back on all the deals i made >> my offer is $1 .7 million >> the people i've met >> i'm marcus. >> the biggest triumphs and the total fiascos. >> guys, shut up >> and put everything i've learned. >> ching-ching >> into ten lessons. >> we got to come up with a better process >> if you don't evolve, you will die. >> sharing some shocking updates.

>> are you the grim reaper >> sometimes >> after dozens of investments and nearly $60 million spent, this is "the profit. my top ten rules for success my name is marcus lemonis, and i risk my own money to save struggling businesses. >> we're not going to wake up every morning wondering if we have a job we're going to wake up every morning wondering how many jobs we have to do. >> it's not always pretty. >> everything is going to change everything >> but i do it to save jobs and i do it to make money. this -- >> let's go to work. >> -- is "the profit." ♪ >> you know, i've been traveling this country and investing in small business for more than four years now, and i've met hundreds of entrepreneurs, their employees, their families. what i'm reminded of time and time again is that everyone has a story. they're complex. they have their own passion, their own motivation, and their own reasons for doing what they do it's something i always try to appreciate

but all that being said, i've met some real jerks. a lot of them. so my first rule when it comes to success in business, don't be an ass that's really the number one take-away. how to treat people. i have met some people that just don't know how to treat people like that meal service guy in florida. eric at fuel foods. >> are you going back to your deal >> we discovered that he was connected to somebody that was in a ponzi scheme and that he was not really acting above board. >> are you going back on your idea you are going back to your handshake deal >> he was the one time out of the 60 plus episodes where i actually thought somebody was going to hit me. >> how would i shake your hand when -- >> good luck to you. >> your handshake means nothing. >> you're an intimating guy you're not going to intimidate me.

>> the guy was a big dude, and there was just two camera men and me >> there's andrew rosenthal. >> andrew owns l.a. dog works. this pet care place in l.a. that has everything from boarding, grooming, training, and a bunch of other things. i love the business model, and i love anything to do with pets, but andrew, he was a complete maniac he hated everyone. >> the only reason my partner is alive is because murder is illegal. >> he is going to get fired anyway >> why is that >> because i [ bleep ] can't stand him. >> in the first day of filming, people typically are on their best behavior, but the really crazy ones i think they have zero awareness i remember andrew rosenthal being very aggressive within five minutes of being there. he was aggressive with me. >> i can make this business work with or without you. >> and his employees >> i'm not going to put up with that jesse failed miserably he wouldn't listen to a [ bleep ] thing i said i don't have to ask him time and time and time and time again e-mail me the [ bleep ] schedule just do it

>> that's a waste of [ bleep ] >> anger and yelling and screaming. don't make anybody want to come to work early and stay late. the goal is to get people to want to be attached to the business not to run as fast as you can away from it >> that brings us to this second rule make your employees number one >> i've been publicly criticized by this philosophy where you read all these books that say the customer is always right, and make customers number one. at the end of the day for me the customer isn't number one. the employee is number one my theory is if you treat the employee right, ultimately that employee is going to be the one to interact with the customer and their experience will be better i think the second thing is employees like to know you have their back >> that guy, eric, you just saw? the one i thought was going to crush me, put me through the wall he was even worse to his employees. >> what are you doing? come on. >> he bulldozed anyone who tried to question him. >> i don't really feel today

that you guys feel like you're in a safe and secure environment to give your opinion without recourse >> yeah, because it's always everybody else's fault the way he says things, it does bother a lot of people that work here >> i'm sorry if you feel like you can't approach me. i'm sorry if you feel i have dominated you at a time. i'm sorry if i have ever made you feel bad you know, i'm sorry. >> take it down a notch. >> but instead of changing his ways, guess what he did. he cut the pay of some of his top employees, and he even blocked them from the company computer system. i think it was punishment for speaking out against him at that meeting. >> it smells like retaliation to me you cut alex you cut diana. >> not at all. >> i think it is retaliation >> i work endless hours for you. you took us off the system you already blocked us from all the pass words >> you locked her out of the computer already >> i changed my passwords. absolutely >> not surprisingly, the employees that worked there, they left. they got fed up. they don't want to deal with his crap anymore

