Speaker 1We did 750 sessions a month. So revenue is $68,000.
Speaker 2$68,000 a month, a year, a month. Okay. I am in so hard on this.
Speaker 3I don't know anything about healthcare or veterans, and for that reason, I'm out.
Speaker 4Just kidding. I've just always wanted to say that in a real setting. I bring nothing to the table,
Speaker 2but I would be 100% in, take my money. I just want to give you $5,000 for none of your business, just to help you grow your business, and then $20,000 to help spread awareness.
Speaker 5I honestly don't know if I have enough gas money to get back to Canada tomorrow, so that really means a lot, and thank you.
Speaker 2Quick heads up before we start today. This episode is going to sound a little different because it is a little different. This summer, I rented out an innovation studio in Provo, Utah called iHub, and about 400 people showed up. We had 10 founders walk on stage and pitch me, plus Nick and Brandon, two friends of the pod that you'll recognize. They pitched us for real money, and they only had two minutes to pitch. And then we had 10 minutes to grill them. Some of them just had ideas on the back of a napkin. One is already doing over 60 grand a month. This isn't quite perfect studio audio, and it's not supposed to be, but we did put actual money into a few of these businesses, and then the audience voted on a winner at the end, and you're going to find out who. Welcome to TKO Live. Also, we're going to do this again in Provo, probably on November 14th or so, 2026, and we're going to do a four or five city tour in Texas of the same thing, so be on the lookout for that. Please enjoy.
Speaker 6We are going to bring up our first pitch here. We have Eamon Hardin with the Utah Veterans Massage.
Speaker 1All right, so my company is Utah Veterans Massage. About three years ago, I've started a lot of different businesses. None of them have been super successful, doing so many different things, digging trampoline holes, things like that. Had some success, but learned a lot of lessons along the way. Three years ago, I was doing construction, remodeling, and had been working it for a long time. Getting super burned out, having a hard time going to work, and one night, I was just sitting down, like rubbing my shoulders. I was like, oh, you know what? I got to switch this up, and so I had the thought I could be a massage therapist. So did a super accelerated program, four months, and then I became a licensed massage therapist and started working with. The first place I worked was a medical massage company. Started working with veterans, and it was so rewarding to be able to check in. I worked with a veteran each week, and their pain going down and down in a wheelchair, and then him saying, this is the first time in 15 years I haven't felt pain. So a bunch of stories like that, very motivating to be working with this population. Now, as an entrepreneur, of course, I'm observing the place I'm working, and this niche with veterans is really interesting, because they get 12 free sessions. They don't have to pay a dime for it, and it also pays $90 per session, which as a brand new massage therapist. It's huge. So I started my own company. It took me like eight months to figure out how to get in the network with the veterans. And so 18 months ago, rented a room for a day a week, and then just built over time. 12 months ago, I was doing 70 sessions a month, and this month, we have seven locations now, and we did 750 sessions a month. So the revenue is $68,000, and $20,000 of that about is profit. So it's been a really amazing niche. My goal is to expand to 40 other states.
Speaker 2Oh, $68,000 a month, a year? A month. A month. Okay. So up 10x year over year. Yeah. Okay. What are you looking for here?
Speaker 1I'm looking for $100,000 for a 5% equity stake, and also a partner who's taken a healthcare business multi-state. Ideally?
Speaker 3Possibly. Maybe up here.
Speaker 1Never heard of her. Are you a veteran? I'm not. Okay. So you've got how many locations? We've got seven locations, and three that independent contractor therapists own that we send clients to them.
Speaker 4And when you say locations, do you have leases that you sign, or are these independent contractors who are going to home?
Speaker 1That's nothing over a year lease. We do have leases. They're small buildings, one and two room locations. Most of them are about 500 a month, 650 a month.
Speaker 4So is this a place people come to, or are you going to their home? Yeah, they come to our office. How are you scheduling?
Speaker 1Who's actually putting that stuff together? Who's doing the scheduling? We train our therapists to just rebook the clients after we have a really awesome scheduling software. Okay. So this. The therapists themselves are actually not only doing the work, but they're doing all
Speaker 4the admin work on the back end as well.
Speaker 1No, they don't do any admin work. We do all the billing, all the insurance back end. They just show up. All they say is, do you want to rebook for the same time next week? Put it in the software that way. My wife, who's the scheduler, and our other scheduler don't have to do it.
Speaker 4What are you going to do with the 100 grand?
Speaker 1What's that? Expand faster into these other states, and hire an operations manager. There's a lot of little day-to-day things that are taking my attention right now.
Speaker 4Remind me again. So it was $100,000. $100,000 for 5% equity. This is Shark Tank.
Speaker 3Oh, my God. So they stay on there, right? For those of you who don't know, Nick actually has lots of experience in scaling healthcare to multi-state. So, yeah. You made a joke as if everyone knew, but maybe everybody did.
Speaker 4So my experience is home health, hospice, home care. I also had a medical billing company, medical billing and practice management company, and I've owned and operated multiple locations of those businesses. The businesses that I owned, we owned. We only ever got up to about $20 million in revenue, but multiple states. The businesses that I've managed have done $100 million plus a year. So very familiar with this space. Are you thinking of going private pay, or are you getting credentialed with, is it the VA who's paying for these 12 sessions?
Speaker 1Yeah, the VA through TriWest. So it's an insurance.
Speaker 4Okay, 100%. And so you're in with them in Utah. It's really, really hard to scale. $68,000, it's awesome for what you're doing right now in Utah, but if you want to go multi-state, there's a big lag. Between launching in those states and actually getting credentialed, and then being able to take paying clients. And they may be different business formats, right? Like here in the state of Utah, it might be the TriWest says, you've got 12 visits, totally paid for by us. You're good. No pre-authorization needed. But Nevada might be different, and Idaho, and Washington, and California, like every state's going to be different. So do you have a plan to actually get into each one of those states, or is this just like, I want 100 grand, I'm going to hire an ops manager, and then we're going to figure it out? Do you actually have a plan behind that, or is it, I need this money to be able to hire somebody who can help me figure that out?
Speaker 1More of that. More of the second. Yeah. So the way that I've worked is like, grow, expand, and then figure it out, right? Things get more challenging. Things come up. The next step is to go into one state, Arizona. There's a huge demand there. As far as the credentialing, it is the same. Licensing is a little bit different in each state, and you have to hire independent contractor therapists in each state. But the credentialing is the same, same process, which I've automated. But it used to take me, it took me like eight months to do this. I can take someone through it in about 25 minutes with the automated systems.
Speaker 3I don't know anything about health. I don't know anything about healthcare or veterans. And for that reason, I'm out. Just kidding. I'm still in. I love massages.
Speaker 1So that's why I'm still in. There's free massages in this for whoever invests, by the way. Lifetime. How are you getting your customers currently? So we haven't spent a single dollar on marketing. The reason we have so many small office locations instead of one central is the VA will call us based on the geographic proximity to the veteran. And so we have a lot of little ones, so we get a lot. A large volume of clients that way. Would marketing work for something this specific or is it always going to be through the VA? So one vertical we can go into is medical and deep tissue massage, which is a rare thing. There's mostly spa massage. So we could market for that. Use the same office location, same therapist. It's just a little bit different vertical. We're focused on this at the moment.
Speaker 3And where are your seven locations right now?
Speaker 1We got one in Orem. We have one in West Jordan. We have one in. Like Murray, Salt Lake area, South Ogden, Central Ogden. We just opened one in Logan. We got one coming in Sandy. Okay. And you said
Speaker 368K a month, 20K profit. How much of that profit is like fixed versus variable? Obviously the more massages you're doing, the more therapists you need, but how much, you know, same.
Speaker 1Yeah, it's we're, we've been growing pretty fast. So generally we paid the therapist $50, which is a pretty good amount on, especially for medical massage. Um. Okay. So our, our, uh, revenue is about 30 to 35%. Um, as we expand locations, we get a little bit more percentage.
Speaker 3So you collect 90, you pay them 50, then you have 40 to play with, and then you got some costs though.
Speaker 130, 30, a 39 place.
Speaker 3Yeah. Yeah. The, um, is it always going to be 90?
Speaker 1Is it 90 in every state? No. So Texas is like 109 or more than that. Uh, different states, California, it's more, um, 89 is about the lowest. Uh, it's just, it's a Medicaid rule, but so, but yeah. It doesn't go below that. It just increases over time. I do a lot with AI and the automations to reduce paperwork.
Speaker 2Do you have a functional mobile app?
Speaker 1Uh, yeah. Okay.
Speaker 2And people are using it to book regularly.
Speaker 1We, we have, we, because it's like HIPAA involved. So we have an app that we pay like a subscription, but as far as like all the backend administrative stuff that, yeah, we have all that automated. Okay. So we have two minutes left.
Speaker 2I'm going to, no, please, please.
Speaker 4Okay. So first of all, I freaking love this space. That's why I'm still in this space. Um. Just to help you guys understand the reason he's going after the VA in particular is because they're guaranteeing a certain number. If he starts going mass market, it's going to be really difficult for him to acquire customers. And he's got to worry about the CAC and the LTV, et cetera. He already knows he's got a fixed 12 visits that he's going to get paid for by the VA, which is awesome. And the reason he's staying in the clinic way more profitable. So stay out of homes. Like, don't just don't do it. Say no to drugs, friends. Don't let friends offer healthcare in the home. All right. It's like, it's very hard. It's very hard. Um, here's where I'm at with it. I think it's a great business. You're at $68,000 a month, which is great. Your margins are great right now. you're small. You're about to hit the threshold and you've already identified it. You need somebody else. So it's going to take investment to get the right people in place. And you're moving from one location, one owner operator to multiple locations. And as you scale, you're going to have things like we got to figure out payroll and we have to figure out AP and how do we control quality, right? How do we make sure that these therapists are actually doing what they say they're doing? How do we screen them? How do we have best practices? How do we make sure we're collecting? Oh, do we need preauthorization? Do not preauthorization. And I know at the VA, you're going to have your processes dialed in, but if you go to other states, there's going to be a problem. So for me, a hundred thousand dollars at a 5% stake is do the math, $2 million in value. I don't think you're there yet. I think you're, you are absolutely going to grow into that. I'm very interested in the business because I think you found a really cool niche and it sounds like you're growing fast. And I would be interested in helping fund the expansion in particular. I'm not super keen on funding an individual business office manager. You're going to need someone to come in and partner with you to scale the business. Or if you're like really great at ops, you need the business biz dev person to come in. Right? So I don't know you well enough yet. And we could ask a ton more questions, but I think your next hire is actually figuring out where your death deficit is and then hiring to supplement that. But I love the business. I'd love to figure something out with you, like to help you grow. But at the current valuation and the current asking, I yeah, I'm not interested.
