tv Your Business MSNBC July 2, 2016 2:30am-3:01am PDT
2:30 am
we're back here in daytona beach, florida, because of a letter we got from two business owners, and they want to expand their business but said they need our help, so we assembled our s.w.a.t. team of members to sweep in, shake things up and give them a business makeover. that's up next on "your business." will your business be ready when growth presents itself? american express can help you take on a new job. or fill a big order. or expand your office and take on whatever comes next. for those who always find new ways to grow their business,
2:31 am
american express open proudly presents "your business" on msnbc. ♪ hi, everyone, i'm jj ramberg and welcome to "your business," the show dedicated to helping your small business grow. if you watch this program a lot, you know when we usually do makeovers we go into a struggling business and we see how our team can help turn things around. this week we decided to mix it up a bit. we took our experts into a company that's actually doing okay. it's the kale cafe in daytona beach, florida.
2:32 am
and with no previous experience, the two owners turned their idea into a profitable company, but when we lifted the curtain a little bit we noticed a lot of what they are doing is being held together with band-aids and they are itching to expand b there's no question they have to get some things in order first them a "your business" makeover. ♪ i'm here in daytona beach, florida, to answer a call from a local mom and pop business. so far this couple has beaten the odds by building a profitable restaurant business but they have bigger dreams for the future and they told us they need our help to get there. let's go give these business owners a "your business" makeover. hi, camille, hi, omar. >> hi! >> who is this. >> this is zion. >> hi, omar. >> 2 1/2 years ago they opened
2:33 am
this vegan smoothie shop, up here on the main drag in daytona beach and less than a year later they opened a second location and now they want a third location, but are they ready? >> you're ready for a third? >> ready for a third. >> we're going to spend the day making sure you're ready. >> okay. >> at the end of the day, i want you two to feel comfortable, both of you. >> yes, yes. >> before we got going i went for a tour of their setup mpl all vegan, 100%. >> they built the cafe through a painstaking process of learn as you go. >> we're always trying to figure out what the best ergonomics are. ♪ >> this is beautiful in here. >> this is much smaller. >> do you feel like you learned a lot in the first restaurant? >> absolutely. >> they told me they had not planned on opening the second location so soon but when the opportunity came up, they went with it. >> we didn't have a bag of money. >> right.
2:34 am
>> but we used all of our income tax return and put everything into it. >> leaving the ormond store, we moved on to see their house, where camille manages the back office of kale cafe and home schools her five children. >> you have a crazy, crazy job. you're home schooling your kids, you're working. this serves as your office, your school. >> and now we're in my office. >> i have to admit, this seems nuts right here. >> yes, it's chaotic. >> this is how many hours this person had, the day they worked. i total them and type it into intuit. >> then it gets typed into intuit. >> yes. >> you're keeping track. >> there's a bin of stuff. there's my receipts. >> i didn't even see it. whoa. hold on. i have to pull this out. all right. these are your receipts? >> with two locations, 20 employees, five home schooled children and a chaotic list of
2:35 am
undone chores, there is a lot to do but they are keeping the business afloat and they're pretty sure it's profitable. >> how profitable are you? >> i can't tell you, jj, because we grew so fast. we went from one store in under a year, we signed a lease for the second store. everything we had we had to put it into the second store. >> omar and camille have good instincts and are working unbelievably hard. they are seeing the limits of what can be done without information systems to guide them. >> when you make decisions do you sit down with your financials and say, can we do th this? >> no, we don't. >> i am the one that wants to do that. i cannot make him sit still to do that. >> today they both get to sit still and go over the numbers with small business financial expert chris myers. >> this is produce from the last couple months. these are all my invoice
2:36 am
