You Need to Do Fewer Things — Transcript

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1. 0:00All right. Next up on Hermosi hotline.
2. 0:03Here we go. Steven. Hey Steven, looks
3. 0:07can be deceiving.
4. 0:09That's a Taylor Swift reference.
5. 0:11I have I have listened to her.
6. 0:13>> Hello, this is Steve Scott.
7. 0:15>> What's up Steve Scott? How's it going?
8. 0:16You're on Hermosi hotline.
9. 0:19>> Oh hello.
10. 0:20Hi, how are you guys?
11. 0:22>> Good, good. Tell me about the business.
12. 0:23What's what's holding you back or what
13. 0:25questions you got about money models or
14. 0:26anything?
15. 0:28>> Uh
16. 0:29sounds great.
17. 0:31Didn't expect to be on it so soon, but
18. 0:34so right now it's scaling.
19. 0:36Currently have
20. 0:38a farm USDA certified two
21. 0:42tea shops that is associated. So we grow
22. 0:44herbs and we we blend for medicinal
23. 0:47purpose. And so we have it a kind of a
24. 0:49line of
25. 0:51organic herbs, herbal, you know, things
26. 0:53that help you sleep or
27. 0:55you know, digest, circulation, detoxing.
28. 0:58They're all kind of geared towards
29. 0:59something specific.
30. 1:00>> You have a farm, you sell supplements
31. 1:01that are natural.
32. 1:02That sounds
33. 1:03>> Uh not supplements, herbal like pure
34. 1:05herbal blended tea.
35. 1:07>> Yeah, yeah.
36. 1:07>> So we have a selection of white, green,
37. 1:10black, oolong. Yeah.
38. 1:11>> Yeah, heard.
39. 1:12>> Yes.
40. 1:12>> You grow the stuff, you sell it. Okay.
41. 1:14So what's what's revenue? What's the
42. 1:16issue?
43. 1:18>> Well, right now
44. 1:20you know, our revenue we're probably
45. 1:23uh 75,000
46. 1:26a year. Really new, it's a couple of
47. 1:28we've only been in business a couple of
48. 1:29years now, so we know we're not really
49. 1:30breaking 100,000 a year and
50. 1:32>> Okay.
51. 1:33>> we're having a we're having trouble in
52. 1:34this area
53. 1:36um
54. 1:36you know, like I said, scaling. I I I
55. 1:38tried to
56. 1:39>> We sell locally. We have we're in a
57. 1:41couple of groc- we're in about five
58. 1:42grocery stores right now.
59. 1:44Um couple of mom and pop restaurants,
60. 1:48you know, things like that. So we we
61. 1:49bottle our tea as well. No sugar, no
62. 1:53caffeine or anything like that.
63. 1:55Really the the the issue is uh
64. 1:57uh remaining profitable while
65. 1:59>> Yeah. while we scale. And we we were
66. 2:02profitable uh slightly, and then we just
67. 2:04you know, we expanded. We do you know,
68. 2:06four or five markets a week as well. So,
69. 2:09I mean, we're just hustling right now.
70. 2:10And
71. 2:11>> Yeah.
72. 2:11>> Um trying to be able to
73. 2:14>> Yeah, I understand. You want to make
74. 2:15more.
75. 2:17>> Yeah.
76. 2:18>> So, I think if you were like so, you've
77. 2:20got the bottles, right? That you brew
78. 2:22it, and then you you sell those. So,
79. 2:23that's thing one. Uh then you've got the
80. 2:25herbs and the You're selling leaves,
81. 2:26right?
82. 2:27>> Yeah, so we grow I mean, we we uh
83. 2:31we grow about uh say 30 different herbs
84. 2:34that we blend in our with our
85. 2:35proprietary uh you know, recipes. So, we
86. 2:38have that line, but we also source teas
87. 2:40from Japan, China, and Sri Lanka. So, we
88. 2:42got
89. 2:42uh those things as well, but then we
90. 2:44also bottle those bottle blends.
91. 2:46>> So, Steven, I'm going to give you just a
92. 2:48a general piece of advice that you may
93. 2:49or may not listen to, but will be the
94. 2:51thing that will make your business grow.
95. 2:52You need to do You need to do fewer
96. 2:54things.
97. 2:55>> Fewer things. Absolutely.
98. 2:57>> So, I'm going to list out what you just
99. 2:58said. So, it's like you've got the the
100. 3:00markets that you're going after, right?
101. 3:01You've got you've got those things that
102. 3:02you're doing on a regular basis. You
103. 3:04said you've got four or five groceries
104. 3:05that you're consistently selling to, and
105. 3:07I'm sure there's some relationship
106. 3:08management that's, you know, has to go
107. 3:10with that.
108. 3:10>> Absolutely.
109. 3:11>> And then you've got uh then you've got
110. 3:13your bottle thing, right? You've got
111. 3:15your bottling the teas, et cetera. Then
112. 3:17you've got your buying, your wholesaling
113. 3:19other people's teas,
114. 3:21right? And then on top of that, you have
115. 3:23your own teas
116. 3:24uh that you're, you know, drying and
117. 3:26selling and blending with your own, you
118. 3:27know, proprietary blends, et cetera.
