The Entrepreneur Podcast
The Entrepreneur Podcast

Episode · 1 year ago

26. High-growth and its unique challenges

ABOUT THIS EPISODE

Last fall, Eric Morse sat down with three impressive entrepreneurs to discuss their journey, and lessons learned on resourcing for high growth, shaping culture, and learning from past mistakes.

On the latest edition of the Ivey Entrepreneur Podcast, Eric Brass, HBA ’05, Founder of Tequila Tromba, Debbie Fung, Co-Founder of Yoga Tree Studios, and Anton Rabie, HBA ’94, Co-Founder and Co-CEO of Spin Master, discuss high-growth and its unique challenges.

Here, listening to the IMBONTOFenrtiapadcassfrom, the Prlmoraseid Institute Front Menership at the Havybusiness cool, my name is Eric Mors and I'll. Be Your host for this episode a so with that I really want to getdirectme into our pown. So these are all three just fantastically successful,onfiners and and Frank Ut, pretty nice people, and that's why they're here todayreally I've been fortunate to have a arelationship with each other over the years, and I wanted them to be here tobe able to tell their story about about growth, and each of them has gonethrough periods of high growth through periods of stagnation, through periodsof perhaps even set back, and so what I hope that will have a chance to hear aLittl t today is their story, some of the successes, some of the mistakesthat they've made along the way and then y give you guys a chance to to o aWaso withthat, I'm gonna, I'm Goin t o start with Anton, and just let you tellyour story Abet pemester morning, nice to see everyone uh, youknow spin master. What very few people know is started from just unbelievablyhumble beginnings: every everything you look at thecompany from the early days. You know we had when we started the company.There was no sea capital, private equity. U BC! Not! We just started. Westarted the company with a little bit of money that we made from a universitybusiness called campus faces and we started with our own. You know: Seveneight thousand dollars our credit cards, fiss, one vinegar, Ou, no and and we started with just a huge amountof passion and tenacity, an whatever it takes attitude. You know the company Um. I mean thephone used to ring in my deat, but um s when we started the company.The the first concept that came to us was earthbudy. It was a grass as likeCou cheobet. So what happened was my partners, my partner Renet in thecofounder, his grandmother came from Israel and she kind of smuggled. Shewas like in her late eighties, and she opened up this. This person she's likeand she pulls out the Sawdust and grassy a D, and then she had thisarticle from the Telita newspaper. It was like the whole spread of the insideand how the the grasshead, the Earthbudy, hadbecome a patrock in Israel. So what we did is we took it and we went into mypartner's Gr, a kitchen hes mother kitchen, and we literally took like abeecer. We took all this cooking stuff and we started to reverse engineer like how much grassy Sawdast Nilon and thenw we drove in our car to Kmart a baby village. At that time there was a kmartright on the side there and my grandmother used to live across theroad and we d went and bought all of theHosry at the Kmart Everything d. We were sitting there at the counter andthe Lady's like what are you doing? So it's just important to to understand that every part aboutpenmaster in the early days was incredibly humble, and we we really you know, t at there's a lake professorfrom Western. I think David Berkcoyne yeah and hesaid Goth high to multitude Os, SIS right and- and we were a great example of that-you know when you're growing a lot covers up mistakes in the company, andI think that's one of the most important things to to remember todayand and H, we're actually having a bit of that right. Now, 'cause we go through different Cycllesas an organization, but we mad like one of the questions,was what mistakes we made ever mistake. There's no mistake. We haven t made, assome of them are larger than others, but uh you know for us. Our story is about this unique to get three individualskindo like a a rock band. We would never be here if it wasn't for eachother. I wouldn't be sitting here. If it wasn't for my partners, theywouldn't be seing there for it. Wasn't you know so it's that story where thethree of es are as opposite. As you can imagine, an that's. The magic of thecompany is how we you know we come to the table with suchdifferent mastery or skillsets or unique ability. Whatever you want tocall it and Um spinmaster at the end of the day is about it started. I mean now now it'sdifferent we're in a totally ifferent stage. An whul drive would drivesuccess, todayis really different, so we have two thousand employees andtwenty nine countries and h you know...

...most veryvery. Little of our sales arein Canada. It's O it's a global company. I mean we are public, but I try to notthink about that. I was interviewing a board candidaeyesterday this this lady in e, the states and and she's like to tell me how theCOMPANI's changed since you've gone public and I'm like well. Actually Itry. I do my best to not let anyone think we're republic, because I want tomake sure that the Spiri, the values of the organization and I want to makesure that decisions are made with e long term focus 'cause. The problem Wth CO public companies is that they have a short term lings. So I'm alwayslike the bad person trying to really make sure that the company, the entrepreneur, spirits and all thevalues are Capt IV. The forefront and that we operate the same way as if wewere, I mean, obviously, the finance department's different. That's that's a nice transition plint.I want to come back and talk about values and just Aminut Otim, so whedo't we go to B. tells us a little bit about your story. Yeah I mean that's,that's a great story, I'm not sure he doesn't hear me, but Um our family is aFanta minnaster anagain hatchimos lives in a family. A et me just get my likeon. I'm not sure if I had that's right: Isokay, Yeh, okay, so I'm debby, I'mthe Cofoun of yogutre studios here in Toronto. My story, it's also a very humble story:I'm not a public traded company, I'm a very local story. I founded a studiothirteen years ago with my husband at the age of twenty four. We bothgraduated from University of Waderloo. We both security, full tyme position. Imyself was also a byer acinaten tire um for the longest time. I think you knowgraduating ready for a full career. There was a part in us that thoughtthat you know if we were to carry this thro our life. Is that the rightdirection, so what we did? We did a epray love. We actually took a leave ofabsence, left the company and went to India, so my husband Jason, who wasalso the Cofon of yogutre. He went to Maysa India if Yov O no yoga, he didhis training in a stangan classical Hata and I went to northern Indiajyboard to study aevatic medicine, so that was a six month journey and atthat time, were w weren't, really thinking about finances. We weren'tthinking about how to get the capital to to build the Yoga Studio. We justreally want to immerse herself in in Yoga, and that was our goal coming backto Toronto. We then thought: Hey. You know what Werdy made it this far: JesheGod teacher Tcertification, I'm training, iovated medicine. We need todo something about this, and that was the day that we decided to find ourfirst leafe in our industry, especially retailindustry. There's two things that really would make a break of retailnumber. One is the retal rent number two is Perel, and we learned it veryhard in the early days with very minimal experience that if we don'trefine these two items, which we can talk about, the mistakes afterwards,Youre screwed, especially Marchis and Retellnowespeciani, store frts gettingmore challenging. So untol thousand and seven we open a first SCIDYUM FlorinHill at the corner, O Center Cenestry an Dufferent. It was hard. I think wedidn't know that them weregrafping that well, we offer free yoga the whole day.It was a holiday and no one came I it was Honukah and noone came and we were wondering hey. We offer Yoga there's only eleven people,counting myself, a Jason, we sonto classes, it doesn't look empty. Whatare we going to? Do? We have to pay rent, we have to pay our paywoll, sothen we thought you know what, if we don't make in in the month,W'we're not going to be here, that's off of the whole month of free, so thewhole month of January, two thousand and seven anyone comes in no flierneeded no tegs or strings. Attach you get free yoga a month, then M. I don't know how thathappened. Sales started coming in. We make sure that our prices werereasonable. We make sure that Offera is contained to say the quality was and Tatcare is through in her secondmonth third month. Fourth Month and th memberships were starting to Triagle inin two thousand and eight we signed up for a second lease in Richmond Hill. What we notice with that the classoffering were able to de first upply, unlike other studios, about time, twothousand and seven, the Yogut instring Toronto m. They were very segrevated. Iin in the free different styles, either Yo beak, Bron, Eitherin Moksha, eitheryou ere in downward dog and your focusd in a Shnanga, but that's about it. The volleys orte tre, the differencebetween which e was atwe very much falily b hat the first classes, meaningwe offer heated classes on he classes restortive and go on and on but UmFosphord. You know two t thousand and...