Speaker 2You're kind of in this messy middle right now where you're, you can't really raise it. Like a traditional business valuation, but you can't raise it like a tech valuation like zeal would yet because it doesn't sound like your app is far enough along yet. So to me, you'd almost do yourself less of a disservice if you built out your app a little more, got a lot more revenue running through the app. And then you could say, Hey, it's a 10 million valuation because we're, we're an app now. Like we're a technology company now that happens to, to choose massages. Right? So I would be interested in investing once your first, second state is approved and like you're generating revenue in that. Right. Even at a higher valuation, I would rather invest later at a higher valuation. Once you de-risk that second state, just based on what I'm hearing Nick say, cause I don't know anything about this, but he does. Um, and if your app were built out more as well, if you were more of a technology company, that's where I'm at.
Speaker 7Did I miss that?
Speaker 2Sorry, did I miss that?
Speaker 4Is this an app first company or is this a services first company?
Speaker 1Services first company that uses the app to automate everything that.
Speaker 4Okay. So you're developing like your own internal operation.
Speaker 3We've got to be done. But if you pass his due diligence, I would be interested in helping out on the tech side. So I would be in if he's in.
Speaker 2I'll see. I was going to say the exact same, but I'm in if Nick's in, but let's talk to all three. Okay. Thank you so much.
Speaker 8Thank you. Yes.
Speaker 6That was awesome. Give it up again for Ammon. Somebody always has to go first. So thank you, sir. That was amazing. All right. Next up, we have Tyler and Nate Dow with Fixalo.
Speaker 4Really quickly, I just want to call this out. I am taking notes on my phone because it's way too much to just listen to all this stuff. I'm not texting. And if you see Chris or Brandon, they're doing the same. They're not texting or tweeting.
Speaker 2He's only saying that because he probably is texting and he's trying to divert your attention.
Speaker 9Ready? Yes, sir. All right. Nick, Brandon, Chris, great to be here. My name is Nate. This is my dad and business partner, Tyler. We are the founders of Solve. But today we're pitching you on Fixalo, which is a. Work order and inventory management system that we build in partnership with Hotel Park City. So there are three numbers that I want you guys to remember tonight. That is a hundred, eight and a hundred. In the audience, there are eight envelopes with a hundred dollar bill in them. Check under your tears. It's randomly done. So first of all, a hundred. He's paying off the audience. There are 100 units. Yeah, we're looking to get a good ROI. So there are 100 units at Hotel Park City that are all owned by individual owners. This creates. It creates a nightmare for maintenance. Who do you bill when you replace a light bulb? How do you keep track of all that inventory? And then you got to report it all to the owners. That was the problem that Hotel Park City was having. They came to us after they did eight sit downs with existing software companies, and none of them could do a hundred percent of what they needed. So Solve, our AI agency, we built a custom mobile application and platform that allows them to track in real time. Where is that clogged toilet? Where is that? Where is that light bulb? How much did it cost? How much time did we spend and who do we bill it to? That is Fixella. So Fixello is live today. It went live in May. And since June 1st, you've done over 2400 work orders just at Hotel Park City. They have just about 900 individual items in their inventory that we manage and keep track of through the Fixello platform. And it's all integrated end to end. We believe that this is different. It's going to survive the sass apocalypse because it's an operational based software platform. Andreessen Horowitz recently came out and said, there's a sass apocalypse coming. Guess who's going to survive? The software that gets embedded in operations. And that's exactly what we do. Along with that, because of our muscle in custom software development, we integrate with their existing systems such as Opera, such as QuickBooks, such as Access Database. Our ask is 10% for $250,000 at a $2.5 million valuation.
Speaker 2Okay, thank you. What do you charge Hotel Park City?
Speaker 9So they're a partner of ours. So we did a fixed bid, fixed scope, and we charged them $15,000 and we invested 45,000 of our own capital, working capital, mainly sweat equity, that kind of stuff. We undercharged over delivered to get this product to them.
Speaker 2So Hotel Park City is kind of like Sundance and that like there's a bunch of individual owners of these units and it's a mess and you solve that mess with technology. Correct. Okay. So they're your sole customer right now.
Speaker 9Our sole customer. We're in talks with them as well with partner partnering with them and also helping them with some. AI enablement and integrating their systems where solve comes into play here as we say, okay, what makes sense to be part of the product that's Vixello and what makes sense to build is a separate tool. That's just Hotel Park City. There's an integration that we build for Hotel Park City. It benefits them, but it also benefits Vixello because now we can turn to the next condo hotel and say, hey, we integrate with Opera. You use Opera great use us.
Speaker 4So he just slipped something in there where he said we're in talks with them, which is entrepreneur speak for nothing has actually been signed. See old. Or delivered, which isn't necessarily bad, but I would ask if it went well, why don't you have anything executed with them yet? Like, why is it still in the talks stage? Because we just barely finished building it and implementing. So you had no agreement with them up front. Like, hey, we're going to do this. This is the plan.
Speaker 7We're going to know we actually we have them as a customer. So we went to them after we heard their problem. We said it's going to cost you 60 grand to build this. They said, oh, that's more than we were planning. Help us figure out who the competition is. And why it doesn't meet our needs. That was literally an invitation to sit through eight pitches by other companies and then turn around. Go see, they don't have what we need. You said, okay, great. We would normally charge you 60 grand for this. We're going to charge you 15. We'll do the rest as equity. As long as we end up owning the IP together. We'll license it back to you from a single-purpose entity. And then we're going to go out and sell it to other similar condominium hotels or other fractional owners like timeshares and so on.
Speaker 4When you say you own it together. You too. You own it together or you own it together with Park City Hotel. We own it together with Hotel Park City. What's the equity split there with them? 50-50. 50-50. Okay, so we'd be buying in. Is that diluting them as well or is it? Yeah, I'd be diluting.
Speaker 7Yeah, I'd be diluting us, all of us together. Okay. So the 10% is we can get into A, B class, B class would be diluted 10%.
Speaker 4And then while I hand this to Brandon Reed, tell me what's Solve?
Speaker 9Yeah, Solve is our digital agency that we created. So my background is custom software. I've worked with companies like Amazon and Reddit and Aflac. In a previous life, I started Solve three years ago with the help of my dad. Two years ago I went full-time into it and we build custom software, custom automations, custom AI solutions for small to mid-sized businesses. Not just AI. Mobile applications, web applications, AI solutions, AI agents. What I would broadly call automation for business, that can take many different forms. It can be integrations. It can be an AI agent. It can be a software on your phone. It's a broad bucket, but it's all custom.
Speaker 3And this would be equity split. Equity in Fixello, not Solve. Not Solve, Fixello. And to be clear, current revenue for Fixello is zero. Current revenue would be $15,000. Okay. But not recurring currently. Not recurring currently. Okay. What is the TAM? How much of research have you done? How many condo hotels exist?
Speaker 9So if you look there, and I can let you speak to this more. There's a QR code that has a whole presentation answering some of those questions. And actually our invitation is to come up to Hotel Park City. With us and sit down for lunch, do some golf. That extends to anybody in the audience that might be willing to write as much as a $25,000 check. We're willing to host you guys at Hotel Park City. Show you this offer in person. Show it working and talk more about the intricate details. But do you want to address the TAM Samsung?