that's why i always tell people, encourage your employees, incentivize them, maybe them more attached to the business. not less. i remember tammy from key west, key lime she single-handedly kept that business afloat, managing their finances, inventory, the staffing all for $300 a week. she had two kids at home and another one on the way it was crazy the owner, he just took her for granted. >> how do you get it all done? >> i don't >> have you talked to jim about this >> yes but he believes that everybody should work really hard and so it's disheartening it's hard. >> we almost lost tammy to another company, but we saw her value, and we wanted to make sure that she stuck around, so we gave her a raise and paid maternity leave. >> i'm going to give you six months worth of pay. i'm going to pay you $1,000 a week so you don't have to bartend, if that's okay. >> i'm going to give you a check. it should help you just kind of just be able to rest, take care

of your baby, and then when you come back, you're going to bust somebody's ass all right? okay >> wow thank you. >> every time i see that, it reminds me how important people are in business, and it isn't just about the numbers it's really about making sure that the people that work there feel like they're taken care of. what's also important to remember is that you have to hire the right employees to begin with you have to know how to tap into their strengths, which brings us to rule number three know what you don't know >> it's very simple. i know what i'm good at, and i know what i'm not good at. what i'm not good at, i go find people that are really good at it, and i make them part of the team not all of us possess skills to do everything, and when we can't recognize it, you're going to end up with a big pile of poo.

you take something like sjc. they make a drum, beautifully hand crafted, great staff, but the place was in total chaos >> see, you're inefficient, and you're priced below market, which means you have high costs and no margin. >> death spiral. >> death spiral. >> the owner, mike, is second to none when it comes to marketing and hustling he doesn't know how to make drums, and he is not the greatest with numbers either when i met him, he had essentially frozen out the two people who could help him most in those areas there was his best friend, chris. the guy was as sharp as they come, and mark was ignoring his advice >> what should the margins be? chris? >> in my mind they need to be like 40%. >> in the pricing model that you put together, if mike would have stayed away from that, would it have been 40%? >> yes >> even worse, there is his brother, scott, the real drum expert in the family mike had essentially forced him out of the business shortly before i arrived >> you were the artist let's just call it like it is. >> mike designed drums and

stuff, but when it came to putting your hands on it and doing it, that was all me. i in my career have made thousands -- i think 5,000 drums. >> what's the story? why did you leave? what happened? >> well, my brother formed a mutiny, is what i say. >> so there they were. two people who could have helped mike run that business thousands times better than he could have, if he only listened to them. i made sure he did i made chris a full partner. then as painful as it was, we got mike and scott talking again. >> people had the wrong idea about me because of you, and that's -- like, that's terrible. >> i apologize for that, scott things get blown up. things blew up i never intentionally -- >> you did intentionally turn. >> i apologize for that. >> you just said you didn't, but you did. say you did. >> i did it. and i'm sorry for that

i just want some sort of relationship and it not to be [ bleep ] awkward. >> i never wanted it to be this way either >> and then watching scott work his magic, it was something special. >> i have ideas about that i think you go one flat finish, but it's natural because then you're eliminating the cost of the laminate, and you're eliminating a step. natural is the way to go what is the size of the base drum going to be >> 20 inch >> 20 inch if you offer a 20 and a 22, you have almost the same shipping costs because you're still getting one box, but they were able to get another shell in there. >> it's kind of cool to listen to your brother because he has some crazy [ bleep ] ideas, and he is very smart >> watching and listening to scott is like watching a savant make drums the guy is so smart, and what he is able to do is really provide mike with insight that he couldn't necessarily have on his own. by the way, here's a news flash.

sjc is a multimillion-dollar company today. it's going to make $400,000 or $500,000 in profit this year we just received a giant additional investment from a vendor that isn't because they made a better drum. it's because i think mike was able to take a step back and recognize that other people were better at certain things than he was. >> coming up, things get personal >> you want to start airing the dirt, nanc >> i don't give a [ bleep ]. >> my rules for success when family and business make for an explosive mix. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card.

when you switch to progressive. winds stirring. too treacherous for a selfie. [ camera shutter clicks ] sure, i've taken discounts to new heights with safe driver and paperless billing. but the prize at the top is worth every last breath. here we go. [ grunts ] got 'em. ahh. wait a minute. whole wheat waffles? [ crying ] why! wait a minute. whole wheat waffles? [music playing] across the country, we walk. carrying flowers that signify why we want to end alzheimer's disease. but what if, one day, there was a white flower for alzheimer's first survivor? what if there were millions of them? join us for the alzheimer's association walk to end alzheimer's. register today at alz.org/walk.