...eleven, two thousand and thirteen twothousand and and fifteen. We were aggressive in growing our market intothe downtown core. One thing we notice is that Dif we continu stay at thecapacity we're in in uptown. We would never be able to operate in theefficiency and this intargy that we wanted to be so twent. An fifteen wasthe year that we opened our very first flegship at the heart of Bay andDundath. It's a ten thousand for a squareft studio. At that time we becameone of the largest studio in Toronto, but at the same time we also make surethat we stay relevant to your community. It was also a time in our growth periodthat we decided to take a break in her growth between two thousand and eventen. U and and fifteen would contain assignd beses continofin new locationscontinuto be at the very cor center of the highest traffic couns in Toronto,but to ot Theii took a break because we realized that we needed to make sure werefine our system owe currently have five and this year since teuvandfifteen, we are ready to open our sixt studio, twenty twenty, it should havebeen twenty nineteen twoeanty twenty would be a very exciting year for us. We have studio opening at the pointer,Boran Avenue it's at one, twenty one floor and we're excited about theOPPORTUNITYAJSI. Thank you. IRT Esir you're, the youngest company up here,tunded Belur Story, Um. Well, it's Nice Nice to match. MEU. We have toys Yoga,Anticela Woro the world meet. I figured if thatwouldn't fill the room, AA really Um. So I think I was in the firstcentrepremercial class yeah. So it's you very well instilling a bugin. Inever left you're blaming me so some days I do lane Yo. I curse your name Um. So I h, you know my enrmonorship story.I went down to Mexico and exchange with Ivy back in two thousand and five mostof my smart friends went to Hong Kong, France or Switzerland. I went toGuatalhar Mexico and I did so because I want a new experience. I wanted me. DoPeople wanted little bit of tick in the ass and you know whost to be quitehonest, also en its some Nice, nice weather n any good time as well and Umfound to be unexpected action. I was down there. I ended up following thelove with Tokilam, so I had that L, typical westorn experience of Tokilabeing tha terrible shot at that horrible bar that see the hour thenight. I ended up trying good to kill for the first time Sai. While this isincredible. It's like drinking scosh, Conak, fine wine came back to to Canada.workdate went to day jop an financeer about six years spent spen a Yearin inthe UK, but ha had that. buggoned me about O Tokila, and I noticed thatthere was a gap in the marketplus so and it which still exist today. Topeelis very top and botm heavy. It's either close your eyes plug our nose over thebest shot, which us be some price or the anyour chest. Wook ow much money, I'mspending tye product, which is more about you, know showing off versusversus substance, inte ball and there had to be a middle, had to be somethingthat was ultar premium accessible but at the same time spoke to a demographic that cared aboutnot just what the brand is and how much it cost, but where's it come from whomakes it and what's a PEDIGREPO. So the problem is, I'm not a great nenext, I'mnot a great Mexican Paon, better to be lucky tand smart, which is sometimes atheme. A good friend of mine, onexchange Happehid, be gonnimeRodrigosedana Rodrigo's father was Marco Sedano Marcu Odana was theoriginal master tistiller of little tokiled brand bay have heard of culedDon holio Okilayeahosmilly faces. So we said why we pitch market of yourmasterto store to create this new grandframa. We have no idea what we'redoing. It's like asking wing rescue to Playn Yo Menumtea he's going to tell usto bug her off but'll ask him anyway, and so we did and- and he said to her utter surprise- hesaid. Listen guys I'll do out two conditions and blieve Mein Fer, simplefunse conversation number one. I gotto have a piece of this company this asGoin to be distill around much like it's. You know Canadian owned and hadan Australian part as well as really enough, because I work for for Dongaly oforseventeen years and all I got was a watch for my service, a nice watch, butI watch it was later ROK te gun points in Mexico, bothat otherthat'SG. Thesecond thing is no ringos in the kidden, so he said myentire life. I've had people over. You know, look over my should and tell mehow to produce he kila the don't know what they're doing that's what happenhere and OK, we're Erce we're, certainly notgoing to give you in Poaao out of Mexica and so much to my mother'sdismay, Qut, a very good job in in in cent managements, Um parer withthesidantal family, and we started making Traua and very humble beginnings.Forr all three of US 'cause effectively.

You know! No one would give us give usa dine back then Ilo into an institution's office. Now, for somebodyfor pring killing, two thousand and twelve, I would have been laughed atthe door. So after a first production or after a first fun raise which I wasfriends and family, I call pitty money. We ended up homing, ten to fifteengrand left and markeing, and so iffact, like the only way to do it, was to raba backback, take her models and go barbar, but bar by Barbotte by bottleand Saltrapa, and can tell the story over and over and over again and fromthat we built Traba to the number two pretkylin Canada Te, one TRONTI numbertwo in Australian one another and now I'm the fastest girling in the US, andthis year we were named in the top ten training to Keel US glovally by theiwsR, which is the he kind of spirits botle based on the one than U C. So ifanybody tells you organic, grassroots doesn't work on I'here to tell Yoitdoes with a lot of Cam. We have three grassrod companies e,which is which is really cool. You kN on one thing that doesn't get talkedabout very often. I think when we talk about high grort companies is, isvaluous and having had the really wonderful opportunity to work withSomebony, I e the copeny that I I find that it's actually central to a lot ofthem and I know Anton- and I have had this conversation- I'm not sure thatthat we've had this conversation but um. You know they shape the way you makedecisions and about the opportunities you go after and the partners that youtake on, but so many other things that happen within organization. So I I'veasked each of them to talk just a little bit about the values they usethey've taken into the organization as they've grown. Well, I think we should jast step backthe whol value of topics and put a little bit of context fersonally for me every topic, depending on the phase of spenmaster.It's it's different right. 'cause we've gone through so many phases as acompany. So when you, when you think about the values for spinmaster in thefirst ten years, really it was just about living the values and because you're touching everyone and everyone is watching. You know you don't have to hang up anyvalues on the walls. You don't have to talk about the values you just livethem when, when you're in a start up face Um, now, pen master, you knowhaving twenty nine countries, you know and you ow. The scale of theorganization is different. His values is very different at accompany our size and it's it's it's. It's really a anOngong chalnge to keep value froughten center and tokeep people living the values. It really takes a lot of work a and I gotto put a lot of time into it and in the early days I never put any time into itagain. I was just living the DOS, so firsty I'll just list some of ourvalues, but then I'll kind of share with you, some of the things that I'mlearning today on how to keep the values fromt an ecenter. So our valuesor integrity, innovation, entrepreneur, Spirit, open mindset, partnerships,triving, results in collaboration. So when, when you think about values in acompany like spinmaster a cup, a couple of things come to mind,one is as a leader of an organization no day goes by where I don't meet withpeople on the front line, and I ask them this question: Are there anyimpediments or barriers to you living your values when youare working duringthe day, because I what I want to do? What myrole is is to understand? Okay, where are people having trouble living thevalues like say, for example, someone says to me in Supply Chane? Well, I'mhaving trouble being entrepreneurial because there's too much berocracy or someone says to me inMexico, I'm having trouble with integrity, because you know things aredone differently here. So my my role is to really to constantly unders topulsecheck the organization right and one of the things that I learned fromone of our HORD members ad Clark. His is one of the wisest men I've ever metin my life. Is You know when an organization gets to the size that weare is that you've got to continuously pulse checked the organization and youcan do it with easy surveys rightand? So I think even for you, you guy should think about how do you anonymous? How do you get feedback?This feedback loop on? Where are you on your values because, like for example,collaboration ten years ago, his semaster was Higeri dipped in the lastyear? So now hrough? Now I can kind of probe and ask questions. You know whereare the tension points on the collaboration of the organization, but it's you know when it comes tovalues at accompany our size. It comes down to you know: Hiring people to Machyour values, rewarding people to match your values. Having you know clear,rewards and recognition, I mean it's...

