♪ ♪ [ up-tempo music plays ] >> tonight, a journey to cuba... a troubled country taking historic steps to survive. for the first time in decades, profit is no longer a dirty word. >> we already have it. [ laughs ] >> under new laws, cuban citizens can open a small business and strike out on their own. now i know why you put the money up here. [ music continues ] my name is marcus lemonis. on my show, "the profit," i use my own money to invest in struggling american companies... i'm 100% in charge. ...and help turn their fortunes around. now i've come to one of the last

holdouts of communism to meet some pioneers of capitalism. >> the doors for the first time are wide open. >> i'm definitely a businessman. i love doing this. >> do you think you're gonna be in cuba for the rest of your life? >> yes. because cuba is changing very fast. >> the obstacles are daunting. this clothing designer has to buy fabric on the black market. >> ooh! >> this restaurant owner isn't allowed any more than 50 seats. the state says she isn't allowed to expand her business. you cannot have two stands? >> no. >> this sucks. meet cuba's new business class, surviving and thriving under one of the most oppressive regimes in the world. [ music continues ] [ flamenco guitar plays ]

i had barely set foot on cuban soil when i saw how the new business laws are changing lives. armando lee rolled up in a 61-year-old chevy -- a typical havana taxi. how you doing, my man? >> hello, my friend. >> i'm marcus. >> marcus. my name is armando. nice to meet you. >> armando? >> yeah. >> nice to meet you, brother. like most cubans, armando was living on a government wage worth about $25 a month. now he makes that in a single day, thanks to the taxi license he got under the new law. >> this is a good business. >> and you can make good money doing this? >> i can save a little bit for my own business. the best job is to do your own company, a small business. >> your own company. >> yeah, exactly. >> with his newfound cash and a degree in computer engineering, armando hopes to launch his own start-up. if you have a business and we become friends, can i invest in your company if i live in the united states? >> yeah, you give me the money

and that's it. >> well, you have to pay me interest. >> okay, we can do it. >> a lot of interest. >> we find a lawyer, and we can do a contract, yeah? >> armando made me feel welcome. of course, i can't invest in a cuban business -- yet. that's illegal because of the u.s. embargo imposed after fidel castro's communist revolution. since 1962, cuba has been cut off from the goods and services an economy needs to survive. despite free healthcare, housing, and higher education, many are struggling. >> [ speaking spanish ] >> how you doing? todo bien. >> mucho gui'm jorge. >> marcus. but walking around the old city, i saw a place full of life, energized by the changes. [ men singing, latin music plays ] desperate to boost the failing economy... this is a cool bag. ...the government has loosened their reins on private enterprise. so everything's made in cuba? >> yes. >> instead of working for the

state, thousands of cubans are now working for themselves. very beautiful. [ up-tempo latin music plays ] i found them everywhere, even here -- a sleepy street in a residential neighborhood in this tiny rented garage. welcome to burner brothers bakery, run by a brother and a sister, tony and sandra camacho rodriguez. good morning. >> good morning. >> i'm marcus. so, the name is burner brothers. >> yes. >> why not burner sisters? >> because i'm a guy. >> but she's the boss. >> no, she's not. >> yes, i am. >> ware the bosses. >> okay. all right. >> come in. >> thank you. this is unbelievable. it's small. >> yes. >> they started selling cookies out of their house in 2013. now they've really taken off, with a retail space, several employees, and a catering

service. >> [ speaking spanish ] >> can i try something? >> of course. >> i want to buy a box, a big box. can i have a guava and café? what did you do before this? >> i'm a dentist. >> you're a dentist. >> yes. >> and you're selling sugar. >> yes. [ laughter ] >> how much did that pay? >> they pay me 1,000 pesos a month. >> around. >> that's about $50 a month -- for a dentist. and you make more money selling doughnuts? >> here? yes. >> in one day? >> not in one day. >> pretty close. >> we'll discuss about it later. [ both laugh ] >> is it difficult to talk with the cameras because you worry about people seeing it? >> yep. >> tony and sandra are clearly doing well, but this is cuba, and you can see the anxiety set in when i asked about money.