folders. >> chris connected all that data and organized it into one big picture of what this means for kale cafe. >> when lieu ak the the revenue being generated by a juice bar an a vegan restaurant, it's off the charts. you are doing really, really great. >> unfortunately revenue alone is only half the story. the other half is expenses. >> you guys made about $265,000 came into the business, which is phenomenal. you spent about 256,000 to get that. so you're spending, you know, basically everything to get to a 3% profit, which is about $8,000 >> that doesn't sound great. it's actually not all bad. when chris looked closer, he found that much of that high cost came from paying retail prices at supermarkets. instead of getting cheaper bulk rates from restaurant suppliers. >> the good news is, you can eliminate a lot of the publix, a
2:37 am
lot of that other stuff we have in here. >> turns out when chris first pointed this out a few weeks ago, camille jumped on it, setting up accounts with bulk suppliers, even before our film crew arrived. >> it was like a truck from heaven. >> in fact, during our interview, a delivery truck arrived with her second order. >> this is coming all the way from pennsylvania. >> finally, chris used the software to estimate what their business might be worth if they could bring their costs in line with similar businesses. >> if you were to get the costs more in line with the industry, that is going to create $500,000 of value for the business. i mean, that's a huge increase from where you are today in terms of that. >> now you know what you need to do. now we have to figure out how to do it. i know you've been speaking to dean max for quite a while now. >> yes. >> dean has given you great ideas. let's catch up with him. he can check in to see how you're doing and take you on the next stage. >> two weeks before our cameras
2:38 am
got here, camille and omar met up with dean on their own to ask him questions. camille told me one of dean's questions got her thinking. >> he asked us about the unit cost. i'm like we don't know the unit cost because the measurements aren't written down and the purveyors aren't consistent. >> dean suggested they create a recipe book for each cook in each store to follow. the impact of this on camille was enormous. >> i started crying, because like i felt like this freedom, because i knew that the only way for us to really duplicate and be strong and effective was to have this recipe book that we haven't been able to get together. >> as they examine the inventory with dean, camille was showing off how much money she's started to save. >> this is $80 for the same 50 pounds. >> there's your profit. right there. you guys are talking about when
2:39 am
you're talking about your bottom line -- >> the talk about bulk buying turned to ij century management. dean said you need a system that ties recipes to sales to inventory. >> it's going to tie in how much you need to have on hand and how much you sold. he's talking about his software system that tracks all of the factors that camille and omar are trying to follow. >> show me. >> eyenalize. >> you have your sales, product costs, your labor costs. and then your bottom line, which is your profits, right? i can look at all of my costs, whether it's labor or product costs and determine where i need to be more productive. those are your two biggest costs that go out of control. >> with the system that flags price changes like this, the owners can be pro-active. >> the company might have charged you double by accident.
2:40 am
you're going to call them and say you guys, you charged me $5 more a point. you're on your game now. before you might not have caught that. and those are these little safety nets that you need to run this business at a different level. >> camille and omar start to see how this will change the way they run their business. >> that's what we've been doing, guesstimating, guesstimating. >> this is not going to keep you from having problems. you're going to have waste, theft, loss, you're going to pay too much for something at some time. what it will allow you to do is be responsive very quickly. >> both chris and dean noticed the veggie burger was one of the top sellers. when chris saw they were paying retail to buy them frozen, dean offered to share his recipe to make from scratch for a fraction of the cost. >> make it kale cafe. i want you to do that. we'll taste it, come up with the best recipe for you guys and this is going to take you to a
2:41 am
better product cost and more profit. okay? >> dean suggested a cookoff between omar and camille to choose the tastiest recipe to replace the store bought ones they now use dean and i were the judges. >> i feel like i won one of those tv chef competitions. i love you dear but the competition is on. >> this is where it gets ugly, man. >> let's go. yeah! >> game on. ♪ >> all right. grab yours. >> yes, i do. >> okay. >> i'll grab this one here. okay. so good. oh, my god, that's good. >> that is really good. >> i see you smiling. i think it's yours. or maybe not. say green or red. ready? one, two, three.