Speaker 7So from a TAM perspective, $4 billion. Let's use a big number. That's really more fractional type properties across North America. So timeshare. You can think that all the way down to hotel condominiums. It's really fractional ownership, but we're solving a problem for the maintenance guy at this point, right? Who has to attribute the billing to each of those owners across the hundred units, right? So it goes from a very large number and you get specific for condominium hotels. Condominium hotels in North America are still about a $400 million value in there, right? So there's a lot of condominium hotels, if we just focus on condominium hotels and our raise that we're asking for is to really find customers outside of hotel park city you're going to find condominium hotels primarily in ski areas as well as beach areas right and that's because of legal structures and how capital is raised in those locations and so hotel park city is a great place for us to host all you guys that want to come i know a couple you guys are out of town you're locals like come up we'll take you and golf and let you see it actually work before we'd actually expect a commitment from
Speaker 3you i would imagine that this your go-to-market strategy is going to rely heavy on guys who have experience selling to hotels because that's a pretty niche market to figure out who's going to be the decision maker at these condo hotels right yeah yeah and that's part of the
Speaker 9reasons why we're so interested in partnering with hotel park city is one of the main operators that we've worked with from day one he has connections at many hotels he's the director of engineering he's the guy that's tracking all the work orders he's the guy in charge of the inventory management he speaks their language and he also happens to be great on a phone call he's not it's not like talking to a brick wall it's like talking to a human that understands well this affects the bottom line and business side of the hotel this and that's important because this system connects the work orders and the maintenance and the inventory to accounting at the end of the day what's coming out of excel is a report that's ready for their finance department to then send to the hotel management and they're going to be able to the condo tell owners and say hey this is what we charged you for this is what was included and that report is ultimately what fixello is helping the hotel do so we're almost out of time but i'm
Speaker 2curious what your revenue and profit numbers are for solve like what does the parent company look
Speaker 9like yeah we're we're doing about fifty thousand dollars a month in revenue right now uh and about twenty five thousand gross profit
Speaker 2and how long have you been doing that
Speaker 9for uh sol's been around for three years uh my dad and i together full time on it for about six years and i've been doing it
Speaker 2for about six to nine months so speaking transparently i'm trying to put myself in your shoes and and make a comparison to my podcast like i you guys are a custom dev shop right and so you you have a lot of surface area and a lot of different projects and industries it is probably very interesting it's kind of like my podcast i interview people across all different industries and i'm kind of looking at this as if i were pitching and saying hey i just came across this business in my podcast and i'm going to kind of put the podcast aside but go all in on this one business because i like it that much and i would expect the investment to be a little bit more to look at me and think yeah but you're like you're still touching all these other businesses how do i know that in two months you're not going to go all in on another idea and another and i'm the most distracted guy in the world right so i totally i appreciate i totally get it but as an investor i kind of have to put a different hat on and say i don't know like what if they do a project for a chain of chicken restaurants next month and they like that even more am i not going to have any equity in that um that's one hesitation the other hesitation is hospitality is one of the genuinely like i could help you with b2b marketing and stuff like that but i think you could get that from a consultant as well so i love what you're doing i personally am out because i don't know how i could help you and because i'm worried that you're too much
Speaker 3like me but hey yeah i would i would say my answer would be different if it was in solve versus versus fixello because if this is under solve then it's like okay well anything you guys do i still get a part of whereas to his point you might do something else because you get pulled that way and it's more exciting and more lucrative so that would that would be the fear as an investor but i would like to go golfing for fruit we can make that happen that's why he's
Speaker 4still a maybe that's why first of all you guys are living my dream i almost got chris he's got his two boys over here my sons are with me i just freaking this is amazing uh make father's sons great again all right i know we've discontinued a lot of those camp outs but if you know you know um for me for me the biggest hurdle is i don't see what's gonna stop somebody from just creating this custom for any big company that has this problem how much did you put into this was it 60 grand total how much of that was sweat equity 45 okay so so they spent 15 grand effectively to develop this custom product that's pretty sweet i don't see how any of these other big companies wouldn't be willing to spend something like that to develop their own custom version and so i just think that for me the sales hurdle is really hard for me personally to get over right now so that's why i would not be a good partner for you guys on this
Speaker 2thank you though thank
Speaker 4you all hey thanks guys
Speaker 6up next we have mr tom hamilton with next to camp so it was right around this time last year
Speaker 5that i took my son out to a football game it was a saskatchewan rough riders for you guys that don't know where saskatchewan is it's a place in canada that's a square really hard to spell really easy to draw i took him out there for the pregame he took his shoes off he's at least part golden retriever took his shoes off ran to the bouncing castle i went over to the half price beers kept in the shoes went and grabbed my beers came back and by the time i got back i finished one beer and his shoes were still there i went back to the bouncy castle and looked and they're not like they were when we were a kid they go straight through there was an out they're not contained so i went and i saw it and my stomach dropped thought where is my son he's about that tall wearing a green shirt and i had no idea i looked into a room like this and everyone was wearing green i didn't know what to do i felt like a bad dad because i don't know how tall this is i don't know what color shorts are paying attention to that stuff i didn't know what kind of shoes he was wearing because they were sitting outside of the bouncy houses still so around that same time i saw some people making a technology or using nfc technology to make business cards i thought well why can't i just go and buy a 3d printer make one of these for him he can put it on himself if he gets lost he can go up to a stranger and say hey can you call my dad around that same time um one of our neighbors around one three in the morning woke us up because she was locked out of her house she had dementia and that's when i learned about the problem with dementia and wandering and it's really tragic if 60 of the people that have dementia wander and if they're not found within 24 hours it's usually death or serious injury and so what this is it's a product that allows anyone that wants to participate in helping someone that's lost or confused to get back with a simple tap of their phone
Speaker 2so this is this
Speaker 5is a thing and i hope i hope because we're not completely sure taking my rules here i can't give you an honest answer with that i'm visiting from saskatchewan i just came down uh you know yesterday i woke up in saskatchewan i've gone across two provinces and three states in the last two days um so let's make this easier you don't have to have a number yep quick you know that i was gonna get to that yeah so the ask how can we help the ask is is it a this product only works if people know how to use it and b um my real goal out of this is to start building my reputation down here so i can get an e2 visa and bring my family down to the states awesome this has gotten really big traction up in canada it's made national news uh i'm in the riders now they invited me into the stadium we've had live returns uh the alzheimer's society of um so again not closed yet but we have about a quarter of a million to five hundred thousand dollars in orders coming through pretty
Speaker 3soon so do you have any revenue yet
Speaker 5yes right now i'm making
Speaker 3about 10 grand a month okay is this 3d printed and the nfc chip is inside this that's correct yes uh can users print their own like do they have choices or can they customize their own how does how does the shape work of this so i am making
Speaker 5different shapes or different people um people can make their own the the tool is actually good if you're marking the the the chip is or that the product isn't that that's actually the advertising expense they're about 30 to 40 cents to make to get those in people's hands so if you look if you think i like a credit card is a piece of plastic with a chip is everything that's going on behind where the chip is i keep them free there's no app no subscription um and there's no tracking okay
Speaker 2so i i think this is amazing i love the effort that you put in to come here i love your story behind it i love the fact that you sold your story i like to say sell your story you did that you incorporate your kids you pulled on um i i don't i don't mind that you said you don't know what you want like we have a whole category for just ideas right so i personally um i just want to give you five grand for none of your business it's just to help you grow your business and then 20 grand of like free marketing to help spread awareness that's what i want to do you should take him
Speaker 3up on that offer well that's a
Speaker 5really good offer i like i i honestly don't know if i have enough gas money to get back to canada tomorrow so like that really means a lot and thank you
Speaker 3i'm actually also asking him for five grand for nothing mayor tonight come on there's three takes you know it's more
Speaker 10than i normally get pharaoh but
Speaker 3and also so how similar is this to like an air tag does it work the same no it's actually so
Speaker 5from a marketing thing i've reverse benchmarked it okay so i like i'm i'm going like opposite i'm going what they do i'm not going to try and compete with apple it's exact opposite this is what it is there's no app there's no battery no subscription they're cheap to make um up in canada we have like i'm modeling after after system we have something called the warm up teaching they're a little barcode you're going to put in your keychains and they're free if someone finds your keys on the ground they pick it up put it in the mailbox the post office get your keys back and so it's model after that and what i want it to be i don't ever want to market to the pain of the people that are the caretakers of dementia or people that are non-verbal autistic so i want to normalize the use of everyone having it so that it creates a network and if you have one on it it just says you're going to participate in helping and i really believe that love is going to win and this is just like the simplest way like we can we can all get together and say we're going to take care of each other and we're going to take care of each other and we're going to take care of each other and then argue about the stupid shit that
Speaker 3we do nowadays i love all that i have to ask some other questions out of curiosity how much does it cost to make this thing and how much do
Speaker 5you sell it for uh they don't sell they're all free well this is just free they're free well so that's i'll back up there's institutions they're five dollars each the hard cost is somewhere about 40 cents each to make so i only do larger orders so it's like minimum of like five thousand in order and i'm doing like large events like festivals um football games and things like that I really see this could be in every sporting event or anywhere a kid can take off.
Speaker 4So I'm an idiot, so please forgive this. Is the product, I can go and scan this if somebody's lost?
Speaker 5So we have these little clips I make, and if they're staying at the football game or if they're at the state fair, you clip it to them, and if they get lost or separated, rather than security, someone having to find them and bring them to security, any parent that recognizes what you can do can tap it and call the parent instantly.
Speaker 4Why not? How much more expensive would it be to add an RFID chip so that I could actually track where that person is?
Speaker 5That's not the point.
Speaker 4The point is that they, I know it's not the point, but so I work in healthcare, and we, I don't know if people knew that, and we have a lot of patients in dementia units, you notice they're locked units, and the reason they're locked units is because they wandered, and like you said, if they get out, it's a problem. So if I bought this from my facility and I said, oh, I want to give this to make sure my residents are safe, the first time one of them escapes, gosh, that sounds so terrible, the first time one of them gets out without permission, I'm going to think, gosh, I wish I could track them, right? If I lose my son at a sporting event, the first thing I'm going to think is, gosh, I wish I could track him. So for me, I'm having, as a customer or a consumer, I'm just having a hard time trying to, like, why would I not buy something that could actually then track?
Speaker 5It's completely fair, and it's a tool. Every tool has its positives and its negatives. But why not, so how much would it cost to add an RFID chip? That wouldn't be the business. Because the thing is, you're now asking me to compete with Apple, with AirTags, and that's not my lane. So I wouldn't want to, that's not my, like, they're a different thing. And again, you know dementia, so once you start tracking someone, there's dignity that's lost. And there really is, there's a lot of people out here that don't know the signs of wandering. And if you do see them, we've just kind of lost this ability to see someone that needs help, and our instinct is to take a phone and start recording them. And so this really just wants to train a behavior, is what we're doing, is train a behavior that if you see someone that looks like they might need some help, you can look for this, they could be a type 1 diabetic, they could be a nonverbal autistic, that if we see one of these things, or if we find a set of keys, or put it on a dog, that we're going to help each other.
Speaker 2That's really. I agree that that's not the business. I think you should stay open-minded to that could be a part of the business. Not that it has to replace what you're doing, but we want to eliminate friction. And as humans, like, we're already accustomed to Life 360 and AirTags, and you don't need to be Apple. You could be an AirTag for kids, or AirTags with people with dementia, and it doesn't have to replace what you're doing. I'm just saying, as you're having conversations with the owners of these facilities, just float it. Like, hey, would you ever, like, what's the harm in just saying, would you ever, oh, now that, you might hear, yes, that's what I want. This is cool, but that's what I want. And then you're like, wow, there's a signal there. I should go there. Oh, that can be humbled. I'm always open to suggestions from people. Another idea, I love that you said sporting events, but we're almost out of time, but you could, if you had a sporting event with 10,000 people, you could give it away for free, give it to the organizer. They hand it out for free. It's going to cost you 300 bucks, right? 30 cents per. That's what I'm doing. 3,000 bucks. That's what I said. 3,000 bucks. And it could be free, like, for a month, but then there could be a QR code where you could charge like a dollar a month and people could keep using it with their kid forever. If they want it, it's free no matter what for the event, but you can make recurring revenue as well.
Speaker 5Always open to that. But there's something about people right now, the atmosphere of being over-subscribed and no app. So I'm really kind of, as a marketing play, is taking away this friction of people feeling that they don't want another app, another subscription. So getting users so that the big institutions will come and foot the bill.
Speaker 4I love it. I really do. I love your passion around it. I love that you were inspired by your son and he's involved with it. I hate that you're trying to build a new product in a new marketplace. To me, it's always scary when you're trying to change the consumer behavior of the mass consumer. But that being said, I would be willing to offer you $5,001 of value. Just kidding. I would be willing to introduce you to a number of facilities in the healthcare side. So I have many facilities. I know many people. They're the best. No, I have a lot. I have a lot of relationships with skilled nursing, assisted living, long-term care facilities. And so if you just want to get market research from these individuals with the setup pitches, conversations, I'm more than happy to introduce you to those people.
