The Entrepreneur Podcast
The Entrepreneur Podcast

Episode · 2 years ago

4. Overcoming Rough Start Leads to Successful Sales w/ Pete Machelek

ABOUT THIS EPISODE

What do you do when everyone says no to your can’t-miss idea?

You change your clothes, have a drink, and quickly reposition.

Peter Machalek, currently the COO at TREC Brands, shared the mogul-filled story of how he started Adbloc Media right out of college.

He couldn’t wait to share his idea for advertising on ski chairlifts at a trade show. He entered in his suit. The attendees were in ripped tee shirts and sandals.

Fortunately, he’d brought some casual clothes.

His pitch was a sure thing. Would you like to make hundreds of thousands of dollars without lifting a finger or spending a dime?

Everyone said no.

Machalek was dumbfounded, perplexed. Who turns down free money?

You're listening to the IVIONTRERNORpodcast from the Pierre L, Morriset Institute, Farento Prenership at theIvy Business School in this series I beentrepreneur an Ivy Faculty member,Eric Janson will anchor the session. Imagine this you graduate from businessschool essentially broke sound familiar all your friends have their perfectjobs, lined upright ou e school, and instead you chose Seleverat to the lastof your student line of Credit and borrow money from your parents to starta new thing, because why not you fake Ittil, you make it andsuccessfully negotiate a licensing deal against all odds, beating out a muchmore established competitor. You then invest the last of your savings toattend the industry conference, where you plan to release your big idea tothe world and guess what, while you're there, you find out that the idea youthought was so exciting and new has already been done years earlier andfailed miserably. This is Peter Vohollick's founding story of adblockmedia. Today's leading chairlift Advertising Solution Peter successfully translated hispassion for snowboarding into a successful business, and in thisepisode we talk about how to get useful feedback and tweak your losing ideainto a winning one which, by the way he started doing at that exact sameconference that he failed at how to write a business plan that you'llactually use and do it in a single day. How To negotiate? Is the underdog andget your very first sale? This episode is a master class for first IMEentrepreneurs. Get your note book get your pen. You don't want to miss aminute of this episode all right today, I'm here with PeteMaholic previously from Ad Block, was going to tell us the story of gettinghis first company started and through to acquisition excited to Havey. Herethanks side, a beer wan to hear a little bit about how and where you grew up, I'm tryingto dig a little bit just to see where the entrepreneurial inkllings may havestarted. So where did you grow up yeah? It's a great! I guess question startingpoint, so I was actually born in Poland, so I grew up for about six years inEurope and I immigrated here with my family when I was six and I movedaround a lot. I initially grew up in North York and I grew up in RichmondHill, where my family, you know, did the Canadian American dream and boughta house, and you know from there went to school a University of WesternOntario and yeah that was that'ws Kindof, the path that I was on, but todive deeper into the question the just posed. You know it's interestingbecause I never thought of myself as an engrpreneur so growing up. I alwaysthought that it would become an engineer. I was very creative and Ilove to build things, and I thought that I would follow ind the footstepsof my father, who was actually a mechanical engineer, failing that itwould probably be me going into finance if it was something business related. Iwas great with numbers very gifted in mathematics and financial analysis. sthought that was my call, and that was my path and I think, over the course ofmy educational career. What I really realized is that I'm a very personableand social guy and I thrive on other people's energies, and I love to bringpeople together and I think that's when I got the inkling and the thought thatperhaps finance and engineering and everything that I thought I was goingtowards- wasn't really meant for me, and I was meant to bring peopletogether and bring ideas together and get hem to the next stage, an the nextlevel. So your dad was a an engineer. Was He trained in? Was Hou Trading PolNeer Rin Yep? He was educated in Poland, got it and then what caused em to comehere? You know it was the classic pursuit of the American Canadian dream.You know at the time this is you O. Poland was just getting out of thatSoviet era. Ot a communism. I think unemployment rates were still very,very high. It was hard. It was very difficult for a train engineer to applyhis education and kick start his career and what he studied. My Dad was workinglike two to three jobs, the same time yeah. It was a tough time, so a bunchof his friends actually did the same thing and they they flew out. They cameto Canada. They came to Toronto and sent back these ideas and notices ofHay. It's better here. You know the work and employment opportunity is alot better here, so he took a huge risk and packed up and came out and spent ayear away from my mother and and the family, and shortly after you know, wefollowed him and we came over and set up our new life interesting. It's likeI wouldn't think of my family as entrepreneurial, but when you look backto people who have immigrated, who leave a country that they'recomfortable in who leave their network of people come over boat, planewhatever and start fresh, that's pretty much preneurial, definitely and now.Thinking back to those moments. Taking that risk for my father was massiveleaps of faith. Yeah, absolutely you know, and, and he he didn't know the language you know hewas coming here with one suitcase,...

...which was actually entirely filled withbooze for his buddies as a present, but he made a work. He made her work andwithin a year you know we we came and falld to cool cool. So it was. You wentto Western thought, you might do the engineering thing following your dad'sfootsteps. When did you first realize that there might be entrepreneurialinklings? Was it ivy? Was it before ive? It was definitely before IV, becauseall throughout my high school career, I would play around a little in thesevarious different businesses. I had like a lawn mowing business. I had adetailing business. You know these classic things that kids, Try andexperiment with get their first foot through that entrepreneurial experienceo. That was fun. I learned a lot through that, but really coming intoivy. I had a big wake up. Call. I'm still thinking at this point that yeahI'm going to be a banker you know or something to do in finance, and Irealized how different I was and how different my personality was, and Ididn't fit into that specific mold becoming a banker consultant andtruthfully I was lost and my colleagues were getting internships with bigconsulting firms with big banking firms, and I was like I don't really want todo that. That's not me, and things really started looking up for me when Ipartnered up with an Aunchpreneur that specialize in the real estate sector inthe summer and therewas very late. You know internships were committed to andI got my job and I got employment probably in July June July. So Liyou're in you're well in the summer well into summer, still haven't figuredanything out getting a little nervous and yeah. I committed to do aninternship with Peter Kobaashi, its a great mantero mine, whois. Actually, apartner of mine and Ablock will get to that store shortly, but he reallyopened up my eyes into what could be done you on the entrprenarial scale.How did you find him great question so through the Ivy tnetwork yeah, heactually recruited from within, he was n Mba Grad, he loved to recruit at Ivyand saw posting and he needed a specific project to be executed andfilled. So we connected so he posted it on his own company website or throughnow, through iving Yeathrough, the ivy posting job jobborn Ivy Alumni beingloyal to the Ivy Network, exactly Nice Nice. So he gave you a shot. How wasthat summer experience awesome? You know he was a one man shop. You know itwas interesting to see that, because up until that point I was really thinking.Oh Man, you got to join this big company and learn from all thesedifferent people, and yet here was an awesome opportunity to be one on onewith somebody, a very brilliant man and get into his mind and truly, you know,understand the way business works. Business Ticks. So I saw this is agreat learning experience and good opportunity cool. So he gave you yourfor shot, got a bunch of stuff and your tool get you you go back to do. Fourthyear correct, where the heck did the idea for adblock come from 'cause. IfI'm not, you did it right after graduation, rcorrect yeah, sointeresting that you say that, because all throughout, as I said throughouthigh school, I kindo had a little bit of than entreprenarial spirit in me andat this point I wasn't yet committed into starting this business. I wasplaying around with a number of different courses. Most of the courses,an HBA two that I took were marketing entrpreneurial focused things that Iwas passionate and interested in. So again I deviated heavily away from thatfinance, Atypical Mathematics, finance, accounting direction that I thought Iwas going Ta head and the TANC Yor question the idea for adblock itselfthat actually emerged well before when I was in high school and I wassnowboarding in Ontario and it was negative twenty degrees at mounsing.The moonstone, and I was sitting there on a chair by myself, looking deadstraight at what was in front of me, which was a safety bar spenning aboutmouncing lew, it's a short lif, but spending about four minutes on thechair. Thinking to myself. Why aren't they advertising to me rightnow? Why isn't there an advertising message here? I mean it's, the perfectaudience the try and capture, and you locked in I'm locked in there's no offbutton. I can't jump from the lift m inches away from potentially this thismedium. That could promote something to me. Here's a missed opportunity thatsomebody should jump on is is also two thousand and Sixyes. This is probablytwo thousand and six two thousand and seven. Some are around that time forAme be lebal in despite the fact that it's twenty below are going to whip offtheir gloves and dig through their jacket to fine their cellphones correct.So long before the you know, social media aspect, Internet of things youknow this is this- is ALD school literally nothing to do, but stere hcool so that this you had this idea. Why didn't be sad on it for a year? Sowhy didn't you do anything about it back then? Well, sorry, no, this is. Igot to think back now now. This is well before, because high school was twothousand and three Houand Andtwo, two thousand and three. So that's mymistake. We graduated university in two...