2:42 am
>> green. >> green. >> we both went green. >> that's omar's. >> was it yours? oh! >> finally, we introduced them to dave singleton. >> glad to meet you. >> a small businessmener it from score, a nonprofit volunteer organization dedicated to helping small business owners grow their companies. with so many day-to-day demands, camille told us it's hard to stay on top of the long-term goals. that's where dave comes in. >> my job with you guys is trying to help you keep focus after they leave. they're gone now. now we have to be kind of together. >> checking in. >> checking in. >> being accountable. >> be accountable. >> camille's already figured out how dave can help her. >> right now, dave, i think what's going to be critical for us is setting some concrete goals for when we want to have things done by. i'll make a master goal list of all the things we want to
2:43 am
accomplish for the next store opening. >> we started with a question. will camille and omar sign a lease to open the third store. the two experts have their opinions. >> should they sign the lease today? >> no, not today. >> what do you think? >> it's a tough one for me because i haven't seen the new spot. if a location is -- you know it's going to be so great, they might want to jump on it and just fly with it. >> but in the end, the only opinions that count are omar's and camille's. >> now that you've looked into your numbers, see what you have to do, do you feel ready? >> i feel ready. i think we could do a lot of these things to increase our margins. i'm ready to go forward. >> camille, you always thought that. >> always. >> how do you feel, do you feel any better about it? >> i feel better. >> you do? >> i feel better. >> you feel like you can do this all at once? >> i feel like -- i feel like we can do it.
2:44 am
somehow, some way. >> we always find a way. >> with our children in tow, we'll move forward. ♪ as you just saw in that piece, we connected omar and camille up with a score volunteer who will continue to serve as an adviser to them. this say free service any of you out there can call upon. there are more than 305 score chapters throughout the score. we invited the ceo of the score organization and the vice president of marketing and communications to tell us more about what they offer and how you can utilize their services. it's so good to see you both. >> thank you, jj, good to see you. >> good to see you, jj. >> we live in a bubble here on the show where we know so clearly what you guys do and we talk to so many entrepreneurs who have been helped and small business people by your services. we walk out a little bit, we
2:45 am
find out a lot of people don't even know score exists. ken, tell us in a nutshell, what do you do? >> sure. omar and camille are going to benefit from 11,500 volunteers, businessmen and women who donate their time to help small business owners start and grow. as you pointed out, available in 305 communities, the service that we offer is primarily free and starts with the one-to-one mentoring. it's available to any small business owner on just about any topic relating to starting, growing, managing, buying or selling a business, regardless of your business life cycle point, regardless of the size. it's available. all you need to go is hop on the web at score.org or go to your nearest chapter and take advantage of the great resource. >> bridget, how do i know i'm getting something who knows the industry or knows the issue i'm
2:46 am
facing. >> every score volunteer has been through the challenges and come out the other side. you can search on score.org to find the right person that fits your need, whether it is a specific industry or a topic that you're struggling with or looking to take your business to the next level. we make sure you are paired with the best fit no matter what. you can come back to score time and again. we can bring more people to the table to meet your needs and to help answer your questions. with over 11,000 volunteers, we have the expertise to answer your questions and get you the help you need. >> who are these volunteers, ken? >> you know, they're former business owners, they're retired executives. they may be still actively working today, jj. about 30% of our volunteers are still actively working. they've been trained and mentoring and certified by score in the process they're doing. they're generous enough to provide their time and talent and wisdom on behalf of their community. it works extremely well.