...the whole textbook thing of values.It's real and it's live. It's been master, but at the end of the day,values start at the top, and people need to see. You know you livingthe values. I mean one of the values which has really been a game changer for spinmastersparnerships. So if you look at any of our hiss orbig franchises, for example, Bacogun, which we did over a billion in sales,just Phulesale- that's not even including like the tshirts or theunderwear or the backback Oyou, know the toothpaste or anything like that.But when nine years ago, when we watchedBukoo gun the story of Bakugon, was an inventorcame to my partners and brings us like little this piece of paper, W H, theyhave this metal ball and it didn't even function. poply and- and it was justthis raw idea from this inventor in the states, shelley and the guys looked at it and they're likewhat happens. If we go to Japan and find someone who can help us with themechanism because it wasn't 'cause Bacogan when you do, is you know whatPacogun is it's a t v show where the T V shows made in Japan, it's JapaneseAnima, which boys in that age group love, Japanese, animain, Kindof, likeBokimon nd, transforms and all that so m. The whole story of Bacagonis,basically in Venrocons, shows us ha concept. We take the concept which isvery early and raw. We then take it to Japan. WE HAVE SATA help us withengineering on the mechanism en we have a TP companty called TPAMMARTY. They did the animation, can't Iremember the end and then we had corus Nalvana. They helped us with thebroadcasting. So what we Nid is we created Aparton, where we said everysingle toy that sold or any merchandise hase sold. There's a twelve percentrevenue that comes into a pool and of that pool of twelve percent inventorgets a certain percentage saga. Guess a certain percentage chorusNelvani is a certain percentage. The Japanese Enemy Company gets a CERpercentage and spen master get Eve Percentt. So we created this likeglobal partnership, where each person was playing to their stress, M andspinmaster would never be where we were today, if it wasn't for partnerships,and our company is littered with history of partnerships. Pal Petrol isa partnership with an inventor in the Ukane, an EP, Catin and Nickelodeon'spartner with us, but h. We we're constantly sourcing the world forpeople who e are the best at what they do in a certain Aras and certainverticals in partnoing with them. I should I should point out antinit thatthat sounded really easy bat. It really turned the the business model in theindustry on its head and I think you guys deserve a you know. Obviously, alot of credit forfor doing that and been amazing how you've been able totepartner with so many different players in that industry. They'll just conclude on the topic ofvalues is um values. Is it gets really challenging when you'redealing with so many cultures, somy offices of our two thousand employees there'sonly six hundred and fifty of them in Toronto and Um, and you have all thesesubcultures right Um. So it's there's no day T. I spend more if youwould have asked me fifteen years ago, if you would have said to me, Oh you're,going to spend Ti. You know xpercentf of your day on values, I'ld be likewhat right and- and it's just so critical right now and we gotto constantly have a feeback loopmeasuring how how we're doing and and things change and people Il give you aninteresting thing. We did you know humbling how yo w you gotta always keepasking your employees. We found out about a year ago that people wereconfused about the value partnerships they're like sho. How do I working inBrataslavas Lovacia? Has Partnerships Tiinto my role when I'm working insupply chain and I'm like well? Actually, partnerships is an externalvalue, not an internal value, and we hadn't even made that delineation cleara ear ago. So now we've gone out to the company world wide and we said hey ofall of our values, there's only one which is very externlyfacing which is partniship and if you work in the legal department make surethat, if you're working on a contract for ABACCO gun right that how itaffects you is, we want you to make sure that they feel like once the contract signd. They feelhappy right and and we're not just drining them on small points that we'renot being unreasonable, and we want people to feel good afterwards. Sopartnership has an application to certain departments in our company, butit's more an external facing value, yeah Um. So for us at yogatre Um, we havethree values and you know, and these...

...three failies really h, ingrain in whatwe do and what we're about a yogatry. So our values, our community. We havefive studios in Toronto and each of them operate in a very differentcommunity. We have a Richmond Hill and which is more of a kind isurbancommunity, but we also have our downtown cor, which Pres Pedina Bate onDath and also young and egg Um. When we talk about community, we echoh inthings that we do and also how are m staff, translate that in their own way,for example, commuity means that to us it means not, for example, what wevalue in what we have INA members in the community. F,Um Long Story Short. I thank community to us, especially in our downtownarquet. For example, we allow our staff and empower them to basically operatein what they want to do. Sorry, theyre, just ISO UM for us. I think you know we talk aboutFaliis, O commae. We talk about powerment, we talk about Thei versity.We in the early days a lot of times to entrepreneur. F, we do a lot of things.Ourselvs the hardest part for me was to let go and let hersnef o determine whatit means to them and what they want to do so um. I think the biggest challengefor entrepreneur like myself, who, in the early days I started the companybetween myself and my husband. Then we also grew a family same time in Twentyfifteen and twenty sixteen was. How can we stay relevant to a community butalso allow us to like go and delegate some ofthe work? We overtime had to also reflect on theValus, just make sure that yes is relevant to us, but is it relevant tothe staff who who comes in every day and lives? Tham bread eova Tree Um, andthat was a time where we allowed our staff to really that a whole Pallasession. We actually got a third party to come and C MC. Can a managementsystem to really reflect? Yes. In the earny days, we came up with the valuesorself, but it was also a time for us to really reflect to see if thesevallyes were still relepant and I think bottn tol what he was saying. Yes inthe early days or started up these avallus and Goth recycles and wedefinitely went through recycles. We definitly went through orgrowing painswhere the starter of the companies values went along errelevant to to whatit was m. So now we still have a coure values,but these falues are translated in the meening that our staff as alsointerpeds, and they also have to live and bread, what they believe. Thesevalumes are M, so COMMITT S, one to us communiy in the sense that again weoperate in these different markets. We also allow them to pick and choose whatthey want in class, offering, for example, young, an egg and BridchmanDina. We have more of a mileniu demographic, we offerd classes likeFuin the Sixh we offered classes like I yoga up time in a suburban marget. Wehad louder management to select classes that are more geared to wat, a suburbanmarket done in cics, Bornado classes, family yoband, Ketyoga LAS monolase. Wealso vary value, Iversity theversity, not just in people. We employ thepeople we work with, but tha firsty in the sense that the class offering needsto be diverse class, offering that firstly, means that it should beaccessible to majority of the people is, should be accessible in insense that Ihave arthritas. I have hipp replacement, I havescoliosis the range of product.The range of classes needs to be accessible and e to be diverse, sothose are three dousands oolyea. Some some really really interesting. Interesting points in in you know onthat culture thing, the what's what's important in Mexico, sometimes isn't asimportant as it is in Canada, and it took us a while to realize btth. Youknow both from a profitability sampler or a prodotionae standpoint, but alsofrom not being you'R head against the wall too many times you have to adjustfor the cultural aspects, new Yo, w something ore different cultures than Ido Um. But Mexico is y. We have ten people down to Mexico and it is Chalengin. It is challenging Umfor us. We know we have a few really key key values: Phink anact differently, collaboration to be one for us,empowerment and and out love your customer. So in terms of you know, forus on the collaboration side, if you ever sit in one of our meetings, wereally try to foster a noblship approach where it's a free flow ofideas, so in the sense that you know Youl Se to call with U S. for example,you'll have te part time ambassador in Washington State telling our? U S had asal. Is that he's wrong and here's? Why and the? U S had a sale as doesn't getupset about that, isn't goet offended, because it limits a free Flos of ideasand as a result of setting up a structure like that and encouragingpeople to have such input, they feel impowr and some of the best ideas we'veever had for Trapa have not come from greative agencies, they've not comefrom quote unquote, you know: sea, sweet, execatives, they've, come fro,they've come from people on the ground...