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making it look like, oh, they called us and picked us out of the blue hey you've gotta see this. c'mon. no. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote.

>> as i look back at the last four years of "the profit" there are issues that have come up time and time again, and one of those is family drama. always getting in the way of business >> you're coming off like you're saying [ bleep ] to your daughter >> go to hell. >> you and your dad have blow-ups here? >> all the time. >> back up you're crossing the line between father and boss. >> how about you marry some crazy [ bleep ] that we don't like and that something happens to you and then have to deal with her >> it's not that i go out and i look for family businesses that have conflict. families generally have conflict businesses generally have conflict that tension and that energy is something that i have often tried to remove myself from. at least in the early years i

did because i'm not oprah, but at the end of the day i am kind of oprah i have to be involved. >> it sounds like you're hurt because your brother got kicked out. >> i feel like i got an mba in therapy. if you are going to work with family and close friends, you have to accept the crazy dysfunction in family and dysfunction in business can actually be managed by just recognizing what it is and working around it. it's understanding strengths and weaknesses and hot buttons now, there are those that end up understanding that, and there are those who don't. a perfect example of the latter, worldwide trailers the concession truck builder out of georgia and probably the craziest, most dysfunctional organization i have ever been involved with. owners tom and nancy ended their 20-year romantic relationship, but they continued to work together what ensued was complete chaos, screaming, yelling, and way too much information

>> just so we all know -- >> you put us in this situation. >> tom's girlfriend has been working in this company for three [ bleep ] years. >> oh, my god. i remember this. it was so hot in that trailer, and they were screaming at each other like crazy people. >> i have so much proof right here that she's been working in this company it is [ bleep ] real this is her cell phone. this is tammy's cell phone, which is your girlfriend's it is his girlfriend, tammy. this is the number this is her direct line. period >> does she work there >> sure does yeah >> your girlfriend works for a dealer that sells your products? >> that's correct. >> she's not allowed to be working anything to do with our company. >> it was half our volume last year >> i don't give a [ bleep ]. >> you put us in this situation. >> tom -- >> take your drama, and take it elsewhere. you want to start airing the dirt, nanc maybe you shouldn't have been at a wedding [ bleep ] some guy in a bathroom i can't work with you. >> the deal is off the deal is off. >> i can't do business with you guys i can't do business with you guys

>> when you want to do business, give me a call >> that's fine there are other people. i have a back-up plan. >> i still love you, though, marcus can we go out on a date now? >> did you go on a date with nancy? >> yes, i did go on a date with nancy. no, i did not. of course, i didn't go on a date with nancy, and she asked me, like, three times. >> i don't give a [ bleep ]. >> in the case of tom and nancy, the crazy was so elevated that their ability to even be in a room together was impossible >> there are other situations where people actually can work through their family drama a good example of that would be a women's fashion brand in new york city. now, the owner, nicolas, had taken the business over from his mother when the business fell on hard times my issue with nicolas is that he didn't respect his mother. he was abusive he was outspoken he didn't really appreciate what she had built. i knew i had to get to the root of the problem

>> you have your job to do your job is to come up with an idea and then it is your job so advise when the product comes in, we will tell you whether it is financially and logistically feasible to do >> i cannot take it anymore. >> i need to kind of understand what i just walked into. >> i don't know what to do when he acts like that. >> so this is my fault i'm not a good son i don't -- >> she never said that >> i haven't taken bullet after bullet for you we have gotten this business after dead, and we've just gotten ourselves out of. your children have been carrying you want all of the accolade without doing any of the work. >> but after spending a lot more time with nicolas, i came to realize that he was dealing with a lot of baggage, a lot of things from the past about his father's passing, about his mother's role, about his sister, about the burden he felt, and he really hadn't had anybody to talk to. >> when you walk in that door -- >> i'm her boss. >> you are her boss, but you