like others i would meet, they didn't want to say too much. and as a business owner, i respect that. [ up-tempo folk music plays ] but their steady flow of traffic told me what i wanted to know. i'd guess they were making at least $100 a day -- amazing when you consider that most cubans live off $300year. tony and sandra's bakery may be pulling in 35,000. >> you look like you like it. >> i can only say off the record. >> [ laughs ] >> [ chuckles ] people probably think, "oh, this is just a bakery." no. it happens to be thriving entrepreneurship in the face of very strong head winds of regulation. they weren't taught this. they didn't go to school for this. she's a dentist, he's an engineer. can i see the kitchen? >> yes, of course. >> okay. [ up-tempo latin music plays ]

this is big. what's in here? >> that's an oven. >> this is an oven? >> yes. >> from 19... >> probably 1920s. >> and it works perfect? >> yeah. >> the workers i met in the kitchen -- two engineers and a lawyer. like their bosses, they make more here than they did at their government jobs. where does everybody come from? where are they trained? >> we trained them all. >> so, they came here looking for a job? >> yeah. >> you took their engineering clothes off, and you made them chefs? >> yeah. >> and you taught them step by step by step. >> what they got to do. >> everybody likes sugar. >> yeah. >> right? everybody likes chocolate, too. but on the day i visited, there wasn't any. why don't you have the ingredients? money? >> both: no. >> because they are not available right now. >> chocolate's not available? >> the exact kind of chocolate we use, dark chocolate, like more than 40% of solids.

>> and so it's not available? >> right now it's not. >> you cannot find it at any store? >> any store. >> i'd like to see where you buy all your products. can we go there? [ up-tempo music plays ] so, everything here is locals. >> yes. >> what ingredients would you come here for? >> oh, here we buy lemons, we buy carrots, guava, pineapples -- stuff like that. >> wholesale as we know it doesn't exist in cuba. holy cow. there's no costco or walmart, just whatever is available from private vendors at the local market. >> this is papaya. papaya? this big? >> it's very sweet. >> humongous. >> you won't find eggs or milk here. only government stores are allowed to sell those, and they're often in short supply. when it comes to running a business, there are obstacles

everywhere. for starters, you can only work in one of 201 government-approved professions. that's right, there's a list. you can be an accountant, a plumber, a palm-tree trimmer, and, of course, a baker. i love the feel of the whole place. if you wanted to open up five of these all around havana, can you do that? can you have five? >> there's a law against that. >> one person... >> one license? >> one license. >> ¿solamente? >> yes. >> so you can franchise? >> uh, franchise, no. franchise is a big enterprise. you know that. >> the burner brothers' license is in sandra's name. they can only open a second bakery if tony applies for a license in his name. and, so, i'm fascinated by the fact that you have become students of the rules. >> yep, we have. >> i think what's unfortunate is that you have to spend time studying the rules as opposed to

spending time growing the business. >> but it makes it unique, you know? the reason why i see an opportunity here, it's because it isn't easy. if it were easy -- you know, you can get anything you want, you can get a license anytime you want, you can open as many businesses as you want -- you know how many people would have opened a bakery? >> tony and sandra are smart enough to know that they could leave and they could take their trade skills of baking and merchandising and advertising anywhere, but they see that the window of opportunity and the ability to be big in the future is greater here because they know that the competitive landscape is not as competitive. [ up-tempo music plays ] coming up, tony and sandra have big plans. the one right here? >> yep, that one there. >> but there's just one thing in their way. me. i'm telling you as your new friend, you have something special. don't ruin it. but first -- stitching a better life one shirt at a time. it's okay. i need a little extra cushion.

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-will he? [ up-tempo music plays ] [ up-tempo latin music plays ] >> forget what you think you know about cuba. forget the old cars, the cigars, the che guevara souvenirs. i saw a new cuba with extraordinary talent in the most unexpected places. people like kirenia riguera. hi. how are you? i'm marcus. >> [ chuckles ] >> she was shy about her english, so i brought along a friend to help. [ both conversing in spanish ] >> so, do your customers come back through here? >> [ speaking spanish ] >> translator: yes, but most of my clients aren't fat. [ laughter ] >> welcome to my house. >> this is where kirenia lives and makes her living. >> [ speaking spanish ] >> this is your office? >> uh-huh. >> i squeezed into a workshop barely bigger than a closet,