...on our team and one of the otherelements we have on the empowerment side. Is We really believe in adecentralized organizational structure, so the tritional structure in the inthe liqorate world at least, is t to very top Dan control from headquarters.Here's what you do here, your marchmors and hers years, peers ow to do it!That's o! We operate it all. We have very small regional teams with leadersthat have huge empowerment to make decitions. We I put a ton of trust inthese G and these guys and girls and Um, I should say mental adies. An really these guys are tossed with a ton ofresponsibility to execute quickly and if they worked at a large company likea Diajirprenaricard, it would take them ten to fifteen years to reach themilestone this lobal responsibility, but with Trauba if they show success,wil', mpower them really quickly, two or three years and I'm a big believer.I think it's an old, maybe an Ol Pattenquot that says: Don't tell people how to do things, tell them what to doand they'll sp theyll, surprise, wif their ingenuity and I'm a true believer.An and the old structure of of of top down, I think, is, is not the way to go to the structureof fast fluid nod lineer, where you trade, anelement of chaos, but you gain such mobility and such execution that you'reable to effect Omenoeuver your your competitors, Um thinkind actdifferently. So one of the things when the Chilge l me how we started a brand,what were so story an reliance and so bramerline versus properlined is youknow we thought well et's mimic what worksfor another company, their story and adjusted to ours. If we did that, wewould have been dead a long time ago, the world as crazy. That sounds theworld does not need another to Keelbrandm. So if I went and told astory, kind of you know built a better mose trap on an an existing story. Itwouldn't resimee. So for us we had to effectively. You ow really be different.If you look at know if you reabiographies or look at other thingsthat are you know in terms of history, a lot of the key pieces of of you knowof Wase people succeed as to be different in car card. Nat Pas andbeing different also mean standing for something having you know, having a belief within yoursales team, so you turn those sales people into into story towers. You turn your youremploys into preachers, and I can tell you every single one of our employs attrama could walk across a street for a significant wage increase, but theydon't, and one of the reasons is because they truly believe Im what thebrand stands for, and the last thing is is etloving your customers. Wecertainly don't have. We certainly can't outspend our competor, so we haveto effectively outlove our customers and I'm a big big believer of goodwillI'll spend. Sometimes you know if e Transactionis going to give me twohundred dollar value I'll, spend five hundred dollars to keep that customerhappy 'cause. I think that good will's going to apcrove n that relationship'sgoing to build nd it's going to turn. You know it's not going to be thre andollar game, it's going to be a three thousand dollar game and it doesn'talways work and it's still moralizing. Sometimes when you do something for youknow for a customer and they don't recognize it. But overall it's beenbeen amassive success. So, if somebody- and in the past this hat happened, I'vegotten calls at eight PM on a sarnegt saying Eric. We rented a Tru, thishappeninmore Ericho rented Atraba. Can you deliver emergency case Yep, I'mgoing to go to my garage and I'm going to like what are you doing? Are youcrazy, like no gotto, keep this cussomer happy and I didn't charge thecrust or anything for it, but once in my garage put in my car drove down tothe bar dropped off a case, maybe I had a drink and then and and then came down, and there wasno monetary gain from that, and sometimes it didn't even I hat anything,but I would say that overall, it was one of I instill that culture and Ithink that that lead from the front is a big thing to. If I'm, if I'm going toask my team to do something, I have to be prepared to do it myself. Absolutelyyou know, value is really under pin culture and culture 's such animportant piece of the puzzle when it comes to growing a successful company. When Don Bell, who was one of the foulershat west Shet, told me a long time ago, t s Azericits so much easier to buildin nurture culture than it is to come in and try and change it, and that'ssomething. That's always kind of resonated with me when, when we talkabout this topic- and it sounds like you guys- are all doing a good job abuilding and nurturing that culture and how important it is, even even whenyou're famously sexess, I'm going to skip around just a little bit. Let'stalk about mistakes. You know, we've all made mistakes, Anon tell us n onethat comes to mind or your biggest or, however, you want to frame it well,personally, just um silly so silly fun fact. When it comes toalcohol that I was I was when I was traveling. I mentioned to someone thatI've never been drunk my whole life, so f, people when we were off ot dinnerand Slovakia, and I told some of the staff that n they were luturiously. Mykids are like yeah, no I've never been...

...drunk so anyways Intestin, some somefrivolous, not important, ack te say something else IC. Maybe I been moreimportant Oor if you drink Tokila, and only to kill it for the entire nightand catric well, you will have no angle, exan yeah. In fact, I challenge youwaright s. You K W, as I said before, I mean we've made every type of mistake.We really have, and you know I think, that Um there's a couple of really big thingsthat I wish we did earlier in our cycle like, for example, having an operatingpresident for for so many years for fifteen seventeen. Eighteen years wehad this co, you know Coke President and the company. The company would haverun better if we would have brought in a the right type of operating presidentearlier, because my partner and I we there was a lot of friction Um when itcame to the day to day, like even silly things like the executive, Asno, pcycle ordering immentory the smallest things, even how we wouldrun a meeting woe'd be different, we're totally aliging when it comes tobuilding the companies, the values, the strategy, putting truth on the table,radical transparency, we have great conversations, they're, tiring, butthey're, very, very strategic, and- and we really challenge each other in agreat way. But I think that the the whole company would have been better ifwe would have brought in a global president. Earlier you N W, and I there's a lot of reasonswhy? So I think that's one mistake. The other mistake is if we would have had someone who really who could um the whole townside of thebusiness I was. I was telling you how we've Y hired this lady Taradeacon, whowhos was the chaire of the talent's Association for the world and she tarraast joined us from Td Bank.She was, she was the head of Talen for a hundred and sixty eight thousandemployees, and then, before that she was in City Bank in in in the US, RanTowen for thin three hundred thousand poys, but more importantly, is moreimportantly, is you know how you know the depth and the thoroughness and thequality of how she assesses talent and m? How grow talent had even the talk abouttalent to frame the conversation, a talent, so you know spinmaster would bea much stronger company if we would have had a chief talent officer earlierat the level that we have earlier in our career, a D, and thatthat's huge I mean I you know I could belowly spend the whole morning talkingabout tauent, you kind of alluted to it and, and especially you know, we're livingin a world today that everything's changed the reality is you can go onLingtoln and say: spint Master, peat of anything and you go on Lincoln. You cansee the name of the person to send them an emaild say he I'm debbi would youyou know, come for a Free Yoga and then let's talk about your queer, so we're in a worcount if you're intowntown Torontal, that's the reality right, uh everything's changed mean twenty yearsago would be okay. If you had an atrition rate, you know you'd be goodif Youwere, six, seven, eight percent, now you're good, if you're below twelvepercent right. So it's just yo K, W and loyalty is different. Right now, righteverything's changed when it comes to millennials and talent and people'sexpectations, the flex work hours so H. I wish you know that's one of themistakes we've made Um. I think also we m something I haven't shared before. II think that's pen master. We would have taken a lot of grind outif early in the stage, if all three founders had full psychologicalassessments Oky- and there was a complete transparency in each founders,blind spots and here and by Bius and the way they brn their rain processd-and I I there are no business schools thatsay this, but the the faster you put self warrinecent truth on the tableabout the leaders of the organization and say hey. This is my blind spot.This is mine here and bias. This is how I process information. Then you knoweveryone can get to their lanes quicker and you take out so much grind right,and that was a huge mistake that that we made probably costing me a lot of my life right because of the because it's such a serious topic. I think that right now we're in a worldtoday where I'm a huge believer in all psychological tools. You know my kidsat the age of nine had full psychological Qualitytan quantitated.Practically all three of my girls got...