Speaker 6Thank you. Appreciate it. Yes, that was awesome. All right. Really good energy. That was great. You guys stepped it up. So next up, we have Cam Finley with GoSeeds.
Speaker 11Hey, guys. Like 100 million people, hundreds of millions of people in the world. I love sunflower seeds. Who loves sunflower seeds? Yeah, I love them so much. I have them in my mouth right now. Now that I think about that, I should probably spit them out. Do you guys have a napkin? No. Okay. All right. I bought my own cup. That's okay. Come on now. Come on. Guys, there has to be a better way, right? There has to be a better way to consume sunflower seeds. And this is it. This is GoSeeds. It's simple and it works. And it's amazing. Brethren, today is the first day of the rest of your lives. Okay? Think. Think what we can do with this product. Close your eyes for a second. Think what we can do for wife on husband insults profanity from spilled seeds. We can eradicate it, guys. Our nation will never be stronger. Let me show you how it works. This side. You open the small side, you get fresh, amazing seeds. You shut that. You open the other side and you spit the, the, thank you. You spit the shells in here. Your wife loves you. You don't make a mess. It's clean. It's compact. You buy it like this. You can fit a whole bag of seeds. You can't touch this yet. Do you wait till the pitch? I know. Right? Okay. So I want to make seeds clean and usable. Okay. My wife and I, we have 10 kids. We have a lot of seeds and we don't want spilling. So we use these to help keep them contained. And, uh, who wants to get cracking now?
Speaker 3I didn't know that wife on husband profanity for seeds was that big of an issue.
Speaker 11Go spill. Seeds in your car and see,
Speaker 3uh, what, what are you asking
Speaker 11for? So this is an idea. My buddy and I have had this idea for years and years and years, and we just love it. And it works well for us. And when the opportunity presented itself, I said, let's get serious. Let's go. So this is like a sippy cup for seats for dads. Sure. So is this your seed round then? That's it. I like it. I like it. Okay. Hey dude, we don't want to make a shell of a mess everywhere. We want. To be contained.
Speaker 3Okay. Here you go. A lot of good puns. Uh, this reminds me of like the chip, like Pringles chips, right? So it is, I assume easy to manufacture this at scale for cheap prices. Cause people throw those away. What does this cost? Do you know, like at scale?
Speaker 11It depends on scale, but we think we can get those for a dollar 20 full of seeds. All the packaging. What do we sell? I don't buy sunflower seeds very often.
Speaker 3What does sunflower seeds sell for?
Speaker 11You can get a. Pack of seeds, the same amount of seeds. You can get it for $3 and 20 cents at a gas station.
Speaker 3Okay. So this could command a premium to that. I would assume if it's the same amount of seats, but with the throwaway aspect. Absolutely. Do you know what you'd want to retail it for?
Speaker 11So I think we'd want to be right under $5.
Speaker 3Yeah. Yep. Yeah.
Speaker 11We want to be right under $5
Speaker 3or you don't pitch it as being reusable. Of course you could reuse it.
Speaker 11So we, we have thought about making reusable ones that have like the new England Patriots on it. Or whatever sporting, right? So we're thinking about, you could brand those for schools, for your favorite sports team, for your favorite Disney princess, whatever you want. Then you could unscrew the bottom and replace it with new seeds, but these are going to be disposable. Yeah. Okay. Do you have a patent on this yet?
Speaker 2Headed there. You're headed, is it pending or? Yeah. So provisional. Are you open to this being a packaging company or does it have to be a seed company? No. So I, I just met a guy who
Speaker 11does a lot with Buc-ee's. You know what I mean? Never heard of her. What if we had that one be two teeth and we had the big one be a beaver tail? It could be pretty sweet. So I want to revolutionize seeds. I want to revolutionize seeds. And I think go seeds. The packaging is the key to revolutionizing the seed industry.
Speaker 2In your professional industry. Like, do you have experience making, selling, distributing something like this? What does your professional background look like?
Speaker 11So I have, I've had a company that we had little eyeglass repair kits sold a $750,000 licensing. So I have, I've had a company that we had little eyeglass repair kits sold a $250,000 licensing agreement. Then I have a, a thing called be calm buzzers. Check them out. They're awesome. They help people with stress and anxiety. So we're building that company. We've built the, it was called SOS optical in the past. And I worked for the governor's office for 20 years, helping small businesses succeed. So I've seen a, well, it's been a few governors, right? So yeah, Utah, Enoch, raise your hand. If you know where Enoch is city of Enoch. Okay. All right. Yeah. We're the sinners that didn't get translated the first time. We're trying to figure it out. It's a great place. Come to Enoch. It's a good one.
Speaker 2You buried the lead there. You you've already signed a licensing deal for a previous business. That that's a big deal. That's a big deal. As they say in Utah.
Speaker 11It's not that hard to have a great product.
Speaker 3People want to buy it. Can I eat these or these? Those are yours guys. Okay. Those are your loves. Are there other, I don't eat seeds. Okay. Are there other seeds that this would work for? I don't know much about seeds.
Speaker 11Those not only work for seeds, they work for snacks. They work for nuts. Our company is called go seeds, but it also has go. Nuts. So you can do those with pistachios. You can do it with, I mean, the future is unlimited. How many different seeds do people eat, but spit out part of. So you have sunflower seeds.
Speaker 3You have pumpkin seeds. I'm really intrigued by seeds right now. Sure. Obviously. Yeah.
Speaker 11You have magic beans. I'm kidding. I'm kidding. So if you go into a gas station, I, I, everybody go into a gas station and say, what is one of your number one sellers? Hands down. It's sunflower seeds. Next is beer, but sunflower seeds. are, have a great throughput. They sell all the time all day every day at convenience stores i
Speaker 4literally i drove down here i literally have a big cup from my from my kitchen it's nasty full of seeds shells it's seed shells she sells by the c sharp it's disgusting i like so i would absolutely be um a consumer who would buy something like this yeah tell me because i missed it um what are you asking for like what
Speaker 11oh you didn't say so i'm asking for a strategic partnership that's what i want i want strategic partnerships we can work together to revolutionize seeds
Speaker 3i'm very interested fyi yeah i love
Speaker 11it yeah
Speaker 2i am in so hard on this this is like this is like brigham young saying this is the place this is the season this is the seat i like it so five hour energy won because they took the energy drink and put it on the counter not in the cooler no competition on the counter right uh liquid death won because they put bottled water in a can dude wipes won because they made for dudes right it goes on and on and so the whole episode was about changing the form factor and you win gruens took athletic greens powder and put it in a gummy form and sold for 1.2 billion in 30 months right after founding so i'm all in on a new form factor i'm like whatever you want like strategic partnership i'm in like flint
Speaker 11baby let's do it i love it i go seeds it's one question one question this is your wife this is my beautiful wife 10 kids 10 kids
Speaker 4stand up everybody cheer
Speaker 11for
Speaker 4my wife and she must have the patience of a saint if you're married to this guy and has 10 kids 10 10 children that's incredible that's incredible
Speaker 11we're so blessed we're so she she says 11 kids because you know so
Speaker 3you're the king of seeds that's it the king of seeds in more ways than one great job listen i'm
Speaker 2bringing brandon with me because he's a facebook ads guru and and this would crush with facebook ads so are you in or what yeah let's do it let's go to the moon fellas nick what are we doing do you have any healthcare experience this would
Speaker 4be perfect for old people they're dentures anyways i'm in i bring nothing to the table but i would be 100 in take my money let's let's do this
Speaker 6do it yeah yeah that's a three-peat guys let's go seeds yes let's go okay that was awesome yes and if you guys stay after cam is going to be up after this whole show he's going to do an improv bit kind of just like on seed puns like everything everything seed puns man awesome congrats that was good all right next up we have chris princeter with the cast iron spa there we go it came to me cast iron
Speaker 12spa yes little spa day for my cast iron here and for myself of course so about a month ago my wife was standing at the stove and she looked at our cast iron and said wow it really needs a spa day and i said that's a business i think and so i popped on my favorite ai platform and looked into it and i'm like this seems doable seems somewhat doable uh so yeah i had a feeling that this business could be something that we all know cast iron is hard to clean we will clean it with soap and water every now and then but if you know a family member uses our cast iron to cook tomatoes for example and our season it might get messed up things might get weird and slow on time and so the idea is that people basically take their cast iron whether it's grandma's that they found in the garage mail it in and then i will clean their cast iron in a professional way and send it back to them see do the first season send it back and it'll just be a mail-in business um long story short and my plan is to use the cleaning process that's pretty visual like the before and after effect uh for the cast iron or social media marketing and um yeah that's my idea it's just an idea right now i'm one of the idea presenters that's it
Speaker 2okay so just to be sure we understand the business this is like a mail-in cast iron cleaning service or seasoning service
Speaker 12or both yeah so i i don't i don't know too much about the industry i uh i'm just i figured that there could be some seasoning aspect to it but from what i'm seeing is it might be kind of expensive to mail it i'm not 100 sure on shipping and stuff like that so i'm not sure i'm not 100% sure on shipping and stuff like that so i'm not you probably want the full treatment to have it work and i've looked up some companies that kind of do this they they are companies that sell cast iron cookware and they what they do is they have a side service of restoring cookware so i've seen charging somewhere around like 60 like the minimum points for that when it doesn't and customer pays for shipping and um um margins are pretty good it just takes a little bit
Speaker 2of time okay so i'll start with the pessimists and end with the optimist what i don't like about the business is i have an e-commerce background shipping those is going to cost like 15 bucks each way plus also the just the fact of them taking all the time and effort to ship it for like something fairly quick is kind of imbalanced right whereas if it took them five hours they'd be willing to spend 30 minutes to ship it but if it only takes 30 minutes to clean it spending you know 30 just to ship it plus your fee it doesn't really make sense that's my pessimistic take my optimistic take is i think this could absolutely crush if you'd be willing to switch the model a little bit and that's you short form video to show the time lapse of you cleaning stuff the before and after there's a guy that does this with blackstones that just crushes all he does is cleans blackstone grills and he's monetized that in so many different ways there's a another girl called like a clean girl where she goes to gravestones and she takes like the spray and she cleans gravestones with a time lapse before and after they'll get 100 million views 10 million because it's the perfect type of content for vertical short video so i think if you somehow find a way to buy like all the crappiest cast irons you can find on ebay or whatever and just make this a content business and leverage it into selling a product like a cleaning solution for cast iron i think that would absolutely crush because that's how the clean girl did it she's actually i know the the guy who started that account she's kind of an industry plant and he hired her to be the face of the brand and they just sell a cleaning product and they use short form video to sell it and they are absolutely cleaning up pun intended and i think you could do the same clean girl business model with for guys for that i think that would absolutely crush but i just don't like the model as it sits today but you're in the idea phase so i think you're still kind of figuring out look good i'm sorry
Speaker 4for what i'm about to do to you oh no god you have an idea you don't have a business which is totally fine no yeah but that's totally fine chris and i have burned a lot of money on ideas that were not yet businesses i would be more than willing to i love ideas yeah but you didn't really come up here prepared it was like i think sending cast iron might be expensive in the mail yeah i'm not really sure what the economics are no i think there is a market for it right like everything that you said was qualified and so what i would recommend to you is the next time you have a pitch in front of 200 plus people and however many eyeballs are going to come on this just have a business plan right just be able to speak more to the specifics because as an investor i would not invest in this right now because i'm really investing in you and you want to invest in what was your name sorry sorry i'm chris chris okay also chris i want to invest in chris right because that's where you are right now the idea is almost irrelevant it's like do i believe in chris or do i not believe in chris and that that's where i am right now that's why i for me it wouldn't fit so