with sewing machines from another time. >> [ speaking spanish ] >> translator: to everyone else, it may look very small. but to me, it's really big. whatever i own today is because of my sacrifices. [ [ up-tempo folk music plays ] >> kirenia is a seamstress and one of havana's top wardrobe designers for tv and film. she's done so well she owns the business and this house. in cuba, that's huge. this is linen? >> linen. cien por ciento linen. she's called the "queen of the guayabera," a traditional cuban shirt. it's her specialty. how much do you sell them for? >> sesenta... >> she told me she charges $60 a shirt. material and labor costs $30. it takes a day and a half to finish each one. this is made one at a time. >> [ speaking spanish ] >> translator: one by one. >> i think we should charge more. >> sí. lo que... >> translator: yes, i know.

but in cuba, it will be a hard sell. >> in a good month, kirenia sells eight shirts, making 240 bucks in profit -- almost ten times the average monthly salary here. so, where do you get the fabric? [ laughter ] >> [ speaking spanish ] >> translator: that's a loaded question. >> loaded because, like many cubans, she's forced to buy from el mercado negro. why is that in the black market? >> [ speaking spanish ] >> translator: it is not in the stores. [ mid-tempo latin music plays ] >> i want my own shirt. can you make me a shirt? >> [ speaking spanish ] >> translator: it will be my pleasure. >> luckily, there was enough linen left for me. this is my shirt. it takes a lot of measuring. i need a little extra cushion. just make sure you keep plenty of room. >> [ laughs ] no problema. this is probably a $98 shirt, retail. in the u.s., that is.

to raise her prices in cuba, kirenia needs a store, but that's tough here. the government controls most of the clothing industry. >> [ speaking spanish ] >> translator: when you start to get confident, obstacles and limitations come up. "you cannot do this," or "you can do only this much." >> and who tells you you can't? >> translator: i'm not sure. i guess it comes from the government. >> that's the thing here. no matter how hard you work, you can only go so far. but she refuses to give up. come on in. how are you? and then i met the reason why -- her 5-year-old daughter, camilla. she works very hard, doesn't she? >> [ speaking spanish ] >> translator: very much. and i'm very proud of her. >> i know she's special. my ángel. >> your angel. >> [ speaks indistinctly ] >> and that gives you tears of joy.

against the odds, kirenia made a better life for them both. but it may not be enough to keep them in cuba. does it scare you? >> por supuesto. >> translator: of course. it was never my dream to leave my country. i want my daughter to grow up where i did. >> but? >> translator: if i want a better future for her, i have to consider the possibility that she go elsewhere. and that really makes me sad because i love my country. [ birds chirping ] >> i can see the day coming when she'll have to make a choice. and it won't be an easy one. >> dale la manito y"nice to meet you." >> nice to meet you. >> nice to meet you. >> you have a wonderful mother. >> say thank you. >> thank you. >> gracias. [ laughter ] >> gracias. >> gracias. >> say thank you. un besito? >> i'll come pick up my shirt in a couple of days, okay? ah! this is great! i got a hug, too! >> [ laughs ] [ slow folk music plays ] >> after leaving kirenia and

her daughter, i took a walk up the street. hola. i wondered if people here are running out of patience. as information becomes more available to people and they see what their options are, people are gonna start to go after it -- not because they want wealth or they want fame. because they want something different. they want something brighter. it feels like you took a picture in 1965 and nothing happened. it's crazy. how you doing, buddy? okay, i'm gonna show you a game. put your hands here. you ready? the kids in the neighborhood didn't seem to have a care in the world. play? but their future looks bleak unless the cuban economy improves.

