All language subtitles for the.profit.s06e05.hdtv.x264-w4f[eztv]

Lemonis: Tonight,
for the first time ever

on "The Profit"...
[ Indistinct conversations ]

Lemonis: ...we'll see
a business get built...

Xavier: Oh, jeez.
Lemonis: ...from the ground up.

I think it's going to take
$2 million initially.

Lemonis: And you may even
recognize these two.

Charlotte and Skyler
were partners in a business

I attempted to invest in
in season five,

the Casery, the cell
phone accessory company.

Charlotte: Oh.

Lemonis: Charlotte headed up
the design team

and has a great eye...
These designs are awesome.

...while Skyler
oversaw operations

and a number of other things.

Skyler: I also take
on the CFO responsibilities.

Lemonis: That's an interesting
crossover.

But ultimately, they both
reported to Matt, the CEO.

Matt: Try not to be an [bleep].

Lemonis: I'm not an [bleep]
here.

Charlotte: From day one.

Lemonis: And Matt, well,
he was just about impossible.

Skyler: Matt is really
overconfident,

thinking that he knows
what's right.

Lemonis: Not only had he made
some seriously

misguided business decisions...

Is this only for girls?
Matt: Yes.

Lemonis: ...but he was always
undercutting

Charlotte
and Skyler's authority.

Matt: Well, now these guys
have it that they can do

whatever the [bleep] they want.

If I'm acting CEO,
we go with my decision.

Lemonis: He would ignore
their ideas.

Charlotte: I just think
we need a leader

that puts the company first
and not himself.

Lemonis: He was nasty.

Matt: I literally did
with Charlotte.

We stepped the [bleep] out.

Lemonis: You don't have
to get that crazy.

And while I tried my best
to help the business,

even lining up a huge
opportunity with T-Mobile...

And we're going to
bring you designs

that are exclusive to you

that we will not
put in the market.

Matt: No.
Lemonis: ...he just blew it all,

and finally,
I reach my boiling point.

You're a smug prick.

You have disrespect towards her

and disrespect towards him,

and they've done nothing but eat
from a bag of [bleep]

since I met you.

And I walked away,
but just a few days later,

I got a phone call
from Charlotte.

Oh, really?

Well, this is
what happened next.

My name is Marcus Lemonis,

and I risk my own money
to save struggling businesses.

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."

♪♪

♪♪

Charlotte: You ready?
Skyler: I'm excited.

Charlotte: Yeah, me too.
Lemonis: It's only been

a few days since I walked out
on the Casery,

but I have these two people
in Charlotte and Skyler

that have a ton of talent

and a lot of knowledge
about the accessory business.

Charlotte: Hi. How's it going?
Skyler: Hey, Marcus.

Lemonis: How are you?

And I have this relationship
with T-Mobile where I had

a huge meeting set up,
and for me to miss out

on that opportunity
doesn't make any sense,

so if I want to
really make some money,

I have to figure out how to put
all of this together

in a very short period of time.

How you guys feeling?
Skyler: Still nervous.

Just before we came over here
actually we had

that conversation with Matt and,
like, told him our decision,

that we're not going to be
continuing to work with him.

Lemonis: Oh, you did?
How did that go?

Charlotte: Yeah.
It went pretty well actually.

He didn't seem that surprised,

so I don't know if maybe
he kind of saw it coming.

Lemonis: Or he's playing poker.
Charlotte: Exactly.

Lemonis: Well, let's go sit
down, and we can talk about it.

What are Sunshine
and Xavier thinking?

Charlotte: They want
to come with us.

Lemonis: They do?

Charlotte: Yeah, they want
to leave the Casery.

Lemonis:
So let's talk about the deal.

Skyler: Well, you know,
we'd really like

to get a couple products
developed quickly

and, you know, really
start generating some revenues.

Lemonis: You essentially
just need somebody

to finance your inventory.

Skyler: Exactly.
Charlotte: Yeah.

Lemonis: I think it's going to
take $2 million, initially.

From my perspective,
I'm putting money in,

and you guys
are putting money in.

Your form of money is,

like, your brains and your work,

and the $2 million,
it can't be equity.

Skyler: Why is that?

Lemonis: Because if I put
$2 million in,

and you own 51 percent,

it'll be like
I gave you a give of $1,000,001.

You'll get a tax bill
from the IRS,

and so we have to figure out
how to structure it

in a way
where it's not seen as a gift.

It's seen as a preferred
investment,

and so I get my $2 million back
before any profits are taken.

And if the company
makes a ton of money,

you guys can pay
it back in time.

In order for a business to start
from the ground up,

there's a couple of things
that you have to factor in,

start-up costs,
including payroll,

and once the orders
start flowing in,

you have to buy the inventory.

You have to deliver it
to the company,

and then, ultimately,
you have to wait 30,

60 or 90 days for payment.

As the orders get bigger,
there's more money

that's required
to finance those receivables,

so $2 million sounds like
a pretty reasonable amount

with getting an account
like T-Mobile.

I'll have 49 percent.
You'll have 51 percent.

I don't have to have
any operational control,

any payroll control,
no creative control,

but I have to have
financial control.

Charlotte: Mm-hmm.

Lemonis: Does that make sense
to you guys?

Skyler: That works for us.
Charlotte: I think so, yeah.

You are 49.

We're 51, and we, you know,
will split that evenly.

Lemonis: Who's going to be
the CEO of the business?

Skyler: That's what we hadn't
really decided, but --

Charlotte: Well,
we talked about it.

Lemonis: I'll do it for you.
I think it should be Charlotte.

Skyler: But, like, I do have
a lot of background

in product development,
and, you know,

a lot of my experience
and skills

are moreso than
just being in operations.

Lemonis: I think it should be
Charlotte,

not because you're not qualified
but because I feel

like Charlotte really is more
even-keeled than you are,

and every leader needs
a sidekick, and you're that guy.

Skyler has a deep knowledge
of the manufacturing side,

the production side,

where Charlotte
really understands

the design component,
and candidly,

I think she's ultimately better
with big clients like T-Mobile.