119. 3:29Right? So, it's like you're doing you're
120. 3:30doing like five things, and you're only
121. 3:33generating $75,000 a year, which means
122. 3:35that you're not doing any of them super
123. 3:36well. And if cash flow's an issue, we
124. 3:39need to get rid of the stuff that's uh
125. 3:41hard on cash flow. So, I would get rid
126. 3:42of the bottling right off the bat,
127. 3:43because that's like you're not going to
128. 3:45scale with that until you have a
129. 3:46tremendous amount more money. And so,
130. 3:49what we need to do I don't know if you
131. 3:49were here on the on the launch earlier,
132. 3:51but Tom Bilyeu was talking about like
133. 3:52when they were scaling Quest
134. 3:54the thing is is like retail is
135. 3:55eventually where you're going to end up
136. 3:57but it's not necessarily where we're
137. 3:57going to start.
138. 3:59>> It's true.
139. 3:59>> And so the idea would be to how can we
140. 4:01generate as much brand demand as humanly
141. 4:04possible such that these retail stores
142. 4:05eventually even maybe locally start
143. 4:08reaching back out to you saying hey
144. 4:09people are coming to the store every day
145. 4:10asking for your stuff now I'm willing to
146. 4:11carry it because then you'll have more
147. 4:13leverage and then you can ultimately you
148. 4:15know price higher and then make more
149. 4:16profit right?
150. 4:17>> Yes.
151. 4:18>> So I would if I look at all this stuff
152. 4:20I'm going to guess that your proprietary
153. 4:21blends are going to be the highest
154. 4:22margin is that correct?
155. 4:23>> Absolutely and it's it's not even a
156. 4:26exactly that's it.
157. 4:27>> Right. So if you've got the one thing
158. 4:29that's proprietary to you and also
159. 4:30aligned with the narrative and that's
160. 4:31the one that makes the most profit then
161. 4:33it's like great this is pretty easy
162. 4:34decision this is the thing it's unique
163. 4:36it has the story and it makes the money.
164. 4:38So
165. 4:39now I think what I would be looking at
166. 4:41right now is how do I get people on Tik
167. 4:43Tok shop and people who are in that
168. 4:45space to promote this stuff and I would
169. 4:48be selling straight e-commerce straight
170. 4:49to consumer because this is lighter so
171. 4:50you can you can ship these herbs way
172. 4:53faster and you can scale this thing to
173. 4:54the moon you don't have to be limited to
174. 4:55wherever you're at.
175. 4:56>> So now having said that I was somebody's
176. 4:59reaching out currently and has pushed me
177. 5:02to go on Tik Tok so I'm currently in the
178. 5:04process of
179. 5:04>> Good.
180. 5:05>> review and getting my products on on on
181. 5:07Tik Tok itself.
182. 5:08>> Good.
183. 5:09>> Um so no that that's where we're going
184. 5:11as far as the the other things I mean
185. 5:13um the the stores are just now reaching
186. 5:15out to us I mean that was the thing that
187. 5:17that happened this year instead of both
188. 5:18calling and and doing the
189. 5:20the you know they actually coming to us
190. 5:22at this point but
191. 5:23you know we do it's one of those things
192. 5:25we are doing too much it's three four
193. 5:27markets a week
194. 5:28>> Yeah.
195. 5:28>> you know at at at minimum as well as the
196. 5:30wholesale and all that stuff.
197. 5:32>> Right. So let me just say that the
198. 5:33version of your business what it we what
199. 5:35we need to get to all right? So we need
200. 5:37to get to you doing teas you selling
201. 5:39teas in proprietary blends and selling
202. 5:42UGC via creators and ads.
203. 5:44That's it and then your next constraint
204. 5:45is going to be you can't grow the stuff
205. 5:47fast enough. Once you get there, you can
206. 5:48call back again.
207. 5:50>> Thank you very much, sir. I I I can't
208. 5:53>> [laughter]
209. 5:53>> But that means that everything that I
210. 5:54didn't say wasn't included, which means
211. 5:56that wholesaling you're going to have to
212. 5:57wind down. I would Me personally, I
213. 5:59wouldn't want to manage the
214. 6:00relationships of the of the grocers. I
215. 6:01would rather
216. 6:02kind of hold back cuz starting the
217. 6:05wholesale business is a whole 'nother
218. 6:06thing. You know what I mean? Like I just
219. 6:07want the main thing, the teas that you
220. 6:09grow to be profitable and you sell them
221. 6:11at a good margin, build the brand behind
222. 6:13that, and then that's going to give you
223. 6:14the leverage long term.
224. 6:16>> Got you. And you know, I need to mention
225. 6:17that we do bobas and machas and things
226. 6:19like that. So kind of it's a tea shop
227. 6:20cafe, so
228. 6:21you know, it's a lot.
229. 6:23>> Yeah, pick one, go all in.
230. 6:26>> Perfect.
231. 6:27>> All right. Thanks, Stephen. You bet.
232. 6:28>> All right, bye.
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