...tested just in a proactive way, I'm a big big believer in Um. All these,you know, there's so many incredible tools for psychological profiles, and Ithink you gotto profile yourself and share with everyone else, because whywhy come to thewhy come to work and trying to do things th, you thinkyou're good at and you're, not good at, and then you stand and then you'recreating fruction intention points throughout the organization knoweveryone should just get into their unique ability, and you know turn turnyour day into your art and your hobby and cratmatic a solereness is soimportant and and the truth is we have veryin degrees with recognizingthat yeah, I just say on the top of a southf awareness. Wherever I talk inthe world, whether it's internal or external, it always comes back tosouthworeness, and I did a talk on you too, on. I did attack a Ted talk abouteight nine years ago and it was to fourteen fifteen year old students onsouth warniso was really duwn down. It was like a Ted Ax. It was a the OnterioScience Museum, but I can't see enough about south awareness and the way you'become Seltwul weare. Is You got? Do Three Sixtis you gotta ask people thatyou work with and say to them. Okay, I want to ask you some questions. Youdon't need o answer, I'm just going to write it down. I'm not judging you.What can you count? I me what can't you count me for you know what am I youknow you have to ask people questions you work with. Do with three: sixty dopsychological profiling. You know and you need to be obsessed with invitingfeedback right when it comes to selawareness. It's Selfawareness is a journey and whatever yourself awareness istoday, you can still hinten it. 'CAUSE selfawareness is an ongoing journeyuntil you die tabe biggest mistake Jeez. I thinkevery entriper has their own blind spots when you're traveling at you knowa hunred twenty hundred thirty you ton to miss things reflecting back. There'stwo things that I find and one of them is continues learning huring the wrongpeople, I think of resumes. You might find the best yogise with a passions ain their influencers. They present, you know they teach them of the mostwonderful classes. Um Having the passion in industry does not translateto doing things well and we learn it. The hardway we hire them on from. Youknow, early on as n instructor Um having the passion having to drive,doing the classes rigte and doing the clath as well andtransferring them over to management tea, because they also say that theyhave a passion, drive and and the ability to do that task. Well, but it's totally different skillset. Ifind that indifferent, Yo K W in our operation and that's why I kept myselfand my husband's role very separate. My husband leads and trains all theteachers at Yogatre, Hos RISOS. For the curriculum I Mosa, I myself actuallydon't teach, and we made that very clear thirty years ago to make surethat we don't step on each other's tost being in business and inpersonal lifetogether. It's very hard for us to make sure that we m continue how the respectfor each other and Contin to stay Mary. Nineteen years after but alsomostimportantly, I t you have to carve out that pieace Frinh um hiring. I thinkone of the biggest mesthing that we have is at we tak our time to hire. Butwe don't take the time to fire fast and it's harder to lite. Go of someone thatyou really have a connection with that. You have tha Um Passion. You knowtogether we develop that atyoetry. But how do you make sure that it was timeto let go that you can do it fast and serious, and we W had a challenges withthat and as a entrepreneur, you often don't see that in your blind spot, andyou often don't see that coming until it's too late until it becomes taxicuntil it becomes something that much bigger than the role a and become a bitmore than what you know the damage. I think people wuld to do. Um secondthing I find I had the biggest mistake- and I still regret it today is that intwo thousand and sixteen yogutre Az I mentioned to you open our flexion inTwentyn, fifteen bathe, undas and T. I told you that we stopped growing, butin twenty sixteen we made a decision actually, which I haven't explosed toyou to buy a piece of land. We bought a piece of LenniesWallenburry and our goal was to really spin yogustre into something else, andI think at that time we were experiencing qhite rapid growth. Wewere steady, but I think reflecding back to it. We were growing too fastand too much outside whatar or um or strengtless m well, in Eastcoan Bary, a thought atthat time was a Bya piece of land, we're going to be offering a retreatcenter we're going to be offering Walna Center, and it was infestment that at that time,Shegzr in Real Estate Bo Remembering Twenty Sixteen riostate was pretty muchat his peak, both in residential and commercial. We at that time purchase a piece ofland, but little that we know that...

...piece of land, although it was sown ascommercial, it was actually a residential piece of land. So we learndthe hard way you know being a entrepreneur. You can operate businesswell, but being a landowner being you know now a whole new. You know side ofbusiness at you never explore. There is multiple challenges. Um We went througha lot of legal hurdles. We had to obviously go through. You know athebate between us and seller. You know W at woul happen. How come is ocommercial tit is presidential. How come this place would never be a deemas a commercial space to be a zone and Bild as a commercial space. Long StoryShort, we lost half over the pall of it. We came to agreement, but also a biglesson for us. was that Um continue doing what you' do I meancontinue doing what you're got at you can deviate. You can grow, but alsostepping back to make sure that you know what you, what you have um you'reyour solit in your foundation, but recognizing that again, these blindspots had, I you know done my research more had I done you know, was owningveryauns had a hire, planner Hadi hired a consultant. Perhaps I could haveavoid that regards of what th you know, reaturlisting ses! You know it's it's areally common! So Ba you know whan you're, starting you're,starting up your business and you're trying to partner with everybody, andeveryone says who are you again? You know and it's really hard to find thosepartners, but, as you start getting success, more and more people startknocking on your door. Saying Hey! Wouldn't you like to do this, wouldn'tyou like to do that and keeping the focus on you know what's beensuccessful, becomes harder and Oror as as you'e become successful it's. Soit's one of those H K. You Know Eric Mistakes, you hear all the cliches butthey're true. You learn more from your losses and your wins. You know I'm thetennis player and I play tennis tournaments for fun and once you lose amatch, I spend more time thinking about. Was it my fitness? Did I eat right tille eat the riht O mot before it? You know it was a strategy with the tacticsyou know Di. Did I sleep this and then you're like and then you're makingnotes after your lofs, you Winnn't match and you're like great, and youget on the next thing right, but I think that when it comes to mistakes Um,it's so important that you keep them front and center Anvisible d. Whatwe've done our office is just here ose. I just walked over here our vanewofficeis beside Rhoe Thompson outside of myoffice. We hung the products that were bigmistakes and we wrote the lessons on it and the're on the walls outside myoffice. As you walk from my office down to themaster Boardero in the hall, you see us hanging up our mistakes, so one of thethings I recommend is to make sure that your mistakes are shared with everyoneand that they're visible, so that you so that you don't make them again andthat you know everyone continue to learn from it. I mean M, I'm a hugehuge, I think Radalia. You know an these book on principles. You know youknow he talks a lot about mistakes and and learning from mistakes in the power,and I think those are the inflection points where you can. It helps you. Themistakes are aremo. Sometimes the mistakes are moments where they'retesting they're testing, the entrepreneur and the leader abouttheire in flution moments. Testing you about. Are you? Do you really think youcan get to the next level? And what got you here? Ont Get you there and it'schallenging you to get on the BALCON. You reflect rethink strategy, wreathingpeople, reathing process, reathing systems and to make some seriouschanges and have that edge. Okay to make the tough decisions to get readyfor the next days year, ISIT's a big re. It's a good, read difference betweenmistake and failure, and that's why I'm purposely using mistake is mistake:only becomes a failure. If you don't learn from it and so take theopportunity to to learn from those mistakes, a d and then they neverreally turn into failure. I think just on that point. It'ssometimes easier for leadership to acknowledge mistakes having your teamand your employees and your sales people aknowledge mistakes is a bit ofmore challenging. Think just because you know it's natural to be afraid or Ididn't do it or pass the buck so having a culture where you know you have thatit's great! It's okay, mede mistake because you have to learn a GIOOTA UM. It's funny seems like there's a themewhen it comes to hstakes on. I make a million mistakes a day right. Sothere's not one big mistake that I think I've made that's. You know ut. Mycompany in jeopardy, and not next to zero to one of our one of our paymentsor something like that. But Um, probably in terms of I think hiring isis, is a big thenier and one of the traps that we fell into. Especially youknow in the liquor segment. Is We as you grow? One of the temptationsis to hire a big. You know an executive somebody with clouts sales experience aroll in x. You can use and say we're the's going to take us from here up tohere overnight and in the past we put...