She's friendlier.

She's warmer, so they
complement each other.

So the meeting with T-Mobile
is scheduled for, like,

a little more
than a week from now.

Skyler: Yes.
Charlotte: Yep.

Lemonis: And I did not cancel it
because I didn't want

to send them into a spin.
Charlotte: Right.

Lemonis: The time
crunch is real.

We're talking about boards,
a brand, new designs

that are totally different
than the Casery.

Charlotte: Right.
Lemonis: More gender-neutral

so that you're addressing
the entire phone market.

Charlotte: But it's really
important to me because

I don't think that we did this
very thoughtfully at the Casery.

It's important to me to take
everything into account --

corporate culture
and our colors,

and have all of it
work together

where the colors
and the font of our logo

even ties into how we relate
to our employees.

Lemonis: Yep, that's important.
Charlotte: Yeah.

Lemonis: So you guys need
to set up an new LLC.

You should get a quick articles
of incorporation set up.

Charlotte: Yeah.

Lemonis: What about the name
of the business?

Skyler: That's going to be
really hard for us.

Lemonis: Well, what are you
telling T-Mobile?

"What's your name?"
"We don't know yet?"

We need to lay out,
like, packaging.

Probably need to decide
by tomorrow.

So, Charlotte, what I'm looking
for you to do is be that leader.

Charlotte: Mm-hmm.
Okay.

Lemonis: It's your business.
Charlotte: Okay.

Lemonis: Matt never gave
Charlotte the chance

to be a leader,
and it's going to be interesting

to see how she handles
these new responsibilities,

especially under
a tight time line.

Charlotte: There'll be some
serious brainstorming,

but I think we can do it.
Lemonis: Holy [bleep].

There's so much to do.
Charlotte: Yeah.

Lemonis: After T-Mobile,
we have to actually deliver it.

Skyler: You have to have
a supplier to fulfill, right?

Charlotte: Yeah.
Right, right.

Lemonis: In any account,
there are really two parts

to actually doing business:

landing the pitch and getting
the yes and then the hard part,

which is actually
fulfilling the order.

Skyler: We still want to go
to China as well this month.

Lemonis: Before the meeting?
Skyler: After the meeting.

Lemonis: Oh. Okay.

Charlotte: We want to be able
to go to the show

where we can source
new products.

Skyler:
Is there anything else that you
want for your investment?

that you want
for your investment?

Lemonis: Yeah, I just want you
to treat each other

with respect.
Skyler: Okay.

Lemonis: That is the single
biggest reason

I couldn't do business
with Matt.

Charlotte: Mm-hmm.

Lemonis: He just wasn't
respectful to his people.

So come prepared to work.
Charlotte: Sounds good.

We're going to go long and late.

Skyler: That's right.
Charlotte: Sounds good.

♪♪

Good-bye, pink door.
Skyler: Bye, pink door.

Charlotte: Good-bye,
pink street.

Lemonis: I'm excited to get
the ball

rolling on this new project.

The team is moving out of
their old Casery office...

Charlotte: To get ready
for T-Mobile and stuff,

we need a lot of...

We're going to need
you guys a lot.

Lemonis: ...and into my office,
in Downtown LA.

Charlotte: Thanks for having us.
Sunshine: We're here.

Lemonis: What?
Charlotte: Oh, my god.

Sunshine: We're excited.

Lemonis: And with 10 days
to actually get the pitch ready,

there is no time to waste.

Okay. Come on. I'm going
to show you your space.

Xavier: All right
Charlotte: Cool.

Oh, my gosh.

Xavier: That's pretty sweet.

Charlotte: This is so cool.

Lemonis: Maybe, Charlotte,
we can start

with your T-Mobile plan,

and it's, like,
literally 10 days from now.

Charlotte: Ten days.

Xavier: I ain't scared.

Lemonis: What?
I am.

You're not scared, but I am.

So, Charlotte,
we'll give you the board.

We'll pull some chairs up,
and we'll start making

a list of things we need to do.
Charlotte: Yeah. Okay.

Sounds good.
Lemonis: Ooh!

Charlotte: First thing we need
is a name.

We need brand identity.
Xavier: Yeah.

Lemonis: What about
people's roles?

How are we going to get
to the finish line

if nobody knows
what anybody is doing?

Charlotte: Okay.

So, I mean, I really want this
to be all of us.

Skyler: Right.
Charlotte: But the people

who are going to be truly,
truly responsible --

I mean, I'll be completely
responsible for it,

but I'm going to really
need you, Xavier, and you,

Sunshine, obviously, and then,
of course, you as well.

Lemonis: What about --
Whoa, whoa, whoa. Whoa, whoa.

Everybody has got to have
a very specific role

between now and 9 days from now.

Charlotte: Yeah, but, I mean,

we want it to be
a collaborative thing.

Like, we want to know
what you can be responsible for,

what you want to be responsible
for and kind of come to,

like, a happy medium on that,
so this will be all.

Lemonis: Well, no, but what are
the job responsibilities?

This idea of everybody sort
of having a little bit

of everything
isn't going to work.

I think Charlotte struggles

because she doesn't want
to offend anybody.

She doesn't want
to make a mistake.

She wants everybody
to feel included.

The sign of a good leader
is being able

to do that and delegate.

Who's taking the presentation?

Charlotte: Who's, like,
actually doing it?

Lemonis: Yeah.
Charlotte: I mean, I will.

Lemonis: Okay.
You're the face of the business,

and you're the voice
of the business.

Charlotte: Okay.

♪♪

Lemonis: After the roles
were assigned,

the team spent the next few days
setting up their office...

Charlotte: Anything
that's in cardboard boxes,

we need to take out.

Lemonis:
...developing new designs

and coming up with a new name

and a branding strategy
for the company.

You guys had some stuff
to show me?

Charlotte: We just want to show
you everything

that we've been working
on the last couple days.

Lemonis: Okay.
Charlotte: All right.

So here's our new logo
for Everkin

because our line
is really for everyone,

and the swoop really kind of,
like -- It's like a hug.

It just, like,
brings everyone in.