2:47 am
>> omar and camille's case, we set them up with someone who will stay with them for a while. he's going to really get to know their business and help them through. is that a typical interaction? or is it more one off questions? >> you know, score is here for the life of your business. we really want to help from the time you have that business idea to when you're ready to exit or sell your business. and we supplement the mentoring that we provide to all of the people that we see with other educational resources, there are thousands of workshops across the country that are put on by our local chapters and volunteers. and there are a wealth of resources online at score.org to help the in between times when you aren't meeting with your mentor to fill that gap, answer some specific questions and then bring more questions back to your mentor so that you can continue on and meet with score for the life of your business. >> i mean, it is such an amazing free resource out there, just a
2:48 am
brain trust of people who have been through the issues that some of our audience might be facing right now. i so appreciate you taking the time to come on and tell us about score. thank you both. >> great pleasure. thank you, jj. >> thank you. you don't have to be at a formal networking event or a business event to make connections for your work. you can basically make connections anywhere if you just think a little outside of the box. chelsea cross.com gives us five great under the radar places to find your next business contact. one, coffee shops are popular spots to meet people and get work done. so chat with someone in line or as you wait for your drink. two, stick around after a weekly religious service to mingle with fellow parishioners. it can be a valuable way to learn more about your own commune. three, hair salons. stylists spend a lot of time talking to their clients. next time you're in one of those chairs, be sure to talk to them
2:49 am
about what you're up to. your hairdresser may be able to connect you to a valuable contact. four, gyms and fitness studios are filled with people at all hours of the day. whether you're walking on a treadmill or waiting for a yoga class to start, strike up a conversation. and five, weddings. don't limit yourself to the guests at your table. make a point to chat with others. with a range of ages and backgrounds all in one place, you never know what opportunity is waiting for you. when we come want, the pros and cons of viral marketing. and these folks save the doughnut shop when they buy the business. will your business be ready when growth presents itself? american express open cards can help you take on a new job,
2:50 am
or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com. i would love to know what marketing techniques you suggest for an entrepreneurial business, in particular, whether it's worth doing some sort of viral splash marketing or if more traditional techniques are recommended. >> i find in marketing a newer business that gorilla marketing
2:51 am
tactics are the strongest and give you the best results. number one because you have a lower budget, number two, you have third party endorsements. the strategies can be useful when you find influencers to talk about your brand or use your product and service so they can share it with other people in their circle and as they're sharing it, they're giving their endorsement, which gives so much more credibility and validation without spending millions of dollars in order to get your brand's recognition. >> a few years ago, we did a story on kepler's book store in the bay area. on brink of having to shut down, the community rallied behind the company and kept it alive. there are heartwarming stories like this that happen all the time. in claire, michigan, the only doughnut shop in town was on the verge of closing its doors. as nbc's kevin tibbles tells us, the police came in just in time to save the day and keep a whole lot of people happy. >> reporter: this is the kind of
2:52 am
police lineup people drive for lineups to join. here in claire, michigan, walking the beat means a quick stop at cops and doughnuts, a century old bakery saved by the nine members of the local constabulary. >> we weren't going to let that happen. >> what did they do? they bought the place. now visitors can take a bite out of a cop cake, a felony fritter, a night stick or a blue goose, named for a patrol car, all made by a fifth generation baker whose wears have turned this join join the into a must-see destination. they bring them in by the bus load. >> what do you think about a bunch of cops opening up a doughnut shop. >> that's most unusual. >> what's the verdict? >> i lo of it. it's awesome. >> the great thing about cops and doughnuts, hear, repeat efenders are welcome.
2:53 am
can i have another fritter, please? >> reporter: in small town america where so many store fronts are boarded up, thanks to coulds and doughnuts, claire's downtown is booming once again. >> it wasn't just the doughnuts we were afraid of losing, it was that sense of community. >> if you want to know what's going on in town, this is the place to be. >> it's a gathering place. >> get in here. >> visitors are interrogated or at least welcomed. some have their mug shots taken or peer out from behind bars. there isn't a cop cliche that hasn't escaped the clever folks in the souvenir shop. >> apple, please. >> reporter: these days, to serve and protect just might mean something with sprinkles on top. kevin tibbles, nbc news, claire, michigan. we now have the top two tips you need to know to help your small business grow. let's introduce our board of directors and get their advice. rod kurtz is a media strategist and startup adviser and ken
2:54 am
yancey is back with us as well. good to see you. >> good to see you as well. >> let's start with you, ken. one piece of advice for our entrepreneurs and small business owners. >> i believe in the importance of planning and having a plan. every small business owner, regardless of size or where they are in their business life cycle, needs to set goals, needs to have a plan that includes metrics that are measurable. they need to work that plan. we know that once you plan, as soon as your plan hits reality, about 20% of it is not correct. that puts you 80% ahead. and you can adjust. it will get you where you want to be as a business or as an individual and we are addicted to it at score and we think that all small businesses should be addicted to it as well. >> first of all, i like your optimistic numbers, that 20% of it is wrong. it caught a chuckle from me and
2:55 am
ron. >> depends who you're talking to. >> it makes it easier to get your team on the same page. if you have a plan, everyone knows where you're trying to go. >> yes. absolutely critical. i think that it's very healthy to actually allow your team members to participate in the planning process. to let them help you determine what the right metrics are, let them invest their mind share and their knowledge and their time in the results of your business. it's incredibly important and will be very, very valuable for your organization. >> i agree. rod, you started a business not that long ago. >> four years if you can believe it. >> 20% wrong? >> depends on the day. depends on the day. >> i should have is asked you 80% right? >> i think that's great advice, planning obviously is essential and things never go according to plan. sometimes you learn in that process, which is interesting. >> right. all right. tip from you? >> my tip. as you know, i like a little offbeat advice sometimes. my tip is to take a field trip.