...that first and we put culture. Second,and we said you know what it's fine and we've done. We wl mine, the Samedayhire him hire her. You know we'll gain all the benefitsfrom o their connections. People say wow t y, they o they got this personand we'll adopt them to Tronma afterwards, H, not that doesn't work, it doesn't work.Thankfully, wet correcte that now we've hired a you KN W we've hired a veteranwho we put culture first, an and sail second Bu Um Education is a lot easier than reeducation, because you're hiring folks that have five ten fifteen yearsexperience that have done it a very different way than Tramba and trying totell them hey. No, no, you can't do it that way and we're going to doit thisway, they're going to say well hold on. I built my career doing it this way,I'M NOT GOING TO CHANGE! You guys have to adopt t me so put in culture second and sails.First, never good idea and one of the actuallysome of the best people we've had at Trama have been outsiders having peoplethat have had no experience or very little experienced within thesegment and they've been able to mould weeen able to mould them an te'eadapted to our culture and they've, been some of our absolute taut,employes. Think Um. Another thing that we've learned alongthe way is an touch pon it before is is that cultural aspect. You know I startet try to treat our Mexican Um Productionso. We have. We have tenemploye ex. We have ou own office dawn there. I tryd to try to do businessdown to Mexico, like I did in Canada and that caused a lot of pain both onor on our operational standpoint, but also from my you know, fom my mentalhealth standpoint, because it's different cultures, different set of ofvalues. It's Indifferente, you know just different way to do business andagain they're, not the one WTO adopt to me. I have to wa down to them Um. I also another another thing aswell, which is you know, correcting your your mistakes, not reping the samemistakes import, but also, sometimes it past is a bit of a shell. Sosometimes don't just take a formula not worked and copy and paste it. You know, there's no, there's no sacredcows N. I find in the business world and we've tried to. We try to effect me.Take a former that worked in in Toronto in New York and Miami an trunt to putinto Los Angeles and kind of ignoring some of the outside stuff that wasgoing on and it didn't work because we said a worked here, workd to workedhere and therefore it's Goingna work in another market. I didn't just becauseWewere Watch two copy and pay, so I think that repeating your success issometimes can be as dangerous as not correcting. Esah mentioned the qushipprogram. Bt was apart of we other coks, O par of that program. We do a surveyevery year and every year you know the number one issue: keeping entrenors upat Niht of these igr compedies, O talent. You know people in talent and E we've heard F, heard Oo, all of ourpanalists and finding the right people that fit with the culture and have thecapabilities to continue to move the company Forwar, I ist so so prettical.I probably one more question fror me in then we'll open it up to the audienceso I'l be thinking. You know. If you were to give advice tothe group, you know kind of a really key learning that you'd like to pass onWHA. What might that be? First, I'm I'm really looking forward to the questionsI enjoy uncomfortable questions. Now I really I try to spend as many hoursof my day uncomfortable as possible, so so I kind of wake up uncomfortable andI go to bed uncomfortable. If I wake up in the morning and I playtennis in an uncomfortable fashion and then I go to the office and I'muncomfortable an I come home, a my girl will make me uncomfortable. So so I'mreally looking forward to some uncomfortable question so play tennis talking O ot flotters. Well, I play people better than me. Youknow and h try to figure out different ways to towin anyways Um. So a question is about. If you were toass on one thingyeah, Ithink it's important to understand that as the business of OLS. You know, Y, Uiffect the whole confept of a resettingstrategy. Right is, I think, the days of having a powerpoint and having abusiness plan, and then you know, following the business plan those daysyou know, I don't think that's the way to run a business. I think that oneneeds to constantly be resetting strategy, and you know for us for anexample of how we recect strategy over ten years ago, we're like content as king, and these are all thebenefits to owning our own content and that's when we created in entertainment,devision we're an entertainment company as much as we are a toy company, bothso um entrepreneurs they get, they get twothey get too married to the whole. You...

...know this is the stragiguistic of thestrategy. To me is is, is you know? One of the themes today is entrepreneursneed to be on the front one right. That's what separates if you, if youlook at the last twenty years founder, lead companies outproducecompanies without the founders on average, both of the statistics avebeing published by baying mckenzi Al o the, and there are three reasons why Umfounderled companies and one of them is being on the front one right andgetting all that information from customers from the marketplace fromemployees and everyone in resetting strategy based on how the market placeis C, is changing. So that's one really big UH ppornt, and I think the otherthing is is that the larger the company goes. It goesback to tount and when you talk about town, I a'll start with yourself right how you show up I'm still working on. You know like,for example, I've SMO. You know I'm working on. How can I become alittle more structured in the business 'cause now the company requires me toshow up differently like when I stand when I walk into a meeting anspinmaster today, verses ten years ago. I have to be a different person and I'stiring, because that's not my natural reptilian response. My DNA- that's notwho I am, but I need to as a leader of the organization. I have to show updifferently right, so Um, so much in business comes down tomindset the underpinning of mindset. Okay, psychology, anxiety and securityego right and what people need to do is they need to put truth on the table.Have radical transparency and people need to talk about? Where are yourpressure points when it comes to anxiety, ego, insecurity, sothawarenessmindset right because Um, you know, if you do the five wise andyou keep going to the Rucas you just you keep going down Laer by lar you're,going to eventually hit people, and when you have people you're going toget into mindset and how open is the person? Is the person, Wat, ficxsmindset or an open mindset? I mean thies great there's a basic book fromcarrold dwack called Mindset, tit's just the most basic book ever and ittalks about the difference between a fixed mindset and an open mindset right,and that applies to everything in life. It applies to parenting of lies topolitics. A plusto business applies to yourself. It applies to playing tennis, whatever you're doingright so um. So I think that that's you know. I think that as leaders you needto get comfortable understanding psychology. You need to get comfortabletalking about uncomfortable topics, which is you know, people psychologicalprofile right and and again you know Yo ll see if they comesokayso just treface.I I love Listenngo. I just want to be Charo on track with e questions. U Tone thing: Okay M! I'm in the health and WallaceIndustry, I think for us more than profed, more than growth is reallyhappiness and happiness in the sense that I think you can only chieve thatby having work like gallangs, even if your business don't last your familylost Um. For me, I have two young kids and I think you know how do we makethat happen? For me, it's really sheming not making sure that Um aYogutra all my staff, we epo the same thing most of the momillenials. Youdon't have to put in the most hours at work. That's not how we measure Su fess,but you do have to make sure you achieve great results. We use a lot of tools to make sure thatUm work like balence. It's achieved the yoguattre by having technology home BAETrelo, we use collaboration like slag. We Use to pee back with Hirfredrick,but I think the most important thing is, if you're happy at work, if you're ableto have that flexibility, you're able to carve out, you know meaningful lifebeyond just working, Atstido or taking classes, I think for us, that'sLungevady, howies business seem sustainable. That's surenoee comes oEtours Poy, the Ogantikela, those Atreervi Camba. We should take us onthe road wesed S. I ish a popis into partnership. How about your m? It's agreat question. I think I think kindof how we started. Thecompany was effectively ingraine culture of US great culturewith us to be successful. If we didn't start this way, probably wouldn't havebeen and by not me Bu, you know when we startd the bran wit effectively. Youknow ten thousand dollars in a story where no institutions would give us a nickel- and you know today it's veryver, very different environments, but back in those days they they d ywliteral off this o the Bod. And so what do did to us? I rember our firstbusiness plan that we gave out to an innustry expert t came back with more red in one it than black and the wordsimpossible can't be done unless you have a million dollarspermarkesosomething like that, and so...