also would never talk to an employee that way. so why do you? >> i think my sadness is manifesting itself in anger. it's just sadness i've been carrying my whole life >> look, family business inherently brings drama and history, but in this case i wanted to get some long festering issues out on the table. >> this is another piece of that puzzle >> what is >> our relationship. i mean, she is everything. mom, dad, friend, partner. >> employee. >> employee. >> be constructive and be encouraging and be supportive. she's your mom first >> yeah. >> and she's your employee last. don't ever forget that she's your mom first, and she will smack you up side your head >> maybe she should more often >> yeah. >> here.

>> look, these relationships, they're never going to be perfect, and once you dig into the root of the issues and you really peel back the onion to find out how to communicate effectively, you make progress that's how i felt after nicolas and i talked >> i have seen him really mature today great family man >> i think the thing, guys, that maybe is the best is that the relationship of all of you has transformed. >> yeah. >> it's true >> and, by the way, nicolas's sister, stephanie, could be maybe one of the best examples i have seen of personal growth even if i look at every episode i've ever done on the show, she went from taking the back seat in her family's business to running my $45 million fashion company, and that includes not just the original business, but every fashion oriented business you've seen on the show. >> coming up, the honest truth about some of the biggest fakes, phonies, and frauds in "profit" history.

>> i feel like you're lying to me >> i'm not >> plus, i'll reveal the one thing my favorite small business owners have in common, and it's not what you might think every to be heard... ♪ to move... with you... through you...

♪ beyond you. ♪ wh...mr. jackson isg into my clasthe rapping teachert... we call it the remainder that's number that remains. technology is a huge piece of education. using the pen for the first time on the windows 10 pc is great. i'm able to highlight different rhyme schemes, i can actually... ...see my lines when i'm shading in, i can change the... ...weight drawing directly on my screen. i couldn't do this on my mac. i can definitely see the future... ...happening, i mean i feel like the sky's the limit. >> i told you yesterday i wasn't willing to make the acquisition unless you could prove that you are a leader, so i want to see whatsoever leader you are. >> okay. >> today we're closing the store. entirely we're locking the door

>> okay. >> for how long? >> as long as it takes to get the store redone >> okay. >> well, there's a truck and boxes and people here to start loading. >> come on is that really -- are you being serious? help stop the journey of gum disease. try new parodontax toothpaste. it's clinically proven to remove plaque, the main cause of bleeding gums. for healthy gums, and strong teeth. leave bleeding gums behind. new parodontax toothpaste.

so find a venus smooth that contours to curves, the smoother the skin, the more comfortable you are in it. flexes for comfort, and has a disposable made for you. skin smoothing venus razors. >> you want to call it a pot store? >> it's been four years and 67 episodes since i started "the profit" and i've had people tell me on the street that i like to do business with softies, people that are, like, nice and they cry all the time i guess my response is i appreciate doing business with people who can be real, and show me all of their scars and all of their frailties because it gives me the sense that they're never hiding anything. that's rule five be vulnerable. >> i built it for my family. i feel like i've failed them i really do. >> it's hard to be on the verge of feeling like you might not believe in it.

>> we did whatever we had to to survive and never let any of them up there know what it took. in seven years people got bonuses. >> i just feel like i failed >> you are not a failure >> well, i want to stop feeling that way >> that's why i'm here >> for lots of folks, obviously, vulnerability doesn't come easy. it takes a lot of courage to really open up and own your story. take the guys from flex watches. their original line consists of a variety of watches in different colors each representing a different cause like cancer or hunger. a portion of their sales would go to that charity, but oddly, they drifted away from it. >> where is the charity angle on this generation? >> a lot of people don't realize we still do the charity aspect >> i think this is a total mess. it doesn't feel on point with brand. if you have a mission, you should stick to your mission