>> [ shouting indistinctly ] >> i turned to someone who's been watching the situation closely. >> this was main street of old havana. >> ted henken is a professor of latin american studies at baruch college in new york. >> ¿esta bien, eso? >> yeah. >> muy bien. gracias. >> he visits cuba often and has written expensively about its new business landscape. >> the changes have been significant, but woefully insufficient. >> he told me that cuba is going broke. the price of socialism is just too high. >> well, you get housing, you get education, you get healthcare, and you get a job. there's a basic bottom below which people aren't allowed to sink. but that bottom has become frayed. it has lots of holes in it. one of the reasons why the state is allowing more economic freedom is it needs to relieve itself of the burden of providing for people. [ coins jingling ] [ mid-tempo folk music plays ] >> the economic troubles have led to another problem. >> the cuban population has stopped growing, and they have a major problem with people

choosing to leave the country, mostly for the united states. they want to be connected to the rest of the world. they want to have opportunity now, especially young people. they don't want to have the same problem their parents did, waiting for the future to come and it never arrives. >> ¿qué esto? >> queso. chorizo y queso. >> that's good. a taste of capitalism has helped. gracias. but it's just a taste. >> the government is moving in a direction of economic opening, but it's trying to control that opening. >> the cuban government continues to control almost every aspect of daily life. there is no free press. the internet is censored. small business owners have been shut down without warning. in 2013, the state went after private clothing stores. >> the government closed them all down because it was competition against the government monopoly on retail outlets for clothing. >> and when the government runs a business, it's not always pretty. hola. i walked into a state-owned

store unlike anything i've ever seen. can i buy a blender? the inventory was meager -- largely a result of the u.s. embargo. this one sold mostly blenders and tvs. who's the manager? >> he's not here right now. >> and don't come to cuba to buy sneakers. >> so, the government, again, has a monopoly of importing clothing made in other countries and then reselling it to the cubans. a private person can't do this in cuba. >> can i buy shoes? i cannot buy shoes? >> since december, they haven't had any new merchandise. >> since december? >> next week, it's coming in. >> hopefully. up next, the tables are turned when capitalism collides with socialism. what did it cost to build this house? 5,000? 10,000? >> i don't like the kind of... >> questions? >> questions you are asking.

hi.i just wanted to tell you thdependability award for its midsize car-the chevy malibu. i forgot. chevy also won a j.d. power dependability award for its light-duty truck the chevy silverado. oh, and since the chevy equinox and traverse also won chevy is the only brand to earn the j.d. power dependability award across cars, trucks and suvs-three years in a row. phew. third time's the charm...

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>> cuba is a country marked by neglect... many of its beautiful buildings crumbling into dust. still, there are places that speak to what once was and could be again. but after a few days in town, i wanted to see more. so i hit the road and headed about 25 miles southwest to meet this man. how you doing? marcus. >> fernando. >> in farming circles, fernando funes is a superstar. what do you make here? four years ago, there was nothing growing here. >> we grow more than 60 types of vegetables. >> today -- row after row of fresh green produce. fernando has a phd in agriculture. he used to lecture around the world. >> we teach people about the environment and how they can

eat better. >> but when the state okayed farming as a private business, he quit the classroom and got his hands dirty. does this need to get delivered? >> yes, we have prepared this already. >> well, let me help you load it up. twice a week, he packs up his aging soviet sedan, selling his fruits and vegetables to 25 of havana's top restaurants. all that arugula adds up. how much would you get for selling all of this? >> that would be about $400. >> that's not bad. >> not bad. not bad. >> but he's not in it just for the money. fernando sees farming as a way to promote socialism -- cuba's economic model since the revolution. he doesn't even own the land. >> we didn't buy the farm. you cannot buy land in cuba. >> the state merely allows him to work on it. so the land is really... >> a social asset. >> i understand. you could say social asset. i'm gonna say government asset. >> social.

in a capitalistic way of thinking, you can take benefit from that square of land. but that square of land will be there for thousands of years more. the land is a common asset. >> okay. gracias. he not only pays his workers more than the average government wage -- he feeds them and houses some of them too. fernando is socialist to the core. so i wondered how he got his new house. beautiful. it's very smart how you built it so the breezes can cross. what did it cost to build this house? >> but you are asking me difficult things for... i cannot tell you how -- how it cost. >> okay. 5,000? >> maybe more. >> 10,000? >> less. >> okay, and where do you get the money to do that? do you borrow it from the government? do you have family send it to you from america? >> i don't like the kind of, let's say... i don't like -- >> you can tell me. it's okay.