2:56 am
what i mean by that, if you're a business owner, take one afternoon a month, leave the office, preferably leave your phone at the office and go to a museum. i'll tell you why. because we are so tired up in the day-to-day of our businesses and we exercise the same muscle over and over and if you're crunching numbers all day and you go to an art museum, you'll just free up a whole lot of mental space. if you're on the creative or marketing side, and you go to a science museum, you'll see how things work. the guarantee the break from taking an afternoon off, going to a cultural place like that, you'll come up with new ideas. i discovered this myself probably close to a year ago. they were doing the mad men exhibit in queens at the museum of the moving image. it was the last day of the exhibit. i took the afternoon off, dropped everything. i was engaged with it all afternoon. i didn't necessarily come back with a million dollar idea but i felt refreshed.
2:57 am
i just went to a pop-up art gallery, walking back from a meeting, whatever i have to do, i can leave it aside. for business owners out there, who say i can't take an afternoon off. if you can't take one afternoon for yourself to recharge and refresh, you're not running a very well run company. make the time. mini vacation. >> so good to see both of you. >> you, too. your biz selfie comes from roberta weissburg who owns roberta weissburg led burburg l pittsburgh, pennsylvania. take a selfie of you and your business and send it to us at "you yourbusiness.msnbc.com or tweet it to @msnbc your biz. don't forget to use #your biz selfie. here's one thing i learned this week. dell released a study where they rank cities on how well they foften an environment for high
2:58 am
impact female entrepreneurs. the city throughout the world came out number one was new york city. a lot of people were surprised by this but not me. and i wasn't surprised because i feel like there's a great environment here, of course, for funding and great talent here but i also think there's a very good environment of women helping women. i go to a lot of women's dinners where people come from different industries and one thing we always do at the end is everyone goes around the table and says, this is something i need. and inevitablinevitably, there' something else around that table that can help them. that kind of environment gives people a kick start to their business. it's just a short cut for helping them grow. so i encourage all of you, whether you're sitting around in a group of women or a group of men or a group of women and men, when you're at a dinner like that, that's a little bit formal, give a chance for everyone to say, this is what i need. and give a chance for other people at the table to help them. now we'd love to hear from you. if you have any questions or
2:59 am
comments about today's show, just e-mail us at yourbusiness@msnbc.com. you can also click on our website, or for openforum.com/yourbusiness. don't forget to connect with us on all digital and social media platforms as well. thanks again for joining us today. i'm jj ramberg. remember, we make your business our business. will your business be ready when growth presents itself? our new cocktail bitters were doing well, but after one tradeshow, we took off. all i could think about was our deadlines racing towards us. a loan would take too long. we needed money, now. my amex card helped me buy the ingredients to fill the orders.
3:00 am
opportunities don't wait around, so you have to be ready for them. find out how american express cards and services can help prepare you for growth at open.com. good morning. we begin with breaking news from the asian nation of bangladesh. a terrorist attack on a restaurant in the capital of bangladesh left at least 20 civilians dead. 13 people were rescued when government stormed the building. gunmen stormed the bakery in dhaka friday evening. the area indicators to foreign dignitaries and tourists. a 12-hour standoff. 20 civilians were killed, most by sharp weapons. six attackers were killed in the raid. among the
79 Views
IN COLLECTIONS
MSNBC WestUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=514411603)