>> i soon learned that one of the guys, trevor, was the reason that they had gotten away there their original mission that's because in his mind the charity aspect connected to the watches is a direct connection to his mom that brought back a lot of very painful memories >> she got breast cancer eight years ago. we lost her three years ago. >> she passed away >> what is your mom's name >> karen >> is your mom's name incorporated >> we actually talked about that, but we're just not able to go there yet. >> trevor went through a tough time, obviously, after his mom passed >> because of me probably we just haven't talked about it and discussed it as much as we should, and i don't know how to tell that story. it's tough >> i feel bad. i feel bad for my best friend. that's it. i mean, no one deserves to, like, go through all that stuff. it hurts >> i pushed him to embrace his story because i knew it would bring him closure, but more importantly help the business as well, but he pushed back

and pushed back. >> i don't know if the face of the brand is supposed to be so much about me and my mom as much as that's our story, i just struggle with talking about it >> until eventually he got there. he personally prepared a video for flex's website which paid tribute to his mom and the impact she had on the business, and it was incredibly powerful >> love my kids. >> it feels so good. it's crazy we feel so inspired again to share with people about these causes that we care about. >> the reality of it is is that the reason your business was good is because people like the story. you had to fall in love with the story again yourself >> they turned out to be one of the best businesses i've invested in. not just because we've sold some watches, but because the willingness to show their true colors, to be themselves, and i really made a point to break them down to get the best of them

of course, if you are going to tell your story, you better make sure it's a work of -- that brings us to rule six. be authentic i think people can get confused between telling your story and having it be authentic and telling a story and trying to convince people that it's aught -- authentic. take max, a seller of high-end cleaning products. toilet bowl cleaner, surface cleaner. you get the idea you would have thought she was selling fine art >> walk me through this. >> so we used to have a text-heavy label i wanted to make it easy for the customer to identify >> i'm going to challenge you on that i feel like it's buying products for my castle. >> the chair is kind of like a chair that you would have in a castle >> do you have a chair like that in your house? >> i do. >> she didn't just have her head in the clouds when it came to her product. the company was on the verge of collapsing, and, yet, she was carrying on like everything was fine, and it was perfect

>> max, it feels like you guys are slightly delusional about what's happening it's like it doesn't feel like a company in crisis to me. >> she fought me on the name of the company, the look. any change she saw as a threat to the upscale image she was trying to cultivate. we discovered her inventory was worth just a fraction of what she thought it was, and that didn't even seem to phase her. >> how much is actually here >> it's about 33 palates, so not the 120 that we thought. >> so you're telling me you don't have $280,000 of inventory. >> no. >> how much is actually in inventory? >> like, $70,000 >> but i made a deal based on this information >> sorry >> i ended up walking away because i finally realized that it wasn't about the company or the brand. it was about max it was more important for her to create this image of wealth and success and the aristocratic

lifestyle. it was friggin toilet bowl cleaner. trying to create a story is important, but having that story be authentic and having it be believable and having people want to embrace it like shuler's >> if that ain't dripping, it's not barbecue >> that's a story of a family that just lives on a big track of land, that loves barbecue, that they're just -- that's just who they are they wouldn't change for anyone. not even me. case in point, when i tried to change lynn's biscuit recipe so it would be better suitable for mass production, oh, no. not going to happen. >> this is crazy you know, it is a family recipe. i'm trying to adjust, but this is not us. >> that's a story. but it's authentic, and people line up down the street to go there. now it's this massive complex like on ten acres.

they've undergone a huge expansion. outdoor deck, general store, catering, and what i love more about them than anything else, they're authentic. >> yes, sir. nothing better >> shuler's and -- that could be the greatest juxtaposition of authenticity >> marcus, some tea. >> vulnerability is one kind of honesty. authenticity is another. but there's a third kind of honesty that's just as important. rule number seven, be transparent. vulnerability and transparency are two different things transparency is i'm going to find out what you're hiding, and the more i sniff something that you are hiding, i'm going to find it. >> i am trying to be honest, and i have tried to be -- >> you haven't been honest at all. >> i do not want to do business with you because i don't think i can trust you. >> i feel like you're hustling me >> one of my biggest issues with transparency came with sal remember him from artistic stitch this was a small silk screening