I mean, before,
it was really for women.

Skyler: It's really accessible
for everyone.

Lemonis: I think you guys
did a great job with it.

I love the fact that they
came up with a name

that really represents all
of their collective thoughts.

I also like the fact
that Charlotte really led

that process for the first time.

Charlotte: And
it's a catchy name,

and, like, we can really play
with it, like,

I don't know.

Lemonis: Charlotte, when you say
"I don't know,"

they're going to smell
any lack of confidence.

Charlotte: Okay.
Got it.

Lemonis: And I want you
to deliver it with, like,

dead stop confidence. Okay?
Charlotte: All right.

So now we have some...

We kind of just
put together boards.

So this is, like,
our bread-and-butter

Everkin line, so it'll be
marbles and textures.

Lemonis: What do you think
I'm thinking?

Charlotte: That's too similar?

Lemonis: I think the bottom two,
for me,

are too close
to the old company.

Charlotte: But, like, there are
a lot of companies

out there doing marble.

Lemonis: For me, they're a no.

Charlotte: No,
I don't agree with you.

I think this is really awesome.

Yeah.

Lemonis: Is this your guys'
first presentation like this?

Xavier: Yes.
Lemonis: It kind of shows.

Charlotte: Marcus.

Everyone
is already freaking out,

and, like,
we know what's [bleep].

Lemonis: But you're kind
of putting it on me

as if I'm bringing
the energy down.

Charlotte: You are.

Lemonis: Because you're
not ready.

Lemonis: I think the bottom two

are too close
to the old company.

For me, they're a no.

Charlotte: No,
I don't agree with you.

I think this is really awesome.
Yeah.

Skyler: We can't just not
do marble prints.

Lemonis: Yeah, but we know
that white

and pink was sort of their...

They don't own marble,
but they sort of the corner

on white-and-pink marble.

Charlotte: But Sunshine was up
until 3 a.m. last night working.

Lemonis: I know that you guys
came up with those.

Xavier: Yeah, yeah.
Lemonis: So I know that's like,

"Wait a minute.
That came out of my head."

It did, but what I want
to avoid, Charlotte,

is any possibility of anybody,

including the customer, feeling
like you hijacked something.

Charlotte: Right.

Lemonis: I don't want anybody
ever questioning your integrity.

My job is to protect you guys.

Charlotte: I -- Yeah.
No, I get that.

Lemonis: Go get some sleep.

Skyler: Woo!
Charlotte: Sunshine.

Lemonis: Thanks, guys.
Xavier: Awesome.

Thank you.

♪♪

♪♪

Lemonis: Hey, guys.
Sunshine: Hello.

Charlotte: Hi.

Lemonis: Have you gotten
any sleep?

Sunshine: No.
Xavier: No, no.

Lemonis: You look like death,
but I'm glad

that you're working hard.

Do you guys want to do
a presentation?

Charlotte: Okay.
Let's get it set up.

Lemonis: All right.
Let's go through it.

Charlotte: Okay.

So thank you guys
for having us today.

We're really excited to be here.

So the last time
we saw you, Jon...

Lemonis: My name is...?
Charlotte: Jon and John?

Lemonis: No. No.

Charlotte: Oh, that's right.
I didn't do that.

Lemonis: Your name.
Charlotte: I'm Charlotte.

I'm the CEO, and I'm excited
to tell you about the brand

that we've been developing
for the past week and a half.

Lemonis: So you guys
have been working

on this a week and a half?

Is the company
essentially brand-new?

Charlotte: Well, we've --
The four of us have been

in the cell phone accessory,
mobile accessory, um...

Skyler: Industry.
Charlotte: ...industry --

Thank you --
for the last 3 years.

Lemonis: Your energy is going
to be better tomorrow, right?

All of you?
Pick up the pace a little bit.

Charlotte: So we, um...

[Bleep].
Lemonis: Okay.

I just want to tell you guys
something, any of you

at any point throughout
the presentation, pipe in.

Anytime you seem the fade,
keep their attention.

I'm not going to give Charlotte
a pass here.

I know she's tired,
but if you want to be the CEO,

that's what comes
with the territory.

Charlotte: So we've been working
to create this brand.

It's a case for everyone,
and the name is Everkin.

Lemonis: It looks like
the customer skews female.

I wouldn't necessarily put them
on my phone particularly,

but I like the fact
that they all

have a different feel to them.

And it feels like
there's some gender-neutral

designs here.

I'm not totally in love
with the designs.

What worries me are some
of the same issues

that worried me at Casery.

They skewed very female,
but I feel like telling them now

will take them off their game.

I just hope that T-Mobile
doesn't feel the same way I do.

Lemonis: Okay.
I think we should stop.

Okay. All right. Get some rest.
Charlotte: Okay.

Thank you.
Lemonis: Good job, guys.

Skyler: How big are the easels?

Can the easel hold
that many boards?

We're going to have to open
the easels up here

and test it out first.

Charlotte: I don't want to open
all of them.

They're, like, in tight little
boxes in my taped up thing.

The easels are the easels
at this point.

Skyler: All right.
Xavier: We're too tired.

♪♪

Charlotte:
We just got to hustle.

Lemonis: Today is a bigger day
than I think they even realize,

and while I hope
that they're rested,

what I hope for more
than anything

is that they're prepared.

Xavier: Oh, jeez.

They didn't even label
the pieces.

Charlotte: They split.
Look.

Sunshine: Oh, no.

Xavier: Yeah, maybe
it's like this, Sunshine.

Lemonis: Hi.
Charlotte: Hi.

Skyler: Hey, Marcus.
Lemonis: How are you?

You guys know that we're
starting in, like, 5 minutes.

Xavier: We're aware
of that information.

Sunshine: We didn't get up
into this room

until a few a minutes ago,

so we're trying to
just hustle it together.

Lemonis: Okay. But you are just
setting up the easels now?

You didn't preset them up?

Charlotte: They were supposed
to be really easy to set up,

and they're not as easy as...

Lemonis: Okay.
I think actually, you guys,

we're going to have
to abandon the easels.