...we had to look at it and take a effectively. The only way for sesxe would take an unconventional approach to Buildin his brand cause. Ifwe went tototow with you know, one of the big boys, even if we had twomillion dollars three million dollars, we would have died, a pretty quick downand one of the things that we did, which was you know we didn't. Do Itreally super consciously Bo, but we look at the strength weetnesses of our abor competitors, because the only wayto do this is to effectively take market share from them. The dkelmarketwas growing, but it certainly wasn't growing enough for us to effectivelybuild a really strong brando, something like that, and so we looked at okay.Where are they strong and where are they weak? And how do we effectivelyattack thetheir winknesses with our strins? And so, if you look at thebigger players, Um, you know th, they ha th, they're, very big. They have aton of money Um, they have huge distribution for he tugistributionforce and they have a lot of relationships. inbeded with indindustryt seems like a fun. Competito go agains wheree. They we, they. You know: THY'RE THY'RE, they're,big thrtheir infrastructures, rigid they're, slow, they're, very short termoriented and very payback focus, so they're, not brandbuilders their trethey're they're transactionalbase. So, as an example, you know doing this was beyond believe helpful for us, becausewhen they go to a bar, an restaurant, they would be line for the generalmanager or the purchaing director Um or the onor someone who's going to makethe decision where they say. I will give you this much money marking sport.You give me this many cases jop Don. I go to my boss and say: Look what I'vethought they haven't done anything to build their brand. They made atransaction, we would do the opposite, we would be line to the bartender andwe would tell the bartener story and they they would say this. You guys areridictuous. The bartinersmost of the Times has no decision making power h.You Know Yo could be wasting your time, they could quit tomorrow, but what wedid was we engrained that story bartener by Bartoner, Barby bar andinstead of looking or the payback, we built the foundation of a brand and weattacked kind of the Achilles heel again and again of our our compettorsdoing this, and we achieved you know infact. Bydoing this, you can take thown Golife with with a swinshaw Um. The trickierthing as well is it: You know an embedded that Rli base culture on us,which is a bit easier when you have no money when you start to have a lot olike a lot more money, nothing on the scale of the big bigboy levels, but tomaintain that culture, an maintain that payback and when you hire more peopleyou get far further further removed. An tey come from different organiz tospending to maintain the RLI based culture. An analyze kind of the majortransactions are making. Does this at value? Is this building the brand? Isthis? Helping uscheargi objective is something that I think's been reallysuccessful. Traucool, you guys think so much, let's, let's turn into theaudience, and we have time for a couple of questions. I think we havemicrophones floting around so rot: Thanksvery, mhrust D, Ite, yours ar th rls. That approach ORT enderson. It's a you! It's a really good questionand you scale your skill a lot more silly than while the bigboys would wont a scale. So as effectively is, you know, hand to hangcombak bar by barbottle by bottle and our strategy you know conventionalwithdom is you need to g, go into a distribution drive and be in fivehundred cens and five hundred counts? Maybe O sellication O cases. Ourstrategy is very different. Our strategy is, we need to beet fiftyaccounts and, from those fifty accounts, we're going to sell ten cases for thoseCam we're going to serve IC, Howar them they're, going to all know our storyand build in a build and it bills, and that word of no spreads between one barto another bar hospital into other hospitality and there's a tipping pointwhere it actually becomes infectous. And then you walk into a bar thatyou've never heard of and the person basadhe is ordering Trauba likethatthat's awesome. So I'm a big believer of of scaling in not sense Slo,but building that very, very strong Brown Foundation, because when the bigboys do take notice of you and they will they'll try to disrupt it, tothrow cash at the bar or ncentovize them to port their product and the BarTener. You you've already decommonitized your brand, so they'repouring it not because it's the cheapest, I mean you know we're on somehouse course, for example, in New York and Miami, where a Barkan Pai one third,the cost of a Tkila Han. They they pay for us and so t tha. That's intohesare,Highvala inbarsits Ou, now ten upon tens of thousands dollars a year, butthey do it because they love the brand.

Then love the valeum proposition. Theyhave that relationship. So it embeds that Rolk, solid rock, saw foundationcoolover. Here, that's a good question Um! So again you know going back to we aresaying we do have five very different geobrapha locations. What we do weekly we actually meet withour management team and we actually give them the support that they need.It is kindof like a Brigo session, where we review m using Ye, have a toolon the back in Kahai, Frederick, so before Shosha mead is huge for us, butalso fee bats suge for us. So what we have is we have a step in between wherewe drive feet back internally before it gets out to to to the public, and thatstep is actually very critical for us, because anyone was unsatisfied anyonewho has a concern or something that really triggers that culture unfit. Weprobably would notice it in that in that zone before it, heads of Te Tubleorheads out to something ind becomes blonful scale. Every week we meet with the managersthat we also meet with the front lines: Yo avisors and also instructors, wherewe kind of rains turm to see you know if there's something, that's not right,something that you got think supportwhat can we do to support eachother. We may not find the answer, for example, of richmos Medina, but we pickon the team band ten not to see if they can offer hand of support it becomes harder. I find especiallywhen you know our brand a one time was experienced a lot of rapird growh backin early twsand and twelve to twenty thirteen wer opening one store prettymuch a year and a half Um. That was hard for us in a sense that we didn'thave that connection and we lost it at that time. A we really to the time, twenty fifteento really make sure that we hone in on that to make sure that, even if wedon't have resources in human resources, what technology can we leverage to makesure that we have the support? So, yes, we cannot call everybody over the phone,Toisam hey how wis it class or you kN. Would you come back t the yogurt tree,but we can use other tool to help us with hat to to identify some of theweakness that we have and can as Stonas Nack in and a reflecton weekly meetings? F funfact. We have twenty twenty.Sixteen when Evu was with this, she mentioned the social media. Wecomshipped it's forty high growth, unthpeners, theyre, well, pest start upand we have a session that hear me. Ot help me out and everybody ASKD IM.Please tell us what this whole social imedia things Alou we're learning as well. We recentlyhired Um Jur agency what we DIPOAN, the passengotial media has probably changed,and I think we need to say Relavit. We actually have the same perre myself andEric Blue Door, there's no payment here, but I love La Um, my dor blued blue. IKnow Blue Dor, but but I find that you know we do stories.We we spread ourselves across three platforms: Facebook, Faceb intagrement twitter. We recentlytapped on a new platform, called wee check. We Chidis to make sure that westay relevant in in, as I mentioned, to one of the Coras Afversity we Chid asone of the fastest growing platform onchalgelmedia in the Asian segment, soreflecting in the demograph Acan and people who come at th, Yogat tre, wherenow on four platforms, but SHSHALMEAD is every evolving. Imean what we learn in the past in twenty Sixtaas hoodsweet rate, who useswho seet now they use other technology. So that's a channel that wereeverlearning and ever exploring, but Wa last lot. o Said Songes, thank youlot to Leor, arh Ha to Dewithha t would...