...thousand and eight. I didn't jump on itat the time truthfully because I didn't think that was my path. I knew thatthere was an opportunity. I didn't have the confidence to pursue this yen. Ithink to your point. I needed little more experience, a little moreknowledge, little more skill set in my tol kit, but then, when I was inuniversity, when I graduated Mir, Kobayahhe called me up and hew's likewhat are you doing for fulltime employment? I really enjoyed workingwith you and Abblock was obviously at the back of my mind. I was thinking I'dreally like to start this business, but financing is going to be tough. I got alot of bills to pay. I just got out of school. You KN, I m. How am I going tocover those uh, the tuition, debt and the conversation when something likethis? Why don't you come work for me in real estate and I'll teach you thetrade, but I know you're very Enteprenerio, because we've spokenabout this at length over many many beers last summer. If you come up with any IDAS pitch himto me, perhaps we could start a business together on the side. Now I'mthinking wait. A second is a nice gray, hairedWise Guy. That potentiae just wrote my check. You know to do something withhim. I got pretty excited great, an industry that I'm not reallyparticularly interested in, but again I can learn a thing or two in in realestate and number two. I got this mentor. That's opentially went t apartner with me on something, so I sign on board started working with him andwithin the first two to three weeks of us working together I told him aboutatblock and he kind of looked at me and Sa Hu interesting and you went back andprobably did his Sol searching, and then I think this was on a Friday andthen on the Monday or Tuesday when he walked into the office. He pulled measign. Hi Goes: Have you actually mapped this out likedo you know what the opportunity looks like yeah a little bit, but not so much,and we sat there at the boardroom table for about six hours and we did what wecall the back of the Napkin analysis and it's Berin, because we did it on ontwo sheets of White Paper Him and I doing eur own analysis back and forthjust identifying opoking hole, seeing what the markets like seeing whetherthis is a real opportunity that we can generate some some money from and afterthe six hours we lookd at each other e. ' e like Yep. This is something Hik canmake us some cash, so this was wh. Was it exactly? Was it like? Acombination of you know who's the customer. What's thepain? What's the problem was it? You know how big the market was it? Whatdid you guys talk about for those few hours? Yeah, it's a great question, sowe definitely identify that. There's a misted opportunity here. For the samereasons, T T I identify when I was on that chairlift I mean there's thisability to to throw an ad here and nobody's doing it. So our assumption iswell. Let's take advantage of that. An people are selling advertisingeverywhere. Why can't we do this? The analysis was really centered around. What is how big's the market and what would we need to capture in orderto make this aviable business order to generate x amount of millions, and wedid it on a very simple basis and funny thing is: I actually did a little bitof research on this very early on that I shared with him,so I had all the stats applicable to the local sciry. I, which s BlueMountain, and I understood exactly how many carriers they had. I I understandhow many units would need to out be outfittidg on a chairlift. I also hadproliminary conversations with product that I already identify, which wasadlock so identified this to be a good product. Instead of reinventing thewheel n making our own, we could license this product from this guy thatdesigned it and owned it out in New Zealand and UH. You know we're tryingto come up with what will it cost us to outfit a chairlift and how much revenuecan we generate? So we did some quick research on line to see. You know whatan average posterboard is sold. You know in a washroom and we compared theaudience and the environment of a washroom to our audience in ourenvironment, thinking that and we could probably sell it for a premium giventhat skeers or lad wealthier thereare much more premium audience than thetraditional. You know, bar restaurant washrom patron plus you're in aspectacular environment, doing something you love you're, not going tothe Washerm, you know and doing heur business right. So there's that aspectas well so six hours I mean that's it's interesting, because I feel thatsometimes people can get caught up in overdoing it right like you didn't. Itsounds like you had done some homework before, so that six hours wasn't thefirst time that you sat down to think through how big the market was. Youdone some homework cras at the same time, you just didn't. Let it youdidn't, let yourself get buried in like buckets of market research, and I needto do more homework and more homework and more homework. It sounds like youguys, sat in the room and decided after six hours like there's something here,yeah and and truly the...