Speaker 2in chris's offense i've done a poor job of communicating there is like a section just for ideas and chris have basically no time to prepare for this so i agree with you but also i didn't really tell nick like the full concept of all this so nick does okay so that's on me so this was all last minute thrown together you had an idea i found a friday yeah we're just doing this for the content
Speaker 3guys and go um i think what chris said you that's what i was going to say i think you should do that regardless i think you should basically start making time lapse videos of you cleaning those things yeah or even asmr type videos of you cleaning those that's what um and because he saw those ones i haven't seen the ones that he mentioned but on my feed i see versions of this but uh it's it's a company that does cars uh just super dirty cars and they clean them it looks amazing i've seen another one that does rugs it's captivating and then the yeah the mower guy that guy goes viral yeah sb yeah he goes viral every video because he just finds the dirtiest um front yards and then just says can i basically clean up your yard for free and i'll film it so that's anyway you should do that for that and maybe branch out and clean other things there's a few things at my house actually that could you you could come over yeah that need cleaning but um because you'll you can either then pitch your idea to the people in the comments or maybe you go the cleaning product route yeah but regardless you need to get good at making videos for either one so i think you should just start that yeah it makes
Speaker 2sense completely agree if you post two videos that each get over a million views which is not as hard as you think when this niche it would not be that hard i will invest real money into like you doing something with that content i don't really care what but if you're like committed to like actually making content in this niche i don't care if it's a product or your sponsorships ads whatever i will invest real money in you all right thank you cool appreciate y'all chris
Speaker 6seriously though like definitely do that and when you do email us we we want to see that content that would be awesome there were a couple time lapse named in here but they forgot one really big time lag time lapse goat and he's in this room and he's like i don't know i don't know i don't know i don't know i don't know i don't know i don't know i i don't know i don't know i don't know we have tyler mufford with his stump grinding time lapse that is the ultimate time lapse yes and we are just talking about it those crush so whatever you have time lapse it definitely okay coming up next we have mr jake nelson with the doghouse app so
Speaker 13tonight i want to speak to all the gentlemen in the house um especially those who are in committed relationships uh if you've ever forgotten something important whether it was you know what your wife said 10 minutes ago or to get milk on the way home from work or whatever or forgot to plan something or didn't plan something or didn't set reservations or anything um you suffer what's called men's suck itis uh it's the most prolific disease among married men it's not contagious but it is very curable um i have in my hand the inspiration behind the cure to men's suck itis this is my wife's journal um it is it's like a a glimpse into the mind of a
Speaker 12woman it is crazy
Speaker 13on february 14th 2008 only five months before or after i got married um my wife five months my wife wrote this it's not emotional but i'm anyway i'm standing here in just my apron and heels i expected jake home an hour and a half ago but of course he's magically decided to not come come home right after school dinner has been on the table and is cold she goes on to say you know the ambiance and the low and low light and the music and her plans for the evening but it's a family show so i won't go too much into that but that was five months after i got married we were newlyweds and we were in love with each other we still are but um that journal entry inspired something in me well several months ago this year my wife uh reached out to me two minutes my wife said men need women coaches to guide and direct them through their relationships to improve their relationships so i started the doghouse app which is an ai driven um relationship assistant that's like a chief of staff for the important relationships in your life it's out there right now it's only a web-based app but it's brand new and uh and that's it the
Speaker 6doghouse app i've been really trying baby that's what she was
Speaker 13helping for that's what you were helping for and that's what's motivated view one of the many songs she had on her playlist and it repeated 17 times while i was okay so let me just get this
Speaker 4straight this is the doghouse app it helps you basically you're getting a second wife to tell you what to do even more we are in utah no sister wise yeah it's
Speaker 13a good start to the next phase of the yeah yeah um no it did higher law brethren so uh her idea was to have women coach men guide them through the and he said
Speaker 4no no i know better than you it's gonna be
Speaker 13ai it's gonna be yes got it okay um it is it it will it is a payment-based app so you subscribe because it's utilizing ai which is cost money um but it's working with this ai coach to when you onboard it knows your significant others quirks her color code her birth order her horoscope um what things she likes what she hates her favorite flowers restaurants all that stuff and it will nudge you hey make sure you set a reservation for next week's appointment whatever um send her a spicy text all that stuff i had a flashback
Speaker 2to my favorite episode of the office the deposition where jan was reading michael's performance report i am out of carrots i'm out of sticks i actually don't have a lot of value to add here because i'm not a bad husband but i'll try this and have a just kidding just kidding my wife's right there plug yours um i'm just kidding so first of all do you have any free users like have you had anyone use this i have i
Speaker 13have no users it's only on the web it's not on the store yet version one is like my almost like my beta testing option opportunity to basically i really want to gauge interest and um you know prove prove the market the match and the
Speaker 2mobile app is the goal here right yes your web app now okay so it's an ai wrapper where you you can upload custom info and it's a chat bot for husbands to become better
Speaker 13right um not as much of a chat bot as really just an host yeah yeah okay is it
Speaker 2safe to say like it's like a better help for husbands like uh yes kind of could you chat with
Speaker 3it yeah i mean you could add that function right yes of course and it's it doesn't have a chat
Speaker 13function it just has a it does have an ai screen that you go to and it will help you generate um women close your ears it'll help you generate thoughtful creative uh text messages to send to your significant other based on her mood and um all the other things that it knows real question
Speaker 3does it know can you have it know where your wife is at in her cycle serious question that is that
Speaker 13is part of it you can add her yes okay
Speaker 3that's the luteal phase etc i'm learning about this also currently um so so um how much are you
Speaker 13going to charge right now it's set for twenty dollars a month okay um but i'm not set on price
Speaker 3but based on i'm assuming the cost is going to largely be based off of how much the person individually is using it because it's just going to be token
Speaker 13costs yeah so i need what i really need is for to determine how much a basic general user uses in because it costs me for my i use base 44 to build the app yeah it costs me credits in my base 44 account and so i need to know how much credits that single users using yeah you would need to get it
Speaker 3off of base 44 that's one tip tip number two is is uh you would have to integrate some other llms aside from like clod and chat gpt to have cheaper token costs because i think that monthly price is going to be too high i think it should be like 9.99 or 4.99 a month um but you can drastically cut those token costs but i actually do think it's a good idea absolutely love the
Speaker 4idea i think like that's a real problem there's three big barriers that you don't have to have the answer for right now but i think that you're going to face the first one is what's the model so is this your wife is you know the back end for it or are you using just any llm we're going to use clod uh opus whatever 4.8 and they're going to give these tailored answers you don't have to answer that right now but that is one thing that i think is really important it's like why would i choose this right like why would i choose the advice that's going to give me that's just ai yeah the second piece is going to be onboarding like to me i i just this is an onboarding nightmare how are you going to get the information needed in order to then push notifications and give tailored solutions right we're going to get um oauth for gmail and outlook and we're going to get their texts and we're like having onboarded open claw or clod uh co-work or any of those things it's difficult to get all the information that you need in order to actually launch it and then the third thing that i'd be this is really a distribution play it's not a huge moat so anybody could spin this up and so what's your plan to acquire customers you've got to figure out a way to get in front of customers unless you have a lot of cash behind and you're going to go i don't know onto facebook or you're going to partner with somebody like chris where he talks about it and all of a sudden you've got eyeballs on it but the distribution for me is key for all of those reasons i think you're really early i love the idea i'm not super interested in in funding where you are right now but i think you're on the right path to start proving some of this out thank you yeah and i would i would love
Speaker 3to help provide as much guidance as i can because i think there's some legs to this if you if you pull off a few things uh there's
Speaker 2a bunch of questions i want to ask but in the interest of time um well i'll ask one how i know this is kind of this is just an idea you've kind of built it's kind of an idea how serious are you about actually
Speaker 13going all in on this so i'm very emotionally attached to the concept of essentially i've recognized that men have a lot of money and have this intention gap that where it's it's not a lack of love and appreciation for their wives it's just sometimes an inability to execute with intention um and so this this hits super home for me because i've experienced so many issues in my marriage where just i fall short constantly and i'm i am very passionate about making helping make men um better in their marriage so on a scale from 10 i guess and nine out of passion level um i would i
Speaker 2would suggest that you find there's a company that uses facebook ads to teach men how to dance have you seen those ads they like absolutely crush it with facebook ads i feel like that's the same type of marketing strategy that you need to use whatever they're doing like go to meta ads library see what they're doing who they're targeting what they're spending what do their ads look like copy that playbook if you're able to get this into a mobile app approved in the in the apple app store and you have like a call it 50 paying customers with your churn under 15 which i don't think it would be that hard to do i think it's an inevitability that you get to that point if you get to that point i'm very interested in investing real money but i would like to see it at that point yeah yeah anything else that's fair
Speaker 6thank you okay thanks thanks guys jake that was awesome man thank you so much i know you're a good husband because your wife let you borrow her journal all right we have a duo going up with cameron and jason for pick a path letters give them a round of applause all right
Speaker 14so if your kids are anything like ours they love getting mail addressed directly to them i'm cameron this is jason that's the simple idea behind pick a path letters was what if we turned that thrill of a kid running to the mailbox grabbing a letter ripping it open because it's addressed to them and we turn that into an experience uh one that fostered you know uh learning reading and uh just kind of the joy of anticipation yeah so that's what we do and we're going to talk about that in a little bit
Speaker 15we did um so twice a month um your child will receive a letter in the mail um and it's just one chapter of the story And then it will be professionally written and beautifully illustrated. So no AI. And it's just, you know, we plan on having various stories, genres of stories. And then what the twist is, is at the end of each letter, your child will then make a choice. So it will help the heroes guide the story. And that choice actually determines what comes next. There are different variations to the next chapter. And so along with that, that's what separates us from like any other of the child subscription letter services is that element of choice. And so this unique experience sparks their decision-making, critical thinking, their imagination and such.
