In this series, I reveal Insightful Marcus Lemonis quotes, as the host of The Profit, in a thought provoking way. These inspiring quotes pertain to situations in an episode of The Profit, but these Marcus Lemonis quotes deliver very good business wisdom.
This show is filled with drama…reality-show style, so most viewers probably watch it for the entertainment value. And entertain, it does. The show has plenty of intrigue and conflict as Marcus attempts to rescue failing businesses, one per episode. He applies his simple yet compelling Three-P philosophy. People, Process and Product. If two of the three are in good shape, and the deficiency is determined to be repairable, Marcus will invest hard cash, and temporarily take 100% control in order to get the failing company back on the right track to success.
Marcus Lemonis is an expert in business and has quite an impressive entrepreneurial background. His quotes deliver valuable advice and I hope you value them as much as I do.
Marcus Lemonis quotes from CNBC’s The Profit
“When Marcus Lemonis isn’t running his multi-billion dollar company, he goes on the hunt for struggling businesses that are desperate for cash. In the past 10 years, he’s successfully turned around over 100 companies. Now he’s bringing those skills to CNBC Prime and doing something no one has ever done on TV before … he’s putting over $2 million of his own money on the line.”
This is a well rounded show that delivers both entertainment and entrepreneurial insight!
Season 2, Episode 14
Coopersburg Sports, a company that has been around since 1791, is starting to fail. The owner, Scott, has been set in his ways…set in his original vision from when he took over the business from his father. This has caused him to miss opportunities to diversify. Also, the process is broken and Scott is having a hard time accepting the changes that are required to fix it.
Scott started out as a change agent for his father’s business, which was a wooden tool handle manufacturer. As power-tools took over the market, Scott saved his father’s business by closing a baseball licencing deal and converting the business into a baseball bat and wooden baseball merchandise manufacturer for items that are sold at stadiums. Great success followed!
Now, changes in the market have occurred again, and Scott’s son and daughter are eager to save the business using their fresh market insight, and a new vision. Marcus steps in to help, and to hopefully make a profit in the process.
“Waste in manufacturing is when you create products that have mistakes on them, but the costs associated with those mistakes are sometimes hidden. And so, while Scott (Owner of Coopersburg Sports) tells me that the loss is $12,000, he’s only counting the materials themselves. He’s not factoring in labor, or lost time to buy the product — A lot more than $12,000.”
Time versus money
In this episode, there was a difficulty with their painting process which caused defects. Marcus determined that paying a little extra per unit to have them painted by the supplier would save time and money because of the $12,000 in waste. Then, when you consider the savings from additional uncalculated factors like labor dealing with the waste, the savings are even better.
As a business owner, you must always stay on top of ways to save money. This helps optimize profits, and they need to be optimized regularly. Take the time to calculate all of the options, so you can make an informed decision. As Marcus Lemonis quotes in this episode…”Don’t stumble over dollars to pick up quarters.”
“In order for a small business to be successful, it’s gonna have to evolve and transform. And years ago, Scott was able to do that when he turned a handle company into a baseball-bat company. But if he’s not able to go through that same transformation again and come up with some new products, I don’t know if he can make it.”
Change is difficult for most people but it is necessary for businesses to change as markets evolve. Knowing this is the first step. Then, plan on changing as needed. Even more, you need to anticipate these market changes so you can be ready for them with differentiated products and services that will get out there ahead of your competition.
“If you don’t have an order-tracking mechanism, customers either aren’t gonna get their order filled, or they’re gonna cancel it halfway through. It’s a lost opportunity, and lost opportunity is lost money.”
Successful businesses track EVERYTHING. Money can slip through the cracks too easily, and losses due to unfilled orders or cancellations can be devastating. Sometimes you need to take on a large expense in order to save money. Tracking systems save money over time, and keep your customers happy, which has long-term value.
“You know what I feel like when I’m in this building? Like a mouse looking for his cheese. You start in one room, and you have to visit at least eight of those rooms to finish the product. This place is wildly inefficient.”
Workflow layout is important for any business. Even an office needs good workflow layout. Getting to what you need most often, quickly, will save time and money. You don’t want to be stumbling over each other as you go about your work day. Plan this out carefully, and consider every angle so each employee can work and interact efficiently.
“This company’s been around since 1791, but in order for this company to be successful, they have to diversify. They can’t just sell one product and have a relationship with one company. The company must do more – expand their product line – be less baseball-centric. And they have to broker more licensing deals with other leagues and develop new relationships with other big retailers.”
Marcus set up a meeting with a buyer and a manager at Bass Pro Shops. Scott, his daughter and his son went into the meeting with new products they had developed utilizing their woodworking expertise. It started slow, but ended on a high-note. Their products have always been seasonal and now they will be able to sell all year.
It is important to have a core set of products, but you can’t tie yourself down to one customer. That is too risky.
“While moving to this facility may be more efficient, it also makes us more profitable. The difference in rent is about $80,400 a year. This company sells over 300,000 bats a year. If I’m able to buy 10 pallets instead of 1, instead of my bats costing me $1.15 a bat, they’ll cost me 85¢ a bat. So, while my rent went up by $80,000, my gross went up $90,000, putting me $10,000 ahead. And that’s just one product.”
Coopersburg Sports finally moved into a larger building, after Marcus complained about their small facility and then found them a new one. This not only provides an opportunity to layout a more efficient process, having a fresh start, but also this provides space to accommodate more pallets saving them substantial money.
This is another Marcus Lemonis quotes example of the importance to always find ways to save money and do the calculations.
“We have to know how much money we have, what we’re spending in on, and keep track of our expenses at all times.”
Ensure your business has ample funds to operate at all times. Planning is key to keeping money in the bank, so stay on top of that. Unforeseen expenses occur frequently, so always be prepared for them.
Make sure money is received, handled and spent properly. Accounting is paramount in business, so be sure to track all money coming in and going out. The general ledger should always be open and one click away so you don’t miss an entry. Keep consistent accurate financial records.
Always ensure that money is never misused. Do not use company funds for personal uses. Businesses have failed from this act alone. All spending must be accounted for, prioritized, and authorized. Finances are the life-blood of business, so please take care of them at all times!
It was nice to see the Scott, the father, allow his two children to run with their vision for the future of Coopersburg Sports. Human nature tends to get in the way, much of the time. As business owners, we must remain disciplined, and always make the decisions that are based on market conditions, and real facts and figures. Also, allow those who are capable to move forward. Don’t hold them back!
Thank you for reading Marcus Lemonis Quotes in The Profit S2:14!
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