...that point. That pidlepoint was when wedetermined what our net revenue would be on aperchar lift basis and based on the numbers that I've collected from theBlue Mountain example. It was sixty grand so a year we could generate sixtygrand off one chairlift whe were to outfit it with Eur Product. Everythingpaid for so product covered commissions paid in all sorts of other analysisthat we factored into it sixty grand net, and when you extrapolate that,based on some research that we did across x amount of hundreds ofchairlifts just in Canada, you know Ye had a pretty viable business. So atthat point we looked at it and we said wow, okay, well, there's somethingdefinitely here yeah, so I think we'll get in this a little bitmore later, but again back to iffectuation what you know who you are, who you know hm you workedwith this guy that you already had a r previous relasonship with, so he knewthat you weren't. You knew that you were somebody who's going to work. Higd,B'cause Yeu worked with them t the summer before, so you had somebodywilling to help you out fund it. Actually, if HEU brought hem goodenough idea, skiing or snowboarding, did you randomly decide that you wantdto do something in in the industry? Yeah? No! And it's a very good point. Skiing and snowbearing has always beena huge passion of mind. I mean it's, it's the reason why I took a seriousstab at this opportunity and identified it in the first place I mean I wassitting on a chair left and I looked around Si made a missed opportunity. Iunderstood that industry. Well, I understood the market IV skied and manyparts of Canada and the states of the time a little bit in Europe. So I understood the way that sciry asoperating understood the audience extremely well howere. I was theaudience. I knew what made the audience tick. What brands would be attracted tothat audience? You know and it's such a diverse audience set right. I mean you,have you culd hypertarget in so many different segments young guys, you knowthe the old boomers that are very wealthy and oufluen families, motherswith their kids. So you know it was a divers audience set. But yet to yourpoint I had ta good understand the market. I mean it was a passion, tofmine, I loved it. I wanted to get involved in this business and pursue itbecause I was so fired up and excited about the market and the industry yeah.I don't know if you're public, but I mean checking o your instigram. We'vebeen friends for a while, but we're looking through instegraad. It's like Idon't know, third of Emer ski picks, right of course, at Palpet panats. Youknow. That's my alias that was coing many many years ago and my friends areUr pawpede. I try and chase the powder in the big mountains every winter. Sosurprise, pet starts a business in the snowboarding skiing space, okay cool.So sometimes we talk about founders of companies having call it a hypothesis or like a strongopinion about things that they know to be true or things that will be true.was that was there anything like that for adblock things where you were likeyou know, we know that in the future there's this trend thatwe just like so strongly believed to be true. was there anything that like hada gut level you just like, knew yeah? So one of the things we felt as if you know we, we had goodgrounds to believe in this and just to take a step back. The the businessmodel that we were working off of and thet we were going to develop, was without a chair left without scars,there was no business and we had a product that we've Identifi waspotentially really really good. Fi. We didn't have the product yettherethere's a whole story around that and securing the distribution rightsfor for North America for that. But we had an idea of a product that we wantedto bring to market here in Canada and in the U S and we need it. SCIRIES andthe business model that we were working off of was that we were going toinstall the product on safety bars for free. We were going to cover the fullCapeks, the the installation, the investment that will be entirely on us,but as a result, we'll be able to sell advertising space and essentiallylicense the safety bars from the SCIRIA, sell the od space and give a smallkickback back to the skirea. So our whole business model was based on thenotion that I'm gonna use your safety bars generate revenue and give you arough share. Give you a kickback now in our eyes and in our opinion of thatmoment, who the hell wouldn't go for that no brainerno brainer. That was, aswe say, that was plane that was pane. No Brener it' sitting there idlol rightnow, you're making no money from it. Why not exactly? Why not monitizes thataced, we have a fantastic product, are we'e going to get it install we're in Ogost tell a ton of advertising or to give you kickbuck sense. So our initialpitch in our initial approach, you kno. Well, we actually coin. This was makehundreds of thousands of dollars without lifting a finger or spending adime nd. Think about that N. I would resinate with anyone. Yeah reminds meof the new couple of buddies who are in sales atthese new restaurant delivery. Companies, like you, think about inLesen Toronto, there's there's a bunch of them now uber eats but rituals, one,that's really growing quickly and God...

...to be a salesperson for some of thoseearly days. Like literally you do nothing. We have this networkwe're going to get people to order. They just pick it up. You literally setup a shelf and do nothing to be fair. There's, probably a lot more to it thanthat, but yeas sounds beautiful. Sounds easy. YEA SOUNDS EAS, sounds like agreat pitch. Sound a great pitch, I'm in so talk about to use our our terms,analogs and antilogs. So analogus things that so you've got this a couple pieces of paper business plan.You've done your homework. You know the market. You've got a guy willing tosupport. You. You've actually had preliminary conversations. You've gotyour pitch nailed down. was there anything out there that you saw thatyou liked that you wanted to sort of mirror some of it after and it could bein adjacent totally different industries. You had already mentioned,like bathroom advertisements and inversely. The other hand is thereanything that you saw that you didn't like you know other again could besimilar businesses in that industry, someone that had done it in a differentplace that really screwed it up or other things that you picked up in theadvertising world that you were like. Oh never going to do that so goodthings. You wanted to copy bad things. You wantd to stay away from yeah yeah,great questions, so the bad things that we want to stay away from. I mean a bigpart of it really rested on the product. The product was everything to us andyou got TA. Remember that me walking into this idea. I'm like going todesign my own dad's, an engineer. Et's put together this product Ti ocatch,build it from scatch. Now the reality was, you know, y. You go and consultyour good old uncle. Google and Google spits out some good feedback and someof the feedback I got was wow. There's some products out there that alreadyexists there really two products that I found during my research. One of themwas a company called skilift media that was based at a bamp in Canada and theyhad a very rudimentiary tube, like structure that they were wrap aroundthe safety bar. I don't know how I got my hands on one, but it convinced theguy to send me a sample and he did, and when I saw this thing, I was notimpressed paused for Asecond 'cause. Typically, Iwas a student Ontreprenerto and that first time, when you google, something-and you find the thing- often people are like- that's it- that's itsomeone's already done it. It's a Canadian company WHO's literally doingthe thing that you wanted to map out. You didn't drop it. There yeah greatquestion no and at the time and again we'll get to this later. But at thetime my focus- and this is a narrow focus- an near way of thinking throughthis business. But I believe that I wanted to be the guy for Ontario. Ionly cared about a few scirs in Ontario. I Thought Min ous to be like yeah. Icould probably make you know: Half a million dollars off this business, justin Ontario TAT's, a good little business God. So you weren't deterredbecause no one was doing an Ontario, correct fact that someone was doing it,seemingly OK with a bad product, Ot West than that was an opportunity a etand truthfully at the time I was like. Well, let me take a look at thisproduct because, if it's good, perhaps I could just use an Ontario, and thiscould be something that I could replicate in this market and the way wego allright I go to business cool, so you keep going you s. There was alittle the one product T. Yes, the one product that was sent over to me as asample horrible rvery bad. I mean it's it's. Iwas not impressed at all, but you know continue doing the research and therewas a product that seemed really really sharp it was. It was very sexy seemedlike it had a sleek design. You K website collateral, anything that Icould find on. It seemed really really good. It was product out in New Zealandother side of the world. You know called adlock horrible name, butregardless it was called ablock and I reached out to the owner and at thetime the the company that essentially owned the license her own, thedistributorship for the product. It's called Alpine media, limited good oldgrant. Metson. We still call into this day the mad scientist who came up withthe product and with the design a we had a number of discussions back andforth, so you're calling New Zealand at this point. Correct AC, I mean firstemailing, you know. So this is my first. You Know Takand, I'm still in schoolright. I'm gathering some research trying to see whether this is viableand Sayus. I'm punching out emails, anm trying to work with us on now mucholder, much more experienced gentleman on the other side of the world andtrying to see you know whether he'll sell me his product, so Itas aninteresting learning, experience and exercise funny enough. At the timethere was actually another Canadian company based at a Toronto that wasalready chatting with him. Yeah t a a media company that was trying to do theexact same thing as him, and all this happened within six days me finding outthat inus happened within six days of us meet Peter and I my partner in thebusiness doing that at back of an Apkin analys, isn't that bordroom. So I thatcompany in Toronto, just doclarify they they were talking to adblock to licensethe tech they weren't doing it...