>> i don't like the kind of... >> questions? >> questions you are asking. >> does it make you uncomfortable? >> maybe. >> okay. he told me the money came from lecturing overseas -- not something most cubans get a chance to do. let me tell you why i'm asking. i'm not trying to ask for any reason other than to understand how -- >> i can start asking you about your private... >> sure. >> how do you invest your money? >> i don't. cash solamente. i don't have any stocks. i invest in other people. i invest in people like you. >> how much you pay to your employees? >> $12.25 per hour. >> per hour. >> that's the minimum. if you work for me, that's the minimum you make. >> and do you have only one wife or more than one? >> i actually am not -- >> [ laughs ] >> i'm not married. >> you're not married? >> no. >> okay. are you gay? >> no, i'm not gay. >> [ laughs ] >> any more questions for me? >> yes, let me think. >> okay, anything you ask me. >> and i will ask you more. >> and i like mango juice more

than orange juice. >> [ laughs ] >> fernando seemed satisfied, and our talk turned back to his farm. can i see the bees? [ mid-tempo music plays ] i'm not going in there. >> [ laughs ] yes, i have...dress here for you. >> whoa, whoa, whoa. >> the other way. it's going to be hot. >> i don't care. >> [ laughs ] >> as long as i don't get stung, i don't care how hot it is. >> [ chuckles ] >> when it comes to bees, i have no comfort zone. >> we started here with one beehive, 2 1/2 years ago. and now, in this moment, we have 80 beehives. >> the 80 hives yield about 3 tons of honey each year. fernando is forced to sell most of it to the state for $900 a ton. then the state resells it for more than three times that. so, you sell it for $900. they sell it for $3,000. >> about three times, but they cover all the costs of transportation. >> oh, that's nice of them. >> they give advice also for us.

>> they give you advice. >> yeah. they sell -- >> i can give you advice. it won't cost $3,000. >> [ laughs ] >> at least the government isn't buying his vegetables. those he makes remoney on. [ up-tempo latin music plays ] later that day, the greens we packed up at the farm arrived at la guarida. it's one of havana's hottest restaurants and a magnet for celebrities like madonna, rihanna, beyoncé and jay z. [ music continues ] enrique nuñez owns the place. >> welcome to la guarida. >> this is beautiful. he grew up in the building. people now eat where he used to sleep. this is your original apartment? >> exactly. that's my -- >> this is where you grew up? >> this was my bathroom when i started the restaurant. >> very cool. hi, folks. >> hi!

>> enrique's success took more than a little creativity. cuban laws limit a restaurant license to just 50 seats. so he figured out a way to add another 50 by applying for a cafeteria license. so, how many seats do you have? >> we have 100, but we make two seatings. >> so you have two seatings, so 200. and then how much does it cost for one person on average to come eat here? >> it's like 40 bucks per person. >> 40? >> 40. >> so you'll do 8,000 in a night? >> not every night. >> but in a good night, you'll do 8,000? >> on the best night. >> and the worst night? 3,000? 4,000? >> less. >> nah, nah, nah. no, no, no, no, no. i've seen that before. cubans don't want to call attention to the money they're making. but enrique's success is obvious. he just opened a new rooftop bar with great views. and the tourists are drinking it in. what do you guys think of the view? >> the best bar in havana. it's the best restaurant in havana. if anyone wants to experience real life in cuba, you ought

to come here, and you can see it all. >> but enrique knows dinner here costs the average cuban almost two months' salary. so they stay away. he wants to change that. less tourists, more locals? >> more locals, less tourists, yes. that's one of my dream. >> and how do you think that becomes possible? >> i hope the economy, our cuban economy, can grow and develop. >> with 40 employees, enrique is helping to grow that economy -- even though 20 of his best workers recently left for america. nothing is easy here. i have a lot of respect for you and a lot of admiration, but now i want to eat your food. >> yes, of course. that's the most important. >> let's go eat some food. up next... you ever go fishing? >> no. >> travel down any road in havana, you'll find a surprise at every turn. ioye!

and all thro' the house. 'twas the night before christmas, not a creature was stirring, but everywhere else... there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event. every investor should ask questions. is our money in the right place? what am i really being charged? and is it eating into my returns? is my advisor a fiduciary? is he always a fiduciary? a good place to start is with an independent registered investment advisor. as fiduciaries, they live by a simple rule: always act in the best interests of their clients. that's why charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