Skyler: I wouldn't be
opposed to that.

Lemonis: Well, we just
don't have a choice.

I'll just --
I'll be your easel.

Skyler: Kill the easels.
Lemonis: But we're out of time.

Xavier: Kill it.
Lemonis: So put them away.

Let's get this stuff put away.

Did you guys bring this up?

Charlotte: Yes.
We need to put it away.

Lemonis: [ Bleep ]

Is this your guys'
first presentation like this?

Xavier: Yes.
Lemonis: Okay.

Because it kind of shows.

Charlotte: This is for you,
Marcus, if you want it.

Lemonis: Okay.
I definitely want it.

And what time is it right now?
Skyler: 12:02.

Lemonis: And what time was
the meeting supposed to start?

Skyler: 12:00.

Lemonis: So we need to,
in the future, be ready,

even if you have to get stuff
ready downstairs.

Charlotte: Marcus, everyone is
really down and freaking out,

and I need your help
to pump them up.

Can you help me do that?
Lemonis: You need to do it.

Charlotte: I know,
but I need you to come in here

and also really...

Everyone is already freaking
out, and, like, we know what's

[bleep] and we just need to...
Lemonis: Okay.

Well, you guys need to --
Charlotte: Thank you.

Lemonis: You guys need to --
Charlotte: All right.

So let's get these boards
in the right...

Lemonis: Charlotte.
Don't put it on me.

I don't really care that
Charlotte is frustrated with me.

She's the leader.

She asked for this job,
so don't get frustrated with me

because you don't have
your act together.

Charlotte: I just --

Lemonis: You're kind
of putting it on me

as if I'm bringing
the energy down.

Charlotte: You are.

Lemonis: Because you're
not ready.

Charlotte: No, we're not,
and we know.

Lemonis: No, I know, but what
I'm not going to do

is tell you how wonderful you
are when you guys aren't ready.

If your business is in trouble,
and you need my help,

log on to theprofitcasting.com.

Lemonis: You're kind
of putting it on me

as if I'm bringing
the energy down.

Charlotte: You are.

Lemonis: Because you're
not ready.

Charlotte: No, we're not,
and we know.

Lemonis: No, I know, but what
I'm not going to do

is tell you how
wonderful you are

when you guys aren't ready.

If you're wonderful,
I'll tell you.

If you're not, I'll tell you,

and that's the best way
for us to roll.

This relationship has to be
built on truth.

While I'm frustrated
that they're not prepared,

I do like the fact
that Charlotte is standing up

for herself because the sign
of a good leader, in my mind,

is one that is willing
to not just be a yes-person.

Charlotte: Hi.
Xavier: Yo.

Sunshine: Hi.
Charlotte: How are you?

Woman: Good.
Thanks.

Skyler: Welcome, welcome.
Man: So...

Charlotte:
Well, thank you, guys.

First of all, thank you
so much for having us.

I'm the CEO, Charlotte.

Skyler: I'm the COO, Skyler.

Sunshine: Designer, Sunshine.

Xavier: Also a designer.
My name is Xavier.

Charlotte: So I just want to let
you know

what's been going on
the last couple of weeks.

We kind of realized the company
was not being run

the way that we wanted it
to be run,

so we were really focused
on one single customer,

and we wanted to
break out on our own,

and we've been doing this
for 3 years.

Skyler: And even though
that we're a new company,

like, we're totally ready
to go with

any of the requirements
that you guys might have,

whether it's logistically
or anything like that,

so, you know,
we're ready to fulfill.

Xavier: So, first off,
thanks for coming to see us.

We really appreciate it,
and when it comes to Everkin,

we really wanted to make
a case for everybody,

a product for everybody.

We wanted everyone
to feel like kin.

Jon: I think it's great.

Sarah: I especially like that
it has a story

and that
there's meaning to it.

Sunshine: Cool.

So what we really want
to do at Everkin

is take what's hot and new

and make it more special
and make it ours.

For example, on this board,

we have a whole bunch
of marble cases,

but we're not just slapping
marble textures onto cases.

We're doing something more.

Sarah: Let me ask you about --
These are the designs.

What about the
protection element?

How will this really
protect my phone?

Skyler: I mean, for us, the case
is a functional product, right?

We're committed to having
at least

a 6-foot drop test or better...
Sarah: Okay.

Skyler: ...which is, you know,
above standard.

Sarah: Mm-hmm.

Lemonis: What do you think
of the designs?

How does this feel to you,
gender-wise?

Sarah: Very skewed female.

Jon: Yeah, I agree.
Lemonis: Heavily skewed?

Jon: Not heavily.
Not for me.

Sarah: Really?
Jon: Yeah.

I would say --
Sarah: You'd wear... Okay.

Come on.
You'd put that on your case?

Jon: I'd...

Sarah: Honestly.

Lemonis: Is there anything
on this board

that you would
put on your phone?

Jon: I would put that one,
the lower right.

Sarah: I actually would say,
my LA friends,

if you were to think
about our LA team,

many of the men
might go for that.

Jackson: I totally agree.
Sarah: The gold is so on-trend.

Jackson: Yeah.

Sarah: And the mixing,
the marble with the gold,

I haven't seen
anything like that.

It looks fantastic,
and I think

that these have
a sophistication to them.

Xavier: Aside from that,
we really wanted to,

you know, make sure
we hit that T-Mobile magenta

into the designs that we made

because it would be really cool
for the customer

to get something
that is branded T-Mobile

but doesn't, like,
feel like it to them

so that they're walking around
showing off this cool case,

while at the same time,
your brand is being extended.

Sarah: This was smart of you
because there are the people

who are fans,
and that was nice.

Jon: Wow.
That's impressive.

Jon: Hey. How are you?
Charlotte: Hi.

Lemonis: How are you?

Charlotte: Hi, I'm Charlotte.
John: Hi, Charlotte.

I'm CEO.
Nice to meet you.

John: Oh, cool. Yeah.
Young and smart people.

Lemonis: Look, the fact
that the CEO of T-Mobile

comes in to the meeting
is a very big deal.