and printing business with a huge identity problem. >> it's a multi-plex of businesses that really work together we have somebody coming in that wants new shirts he looks out to this thing, and on a friday or saturday night, he is coming in with his family and friends -- he is going to actually eat in the restaurant. >> that's what's called a mall >> while sal lacked focus and had too many things going on under his umbrella, what i saw was a lot of promise in his core printing business. i thought it could be a huge deal for me. but as soon as we started diving into the finances, red flags were everywhere. >> do you have any personal living expenses on these cards >> i'm sure there is >> what's the big deal about that, honestly i'm not 100% sure what -- the cards are not even -- >> you were 100% sure to tell me it was construction debt you have put this paper together >> yeah. we needed computers and stuff. it could be. i'm not saying no. >> wasabi, japanese steakhouse $230 >> i went out with my family >> on the company credit card? >> on the company credit card.

now i'm paying for your meals? this is not sitting well with me. >> i feel like you're lying to me >> i'm not. >> i feel like that because little by little the story keeps changing. >> despite these hiccups, i went against my better judgment and upheld my deal with artistic stitch until i went back months later. i felt like i needed to pay them a visit in person because sal started dodging my calls, not returning my emails, and what i returned to was a total disaster sal was lying to me and his landlord, michael. the whole thing was about to implode. >> we look familiar to you >> i have been talking to you at length, and i'm just trying to get paid >> i've tried to help you. michael has tried to help you. you just struggle with being straight with people >> i never ever did anything, anything at all to go ahead and try to break this deal whatsoever >> did you take money out of the business that you weren't supposed to?

>> to pay some of my expenses that i had >> personal expenses you never got my permission to do it. >> i understand that >> money was going into the business, and he still wasn't paid that was our biggest sticking point. that our landlord get paid >> you are caught with your pants down >> leave him alone he can't even defend himself >> there is no defense don't defend guilty people >> i'm defending him >> i haven't been paid for three years. i'm no good? i have let him slide for three friggin years. >> gina, please don't go out there. >> i'm closing you down first because i got to get paid. that's the facts all right? >> look, needless to say i ended my deal with sal >> i wish you luck, sal. >> i think sal lied because he didn't know how to do anything else he was used to manipulating the facts and manipulating people, but ultimately the biggest mistake was the one i made in my gut i knew i shouldn't have done the deal i lost about $300,000.

coming up, "the profit" alums who went from underdogs to unbelievable success >> oh, my god. >> oh, my god. >> and the ones who faced a shocking end all because they ignored one key rule (vo) more "doing chores for mom"

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you know in all my years of making the profit, i have

invested countless hours and money. do we have a deal? >> yes, we have a deal. >> we have a deal. >> thank you very much. it is a pleasure. >> but in order for these businesses to be successful or not in the long-term, real business has to happen like after the cameras go away. that brings us to rule eight. it's all about following it. i think people believe that i'm going to come in and run their business for them. i'm not there to run your business. i'm there to push you along and point out things to you so that you can do it when i'm gone. and there has to be consistency. and the following of that process not the day after or the month after but years after. seems pretty straightforward to me and yet i have to deal with this lack of consistency and policies again and again and again. i can't be here every day. and these people want a leader. and i don't know if you have

what it takes. >> the business has a ton of potential. i think the thought i had, i don't think you want to do it. >> i want to see them get their system in order. >> but are you going to help them do that >> the good example of follow-through, standard island burger, a restaurant i invested in a couple of years back. it's frustrating, because while it's still a viable operation today, it could have been so much more. when i first arrived i found a group of friends who could not have been closer or more volatile. >> are you kidding me? i was three blocks away. i was never -- >> they're fighting has led to a real embarrassment of a restaurant. from frozen patties they use to the dirty kitchen. i overhauled their menu and completely renovated the space and put one of the guys in charge of the managing, and told them most importantly they need

to follow my process if it is going to work to stay engaged. i came back a few months later, the guys made changes to the menu that i never approved of. and they wasted time scouting to new locations instead of focusing on the plan which is to build a national franchise concept in one place. we're in the business of building a box, polishing it, perfecting ining it and having somebody saying i'll take it. we're not in the business of a leap of faith. worst of all they had not followed through on their promises to stop fighting. >> i'm the guy who is here every day. >> that is what it is, the problem, if you want to start calling my name be ready to be a man. i didn't fix it -- >> yeah, there are problems here, you're the problem. >> why is that >> because you stick knives in your friends back, you expect it to go under the rug. >> hold up.