...independently. They were like talkingto him at the same time. They were media company, they were doing allsorts of things. Media related have already got all the prover Ol thebrands yeah yeah. They got, they got relationships with brands. They got alot of things going on yeah, so Ta talk about h. You know, kicking the plan butstill persevered. I was really really driven to trying to win this guy'strust and try and license this product from him. So I came back into theoffice with Peter and we sat down. I told him Pete. We got ta jump on this right now. There are other people talking to thisguy. This is the product that I want to use here. The reasons we need to put aplan in front of him. We neen to get on the phone we need bring him down here,went to fly down there, whatever it is, but we need to be the guys that do itfor Ontario and maybe even Quebec, and that was kind of my position andobviously we analyze the whole skill of media opportunity and we said well,these guys are doing it Est. Why don't we stick to the eastern industry ormarket or ski skary market as a side? No, it's skiing in Canadas only reallyhappens in Ontera Quebec, Abird n BC, no skersin er, so that was her focusEast Coast, Ontario, Quebec and sure enough. You know we we acted quicklyand we put a plan together and fast forward. You know several weeks and wewon the exclusive distributtor ship rights for all in North America, notonly Ontero Quebec, but all of Canada and all of u s some kid still in school,you were, you were still in school at Typ. No, no! No! That's! That's! When Igraduate you graduates are graduate, so you ' fresh out of school three days orthree weeks or three months or whatever. How did you do that like? How did you Idon't know whether this guy was just using it for leverage and telling youthat he had somebody but didn't, but like Ow, did you and another dude froma real estate company convinced these guys to go with you over the company?Who already had the brands signed up now, resumably, yeah, so great question,and, and it wasn't smokeing mayors we actually met with that company and theytry and collaborate with us o you met with the Toronto crrcty go so weactually met with him an we wanted to see whether there was some way of us being able to partnertogether and do this properly. So we explored all avenues, which is why Iwas actually dragged on, and we took some time to to finalize this deal withgrant out in New Zealand. You know it's it's a great question I mean a bit of it. Is I mean a big part of itis hustle, but the reality is what really want US grants. Trust is theproper plan and over those next weeks and months we put together what we feltwas a stellar plan and to get to that stellar plan. We consulted a lot ofexperts, so we great point Peter, and I had no clue about the media industry.We Dot know how to sell advertising. We didn't have experience in that space.You know he had some good business knowledge based on all the businesses.He ran ind his real estate business. I was a fresh Ivy Griy like we're bothvery well educated. We have a good understanding of business models, butwe dodn't know how to sell advertising. So the very first thing we did- and Ithis is a key lesson that I will still repeat to this day. You can't do it allon your own, surround yourself with people that can help take your businessfurther and one of our very first partners. It's a Gud by the name ofStefe Palver, which his claim to fame is he started echoadvertising and hewas the first bootique creative shop that one a massive account which wasbudweiser and and their their entire business. At the time, so he was a guythat Neu and understood advertising in media and Peter Actually knew himbecause they golfed at the same golf club. So you Kinda, you know what Ithink I know a guy. That knows a thing or two about this space. Let me givethem a call, give hem a call. We took hem out for beers at this time. Wealready had a sample in hoir hands. We gave him the short Sspiel just showedhim the product, he wasn't even a skier. We just told them about what it was andsome of the features that we felt. We should highlight to a media guy that Iwould be beneficial in that we felt will be able to award US media business, and he justsaid this is amazing, O I'll, never forget this. He goes guys. I knowexactly what this is. I nead to hear more. How could I be your partner? We instantly made him a partner. Heinvested a bit of money with us, so he had some equity in the business and hewas the guy. He was our our third pillar that understood the MediIndustry. That would help us open some doors and would essentially be you know,de facto mentor. You know slash advisor on that side of things. So going backand building our plan. When you look at management team again this guy freshout of school, you know not a lot to to say not alloted to write id be Grad,though ivegrate very important, but not recognizing New Zealand right, but allof a sudden we're building our executive team, we're building ourmanagement team and we got Peter Kabaashe- has ranand a few businessesunderstand business, really well, Stefe...

Palver! You know very impressive resumeas it relates to the media and advertising industry is part of ourteam, so I think that helped a lot bringing the right people in you knowfrom an advisor or partner perspective. We also had another guy that joinedthat in a similar capacity, and was that part of the pitch that you put infront of at block at the time correct got it so so you had you had the media company side coveredwith this new partner, you ouht toabsolutely, we did yeah yeah. Did you put in money? Did youpersonally put a million Peter, and I both put in a bit of money when I s Iput in money the Bank of Mom and Dad Yeah? It's, I ow a lot of my success to them a lotof th the proceeds and the dividends that are coming out of the sale of thatbusiness, since we sold have ve, of course gone back to them, but but yeahthe Bank of Mom and Dad Support and finance that Nice. I'm wondering howcommon that story is because, like you, I paid for my own school and then withmy remaining line of credit like days before the line of credit was up. I had,I don't know thirty Grandin Room, took it all out and used it as a downpayment to buy. My first rental property in O it was like. However, youcan get it yeah, yeah, exactly cool okay, so you now get the exclusive license to the NorthAmerican proct. You musthav Hade a bunch of help, negotit ing that deal.That's a pretty big deal. Yeh I mean the the heavy lifting was Peter Myself.We both worked on that. The entire relationship, though, was driven by meand the way all communication was done through me. I had the relationship Imean it was all phoand Scipe. You know emails stobashowrashop with this GuyPeter. Let me you know really champion it, but really what's sold grant on uswas our big picture approach, so we were fighting for initially OntarionQuebec and what we failed to appreciate and understand about the media industryis no big. Brands are going to come and buy your media. If you only have little select peace markets, nobodyreally care about just Toronto. Who Really Cares about just Montreal? IfI'm allocating budgets for my media spend as a big advertise like if you'reRogers Kokerpepsi, you want a national program and you want to spend a ton ofmoney and one soup- you don't Wantta, you know, spend a lot of time buyingthese little media properties. So again, this is something that we learn fromSteve Palver and doing some research in this space in the media industry. Butas a result, what we really need to create was a national network ofscerias. No longer was this in Ontario Quebec endevor. His is like we need allof Canada in order to attract the big brands. So we went back to grand. Wesaid. Look we're not we're not thinking small scale, we're thinking all ofCanada and then we're going to walk into the US and roll this out acrossNorth America. wherer you'r North American guys got it got it so now,you've got you've got a product. You've got maybe not brand signed up, butyou've got access to brands. Do you just graduated now wel? WhatYeah? Where do you HAV T rom here yeah? So you know the product. PIEACE is mostimportant because without a product to house the media, well Sh Cono, youcan't just put a sticker on safety bars, so it was important to get the rightproduct you got to get scaress. How are you going to get thse chair lifts right?How are you going O be able to license ths this chairlift? So we sorry before we get to the sale partalk the product for a second. So you I remember what you're talkingabout there was, you might be getting there with yoursales, but so yeah? Okay, I I I'm jumping ahead. 'cause the product is areally important piece. It is it was. It actually is a big differenti eaterbut you're to come back to it. When you talk about t absolutely you're you'reon the right train of thought, but I think it's important to tell the storyof how we walked in how we had those meaning and then how we differentiatedour positioning. I was jumping ahead, yeah, I'm embarrased! No, no! No! It's!It's good! 'cause you're thinking on the right path! I love it. So we tookthose meetings and sorry take a step back. We again did some research. Goodold Unkogoogle told us that the best way to talk to as many scaries aspossible, face to face s go to a skeria. Trat show makes sense right, I meanthey're all ell there get 'em all get 'em, all so perfect timing, because there wasone that was happening at mount snow and Vermont. This is a the times aboutJanuary, so we've secured the exclusive distribution rights for a product inCanan. In the U S now keep in mind. This was two thousand and eight, and we are nowin two thousand and nine and we're just having conversations with scares intheir winter season. CAXL is busy time for them. This is busy time for them.Now we weren't anticipating getting this product on that winter, we'rethinking the following winter, so that...