Charlotte: This is probably
a good time for us

to take off our hoodies
and fit in a little bit better.

Sarah: Oh, nice.

Xavier: We're all kind of part
of the team.

Lemonis: But I like the fact
that Charlotte was smart enough

to know how to be clever
with the branding

and whips out
these T-Mobile shirts.

Charlotte: So this is how
we look at our

business and our designs.

We really want to fill each
and every one of these buckets

so that anyone that walks
into T-Mobile,

there's a case for them.

You know, men and women and then
the different age groups.

John: Thanks for acknowledging
that there is a right-hand side

to that chart for those of us.

Lemonis: Just out of curiosity,
what box are you in?

John: I'm where she's standing,

but we have high disposable
income, and we buy...

And we have children down there
that we're buying.

We could sell so many of these.
I like it.

Lemonis: That's fine.
John: I'm in. Thank you.

I look forward
to working with you.

I'll see you before you leave.
Lemonis: Appreciate it.

Lemonis: The designs passed
the test barely,

but I'm concerned that they
still skew a little too female.

The good news is, is that we
still have a few months

before they get in stores
to tweak the designs

and make sure that we have
a good balance

between male and female,

but I am happy to say that
Everkin has its first account.

Sarah: We have a lot coming up
in August

that we'd want to have you
take a look at that

and see if you could
make those deadlines.

Jackson: Great job.

Jon: We're excited
for the next steps.

Sarah: Thank you so much.

Lemonis: They got a order
for 38,000 cases

with 18 designs,
and they're going to be able

to be in all the stores
nationwide.

This is a huge accomplishment.
Here's the problem.

We have the order, but we don't
have the product to fulfill it.

Lemonis: A lot of work to do
Charlotte: Thank you.

Lemonis: We'll see you soon.
Charlotte: Thanks, Marcus.

Lemonis: In order to get
this order fulfilled,

our first step is to get
these cases manufactured

by professionals,

so the team is heading
to Hong Kong...

Charlotte: Yay, Hong Kong!

Lemonis: ...to one
of the largest

trade shows in the world.

I'm expecting them to find
the latest and greatest

in cell phone cases, accessories
and the newest technology,

but they're also there
to work on their teamwork,

something that definitely
didn't exist at the Casery.

Now that the team is back
to Los Angeles,

Xavier and Sunshine
are working on all-new designs,

so they can be printed by
the manufacturer in Hong Kong,

and Skyler is working
with the 3PL,

a third-party logistics company
that will receive the cases

after they get air-shipped
from Hong Kong.

Once received, they'll get
inventoried and packaged

and then shipped out
to the T-Mobile stores.

Skyler: We just got word
that the iPhone XR,

one of the sizes
is getting pushed back,

the release date.
Karlo: Ooh.

Skyler: So we're going to have
to relabel

basically all 7,000 of those
units before we deliver.

That'll be cutting
a little close.

Lemonis: I've also brought
in ClickUp.

They'll provide software
to Charlotte,

so she can help manage
her team's tasks and deadlines.

Zeb: Really, we're just trying
to bring everything to do

with productivity
into one central location.

So, like, if you're a manager,

your homepage is going to be
what we call box view,

so you can see what
each person is working on.

Man: It's a tree diagram
essentially

of everything
that needs to be done.

Charlotte: Yeah, this is what
I've been looking for.

Lemonis: This has been one
of the most brutal months

that any company, let alone
a start-up, could handle.

There's pressure on money,
delivery dates,

a large customer,
and with all this pressure,

I'm hoping that Charlotte
and Skyler's relationship

can withstand this tension.

Charlotte: I want to talk to you
about something

because I feel
like a lot of times,

you kind of keep me
out of the loop.

Like, if you're coming out here,
like, I'd like to come with you.

You know, like, I want to have
a relationship

with these people too.

There are a lot of gaps in my
mind of how things

are working
because the information

is kind of being withheld.

Skyler: A lot of times,
I feel like I don't know

what you're really working
on either, so obviously,

like, you know, doing a lot
of accounting right now

and other things like that,

and I'm not sure always
if it's the best use of time

for us both
to be working on that.

Charlotte: I need to be
in the loop.

I need to know what's going on.

Skyler: Yeah, I mean, sure.

Lemonis: Hey, guys.

Skyler: Hey, Marcus.
Charlotte: Hey, Marcus.

Charlotte: Hey.
Good to see you.

Lemonis: And so this
is all that's in?

Skyler: Yep.
Lemonis: What's left to come?

Skyler: So there's 12
more designs that are coming.

Lemonis: Uh-huh.

Skyler: The fact
that we're a week away

from the T-Mobile launch
has me feeling pretty anxious,

so I wanted to head to the 3PL
just for a little insurance

to make sure that
every last detail is handled.

Skyler: I spent a lot of time
looking at different

3PL facilities.

We found that this was actually
a really good deal for us

in addition to the convenience.

Lemonis: So what are
the economics?

Skyler: So it would be $2.70
plus $0.10 per...

Lemonis: $2.70 per item?

Skyler: No, for the first item,
to get the box.

Lemonis: So I need to think
about the pricing

as the action to come over
to do it

and then any incremental action
is $0.10.

Skyler: Yes.

Lemonis: $2.70
feels high to me.

You know what it is?

Charlotte: Well, is it the --
Lemonis: It's $2.35.

So what's the pricing now?

Edward: So I believe it's $2.35.
Lemonis: Okay.

So why did you think
it was $2.70?

Skyler: I mean, I just don't
have it actually written out --

Lemonis: I know, but you got
to know that [bleep].

Like, that's a big number
to know. Okay.

So I want to understand this,
so get an empty box

and just walk me
through the economics.

I just want
to visually see that.

Edward: So $2.35.

Lemonis: So they're going
to pick an item.

Edward: So we're going to pick
these items.

Lemonis: $2.35, boom.

Edward: And then each
additional item is $0.25.

Skyler: I thought
it was only $0.10.

Naim: The way we billed before,
it's $0.25 a unit.

Lemonis: Okay.