Speaker 14So we wanted to show kind of, we have the product, right? We've built it. We have one story available. It's called Squire's Quest. Another one on the way. This is one of the letters. Inside is a chapter written at the end. At the end of choice, are Henry and Ava going to go into the hills or into the forest, right? After they've made that choice. Coloring, coloring pages to kind of color scenes from the story. We've recently introduced a gift bundle that includes a book. They can put it in and build their own book as they receive their letters.
Speaker 4Stop talking. Take my money. I'm dead serious. I I'm in. I think this is an incredible idea. Chris and I both interviewed someone, the flower letters. We're very familiar with. Yeah. Business is freaking incredible and they did it the right way. It sounds like you guys are really focused on the story. Uh, having a four-year-old who runs the mailbox multiple times. Multiple times a day because they've been trained now that Amazon delivers multiple times a day. Um, I just, like the minute you said your kid running in the mailbox, I thought of him. So I don't know what you guys are asking for, but whatever it is, I'm it.
Speaker 14Yeah. So we are just starting.
Speaker 4No, no, no, no. You're asking for.
Speaker 14Yeah, no, we're just starting. Uh, we send our first letters in January. We've got a handful of subscribers, most from our content generators that we're starting to kind of have them build that content for us. We do have a few paid subscribers that we've, uh, gotten through, uh, meta ads, kind of. Doing a trial there.
Speaker 3Um, you're kicking off in the January that's coming up. No, no, you kicked it off last January. Okay. Yeah. So how many, how many subscribers do you currently have? 23. Okay. This reminded me of goosebumps. I don't know if you guys read the, there were some choose your own ending goosebumps books that were pretty fire. Yeah. So love the idea. Uh, what are people paying for each month for the subscription and what about for the bundle?
Speaker 14Yeah. Yeah. So we're working on, so we're still establishing pricing. We sold some at a. Kind of a trial rate. Um, and the pricing that we are thinking right now is a hundred dollars for the gift bundle, which includes like a digital copy of grandma lives in Oklahoma. Right. And then the complete story with all of the paths at the end, the book, and then the story that comes twice a month.
Speaker 3Uh, so the a hundred dollars gets you the year. Yeah. But like by month, is that what you're saying?
Speaker 15Sorry. So, um, for this initial launch, we did, we, we did a six month story. Okay. Um, the a hundred bucks would be for. For the six month story. We have a second story in the works by the same author, cuz she did an incredible job. Um, and I think that one we're looking at one 40, one 50 for a 12 month story. Um, and so that's where we're at right now.
Speaker 3How does the kid get their choice back to you?
Speaker 15Yeah. So ideally the whole pen pal idea would have been awesome. Right. But there's kind of the time limitation. So, um, parents, um, will either send a text. So we, we send text reminders. Cause we have to get the choice back before the next letter is sent, generated and sent. So we're sending reminders to the parent's phone number throughout kind of the, the time that they're reading it and they can just simply respond Hills or forest. Um, and then it'll take that or on the, on the, at the end of the letter, there's a QR code that they can scan. It'll bring up a webpage that they can then submit their choice to. Are you manually sending these texts currently? No, it's all automated. So we're using go high level right now for our CRM automation.
Speaker 3Okay. Uh, so you don't have like a set fixed monthly price that you are sold on right now. Do you know your cost though? What a month's worth of, you know, two letters and post, like, what does that cost?
Speaker 14Yeah. Uh, so for the bundle, our margins are about, what was it?
Speaker 380% 75 to 80%. Yeah, actually. Yeah. I don't want to know this. I want to know just if somebody does monthly, just on monthly.
Speaker 15Yeah. Oh, it's like, it's like, uh, so, so we had it at, uh, 14 99. Um, that's kind of what competitors are around. Yeah. Yeah. And. Our margins are like 85%. Um, so it's mostly shipping.
Speaker 2I think this is one of your biggest assets. Um, like snail, all businesses are exploding and I think they're going to keep exploding. I think with AI, things are just going to go offline more and more. My wife actually has a snail mail business, snail mail, supper club.com. And what's cool about hers is that she has a passport where we're like, you basically, you get recipes from a different country every month and then women get together and they cook all their recipes, but what they like is having getting stamps every month. That they can put in their passport. So the passport has 12 stamps with spaces. They're all kind of differently shaped. Then every month they get to put that in there and it helps with churn. It helps to feel more engaging. And I think that could be a big asset of this because the kid is going to want to finish it. And I love that you have a coloring page in here because that makes it more interactive. Um, I just think you, you shouldn't like, this shouldn't be an afterthought. I like the idea of selling a yearly subscription too.
Speaker 14Yeah, totally. The, we've priced it so that the gift bundle is like no brainer. Right? Like for the gift bundle, it's a hundred bucks, right? If you just want the story, it's 75, right? So who wouldn't, you know, like that's, we're aggressively pricing that way because we want them to have that, right? Yeah. Have that asset, have it be something.
Speaker 2So lucky you, I, I had a talk with a guy in Rexburg, Idaho, like three months ago. We just had one chat, but he owns the domain name penpals.com. It's like a mid six figure domain name that he's never touched. He bought it because he had an idea. And the reason he talked to me is because he wanted ideas on how we could monetize it. And we talked about. But I never followed up. I don't think he's ever done anything with it. I would love to put you in touch with him because he's like begging for guys like you that already have an idea that he could, they could just plug into his domain name. So I don't know if you're interested in that, but like having the credibility of penpals.com behind what you already have could be huge.
Speaker 4I would just ask really quickly, what's your churn and why do you only have 23 subscribers? You launched in January. That's a long time.
Speaker 14Yeah. Yeah. Um, our churn is, I think we, we've lost two customers. Along the way. Right. One kid got adopted one. It didn't like, it just didn't feel good. They just didn't like it. So that's what.
Speaker 15To clarify that the family had purchased, um, or sorry, the, I think the foster. The family had purchased the child. That's a good weird dude. To clarify the family was in the process of purchasing the child. I think the foster home that had purchased the experience for the child and the child got adopted. And so they're like, we don't need the letters coming here anymore. And I think we asked.
Speaker 4They couldn't let the kid keep the like. Story going. Yeah.
Speaker 14They said they, they wanted them to start anew with their family. They'd moved on and it was important for them to help with the transition.
Speaker 3That's the weirdest thing I've ever heard. Yeah. I've never lost a client to adoption before. That's a crazy story.
Speaker 15Yeah. So yeah, to be frank, like we saw this last minute and we, like, we don't have an ask, um, because we don't have revenue really, you know, um, we're just here because we kind of got stunted on. How do we. Find customers for this, right. Um, we, neither of us know anything about social media, about ads. And so we've tried, um, finding partners for that. Um, the one person we've had, we had run the little meta campaign that we did. I think we spent a thousand or 1500 bucks and that's how we got 10 customers. And we're like, Hey, that's not working. Let's turn it off. Maybe we got to figure out our, our offering. Maybe we got to figure out like our funnel, you know?
Speaker 3And so. I would say we're all in as customers. Okay. He's already said he's for sure. And I'm for sure in like this, this is for sure. A moneymaker, his wife's doing a letter thing. My wife is also actually starting one, not competitors of yours. I think there's a lot of money in this space. If you do it right. Uh, goosebumps was the only book I read before my mission. Um, so big, including the book of Mormon all the way through shocker on shock street was one of the big ones that I really liked. So if you could adapt that to this, I'd be very interested. Uh, but yeah, I'm in. I'm in for a strategic partnership on like the investing, the strategic partnership side, for sure.
Speaker 4And as a customer, I think this is awesome. I'm going to say this and hand it up to you. My mind goes to potentially go into flower letters and either pitching a partnership or pitching some type of equity investment because their biggest
Speaker 14problem is actual authors and go-ins. Yeah. And, and we've reached out to him a couple of times. We're like trying to get them. Cause we've seen if you could
Speaker 2connect us that we can connect to you. Yeah, totally. So I'm, I'm with Nick. I'm all in for a strategic partnership, but meta ads, like that's a non-negotiable. You got to dig in, like dig into the weeds. You got to learn the ads yourself. Cause that is how this entire business grows. You have two distribution channels in the snail mothers, paid ads, organic video. That's it. So like, ideally you pull both levers, but for sure go paid because paid is less of a skill I would argue than organic. Cause you can just put more money in and I would not be disheartened by spending, you know, 1500 or a thousand to get 10 customers, because that's just like your next 1500, we'll get 30 customers in your next, we'll get 60 cut. Like you just got to give it more time.
Speaker 3Yeah, that's what I do. So I would love to help you with this. This is, this has a lot of potential. Awesome. You just have to crack that one code and then you're gold.
Speaker 6Yeah. Awesome. Thank you. Nice. Great job guys. That was awesome. I'm kind of still stuck on the fact that there's a really happy kid out there with a family that still doesn't know how the hero got out of the dark forest. Yeah. We need to find that kid. Can somebody find that kid? Awesome. All right. Up next, we have Nisha and Dushar with Secure Pocket.
Speaker 16Okay. I got to start with. A little trigger warning, okay, because I am going to talk about urine and feces. Okay, so just prepare yourself. Okay, so I'd like you guys to imagine a cute little baby who has just had a blowout, a diaper blowout, and it's all over them, right? Well, this happens to adults also. Okay, so just use your imaginations all over the bed, all over the person, in their hair, on their wheelchairs, on the floor. And it's because adult diapers fail to their job and the industry has not innovated diaper design ever. Okay, so we have solved the problem. This is the Secure Pocket Containment Brief. It's a double layer system with a hole in it and it works. It contains, it holds everything.