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[ up-tempo music plays ] [ upbeat music plays ] >> at burner brothers bakery, business has been sweet for tony and sandra camacho -- so sweet they're setting their sights on a new venture. and i wanted to check it out. where's the building that you guys picked? >> there, that corner. the white one. >> the white one, not the blue one? >> yeah, the white one. >> they've gone ahead and bought

a new space in a real hot spot, where the cruise ships dock. with a record number of tourists visiting cuba this year, this is prime real estate. and i had a lot of questions. how much was it? >> like $46,000. >> $46,000? >> yep. >> it's the whole building? >> no. just the bottom. >> buying and selling property has only been legal for five years. and only native cubans can buy in. >> our space starts here. >> i thought they were building another burner brothers. you can't take customers up the staircase. >> no, no, no, but we're gonna rebuild this. >> okay. but these bakers are getting into the restaurabusiness. so, you're opening up a fancy restaurant? >> well, we want to make this a gastro-bar, you know? we want to sell drinks. also, we want to sell meal. >> i'm skeptical. the place needs a ton of work -- new stairs, new balcony, new kitchen. i'm worried it's a money pit. what do you think it's gonna

cost to do this whole project? >> i don't know. $40,000. >> only $40,000? >> well, it really costs a lot more, but that's all we got. >> you have it saved already? >> yeah. >> you sold a lot of doughnuts. >> no, no, no. that money is not from the doughnuts. >> where is it from? >> my dad. my cousin, which is partner, too. >> so it's a family business. >> yeah, it's a family business. >> so, what do you forecast the business is gonna make in the first year after you pay all the bills? >> um... >> have you put it on paper? >> we haven't done that yet. >> it was clear to me that tony and sandra did not do the math on this one. >> [ sighs ] >> are you gonna be open seven days a week? >> yep. >> okay, so seven days a week -- good luck, by the way. tony and sandra are planning on an average bill of $15 a person. and they're hoping to take in $1,500 a day. but with just 42 seats in the restaurant, they'll need a lot

of turnover to hit that number. [ up-tempo latin music plays ] restrants ha o highest failure rates of any and ese two already a successful bakery. i don't know why they don't just open up a second burner brothers. why wouldn't you duplicate that and build a brand -- that's something that you know? >> burner brothers is something that we know because we start from zero, and we have something now. >> beautiful. >> okay. this is zero, and we will do it something. >> i know that you probably won't listen to me. but i'm telling you as your new friend, you have something special. don't ruin it. and then i learned something else. they were offered 200 grand for this place. they could profit $154,000 without doing a thing.

so, my big question is how many years, how many people, how much bull[bleep], how much aggravation -- >> do we have to swallow to earn that money? >> to get $154,000 right now? think about it, see how much money you're making in the burner brothers, and go from there. this is a bad idea. >> okay. >> i'm being honest with you. >> no, no, no, okay. >> i'm sorry to... i'm sorry. it's never easy telling someone their dream is a mistake. but the numbers don't lie. maybe in the future, the government will allow franchising. maybe. when they do, you're ready. if you build a few more burner brothers, you could be the dunkin' donuts of cuba in 10 years. i had no idea what tony and sandra were going to do, but i knew whit wanted to do. get some fresh air. [ horn honks ] so i called up my favorite taxi driver, armando lee, to do some sight-seeing. we took a ride down the malecón,

havana's famous highway along the sea. it's a gathering spot for locals. you ever go fishing? >> no. >> ¿ por qué? >> because i don't know how to do it. >> oh. watch this. >> yeah, no, it's not so -- [ chuckles ] it's not only that, yeah. >> if hemingway could do it, so could armando. we got out to take a closer look and throw down a challenge. what's this right here, my man? doing a little fishing tournament. whoever catches the biggest fish in the next 10 minutes gets $20. >> okay. >> but you have to do it with me. >> okay, i'll do it with you. >> [ speaking spanish ] >> 20 bucks. they tell me it's not possible. i told them to just keep fishing and not worry about it. [ up-tempo folk music plays ] the sun was fading fast. but there was barely a nibble. armando, not one person? one minute. okay. that's it, right here.