...was built into your plan exactly twothousand and nine two thousand Sen. This is still preliminary research, Ouknow getting things off the ground. I mean we knew it was going to take awhile, especially due to this seasonality of the nature. So we walkin into that tray, Sholl and again pitch is a no brainer right funnyenough. We actually walked in there. Looking all suited and buded thinkabout you know, banker consultant ties suits dressed of them. Just came fromIV. Youe got to look the part exactly right. That's what I figured everybodydoes business that way, of course, you're doing business. You hot to lookbusiness now side lesson here, no your audience! So you got to appreciate thatthe skiry industry they're, like Khakis, ripped tshirts. If that some of Hemwere golf shirts, you know like sandals. If it's the summer, like they're, just super casual and it'sfilled, I e its skuse heavily to old white male like fifty sixty plus, sojust an old boys club. They all know one another they're, all very, verycasual supernice guys, but it's essentially ski bums that startedworking as lifties at Skiros and then slolly migrate in to managementpositions that are now running. The skir is that's the story, so new guys,roll in Yow guys roll in suited and booted. I got to tell you, I don'tthink I've ever turned around so quickly from the doors think God Ibrought in some spare change of clothes, but we shot straight up to our to ourhotel rooms left the blazers behind you know, put on put on some golf shirtsand went back down. You know we didn't want to look like the silly guys thathad no idea don anything of in the industry. So we came back we're we'rejust a little more appropriate for the audience and we used our pitch do toget a booth or you just nowno, wer briefcase, that's what they called it.Wewere just walking around. We didn't get booth space at the Stok againtrying to limit our our financing or limit our or cash outlays and spending.So we started walking around and you know one thing that I was good at atthat point was sails and really reeling people in fullof confidence. Young twenty two year old, Ivy, Grad Right, walk up toanybody and start a conversation n. It was fantastic and itproved to be agreat acid in these scenarios, because we ended up chatting with about fifteento twenty pretty important senior managers at a variety of Scirias allover North America, and we used her pitch. Hey Jon. Let me talk you aboutsomething you know. How would you like to make hundreds of thousands ofdollars without lifting a finger spending a dime, it's funny what theright motivation will do to to go talk to strangers, because I wouldn't saythat I some people are totally comfortable,doing it right being at the conference and just randomly walking up to people.I'm not. If I'm honest, I I don't love to do it, but when it's your ownbusiness when like deals, are on the line, you got line of credit orparents' money or you growng money in this. You better believe you can turnit on for what, however long you need like you just become a different, it'sa different gear when it's your butt on the line yeah an and to to add to that.I think there was a great deal of excitement, so you got to appreciatethat we thought we're selling the best thing since slice. Bread right likewere you're, going to be so fired up about hearing about this, so our firstso again as I was mentioning or first three conversations, here's the response, Peter, don't even talk to me. No, no! Sorry! I don't have time forthis. We were dumpoundn perplex, free money.What do you mean? No, what do you mean? No, what are you talking about couple of Nice guys from Canada?Finally told US Gus? What are you doing? Argiin agauntlet, Ike stuff has been done before and has miserably failed per,and I both look at each other like yeah. We just we just get this license foradlock and and Thow we're screwed yeah I' Turn White Li e O great end of ourbusiness. You know even the the expense of this trip. What a waste kite tell me more. If you don't mindgood sir well, there was there's this product in the seventies and thatproduct in the eighties. What's wrong with him Wele a few things number one: they all fell apart,theyere Shit, they did not work properly. You gotto appreciate this scerias negative twenty out in theelements thermost cycling aspects of the environment. It's raining one!Second, it's snowing the next I mean these things are there to stay right, high sun, Hiyuvi exposure. These thingsneed to be designed really really well to go through all those elements. Number two you're, not the first skibombs to identify a great opportunity and Tryn to make money out of this yeahp a lot of people stared at that safety...

...bar and thought I cald make moneyoffice. Let me do it Elyues what they came to us. They promised US Tona cashand they never delivered. Hu, wonder where that is. It seems like a greatidea that advertise would actually buy our partner, Steve Polver, who knowsadvertising in media claim that this is amazing. Must be something wrong in the model,an the previous model of of how they approache this and number three? Is Wedon't want to make this an intrusive media for our audience? They spent aton of money to come to the spectacular environment and get away from ads. No we're just we're we're opposed toadvertising, and I don't want some local pizza shop, a real estate agentto showcase you know his brand no like, were it's not the nature and the brandof our resort of our sceria they're thinking like cheesy local oneof pizzashop, exact? Well, that's what they were used to that's what they got fromthese previous entrepreneurs right. So how did you we push a lot, get outside the buildingand talk to people? You said that you talked to them before at skiills. Howdid this not come up before? Like was Peter at this point, looking at youlike yeah, so so we talk to a very smallmarket t because I don't have the ability to go out and travel. You knowall over different markets, so we spoke to local SCIRIAS, blue mountain andMounsi Loui. MOONSTONE AT LOCO TO TORONTO, they've never experiencedthese sort of products nobody's ever targeteed them with this sort ofopportunity, so they were outliers, I would say, but a lot of businesses inthe states as an American scariatracholl. So there was a lot ofrepresentation from the states summer, representation from from Canada, but ingeneral yeah they they saw a lot more of this down there. Okay, so ideas dead, everybody packed up andwent home, but yes spoke to a lot more people just to get their feedback. Youknow document and all this h. What did you like how Dod Thos conversations goget into the like? If you can recall 'cause these, my students now are goingto have to do part of the Courseis to do customer interview like you need togo out and have a conversation with customers. What questions did you askwhen someone says stupid idea? Hav been there done that, like turning your backand walking away? Isn't it's not helpful? So how did you get tosomething that you could like? Oh, that was the thing that was wrong with itheot get. There dig deep. You know ask a lot O, why a lot of how? How was itdone? Why was it done that way? What didn't you like about it? What'simportant to you? It's also interesting to know that the responses that wereceived varied based on the role and the title of the Person We spoke withso marketing managers, for example, were very aware of messaging and werevery reluctant to show case cheesy advertising, whereas operationsmanagers didn't really care about the money or the marketing opportunitiesthat were coming, they cared more about the operational integrity of theirchairlift. If a chairlift shuts down because one of these products fallsapart, I mean that that is the livelihood of the ski area, so theycan't have that that's way more important to them interesting. So howdid you doc where'did? You put it all notes, after speaking, every singleperson idle. Yet we got business cards, always iming luck. Everybody in the skiindustry is Super Friendly Right, so they would chat with us. They just thdidn't want to chat with us about our product, but if you're nice about it-and you ask some good questions and if you want some feedback and theyrecognize that you're an entrepreneur- they were generally pretty good aboutit and they gave us there. You know three four or five minutes. It's also acase from a sales perspective. It is a case of reaching them a D and speaking to themat the right time right. So obviously, if they're engaged and something elseor naother conversation you're now reeling the M en and Tryng to have aconversation vote a product they don't care about. You know couch 'em at lunch,catch when they're getting a coffee Ey. Could I chal with you about somethingcasually? You know we. We took a very casual approach to it after a while,after a few of those negative initial interviews or conversations ru regroup,what do you think of t this product? Here's? What we're thinking of doing.We think we could generate a ton of money for you guys you're not going tohave to spend anything. What do you think yeah? Did you play the onEntrepreneur Card at all? I find it's a balance right. Sometimespeople want to send emails like almost like a sympathy. Email like I'm a I'm,a student Preneur, I'm just doing some research. I don't really know. If I'mgoing to start this we'd call it the the reluctant hero yeah versus I'm annopreneue. You know this is my. This is my venture that I'm working on it'sinteresting, that you say that because perhaps to my detriment, I h I I neverdid. I actually took on the approach on the other side of the spectrum where Itried to appear older, more experienced. I carried myself with a lot ofconfidence and I tried to prove to all my prospects and everybody that Ichatter with that. I was designed and then meant for this, thisrole in this job, and you know this idea and that I was going to bring hima lot of money and I was very confident...