You know what frustrates me
about Skyler?

He always talked a big game,

and he always had
a lot of confidence,

and right now it's game time,

and he's looking at me like
he's a deer in the headlights.

If this order
and this relationship

doesn't get executed properly,

then it's game over
for this business.

Lemonis: Skyler,
how much is this --

How much is their bill
on 21 items?

Skyler: So let's see, 21...
Lemonis: No, no, no.

Let him do it because this is
what I'm frustrated about.

Skyler: So we'll have $2.35,
and that includes two units,

so we've got 19 remaining.
Charlotte: So then 19 times...

Skyler: So 19 times times
25 plus $2.35 is $7.1.

Lemonis: Great, and how many
items are in here?

Skyler: 21.
Lemonis: Great, and so what's

the average cost per item?

Skyler: $0.33 cents.
Lemonis: Great, so it's $0.33.

So what...

You're in charge
of the supply chain

and understanding where it comes
and when it comes

and how it turns,
and I need you to know it, too.

What I don't like is the fact

that Skyler
doesn't know the number,

and while I'm putting all of it
on Skyler, by the way,

Charlotte is not exempt.

You want to be a leader,
you have to know these details.

Unfortunately, you have to have
your eye on everything.

Charlotte: Yeah.

Lemonis: And then we need
to figure out,

what business are you
getting outside of T-Mobile?

Because that's giving me...
Charlotte: Yeah.

Lemonis: ...giving me anxiety
for sure.

♪♪

Xavier: I've got
all the jewel stones.

Charlotte: I think you have to
make that part first,

and this is not trash.

Charlotte: So that,
you fold into shape.

Skyler: I'd really like to try
and get it figured out sooner

so that we're not rushed.

Lemonis: I'm headed to the
T-Mobile store in New York City

where Charlotte and the team
are getting ready

to launch
all of their new products,

and I'm anxious to see
the new display

and how the products are working
and customers' reactions.

Charlotte: Insert body
into base.

This is a learning experience.

Lemonis: Is this, like,
the launch case?

Charlotte: This is the shipper
that all the stores got.

I think we have to fold them,
right?

Lemonis: The same thing
that happened

at the T-Mobile presentation
is happening right now again.

This is a multibillion-dollar
company

that awarded you
a huge contract,

and you're sitting in the middle
of their New York City store

putting it together like this
is an arts-and-crafts exercise.

Xavier: Isn't there a piece
that goes...

Charlotte: I mean,
everything happened so fast

that we didn't have
a sample of it in our office.

Lemonis: So that's a problem.

Charlotte does have to actually
figure it out.

Charlotte: Hey, Marcus. Skyler
and I had a call with T-Mobile.

Skews that were selling
are not selling as well anymore,

so they want us
to pay $300,000.

Charlotte: Everything happened
so fast

that we didn't even have
a sample of it in our office.

Lemonis: So that's a problem.

Charlotte, you guys have to
actually figure it out.

Skyler: And the whole display
cost us $23.

Lemonis: Come on.

It looks like it's way
better than that.

Charlotte: Okay.

Lemonis: I still think
the designs are not good.

Sorry.

So pineapples are great,

but we need to get
a little more masculine.

Have you gotten any feedback
from any customers?

Charlotte: No.

Lemonis: Maybe we grab some
and get some feedback.

Man: Colorful.

Charlotte: Lady-ish?
Yeah.

So would you wear this case?

Man: Yeah, I would.
It's just very lady-ish.

Lady-ish, lady-ish,
lady-ish, lady-ish.

Charlotte: Mm-hmm.

Man: Like, I'm
a construction guy, so...

Lemonis: I know that T-Mobile
is happy that they were able

to meet all the deadlines
and be in store,

but I still feel like they need
to skew more masculine,

and I'm done asking it.

But I think if you can be
proactive in saying,

"We'd like a selling report,
and we swap out

the poorest performing one.

Send them back to us.
We're going to send you

a replacement
that's in this family."

Don't wait for them to tell you.

♪♪

♪♪

[ Phone ringing ]

Charlotte: Hey, Marcus.
Lemonis: Hi. How are you?

Charlotte: So basically Skyler
and I had a call with T-Mobile.

Skews that were selling decently
are not selling as well anymore,

so what they want to do
is that we help them

with some markdown support,

and basically they want us to,
you know, pay the difference.

Lemonis: When you sell product
into a retailer,

and the product doesn't sell,

they're going to
come back to you

and ask you
for markdown money,

which refers to funds that
you're going to give to them

to allow them to take
the retail price down,

and they're essentially
saying to you,

"We're dropping the price,

and you're paying
the difference."

Charlotte: So they're taking it
from $40...

Lemonis: $40, okay.
Charlotte: ...to $30,

and they want us to pay
that $10 cost,

and what that would be
at this point is about $300,000.

Lemonis: The way a retailer
would think about it is

when they give you a specific
area to sell something,

they are assigning an expected
revenue amount from that area,

so in this particular case,

they were retailing
the product for $40.

They want to mark it down
to $30,

but they want the vendor,
me, to pay the difference.

There's 30,000 cases
in question.

That's a $300,000 check.

All of this could have
been avoided

if Charlotte would have
followed up with them

to switch out the slow movers,

the non-sellers right away.

So why would anybody
in their right mind do that?

Charlotte: Skyler and I
really wanted to do

what we can to keep
the relationship alive.

Lemonis: The fact that you guys
would even think

that's a good option makes me
not want to do business.

It doesn't make any sense.

We'll just take
the product back,

and we'll go a different route.
Charlotte: Sounds good.

I guess there's no way
that we can afford to do this.

Lemonis: I don't want to write
a check for $300,000,

and by the way, what's
the company going to do now?

This was their one
and only account.

All right. Thank you.
Bye-bye.

♪♪

What's happening?
Charlotte: Hey. How's it going?

Lemonis: With the T-Mobile deal
falling apart,

I wanted to stop
by the office to find out

if Charlotte knows
what the next step is

because she wanted
to be the CEO,

and she wanted to have
her own business,

so I'm looking forward to
hearing what it's going to be.