bring it, bring it. okay. ioye! this is the winner. show them your fish! [ cheers and applause ] give him the money. that's it. his father is right there. so, with a little seed money, perhaps a new cuban entrepreneur is born. coming up -- six women, a crock-pot, and the drive to succeed. >> we are doing what we want to do. we are trying to change our lives. this is frank. sup! this is frank's favorite record. this is frank's dog.

and this is frank's record shop. frank knowns northern soul, but how to set up a limited liability company... what's that mean? not so much. so he turned to his friends at legalzoom. yup! they hooked me up. we helped with his llc, contracts, and some other stuff that's part of running a business. so frank can focus on the beat. you hear that? this is frank's record shop. and this is where life meets legal. ♪ [ telephone ringing ] -whoa. [ indistinct talking ] -deductible? -definitely speaking insurance. -additional interest on umbrella policy? -can you translate? -damage minimization of civil commotion. -when insurance needs translating, get answers in plain english at progressiveanswers.com. ♪ -he wants you to sign karen's birthday card. it's a high honor.

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♪ ♪ [ up-tempo music plays ]

>> there's a word i heard over and over again in cuba. resolver -- resolve, ingenuity, making it work. it's a way of life here, especially for the new entrepreneurs. sandra? >> sandra. >> marcus. >> nice to meet you. >> nice to meet you. [ up-tempo latin music plays ] three years ago, a simple luxury like handmade soap didn't exist here. that's where sandra aldama stepped in. thank you for having me. today she and her six employees have turned this modest kitchen into a factory line. >> at present, we are selling about 1,000... >> 1,000 soaps per month? >> 1,000 soaps per month. >> from three years ago, 100 a month? >> [ giggles ] sage. >> okay. sandra's business is called d'brujas. this is witch's soap. >> coffee or mint. >> okay. why witches? >> because witches make magical potions with plants.

>> i got there just as they began to brew a new batch. and you put it in here, and it makes spaghetti. they start with natural soap from the government store. first step, they have to melt it down. and, yes, that's a crock-pot. these are some resourceful witches. >> this is red wine. >> yeah, smells like it. >> [ laughs ] >> do you stir this? >> yeah. >> can i do it? >> yes. >> are you sure? >> yes. >> they spoon the soap into molds, and it dries for five days before it's wrapped up. you'd think the packaging would be the easy part. not here. >> i could use another bag, but i need this one. >> where do you get it? >> from united states. >> sandra can't get bags for her soap in cuba, so a relative from the u.s. sends them. what she does next is part martha stewart, part macgyver. comes like a bag for bread, just like this? >> yes. >> and then you cut it, and you make small ones.

holy... it kind of doesn't matter that it's soap. what matters is that sandra wanted to generate commerce and they figured out how to do it. she's taking things that are already produced in different components -- the bag, the fragrance, the soap that's already finished -- and she's reconstituting them and coming up with something that's more special. i wanted to see sandra's store, so i headed down to the artisans market, near the port of havana. [ up-tempo latin music plays, people singing indistinctly ] i saw booth after booth of private businesses. crazy to think, a few years ago, this was illegal. here we go! d'brujas! sandra offers 10 different types of soap. each one costs a dollar to make. she sells some for two bucks, some for $2.50. the government charges her $94 a month in rent. so, you have to sell 45 soaps to

pay your rent? right? and how many soaps do you sell a day? >> okay, now we are sell 26 soap. >> today you sold 26 already? >> today. >> i love that you know that. >> [ laughs ] >> most people don't know that. one soap. you have to buy one soap. for my friend. >> where? >> d'brujas. the market is a huge attraction. sandra should be able to boost her traffic easily, but it's not that simple. you're in the corner. why don't you go to the other corner and do another one? >> it is not allowed to have two stands the same owner. >> with the same... >> with the same name under the -- >> you cannot have two stands? >> no. >> this sucks. still, there are some things we can fix. i want them to move the sign so customers can actually see what they're selling. so, take the sign... and what they should be selling is soap, not dream catchers and random trinkets.