>> i'm the rug, sweep it under me, yeah, i'm the rug, sweep it under me. >> standard burger is still open today. it's profitable. but the five guys are not together any more. couple of them are just doing their own thing. one of them was fired. in hindsight i made a big mistake by investing there, in hien hindsight, another $700,000 mistake. and another problem, an owner who was absent. >> i come in here probably two or three times a week. >> two or three times a week or month? and guess what, amazing grace closed. it's gone. i put a million dollars in that business. one million dollars. and it closed because there is a couple of people there that did not want to follow the process.

but for every business like amazing grapes, there's one like bentley's. a pet supply chain based in the chicagoland area lovely people. but one hell of a messed up process. they had grown way too fast. every store looked different from the next. merchandizing is different lay-out is different the lighting is different. the whole thing is different >> lisa and gio really put their heads down and trusted the process. both stepped up as leaders >> we need to do now is just start boxing everything up >> and the result? nothing short of amazing >> what you are going to see today is kind of the future look of what could be a regional or a national brand are you ready? >> yeah. >> i'll let you go first >> i'm closing my eyes >> close your eyes close your eyes. >> look at the floor >> oh, my god. >> oh, my god. >> and here's the thing. they didn't just execute for the cameras. they followed through long after the cameras were gone. guess what, today it's $100 million business in top line

with going to be close to 100 stores where we received offers for north of $100 million to buy the business they're literally going to get, like, a $40 million check. that's a big deal. you know why it's because they trusted the process, and they followed through. >> coming up, the one thing that still shocks me after all these years. >> are you [ bleep ] kidding me? >> what you can learn from one of the most memorable moments in "profit" history you owned your car for four years.

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>> after almost 70 episodes of "the profit" rule nine should go without saying, but it doesn't people, know your numbers. >> how much money does this business make a year >> as far as i'll be honest i don't know the exact numbers >> what does it cost to make something like this? >> you know, that's a good question >> i can't move forward if i don't know for sure what the numbers are going to be. >> nine out of ten people still cannot explain where their money is going in season one, i visited a small popcorn business run by a woman named charlotte. remember her i was shocked to find out that her accounting system consisted of piles of money on the floor >> do you guys just leave money out? >> yes >> this will be a cool place to rob. >> it only got worse from there. there was over $300,000 missing from her accounts, and charlotte was absolutely clueless, or was she hiding something >> the problem is there's

$319,000 missing where. >> i guess it needs to be found. >> why don't you seem alarmed by the fact that there's money missing. >> i don't think there is all accurate just saying. >> when i tried to get to the bottom of it, she got pissed off. >> i might not be able to read my balance sheet, but i make 240 -- a year, so don't be telling me i'm stupid. >> he didn't say you were stupid >> oh, please. it's my money. >> but you -- we're only doing what you -- >> excuse me what did you start to say? >> you shook his hand. >> so what it's still my money. >> it got so bad that i had to bring in a forensic accountant, and even that didn't help. >> the money should be there because there are no distributions, no draws. >> there's no distributions because there's no money to distribute >> but you have profit >> what's happening is there's leakage somewhere. >> i don't know if somebody else is stealing or you're stealing >> i control all the cash so if anybody is stealing, it would be me, and i don't steal. >> okay. where is the cash?

>> where is the cash >> couldn't tell you >> something that something's hand in hand with not knowing your numbers, not paying attention to your margins. >> so you're making 37 cents on this bat that's not great where. >> it's not. terrible market. >> what kind of margin do you make on all of this stuff? >> these are $4.50 i sell them for $5.50. >> that's 2,000. >> what does it cost you >> about a 30% margin on those >> that's it >> i always tell people -- in order for you to make decisions about where you're going or who you are going to hire or what expansion plans you're going to have, you have to understand the current status of your business. please, know your numbers. there's no excuse not to you know what else there's no excuse for excuses. that brings us to rule ten quit whining start winning. >> i have seen a lot of small business owners who simply do not take responsibility for their actions.