Speaker 4This is, hold on a second. So do I, do I put it on? I mean, if I have to, wouldn't be the first time I crap my pants.
Speaker 16It may not be your size.
Speaker 8Wow. So, so they're just, it's here. Yeah, they're just here. And I got this, this is not a, like, so it's a small size.
Speaker 16Yeah, this is a smaller size.
Speaker 3Yeah, that's a small, that's a small size, Nick. Please hold your comments. Okay, do you have a, a pat? We have a pat. Okay, you already have the pat?
Speaker 16Boiled pat issued.
Speaker 3Okay, well, he, you already know his health experience. He's going to brag about that yet again. Who knew we were going to have, like, four health issues? We're going to have four health things today. Yeah, did you, do you have revenue yet?
Speaker 16We do not. We are pre-revenue. We just launched, self-launched our WeFunder like two weeks ago.
Speaker 3Nice. What is the, what's happening with that currently?
Speaker 16We have quite a few appointments set and we do have our lead investor. His name is Benjamin McGee and he's a businessman, but also it's all in healthcare. And so he has used the product and says there's nothing like it. And everyone who has, try it. Our product has just raved and begged us for more, but we hand-sew them at this point. So there's only so much we can do.
Speaker 3That was my next question. Is it possible to manufacture those at scale without hand-sewing? Yes. That exact design? Yes. Okay. Do you know what, like, your minimum quantities are going to be and what your cost to produce a unit's going to be? Yeah, so everything
Speaker 8has been settled down. So we have found the faculty who is going to produce this thing for us. So that's the biggest thing. So right now in the diaper market, the machines. It costs around $1 million, $2 million, $3 million. So it's not easy for any guy to get in, but we have found a way. It's the amount of diaper, which they can produce in a single minute. It would be much like a thousand, 2,000 diapers. Our, the machine, which we have, it's only going to produce like 400 diapers to 300 diapers in the starting. Yeah. So that's the only thing we are, they are like 10 times more than what we can.
Speaker 3Yeah. That's, but you already have a machine or, you know, the machine you want to buy and that's how many it can produce.
Speaker 8No, we already have a machine. They are going to make a custom machine for us, but we have already think like 10,000. How much does that machine cost?
Speaker 3I
Speaker 8don't know, $65,000,
Speaker 3$65,000 and that one does three to 400 diapers a day. No, an hour, an hour. Okay. Okay. That's pretty good. Okay. Do you have
Speaker 2any experience in manufacturing or distribution sales? What is your background? So mine is marketing, but she has the major expertise.
Speaker 16So I have a healthcare administration background. And also, um, I'm a, an intern, a counseling intern with a specialization in disability and the disability market. And Tushar is a marketer.
Speaker 8So I'm into marketing. What kind of marketing? Marketing like social media. So paid social media ads, basically. Okay. Meta, Google too. That's what I do.
Speaker 2Is this something you're going all in on? Yes, exactly. How much money or time have you put into it so far?
Speaker 8So just to tell you, so this, the diaper, which you're saying it's, uh, it has been produced by our, uh, a friend. Her name is Kathy. So she made this, it, she changed like 200K diapers for over like 40 years. So she knows about what goes in the healthcare. So she did that. And now we are kind of making it come to real life. That's what we are doing. Is she an equity partner in the business?
Speaker 16Yeah, she's my mom.
Speaker 2How much does she own?
Speaker 16Um, we each own 33%. Okay. Yeah. And so there's three of us.
Speaker 2Do you know what you're asking for yet?
Speaker 16Uh, yeah, we need 300,000. We need 300,000. To have our manufacturing set up, our initial run and our marketing. We do plan to do direct to consumer in the beginning so we can have higher profit margins.
Speaker 4Yeah. Direct to consumer. I'd love to see those Facebook ads. Oh, quick, quick story. I have a twin sister who was severely developmentally delayed. She passed away a few years ago. And, uh, my kid's favorite story of her is, uh, she didn't like our neighbors. And so she would, she would take her diaper. And throw it over the fence at them full diapers and I would have to go and get them. And so my kids are like, dad, do you remember the time Leah through? Yeah. I'm like, yeah, man, I, I, I get it. But those diapers did not hold as much as this. So I'm glad she wasn't wearing this, but you know, it was different. Um, all right. So my, my real question is what's to stop a Medline or a McKesson from coming out and copying this like, or why not go to them and license this to them? If you've already gone through the patent process.
Speaker 16Yeah. So I have. I have met with multiple companies, but none of them want to put any resources. That's been kind of the biggest barrier through this is they have these ginormous machines that make 400 diapers a minute and they don't want to alter them for this product.
Speaker 8Um, and also the price aging. So our diaper is equivalent to two of their diapers. So basically we are hitting their revenue in a very hard way. So this diaper can hold toys of what the best diapers in right now in us, they can hold.
Speaker 16So last week we actually met with the CEO and founder of North Shore. I don't know if you're familiar with them. Facility company. Um, yeah. So they, um, they're a distribution, uh, and they also create their own products. And then he actually, one of his customers sent a video of ours, um, to his desk and he wanted to find out more.
Speaker 4So, uh, what was your background? Do you said healthcare administration and what, um, what settings?
Speaker 16Um, mental health setting.
Speaker 4Mental health settings. Okay. I've been in a lot of sniffs and assisted living facilities. I'm not saying it's not a problem, but it's not a common thing that people were like, man, the voice, this diaper was bigger so that it wasn't as much poop up the back. I mean, yes, there are blowouts, but do you know how big of a problem this actually is? Cause if there's companies who have seen this and are passing on it, there may not be the demand for something like this.
Speaker 16Um, well, the numbers are about 9 million people, um, deal with heavy incontinence, dual incontinence and loose stool. So the numbers are there. Um, and if you talk to the CNAs, um, they, they all wish they had this product.
Speaker 4Most of the time what they're going to do is obviously the patient will have a diaper, but then they'll put a chuck pad under them. So it in effect captures everything. It doesn't mean you sort of clean them up, but I'm not seeing why this would help with the cleanup because they're, they're still cleanup to be had. Even if there is a blowout, blowout, or if there isn't a blowout, have you talked to the hockey? I can't believe we're talking about blowouts. This is amazing.
Speaker 16And wet out.
Speaker 4Have you, have you talked to them about the demand for this product or is it just anecdotal at this point? Like, Hey, we've talked to a few and we've gotten these answers or have you actually gone and surveyed and said X number of facilities say this is a problem?
Speaker 16Um, no, we haven't done that. We have not done that surveying. Yeah. Um, and the CEO that we spoke to, um, he said in the, just like the loose stool department, there isn't like a huge demand, but his diaper is for much more than just the loose stool. This is for. This is for heavy, heavy output.
Speaker 4I love the idea. Personally, I would focus on licensing this or selling it to upstream to a large manufacturer because you're getting into two businesses. One is the diaper design business and one is a manufacturing business. Those companies already have it figured out. And so you're going to be competing against them on two vectors, which is just really difficult. I do love this idea. I would love to help you in any way that I can. I can't remember what your, was it 300,000 for a machine? I'm not super interested in that because I think that that is just a whole different. Vertical that I'm not super interested in, but I'd love to help you figure out a way to get this in front of a large distributor and manufacturer.
Speaker 3And did you say, you didn't say 300,000 for what?
Speaker 8Like 300,000 in total. But you're asking
Speaker 3for 300,000 in exchange for.
Speaker 16Yes. So we're asking for 300,000. Do you want to know like what we're using that for?
Speaker 3No, like equity. Did you, have you already like.
Speaker 16We're like, uh, zero revenue, right? We haven't started yet. So we're using a safe.
Speaker 3Okay. Okay. So capital is it.
Speaker 16Yeah. 4 million.
Speaker 3Okay. Yeah. You know, I don't have much to bring to the table here. I think it's a good idea. And I think obviously we always hear about the stories of like the elderly population is increasing and they need more help and there's lots of business opportunities there. So I think it's a awesome idea and I think you should take him up on his offer and I wish you the best.
Speaker 2I, um, I love your mission behind this. I think that's the biggest strength there. Like it, it's something you have experienced with, and I, that's very commendable. I'm kind of. Surprised that Nick wasn't more excited about it and I'm. Me too. Wholly defaulting to him though. I like, I really trust his opinion here. So that has me looking at it a little differently. Um, but I, I do want to email my investor list on behalf of you to see if they'd be interested in it and give it a good hearty go, but I personally wouldn't be interested, but I wish you the very best.
Speaker 6Thank you. That'd be wonderful. Nice job guys. That was not easy being in front of a huge crowd and talking about output. Well done. Well done. I'll put. Yeah. Next up we have first door and Caleb Richardson. All right. So right now there
Speaker 10are nurses, teachers, young couples that would do anything. to be able to live in a normal neighborhood rather than a three-story apartment building. And then a mile away, there's a homeowner that has no idea that they're sitting on $12,000 to $18,000 per year in cashflow above their garage or in their basement. And those that do know that it exists, they don't know, A, how to fund it, two, how to get it approved, build properly, so that way they're not breaking the law. And then three, they don't really want to be a landlord to a person that they're sharing a lot with. And so most people believe that the housing crisis has a lot to do with capacity or supply. We believe the opposite, that the supply exists. There's tens of millions of homes that have unfinished basements or no living space above their garage. The issue is coordination between the homeowner, the renter, and then getting it funded. And so first door is the homeowner's first rental door, and then it's the renter's first door into residential living. So how it works, we go door to door and run ads targeting homes that have a garage without a living space above it. And then we run ads targeting homes And then our AI, using local data, figures if it's feasible, if there's an ROI, and then second, it does all of the permitting to cut it from like three to six months down to about three to six weeks. From there, we fund it, building kind of a sunrun PPA-type program with investors, so that way it's zero out-of-pocket for the homeowner, and the investors get about a 12% to 18% cash-on-cash return. We hand it off to contractors to collect a commission, and once it's built, plug the homeowner into a purpose-built, because currently there's about 3 million ADUs, and the tools that they have is Facebook Marketplace and Venmo. And so we're building a platform for what they need, so that way they're able to feel more like a neighbor rather than a landlord to their tenants. Massive market trends behind us. In the last three years, 16 states have approved just sweeping legislation, making ADUs easier. Idaho was the most recent three weeks ago, so it's a perfect time. And we are seeking $500,000 on a safe note with a $6,000.