...in my ability to do so, so it was neverdown to Oh, you know, I'm I'm a young entpreneur. Please help me out. That'swhere you're getting at Ya, but no it was all no! No! No! I'm I'm going tofold your a professional, I'm O of Fachione, I'm not just a student tryingto figure this out like this is legitimate, exactly yea. Okay, so yougot a bunch of feedback you recorded it. You've got a Lottl written down,Peter's not going to leave you as a partner he's still invested in this. Sowe're wo've got this feedback. Where did you go from there? We went back to our hotel room anddrank a lot of beer n, of course, of course, at the bar M, and we reallyneeded to retoil. We needed to figure this ow, because to your earlier pointwe know that this concept works. It's worked in New Zealand for seven yearsad, all the SCIRIAS I mean much smaller market, there's only seven or eight ofthem, but it's been working for advertising for scirias there. Therewere eighteen thousand of these unins deployed in Japan, chille boughtproduct. You know like this. Thi Product was working for Isaway. Thereis Aweathereis a way. There is a way we just needed to figure out how to position this properly and sellit well to the SCIRIUS. That's what really that's what it really came downto so did we give up hell, no yeah, I'm notgiving up on this. This is my passion. You know I gotto keep going. I I wantto be that skio that makes money off selling that space on shariff safetybars. So somebody borrows money from his parents gets on his first flagtgoes through his first conference where's his new polyester suit. Yeahlooks the part it gets rejected a hundred times and decides no classic h tail of an enchpreneur. I,like it yeah like yeah so y, you got to have a thick skin. Youe got Ta have theGrit, but we we came back to Toronto and we had that same board room. Wesaid what do we really have here and based on all those interviews and allthose conversations we had what is the most important thing to all thesedifferent decision makers? That would make the call in something like this, so we looked at what we had. We have anincredible product that is extremely well designed, like extremely sixteen thousand of these have beendeployed since two thousand and one without ever coming off with near zerofailure rate best proe in the market best product in the mar exclusiveaccess to it. North America, exactly start with what you have. This is whatwe have. This is what we have so then we started looking at. Why did otherentrerenurse fail? 'cause the products there, the Antalogu? If you will, whydid the WHYDI? What do they do? Thay didn't work exactly so one of thebiggest issues that we face, which actually spoke to a few of thepainpoints or the concerns that these decision makers had one of Hem was. Itwas Joshmo local skibom at in Bamph that would drive around bamp and tryand sign up the three skirias that were in the vicinity and sell hisrudimentary product to them that a the design was shedding was going to fallapart, but b. More importantly, he didn't have national scale. So myprevious point and what we learn from the media ND advertising world is, ifyou don't have the National Skale, an the national network to offer RogersCoke and Pepsi and Budweiser they're not going to care they'rere going totake you seriously. It's gotto be the the brands that look better on a chair,lift verses, Joes Pizza, but that's that's a totally supparat piece. Yes,you're abse right. What I'm talking about right now is is the money aspect,so Jo Schmo Pizza, it's not going to spend. They got three grands to spendthe season on on their total advertising about Yot, right, Rogers, millions and millions of dollars to forMedia Bice, and I could probably dedicate two hundred grands to anatblock program, whereas local real estate angine, not so much the otheraspect. Well, you just touched on and you absolutely nailed it from acreative perspective owners and marking managers. They don't want Joshmo pizzaon there. They don't want the local real estate agent averag. This isn't.This is why, as a tangent in is a sidebar. This is why I truly believethat shelter, advertising, bus, shelter, advertising and bus benches never tookoff because from an early start they catered to those real estate agents,that's really all that they could attract. Nobody really thought thatthat was a great media for national. You know brancs right, so I didn'tthink of this. We didn't get to it earlier, but you really you're buildinga marketplace here. Right like you needed, you needed the ski areas to sign up to give you theinventory. You also needed the advertisers to agree to have their adson the imventory. So why did you start with ski areas, verses, advertisers,Gray, question and you're right? There are two sets of customers in thisbusiness without a network, you got nothing andthe overwhelming response and advice that we received from Steve Bolver andall the other advisers that we've...

...spoken to that we've accumulated overthis process in the media industry have told us if you walk into any majormeeting with any major brand and say yeah well, in theory, we got thisnetwork they're going to have the first questions great. What skers are Yo on?Well we're talking with so and so and so and so get out of my office right.Those h. The meetings with the ski people areprobably a little more quote, unquote easier, maybe a little more casualyou're right. If you get a meeting with coke or BMW and you don't yet havethose property secured you're not going to get a second met, you gotta, yougotta, be serious. You gotta be able to walk into those doores and say this isa physical network in place or abblocks are installed? We're ready to sell thisto you. Otherwise you may not get a second chance BGOT it eokay yeah. So onon that last point attracting the big national brandh to care of that concernthat painpoint that market, mangers and owners had my guess are Comin to Myscyria to enjoytheir time here they don't want to see Joshmo pizza y, however, Coke Rogers butdwisor Corona, theycould come up with pretty creative tailored content, that's specific tothe ski industry that will be well received and potentially even enjoyedwhen you're so bored on the CHAIRLIF. For seven minutes. That's exactly theway we need ID to frame this and that's exactly how grand had so much successin New Zealand. He went after the national brands that had the bigbudgets that whoere able to tailor really really sharp creative,specifically to the ski market. So not you know just the logo, and you know an simple tagline, reallyreally cool stuff that spoke to the environment. At the guests, werethereeseven minutes on Averagon a chair left inches away, ssit, not a home ad. It'slike a magazine Ad Youget tons of depths of sail. You can literally readthrough it some of the most successful campaigns where riddles or just wittisineperspective, multiple adblocks would exist on a safety bar. So if it's aquad chair servicing four people, there'd actually be four edlocks. Avery successful campaign was a storyboard nes like building off theother. So you know John and Suzi, and Eric and ped whicd sit on the chairleft and they say: Hey, what's one that one interacting with one interactingwith one another, and how great is that to an advertiser when somebody actuallywhen, when the audience comes together and communicates and and endjoys theexperience, as you got nothing else to do? Okay, so I I see this unfolding now.So how do you? How do you get your ski he'll signd upyeah? So we understood what needed to happen andthat was really repositioning or messaging and repositioning our pitch,and this was in a case of Maki hundreds of thousands of dollars, thouh liftinga finger spending, a dime that was implied yeah. If you want a partnerwith us, you're going to give us money and great wt, we really needed to do iscommunicate the ture benefits of our product and our different approach tothis concept. That has failed in the past, so we came up with anothertagline and or pitch was this is not the same old same old. This is chair,left, media, doneright, Nice, so you' e you've seen this before, but Thi. Thisis different than the way that you've seen it before exactly and let me tellyou about the first time we went back which there was actually a trade show amonth and a half later we acted quickly secondary Tradeshor in fibr Tha one wasin Janiary the first one that we went to secondary one was in Fabr, we wentback and the approach that we took was we'reoing to walk up to every single person and nip this in the budd immediately, and some of those conversations werethe same people that we saw. You know a month and a half earlier and I'll.Never I'll, never forget the experience with these two with an owner anddirector of operations or VPF operations, a at a skiria walked up tothem and- and we said we started Ha conversation by forget the name of iscall John John. I'm going to talk to you about something today. Y. Definitely don't want to hear aboutas soon as you say that th y re kind of intrigue don't think about pinkelephants, don't think of opinilevents thinking about pink Elphins, soimmediately. Curiosity, Okay and Hen, you whip out abla its a chairliftadvertising device. Oh immediately or I man like. I don't want to talk aboutthis. I know I know you don't, and I recognize that you had really badexperiences with past failed attempts. Can I recognize that these are thepainpoints that you've experienced oreiterate them, because we've hadmultiple discussions and we understand what they went through and then we toll me. What otblock here is why atbok's greate it'SBEIT'sbeen designed in New Zealand ands existed on Chers for the last nineyears, whatever it was at the time? Thirty six thousand of these aredeployed all over the world, including Japan, Chile and Ew Ze, an Australia.We have testimonials and best practices. This thick stick as a one thousand pagebook how to do this properly. In North America we have a great product partnerbest part about it. Is We have a...