but i don't understand the connection. >> i know what you mean. [ laughs ] i know what you mean. >> why do you do it? it's no good. >> no. >> for the customer, it's confusing. instead, sandra should be selling products connected to soap, like candles or room spray -- an easy idea. or so i thought. >> the problem with that is the...border. it's difficult in here to get -- >> okay. so what about for candles? >> it's, yeah, a little difficult, but i can -- we can try. >> i love that about sandra. to her, nothing was impossible. >> we are making something different. at least in our country, step by step, we are growing and learning. >> for you to be able to grow up as a little girl in cuba, to surround yourself with good people, to make a living for yourself and for your family, with no help, it's a bigger

deal than you think. a really big deal. is it emotional for you to think about it? >> oh, yeah. >> why? >> yeah, no. no, no, no. >> why, sandra? what are you crying about? >> i don't know. because this is... a way to do what we want to do. because we are our boss and we... >> control your destiny? >> yeah. this is the way. >> this is one thing that's important before i go. emotion in business is important. if anybody ever takes the emotion out of business, the business will die. [ up-tempo music plays ] >> up next, a big decision... don't ruin it. ...a beautiful souvenir... can i go put it on? ...and the biggest question of all... if this country doesn't change, are people gonna stop trying? ...when "the profit in cuba" returns.

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(intel chime) ♪ finally got me ben. the clarke st street crater, the mother of all potholes, but you know state farms got you too. you ain't nothing! are you trash talking a pothole? yup. go with the one that's here to help life go right. state farm. so you need people that it iyou're close to...r footing, to help guide you. i think about how important it was for me to have the role models i've had. oh, look at that! i wasn't able to get there alone. he essentially plucked me out of obscurity.

he's the one who said, "hey man, this is your life, this is what you need to do." nobody can do it alone. the more help you can get along the way, the faster you can achieve your goals. i'm in it to fly. ...to help people achieve their dreams. ...to speak for those who can not. whatever you're in it for... ...we're in it together. [ up-tempo music plays ] >> a week in cuba -- sweltering, satisfying... perfect. ...something i'll never forget. booth number 432. i'll be able to tell people 30 years from now that i had my hair cut in cuba, in a communist

country. these people have nothing, and they figure it out. i am learning that myself, that i have to be more resourceful. [ up-tempo latin music plays ] before i left, i had one final thing to do... >> back here again. >> ...squeeze down that alleyway into kirenia riguera's home. my custom shirt was waiting. so beautiful. >> [ speaking spanish ] >> can i go put it on? ta-da! >> [ laughs ] >> the verdict? perfect. i love my shirt. the queen of the guayabera earned her title. and it's comfortable because i've been so hot. >> [ laughs ] >> the laws don't allow it now, but perhaps soon i can help kirenia sell her shirts in the united states. maybe, just maybe, the shirt could be called camilla y marcus? >> ah! [ laughter ] muy bien. [ up-tempo music plays ] as for tony and sandra camacho... this is the restaurant?

>> yes, it is. >> ...after telling them not to open a restaurant... that's a bad idea. ...and to concentrate on their bakery business... you're building a brand. you guys are the burner brothers. ...they took my advice and dropped the restaurant idea. they're selling the new space... >> thank you. >> ...and will invest the profit back into their bakery business. as it turns out -- a smart and lucky move. officials have put a freeze on new restaurant licenses -- a blow to the fledgling business community. if this country doesn't change, is talent gonna be suppressed? is it gonna be lost? are people gonna stop trying? cuba stands at a moment of possibility. tensions with the u.s. have been eased. the people i met are hungry for the chance to rise or fall on their own. but make no mistake -- their fate may rest less in their hands than in those of their government. i'm marcus lemonis.

[ music continues ] ♪ lemonis: tonight, on a special edition of "the profit," i'll take you to puerto rico, american paradise crippled by a perfect storm. reporter: hurricane maria slammed ashore, with torrential rain as much as two feet, turning roads into raging rivers. reporter 2: the situation here is dire. maria, the worst hurricane to strike the island in more than 80 years. i'm marcus lemonis. i had to see it myself. i have friends here, and i wanted to help them get out. thank you for your service. it was chaos, crowds of people just waiting for help. governor, how are you? how are you?