...quickly go. We were spoilt because our firstbrought irth budding cost US ninety one cents. W will sale it for three dollarsand fifteen cents. You know, and R ere really really were the Laborr you, andso we we were. You know very possible at the gate, one of the one of the things that we did do is weused the relationship, Sam Cosser Samcle sales who paid a cod. So inorder to ship Walmart we we we sent the Brok to sancle sales, theypaid a co and then they shipped it to Walmart e e early early in thebeginning days. So I don't think I don't think I'm thebest person to answer that question, because we were so profitable Oaly.Really all I'm in maintail. It's a slow growth,but it's sustainable. If you do things right again, making sure that wenegotiate hard actually and all leses 'cause, there's two things hat Imentiond to that went to do well number one. We need to makesure Wut control, apayroll in number two. We need to control a rent if we get to those twothings right: Youl be a sustainable and profitable business. We've been approached early stageon, mylocal companies to do Amerges in that position later on, as we get more on alist like brot five hundred one of the Faigorne companies, we got tration andpeople coming from the states for us right now, Yo be tree twelve years inwe're still privately owned by myself. In Jason, there is no minority partneror franchise or anyone else, there's no a long way for us to grow. Ifind that you know we're not at the scale doing a to be play: Frank, ith, ther,to do to do a merger or to do apposition. I think, there's a lot ofwork. We need to do, and this is a five year process. This could be a ten yearprocess. I don't know- and I think we have to recognize that you know thereare dos where you might get excited you may get these calls, it might keep youmotivated and the containit can be motivated, but you'll eto recognizewhere you are and is o the Rahe. Contrary to exit is AF reak timefreeting to Eman A and we recognized at the stage. This is not the right time.There's a lot of work. We need to do no El thecertainly, the market in thecraft, spirits, slasticulos basis change quite a bit Um. You know the some of the calls I getnow are guys that would have return my emails back in two thousand and twelve, but we cantur question. We we swam veryclose to sho. We didn't exceed our means because it'ssuch a capital, intensive industry and you can waste so much money so quicklyby doing things that don't necessarily Genera nything for the business, but Iguess stimulate stimulane your ego and so kind of w, where I am actually my myex boss and finance. She asked me what the biggest destroyer of value is andwhen I was, you know what s that senior Ana Si Wul say what was what was thenumber reason? What was the number one reason why companies failed a Wul OCosh Flo, a no profits, no ego right, so you know I remember turning down adistribution offer. We start we started first in Canada in Australia. We wanteda suxceed in our backyards. Before we moved t the. U S ever turned down adistribution offor. I think it was in two thousand fifteen or sixteen to forNew York state from a really good distributor. 'cause. We weren't ready,I mean, and he said to me: I've never had anybody turned down H, distrubutionafto os before, because it was it was insane, but we were ready to go so forus it was about again growing slow but growing smart staying close to shoreand not over extending. I also took no solor for two years personally, I tozrofor more many years, H, o Oo Igabate up for it you're eping up round. But if you'RNott repared to sacrifice Bosuon on a personal level, then you know T it's:It's going to be a lot more difficult to generate down to the cultural, antheorgasors in the backyard somewords Sofar Wes, the TATAENA. Well, my toughest feed back came right. When I started when I did athree sixty and my listening skill were five point. Eight out of ten, I was twenty like Oundtwenty, twotwenty three years old and Um Hen, I'm still working on myliingskills, ther're about seven seven point, seven! Now, depending on the date iexactly, no, I mean it's...

Hisa. I I get so much to be back everyday. It's it's exhausting, but H. Does that answer your question m A. I would say, mote thing, skillsright, entreprinners, a lot of entreprenurshave some form of DHD TTHEY! Don't talk about it! Rigt I did'T. I was neverdiagnosed with I adhd, but M it's quite common. An versal ADHT is j St such asilly label. 'cause of such a spectrum, Ri and I've never been officiallydiagnosed by anything, but you know I'm sure, I'm somewhere on the spectrum. So so I think that H, you know Spike Hig, spiclobe cals in the factright, as an entrepreneur, there's things that make you great right. Likemy energy ind, my PAC setting you know and Um Mi te like thereare certain things thatthat have been so so instrumental in the company'ssuccess. But at this size U K Ow, I need to show up differently. So it's just constantly rechecking inwith you know, you know: Where are you in the avolution of the company and howdo you need to show up differently? NTHAT? I got a jump, you know derectorecovered in and he had one more question. Eh. It was uncomfortable enough. I gotto get back to. I gotto go back tothe office I'r still running the business daytoday, so that this Mih, I think, fersonally M. my Olview is- is spend your time. Not Working outeur weaknesses. Bute, whowants to die is folling Tiss S. I thaslik like Myi life is forout your inenqbilities. An surrounders al o people covered on you, beannesses right, like so aron should people should spend most of your day.Eighty Ninson O your day in your inicability. What makes you great andwhat's the one thing to you, do better than other people and then just hirepeople around you to cover an your weaknessesright and Um. If you're ableto do that, then you K, ow illhelp, you grow faster, so that's just my rawanyway hes good to see as a mike ve hear. What's going on e crimase soquickly, Ye t, Youre, CI, O e, I'm inside of Trading Ge, to see a I sp les go back to the the first partof that our mestion and we'll believe it with NRCK and then we'll wrap usufter that ont think so much. I W wanted TCHACKER littlh Um doing too much Um as a womanentreprener as a mom as a mentor as a leader, but also as a janitor at work.You know you're doing a lot and I think you know saying nois really hard ingeneral, but you gotto recognize. There is atipping point. There's a brickin point where you take on so much and t nolonger functions that be a hundred percent CPASI that you wanted to be, and it took us a while, especially inthe early days, because yesoant delegate, but cash lows, also issue resources having the network was alsoan issue, and you always don't have that choice to delegate you don'talways have the choice to recognize a weakness and address it, and I thinkthat took time it might not happen today and woul not happen because ofthe circumstances. Your Ini may not happen because of the stage of thebrowth you're in but Wewe tol time to dress that and stolly and slowly as ardelegating and start letting go. And now, as I mentioned to Eric, I'm veryexcited. What keeps me up and IIS not work 'as on cash flo. It's about. Youknow what I'm going to do for school, Counsil Tomor, sending pizza lunch tomy kids, so there's different things Han in recognizing that it's a slowprocess to to fix that. But it's s something that y you might have onourgenda and to rerevisit that every year it's a great point it'. Anotheranswer to the questions earlier is that when, when you become the chokepoint,you can no longer scale and you have to understand when you become that chobpoint in your business and and start to delegate more effectively. What do youthink? It's a great question. I think one of the weakness is that stillplenty f Weeknessis, but something t that I've recognized that I've tried tocorrect is having kind of a food lindset sotaking taking a cueue for my for my children wher they get upset aboutsomething and then thirty, five seconds later they're on they're on to the nextthing. It's it it's it's funny, but it's really important because you don'tget balbed down, I the past, you don't get bobbed down with with old issues.You said: okay, that happened. I can...

...trust the best I can and moving forwardC. I I wanna think the panel h for for coming in and thank you in w an AirSixon you've been listening to theIbiongminor potcast to ensure that you never miss an episode subscribe to theshow in your favorite podcast player or visit Iv Dat ca forward, slashanthrenership! Thank you so much for listening until next time.

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