Charlotte: Yeah, the T-Mobile
thing was,

you know, it was hard to hear.
It was a bummer.

I think we really learned
that things need to be

a lot more masculine
than we realized.

Lemonis: So things have to be
more masculine?

Charlotte: Yeah.

Lemonis: So I'm going to take
you guys back in history

to a time where I told you guys

that you needed
to have more male stuff.

Charlotte: Yep.

Lemonis: Why didn't you follow
that advice?

Charlotte: Honestly, I thought
we did have more male stuff.

Not fully male, but, like,
we went more, like,

gender-neutral than we ever did.

Skyler: What we learned
this time is that what we need

to be doing for male stuff
isn't anything prints.

It should be totally functional
and materials-based.

For a client like T-Mobile,
that's what's going to work

and get the sell-through
that they're looking for.

A lot of stuff has been going
not the way that we wanted to,

definitely some frustrations
the past month.

Lemonis: Okay.
Charlotte: We had a couple weeks

where we just
were not getting along.

Skyler: I'm still frustrated
that we're not really

getting anything
figured out with sales.

Like, that's the constant source
of frustration for me.

Charlotte: That's frustration
with me, right?

Because I'm doing sales.
It's okay, like --

Skyler: I'm frustrated
about the sales,

but it is your responsibility.

Lemonis: I'm frustrated with you
guys that you're not selling.

Skyler: Right.
So some things get...

I think a lot of times Charlotte
doesn't think as big-picture

as she needs to necessarily.

I feel like no one is running
the business, a lot of times.

Lemonis: Do you think you should
be running the business?

Skyler: Um...

Lemonis: Okay. So this probably
is the biggest

meeting you guys have had...
Charlotte: Yeah.

Lemonis: ...a really big deal.

Skyler: I think a lot of times
Charlotte doesn't think

as big-picture
as she needs to necessarily.

I feel like no one is running
the business a lot of times.

Lemonis: Do you think you should
be running the business?

Skyler: I don't think it's
something that is really best

for either one of us to do alone

because we have different
areas of expertise.

Charlotte: I can totally see
where that's coming from.

I don't feel like
I'm running the business.

Lemonis: You don't?
Charlotte: No.

I feel like I have no idea
what I'm doing sometimes,

and it's really scary,
and, like,

that's sometimes why I get your,
a lot of the time,

why I get your input
and your opinion.

Skyler: Just need
some more structure.

I mean, we are making
some progress.

It's definitely taking longer
than, I think, we'd like.

Lemonis: Team effort.
Charlotte: Yeah.

Lemonis: Right? You own a big
chunk of the business.

You own a big chunk
of the business,

and so it's not like
you're some employee.

I don't know what kind of grade
I would give Charlotte

right now as the CEO,
but I'm noticing

that she's not listening
on the design side,

didn't manage the relationship
with T-Mobile like I wanted to,

and it seems like
she's having a difficult time

even communicating
with her people,

and I don't know what Skyler's
issue is right now,

but what I'm sensing is he's got

a little bit of an attitude,
and I don't know

if it's from a "Maybe I should
have been CEO" or not.

Here's a newsflash.

You're not,
and you need to be supportive.

I need to see that
from him right now.

What's the coolest thing
happening right now?

Charlotte: I think our product
development is the coolest thing

happening right now.

I mean, we've got
a ton of new ideas.

We've been doing a lot
of product development.

We want to have kind
of a utilitarian line.

This is, like,
a super slim wallet case,

but also we have
these wireless chargers,

which are going to be
a really awesome way to go.

Lemonis: Okay.

Charlotte: We've also got
a meeting with Marvel set up,

which I think is
going to be awesome.

Lemonis: Seriously?
Charlotte: Yeah.

Skyler: That's kind of one
of the ways we're approaching

the more masculine stuff.
Lemonis: That's supercool.

Charlotte: Yeah.

Lemonis: The fact
that you're stepping up

and getting these meetings
and finding new alternatives

and not getting discouraged
is progress.

I like the fact that Charlotte
is working on skewing more male

with things like Marvel,
but what I don't want her to do

is put all of her eggs
in one basket.

I've given Charlotte a contact
at Major League Baseball,

and here's why.

T-Mobile
and Major League Baseball

have a very strong relationship,

and I know that T-Mobile is
looking for some of their cases

to skew more male.

Charlotte needs to make
the phone call.

She needs to set up the meeting,

and she needs to land
the account.

If she can do it, then maybe
she can save T-Mobile,

and if she can't,

then the business
is probably going to close.

♪♪

This company essentially started
a few months ago,

and all of a sudden,
we're now in New York City,

heading to the commissioner's
office of Major League Baseball,

and I'm fairly confident that
if we can secure this license,

T-Mobile will allow these cases

and accessories to be sold
in all of their stores,

but making the meeting
and securing the license,

well, that's a whole different
ball game.

Are you getting
more comfortable leading?

Charlotte: Yeah.

I think just getting that, like,
out in the open,

clearing the air
was really good for me

and for our communication,
and, yeah,

I've been just, like,
pulling the trigger on decisions

a little bit more
than I was before.

Skyler: I'm getting good
communication with Charlotte,

and we're kind of figuring out
what we need to do.

Lemonis: This probably
is the biggest meeting

you guys have had
because normally,

you would go through
a licensing agency.

Charlotte: Yeah.
Lemonis: But to be able to roll

right into Major League
Baseball's offices

and do a deal directly
with them is a big deal.

Charlotte: It's crazy. Yeah.
Lemonis: By the way,

you look
pretty snazzy today.

You dressed appropriately
for the meeting.

Skyler: Okay. Good.
Lemonis: I can't get over

how different you look.

Let's go inside.

♪♪

This is awesome, all the way
down to the last detail.

They're going to want to hear
why it's a good fit for them,

like, why should they do this?
Charlotte: Yeah.

Lemonis: The Major League
Baseball license

is one of the most coveted
things in all of licensing,

and if they could
somehow figure out a way

to become one of a very few
that can have access to this,

it'll be a home run.