...national approach? Who'reinno attractbig national brands that are going to be able to spend good money and createand deliver really good creative content to your to your guests, wuldpackage, it all up really really nicely and over the course of the conversationas we were pitching you could see their expressions change. You could see theywere buying into this. It was. It was amazing, like talk about a one. Eightyyou know like we practically had people geve me a call when you goes your backin Tarona, I'm really interested in this. What really helped and is it justa side teside? So I know, but we for for the operations managers that weremainly interested in its durabilian performance. We actually created thisdevice where wed put the abblock on a fake safety bar, and you know webrought it out and set it up and anybody that would come by Wud calld it.The Abok Challenge, we'd, give Hem a hammer and we'd. Let him go at it inthe trade show and try and break the thing, and nobody could. It was reallythat well designed nobody could break it. So I mean talk about you know a wayto get through to them like after they did that like okay yeah, I I believe init saw for themselves first hand, yeah cool cool, so that was the beginning ofgetting them yeah our our repositioning reallyworked. We knew that we had the right message from then on it was. It was abig. You know, follow up Ani Shuive with the people that we've already met,that we chatter with that we knew we wanted to work with a. It was a case ofgood salesmanship, so we don't have the budget of fly around eher and you knowtry and take meetings, I'm a big believer being novel and doing shippingthings to people like a litter, Physsin, latterold school thing, physical oldschool things. So this wasn't like Yo read a a lot about growth of books likepredictable revenue, talk about the different functions in sales, so yourfirst thought wasn't. Okay! Now I need to go hire a junior person to cold call. Thirty ski resorts, you didn't do thatyou didn't take the SHOK got approach. You went pretty targeted truthfully. Iwould have been that guy yeah, probably yeah and yeah, and it's a very goodpoint. One of the other strategies that we've identified very early on was we did not need so the Canadian marketwhich we started with, we we didn't, have plans to go into the statesimmediately. We wanted to roll this outhern Canada and of a proven modelthat we could replicate in the states that was hour strategy. They were twohundred sciriest total to be exact. One hundred and eighty eight in Canada thatcould techme do business with us, but we didn't need all of them. You KnowMansfield or the local single skeria Chairlif that only attracts fifteenthousand skir visits a year probably doesn't make sense for Rogers or Pepsi,but Blue Mountain Mount Sain, Louis tromblaw whistler. So those profiles,you know that are that, are the big players, the big hubs that attractaudiences from the major urban centers, where big brands want to target andwant to spend money on those were in our target audient, and there was onlyreally thirty of them got it. So you went using more modern terms, super ABMstyle you identified with laser fogus, the thirty that you needed. What didyou do then? Like you had fine names, emails addresses wout D, You do yeah.So in this day and age, it's actually really easy to get contact information.You K, ow, do a search, Ongoogle or were part of these associations. Now wepaid membership duce, so we had thirectories of all these people. Weprobably talk to a bunch of them or alk to a bunch of them already, so we'veidentified the ones that we need to speak with. This was a a multicontactapproach, so it wasn't just speaking of the marketing guy wasn't just being theoperation sky. Everybody was an enterprise base cell everybody withinthe organization. You know needed needed some sort of buy, and thiswasn't one guy making the decision. So we yeah it's, it's we did in cold call.AM We didn't email them? We decided to Kindof go old school. We sent themthese pretty Impresse, we call them pizza boxes. We delivered and shippedout our product as a sample. There was actually three samples included in thepackage. One of them was a fixed to kind of a fake bar that was supposed toresemble a safety bar and the other one was completely broken apart, like thepieces, the individual piece of it. So somebody could see exactly how it's puttogether and some Lensas that had the actual adsprinted on them andinthelenzas. There are two strategies: one of Hem was display a self promomessage, so hey marketing guy look how exciting this is. Now you could promoteyour ski school, your restaurants, on site, you kN, w all the verticallyintegrated services that you're responsible for and then the otherstrategy was y. look at this bmww AD. If we are going to atract the bigplayers, so it was very and of course, pensive. You know what every package,after all, Sud and none probably cost us with shippingsixty seventy bucks.Okay, so one prospect that's expensive,...

...it was yeah it it's not cheat, not ajunior person hitting the phones, it's uh, that's expensive, but we had thirtytargets right, superfocused, guess what our response Rit on that was: what's a responsort on email, F, firstyoknow I mean s that General Responsorat. If, if you're going tocoll call somebody or esponsor n email is what nowadays fiften percent- maybemaybe, if it's incredible and super focused and you maybe Bendo the skiresort and like have a con- maybe exactly subsix percent somasercent yeah.So we are response raid I mean if they wouldn't call us. Let's just say wereach one hundred percent of those targets. In some fashions you had aCONV qualified conversation with them CRA, so part of it was as soon as wecalled people took her call and said. First of all, thank you. That was oneof the most impressive direct marketing piece. I've ever received and numbertwo because of our messaging ind. The way we framed it and what we presentedthem. The product was exciting. It looked great and then the way that wepositioned things they took our call and said this is great worth of Comiworth of conversation so of those scerias Um. You know the ones that were interested.You know great discussions, great discussions and phone. Did you go seein a person? Would you don all pho? We had to keep the budgets down lean,start up sure so, first season, then of the thirdy or so that you targeted andhow many you signed up. So we sign it's interesting. We huse a few differentmetrics, but we had we had about three to four months to get this off theground, because by the time we got everything together and it was nowsummertime. We needed to get this in time. Get these get these agreements inplace with the SCIRIAS to go out to market solve advertising for that firstseason and install this stuff, I that was an endeavor innd of itself, so wecall it. This is like March April, or we began the process righte the tail inthe most scaras end of their season, and we need it to get ever thing, butan up by call it August September. We Signe sixteen o the top twenty fivesciris within those three to four months. Crazy, that's ridiculous! Andthat's just to put this into perspective. That's sixteen! Maybe notall of them w! We didn't have those conversation Atal strade shows, but ingeneral, from our initial bout region discussion the research that we gathere-that's I'm never going to work with you too ihave now signed a contractidg, I'ma partner through literally listening feedback itorating changing themessaging emphasizing like the product that you showed them from day. One wasthe same product you just needed to change the message: change the wrapperchange, the positioning. That's Ri! That's awesome! Thank you! That'sawesome! Man Congrat, so m wel fat forward a little bit because I want tostart wrapping up. I have a couple of questions I want to finish off with, but so where is it now? I mean greatearly traction good story to get the first couple fast worward. You knoweven today, where's that block today so adlock about two to three years ago nowand I'm kind of losing track of time, but we we decided to sell the businessfor a number of reasons, I'll just touch on them quickly. Right now wewere always a one media company and we couldnot compete in the marketplace. Wefound a really great suitor that played in the similar spaces us in theautahome sector that could take our media bundle it with their basket ofgoods and basically absorb our business and take t to the next level, and Ithink the key lesson here is in an anthpreneur life there. There alwayscomes a time when somebody could take the business in the concept to the nextlevel, and that really wasn't me I was the guy with the idea. I was the brainsand hustles and putting all the pieces together and getting in off the ground,but to take it to that next level really required an ou skill, Sodina gnew company. That's when we decided to sell kind, you end up selling thecompany Ye. We ended up solling the company. It's still I mean the productstill exists. It's under a business now known as reck media recreation media.Interestingly enough, we KINDOF parcelled the business, and this is asepparate pocast, but we grant metson our product partner three years intothe business. We were so successful with Ablak that we did a reversetakeover of his business and completely acquired the global distribution rightsfor the product itself. We then sold the product on a license basis to othermarkets, mainly in Europe, and we parcelled that business and we made itcompletely separate. So there was adblock media, which was responsiblefor media sales and the Media Network Song to advertisers and the GlobalAdlock Lobal, which is the product business selling product to anchmener,like us in other markets to Skiaras. Whoever will buy it. That's awesome,that's awesome and which one which one did you sell, so we sold the mediaMortian to reckmedia and now this is a very interesting structure of ownership.But wreck is a minority partner in the global business. As well as we'veretained an equity stake in the global...