what i always tell small business owners is to get a mirror you want to know who is to blame? it's always you. if you want people to respect you, take responsibility for your mistakes and your actions a perfect example of someone who could not stop complaining and blaming others and passing the buck my good friend, hank marks hank inherited his father's once successful flower business under his leadership let's just say that things started to wilt, and the place was in shambles. i agreed to invest $100,000 to make much needed changes no matter what i did, hank did nothing but complain >> he took stuff out of the store and dumped it in the garage i'm not sure that the store looks that much better my confidence in marcus right now is kind of wishy-washy >> until just one week into our deal he backed out he blamed me for all of his company woes >> i appreciate your effort, but

whatever you tried didn't really work between you and me, i'm not going to take your deal. >> why is that we had a handshake on it >> yeah. i mean, there's a lot of stuff that you promised that didn't -- >> like what >> that didn't go through. >> you were going to give us $100,000 >> i spent over $100,000 >> i don't know what you spent i didn't see anything. >> how much do you think i've spent? >> $150,000. >> hank, are you [ bleep ] kidding me >> no, i'm not >> are you trying to tell me i didn't put money in your business >> i don't know what you did because you didn't show ittous. >> would you like to see it? >> well, it's too late now >> why is it too late? >> we had a deal, and you didn't do it. and you said business was going -- >> you're kidding me >> sales didn't go up. >> in a matter of two days that's because you're never here >> you said a week >> that's because you don't know how to manage this place you're -- you better call your mama and get my money back >> honestly, hank can blame anybody he wants, including me hank wasn't qualified to run that business. he wasn't jacob marks, and no one was asking him to be i was asking him to stop whining. just get to work

coming up, i reveal the lessons i have learned along the way and the people who have changed my life forever. >> i'm marcus lemonis. i'm here with small business leaders from the t mobile community. we're discussing tips to help improve your business. >> i've worked hard to try to explain to people how anybody could look at any type of business and use the three p's how do you think about the three p's in your own business >> process means everything to us the end product only happens profitably if that entire process is managed correctly >> right but it has to be managed by people >> by people yes. >> without people, there is no process. >> absolutely. >> and ultimately, there is no product. for more tips to improve your business, check out white board wednesdays at t-mobile.com/marcus. are already,

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introducing gig-speed internet from xfinity. finally, gig for your neighborhood too. >> after 67 episodes, i've seen a lot of crazy things. good, bad, ugly, really ugly >> i rarely lose my cool you stepped way the [ bleep ] out of bounds. >> there has been one common theme i have seen throughout regardless of the business owner is that they had a belief in themselves and a passion to get into something and to try >> i always want to be a ceo i thought it would be the best job in the world, and i still do >> even as i sit here today, i go into every single business

with the same fresh set of eyes, without any misgivings because i feel like i have a duty to give that business owner who took a chance on themselves, who took a chance by calling me, who better have their numbers figured out, a fair crack at it >> i'm so grateful that, like, you picked our company and just so excited to see where it goes from here. >> i understand that "the profit" is a television show that features me investing in small businesses i get it okay but this is -- for me it was never a show about business. it was a show about people and in taking a chance on people >> it's not always going to be fun. my job is to make sure that you guys have a bright future. >> it was a lot. i learned a lot about myself i learned that i can learn anything if i try hard enough. >> chris, we're good i got on i don't like the margins i've pretty much established that this whole thing sucks. >> and you don't have to be an expert at everything you could partner with somebody

that isn't or is an expert. i know nothing about making candy, but i always wanted to own a candy store. >> it's good i didn't really get a good taste. i need another one >> i could almost argue that pete and allison made my dream come true. i've cried with business owners. >> i was 8 years old that's what i remember >> and i have screamed to the top of my lungs. >> guys, shut up for a minute, shut up! >> what's come out of it for me, and i think for a lot of other people is how to treat people, how not to treat people, but isn't that a life lesson in general? take a chance on really good people it will work out >> i never would have dreamed this never. thank you, marcus. >> don't invest in really bad people bad ideas. how is that any different than relationships, hiring? i mean, how is it any different? >> nice. the following is

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