How are you?
Noah: How you doing?

Good. How are you?
Lemonis: Marcus.

Noah: Noah.
Lemonis: Nice to see you.

Noah: Nice to see you. Hi.
Charlotte: Hi. I'm Charlotte.

Noah: Charlotte.
Noah Garden, nice to see you.

Charlotte: Nice to meet you.
Skyler: Skyler.

Noah: Thanks for coming in.

Charlotte: We were just
putting up some samples,

so you can kind
of see the quality, but...

Lemonis: Thanks for meeting
with us, by the way...

Noah: Oh, of course.
Lemonis: ...on short notice.

You're in the big leagues.
Charlotte: I know.

The Major Leagues, literally.
Yeah.

As far as product,
we do phone cases.

We have these wireless chargers,

which I think are going to be
a really awesome way to go.

They're kind of
a different product that...

Lemonis: Wanted you to see
the quality and the weight,

and I wanted you
to see the cases.

Noah: What's generally
the price point?

Charlotte: They'll be $29.

Skyler: We think that's
the right price point...

Charlotte: That's
a better price point.

Skyler: ...because our focus
is on,

how can we provide
that level of sell-through

but also provide that level
of quality that we want?

Because it's our brand
that's on the line,

both MLB, of course,
and Everkin, right?

Charlotte: We'll go through
some stuff

that we put together
for you guys.

I see them as kind
of complementary designs.

So we can do stuff
with team logos,

but we can also make it
really fun and interactive.

I love, like, the, you know,
making it feel dirty

and really making it feel real.

Like, these complement this,
so it's not like your phone

is exactly the same
as your charger.

But they go together well,
and you can get both.

Noah: Just looking at it,
I wonder if you can bring

a little bit
more of baseball in it.

Like, if you use,
like, stadium shots

and stuff that's sort of iconic
to each team that, you know,

people identify with maybe
might make some sense.

Charlotte: We also
did this line.

This is a little bit
more subdued.

It's embossed with, you know,
your team.

We can do simple,
just the coloring,

or we can even have, like,
the stitching on there.

Noah: Anybody can slap a logo
on anything.

Charlotte: Right.

Noah: I'd like some more
authentic picture on it.

Lemonis: For exclusives,
extras and business advice,

visit theprofit.cnbc.com.

Charlotte: It's embossed with,
you know, your team.

We can do simple,
just the coloring, or we can,

you know, even have, like,
the stitching on there.

Noah: Anybody can slap a logo
on anything.

Charlotte: Right.

Noah: I'd like some more
authentic picture on it.

Skyler: A lot of the way
that we think is,

how can we design
and make unique products?

And we don't want to just slap
a logo on a case, right?

Anyone can do that,
and that's not why we're here,

so we want to figure out,
what are the right ideas

that are going to make
something really unique?

Lemonis: And that's leather,
right?

Charlotte: Right.

We can do it real
leather or PU leather.

Yeah, this is kind of, like, for
the guy that goes into an office

every day, kind of, like,
exactly like your case,

but it's embossed
with your team,

and they're still
super protective.

Noah: Listen.
I like this.

It's fashion-forward
from my standpoint

if you see what's going on
in caps,

which is always our barometer.
Charlotte: Right, right.

Noah: You know, you see
the contrast on contrast,

and it's very popular,
so I definitely think

the same way here, and listen.

The license that you get from us

affords you stuff
that other people can't have.

Pictures of the stadium,
it's all part

of our intellectual property,

and so we encourage
our partners to use that

because that will separate you.

Lemonis: I can tell the meeting
was really well

when Noah started offering
Charlotte licensed images

and had all sorts of ideas,

but then Charlotte wanted
to take it one step further

and swing for the fences.

Charlotte: We also wanted
to give women

the opportunity
to show off their team.

So this was kind of more
of our women's collection,

you know, just to make it fun
and still girly,

but, like...
Noah: I like it.

Charlotte: ...showing off
your team, you know?

I mean, we live in LA,
and every single girl

I know has a Dodgers hat.

Noah: Yup.
Looking at the people

that are coming through
the turnstile for us,

it's right around 45 percent
male to female right now.

Charlotte: Really? Good.
Lemonis: That's awesome.

Noah: So definitely think taking
a little different approach

to it like you've done here

will appeal
to a broader audience.

Lemonis: Awesome.
Charlotte: Yeah.

Noah: I think it makes a lot
of sense for us,

and there's definitely room here
to be very successful.

Lemonis: Well, thanks so much.
We really appreciate it.

Noah: Thank you.
Thanks for coming in.

Lemonis: Thank you very much.
We're excited to get started.

Charlotte: So nice to meet you.
Thank you.

Skyler: Thank you so much.
Noah: If you need anything,

just call me directly.
Charlotte: Sounds good.

Skyler: We'll talk soon then.
Noah: Looking forward to it.

Lemonis: I thought it was, like,
a totally different company,

two totally different people.

The level of professionalism,
it feels different.

High five.
Charlotte: Thanks, Marcus.

Lemonis: Great job,
very proud of you.

Charlotte: Thank you.
Lemonis: Super proud.

To start a company and,
in a matter of months,

get a license
from Major League Baseball,

this was like winning the
World Series for small business.

Okay. Well, you guys started
a brand-new business from zero,

no customers, no designs,
no cash, no ideas,

and then you just walked
out of a meeting

at the commissioner's office
for Major League Baseball.

In all the businesses
I've invested in,

it's really the first time
that we've started from scratch,

like, on a dry-erase board.

Charlotte: I love this city.

Lemonis: In the time
since the MLB pitch,

Charlotte has continued
to develop the company,

preparing the team
for a pitch to Marvel

and she's in negotiations
with a number of companies

like Striker Entertainment.

We mocked up some cases
and chargers

with a couple
of your properties.

Man: Nice work by the way.
Man 2: Fantastic.

Man: That sounds great.
Lemonis: And to see

what they've gone through
and how they've learned

and how they've stubbed
their toe and picked themselves

back up,
their personal growth

is really what makes
small business so fascinating.

The sky is the limit.