...business, they are a partner of ours inthe global business, but we are technically doing that together k whata cool story, something I didn't I didn't get to that. I think I'simportant just to touch on quickly and then I want to rap up here. How did youget to setting the culture that you wanted? I asked that because you're we've knowneach other for a while Youre type of guy that I get along with really well.How did you go about attracting types of people that would get along with youand how were you or not, maybe intentional, about the culture that youcreated there yeah yeah, it's a great question, be yourself, you know and and believe and resonate the values that are trueand that are important to you. You know when, when we started building UPOURcompany and attracting employees, I wanted a show everyone. I don't want toput on he front, so my employees knew exactly the type of guy. I was verypassionbos, skiing and snowboarding lovh to have a good time. There wasn'tthere's! No Bullshit, you know pear everything out in the office. If youneeded to ore very open, we were a small tight team. We had five employeesMax at a certain point, so you know it's not like thereare several layers,you know organization, but yeah. Just just do the things that you wanted todo, and you know I just recalled the story t at that. We shared you knowbefore we got on here: The huge fan of soccer and World Cup and one year- andthis is a bit of a entertainment strategy that we adopten, naturally inthe sales industry you have to entertain. You know anybody andeverybody and mediate personol very used to this. So what we wanted to dowhen, when was think Iwas in Brazil, all the games were being played. TheWorld Cup games were being played during you know our work time zone, sowe organized what we called the traveling office and we grabbed all ouremployees at the time and brought hem to a bar and we create a chole storyaround. Like CTV interviewed us, Sobo 'cause, they thought it was clever. Alot of people. You know in offices are sneaking out of the their. You know,thei workplace, to try and catch the Games. Not Us. We brought all our stuffto the office. Wyfi was stable and we actually invited all our customer Codothe same like Hey. If you need to work and you want to catch the game, do sothe same way that we are and was awesome, that's awesome, that's awesome,being authentic and bringing that self to work is just so so important cool. Iwant to wrap up with a couple that I ask all of our guests here. So where doyou do your best thinking? Probably on the chair, lift sarely?Still I do, especially when I skie Ersnowboard alone, it's incredible a Weekansho on on the chair, Lif, I'mjust then Mowe. You know alone. With my thoughts, you T it's fantastic. I alsodo really really good thinking in the pool. I do a lot of swimming men toTriopon, so I do a lot of training nd during the week and it's verytherapeutic for me. No music peddling in the pool trying to get laps in somegreat thinking and meditation goes in there, no phone. You can't like Sneekout to Jack your phone. EXACTLY THAT'S GREAT! What advice would you give yourtwenty year oldself? So if you could look back to Pete, Mollaan HBA, twofourth year university, you're just about to embark on ad block wh, whatadvice would you give yourself yeah? It's a great question: Wow there's! Somany we need another hour. The big one is trust your instinct. There was apoint in adlocks life where we were on top of the world and we secured somereally really good clients and I thought is it to early to sell. This islike a really good opportunity have driven so much value. It's beenexponential and I thought to myself now it's the right time to sell and itKinda hurt us in the end, because we saw a bit of a dippin sales and companytook a different direction and I would ave really like to sell at that point.You know I obviously stretched it out and had a great ride with the business,but I think that we would have been able to achieve a greater return for usand our investors if we were to sell that point. That's to trust your GuTrust, your God for sure. Is there anything you wish you would havelearned sooner either when you're in school or something that you wish youwould have learned before you started yeah enceper jury. So my my approach tosales and I think sales is such a crucial skill set for Ananchpeeer tohave with your son yourself. Your ide is just so important in establishingdeveloping a business and my approach to and I'm lucky I I'm a Personaal,very social guy. You know I gets along with almost everyone and my approach.historcall to sales has always been snart. U N, I'm just going to go andget along with everyone and d sell. My stuffing. It's worked out pretty wellfor me, but what I didn't have an appreciation for, until probably in thelast three years, was the science behind sale selling and in sales ingeneral, and I think, there's a great deal of science that goes into sellingand knowing that I think, would have taken her business a lot furtherearlier on cool and then. Finally, if there's one thing that you are best ator your superpower, what would that be...

...getting shit done? I got U Sesty GSDSTIT's, ecxually term, that, U Coind, but you know it's it's the classic personaand and the characteristics of an entrepreneur. If something needs to bedone, I don't wait around or delegate if I can get it done myself, whetherit's a marketing video that needs to be put together for a prospect or client,you know or installing ten thousand adlocks you get it done. You Know D. that's kind ofmy approach to everything. Pretentialy do my detriment. Some of the things Ido should be outsourced, but again I'm very hands on operator and more often than nod. It puts me in areally good position. Yeah I've seen that an working with you for we worktogether for three hoars three year. Three and fouryears- and I think summarizing you'd say like done, is better than perfect.You know like, could it be done meticulously? Maybe but like would ithave ever even gotten done, or would it be done now? No so screw it I'm goingto do it, I'm going to get it done to a point where I am happy with it andwe're going to ship it and you've been really Youben really good at thatthanks yeah, this has been great. I'm glad we wereable to finally get the story of had blocked down recorded for history. Thisis like your timecastle, for I lov. No, it's it's. I really enjoyed this. It'salso a great walk down memory lane. For me, you know such good times such agreat experience. A great part of my life so really appreciate you bringingme out here. I had a Goo Tim. This started when we were, we were in Fweflew, so it was a Denmer y. We flew somewhere whe. We were in the back ofan hoober together and yo s started telling me the story, and I knew I knewit roughly, but didn't know the full thing and when we got into the detailsit was like ooh. This would make a good story in back of a cab. Tha Can alwaysget stores come on back of e Cat cooleman. I appreciate having you herethanks fom, making the trip in and it's Lovu. I thank you. You've been listening to theIvioncmenor potcast to ensure that you never miss an episode subscribe to theshow in your favorite podcast player or visit IV dot ca forward, slashentrprenorship! Thank you. So much for listening until next time.

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