Speaker 2million cap. Let me see if I can summarize it. So similar to solar, Sunrun is a solar company, right? So you take investors that put up the capital, you take partners, contractors, whatever. You find a homeowner that has extra space and you say, "Hey, you could make more money from your basement or your attic space. It's a lot of headache. We'll take care of it for you. You make more revenue. We make more revenue. We make it easy." Is that accurate?
Speaker 10More or less. Yeah. In essence, we're renting the space. So if you think of a two-car garage that doesn't have, if we cut off the roof, put about an 800 square foot apartment. Most people can't fund it, cause it's anywhere from like 60 to a hundred thousand dollars, but you can rent that same space out for about 12 to $1,500 a month. And so we're renting, in essence, the home from them, building it, and then managing the resulting revenue stream. The longer term vision, we're starting with ADUs, but it's just maximizing the revenue potential of residential living. So there's a lot that can get built, but people don't have the money and they get a rent check every month.
Speaker 2So you go so far as to find a tenant and to manage the tenant and everything? Yep. That's the platform that's getting built. That's the platform that's getting built right now.
Speaker 10So it's like Sunrun combined with neighbor. More or less. The storage. More or less. Yeah. And then the revenue model is very similar to like a Vivint, where we're getting big lump sum upfront from permitting fees and commissions from the builder and then recurring revenue on the back end, managing the tenant. Do you have any revenue yet? No. So the last four months, my experience, so I founded a seven figure startup for that. Co-founder, COO took a plumbing company from, he was the head of people to get over 2 million, 20, 50 million. Sorry. And then technical co-founder has 15 years experience with full stack. But the last four months I've done door to door, but I haven't ever sold high ticket residential. So I got a job at a company that's backed by Warren Buffett. Kind of cool. I figured out how to close and August 1st, I'm going full time on this. Okay. So you don't have any customers yet. No. Um, don't tell my current employer, but I've kind of been more or less cross selling, um, or throwing out the idea when I go into a home to sell remodeling or something about, Hey, this is what we're going to do. And so we kind of have a warm list that I'm going to be going back. Yeah. How receptive are homeowners to this idea? Big, um, the big three are the ones that we're solving. One, uh, funding is a big hurdle. So in the beginning, until we have the fund ready, there's current financing vehicles that are available that we're going to use for the first 50. Um, the second biggest one is they don't want to be a landlord. And so I'm like, well, what if we manage all of that? Because the biggest thing is compatibility. I have a four-year-old and a two-year-old, uh, a basement tenant would not want to be, a overnight employee because they have very heavy feet. I wouldn't sleep. And so it's like, we manage all of that. We, in essence, just want to rent above your garage and you'll get, you know, uh, on average anywhere from four to like $600 a month in checks for letting us space it.
Speaker 3And so your initial go-to-market strategy is to go door to door where you already have identified that there's likely a garage.
Speaker 10Yeah. And we've done, we've done the work with the municipalities like, Hey, this is the footprint we're building out. Um, and most people think of like ADUs is like a basement. The biggest benefit of going door to door with the above garage is you can identify as you're looking at it. Oh, that would be, you know, an 800 square foot apartment and they haven't thought about it. Um, and it's less disruptive.
Speaker 3So if I, if you knocked on my door, what's the pitch?
Speaker 10Yeah. Well, first, if you like me on a 30 second, 30 second pitches, I'd ask you if I'd give you five guesses and I'd give you five bucks. If you know what I was going to talk about, but then from there, I'm saying, have you ever thought about above? Your garage door out here, you have this pitch. If you look across the street, your neighbor has living space above it. You don't currently, it's possible to just chop off that ceiling and add a one bedroom or two bedroom apartment, completely, um, not disruptive to you. And then in the end, you finance it for about five to $600 a month. And we rent it out for you for 12 to $1,300 a month. So you're getting, what's your income? Oh, what do I know? I got a grand. What is there in essence, getting about a 7% raise by letting us use your property.
Speaker 3I, I don't have to pay anything.
Speaker 10In this moment you do. So we're just using normal financing vehicles. The purpose of this fund is one to get 50 builds, to have unit economics and get the software life. Um, once we have the unique economics, it's a lot easier to go to investors and say, Hey, you want a 16% average cash
Speaker 4or cash return. Chris, you remember when I talked to you about this business yet? So I have a friend in California who's doing this their first year. I had to go back and look at my notes. Um, their first year they did 35 ADUs and their top, I find revenues over $10 million and like one and a half million dollars profit. And they've since been growing like crazy, but all they're doing is ADUs. You're launching like three businesses here. So their business was door to door, Facebook ads, finding homeowners that want ADUs. And then they're working with the homeowner to unlock the value in their house. Cause they're going to go and get, and not a HELOC, but a, a build loan against the equity that's in their home. Yeah. Post, uh, posts, brandation. Sure. Whatever. And, um, and then that person who's going door to door and getting that sale, then they're finding, the general contractor and that general contractor is taking care of it. Eventually they brought it in house. They have the general contract and then they're managing, et cetera. You are starting a company that is the sales arm, right? And you're going to manage the build.
Speaker 10We're not doing the build. So we have general partner or general contracting partners. Okay. So we're basically just saying, Hey, we just closed this a hundred thousand dollar deal. We want 10%, but you get to go build it. Post build, we manage the property.
Speaker 4So the third thing, the one that I hate though, is now you're a property management company. And I just, have you ever, do you know anybody who's ever had a property management company? Yeah. We have a partner right now as a software is getting built. Scale of one to 10, how much do they hate it? Um, most people that I know that have property management companies that are any, any significant size, they're like, it's the worst. They're just very difficult businesses to manage. And the pitch that you're having is like, I'm going to go find the person and we're going to put them in your house and we'll help you like your soup to nuts. When I think that the idea is good enough just to help unlock ADU value in a home. So why not start niche?
Speaker 10Why go raise a pound? The biggest thing with raising a fund is like I said, the two unlocks is one people don't have the capital to as much as they want. Like, I mean, we got a quote for our basement. It was like 80 grand. We don't currently have it. Um, and then, so that's why I think the fund is it unlocks. And then again, not as the builder, but as the, the facilitator, if you will, of, cause we don't necessarily have to sell. I'm just thinking similar to like an event. Why not get a bunch of cashflow up front to profitably acquire a customer? So the prop,
Speaker 4here's the problem with the fund. Have you ever raised? I've raised capital before, but not SPV or anything, but you know how hard it is. Not just when you raise capital, but now you have all of the regulatory requirements that come along with raising funds. You had to keep those investors updated. You're managing other people's capital for me. Yeah. Why add the complexity when there's already a proven business model of, I don't need to go and raise a fund to then help people qualify for a loan. I can just go and find the people who already qualify. I think sequentially speaking
Speaker 10to get to revenue, it's a is going and selling the builds. And then back end is doing the property management. And the biggest reason for, I know I think most of the time people hate property management is one because you're dealing with 200 tenants in one building versus with this, the way that we're building it, our partners have usually about five year warranties on all their work. Most homers are going to move out by that point. And so once they move out, we won't necessarily have to worry about it. Like all the repairs. And then the fund is more down the road. That's kind of the longer vision of like max thinking. Right. Starting with ADUs. But one day and over, like my mom, her backyard, there's an oversized garage renting out about $4,000 a month for a mechanic shop. She couldn't have built that. But you know, with the legislation that's passing of like outside capital, can't really invest in residential real estate. This is kind of a loophole where they can still get those returns.
Speaker 3Residentially speaking. This is not like my experience. So I wouldn't really invest per se. Although I did invest in neighbor and I could connect you with those founders. If you, a deeper is that the uh like renting out like storage space, right? Yeah. I mean, it's basically, yeah, it's just more of a place. Storage, yeah. And I partially wonder if they've already gone down this road internally and there might be some learnings there they could give you. But I think if you pull this off, it'll be worth much more than 6 million. So lots of potential.
Speaker 2I agree with Nick. What makes me nervous is like, it's a financial company. It's a sales company. It's, I know you're not a general contractor. You're just subbing it out. But like, you're going to be in the weeds whether you like it or not, just because I've done that. You've picked like, you're in like five businesses and three of them are like really, really hard. You know? So to me, if this business was, we go door to door and we build out ADUs and we find them a tenant, I'm like, I'm in. Because you could find, you could start in like Provo, Utah, where you know the regulations and you find the one general contractor that you don't have to babysit. And you could find 180 use in a couple of years and have eight figures in revenue and finding a tenant's easy. You post a Facebook marketplace and then you could say, we're going to refer you to a property management company and then just wash your hands of it and move on to the next. Like, I really like that business. What you've described is sexier, but a lot harder. Yeah. Naturally speaking. That's I think, like I said, with the tailwind, I didn't mean to cut you off. No, you're good. I'm just going to say, I'm out for that reason. But I think someone is going to win here. I think what you're doing is a no brainer. It's just going to be really, really, really hard.
Speaker 10Yeah. That's where kind of the same idea, the tailwinds behind. There's like I said, 16 states, yet that's only 16 states. That are making it easier. It is going to be really hard, but the goal is to win the win the market rather than just make, you know, 10, 20 million. So I wish you the very best. Appreciate it, guys.
Speaker 6Yeah. Caleb, nice job, man. I don't know if anybody caught that, but Caleb said he didn't have a skill. So then he went and got a job to learn the skill and then he got the skill and now he's using the skill. That's pretty cool. You can just do things, right? Right. Yeah. Awesome. Awesome. Yes. Brandon says hype it up. So obviously that wasn't hyped up enough. So guys, let's go. We have one. More here. James Lincoln with Goodly Glove. Here we go.
Speaker 17All right. I could have used some water for the last two hours. I didn't want to walk by the cameras, but I will say before I start, I was a nursing assistant in college and that diaper would have been amazing to have on patients. That is a job that I don't think about often. I put it in the back of my mind. Okay. So I, I'm James. I own Goodly. And we are a marketing agency for home service businesses. Um, probably the most boring business we'll hear tonight. Um, I started it as an MBA student three years ago, a little over three years ago. I was here at BYU. And over the last three years, we've grown to just about 1.5 million in annual recurring revenue on a $450 average revenue per customer, uh, per month. So a pretty low ticket, but took a while to grow, but the nice thing is nobody really makes that much of our revenue. So churn doesn't affect us that much. Um, we did that with me being an MBA student and having a full-time job for nearly half of the three years. Um, it's been about 12 months that I've been full-time in the business. And, uh, yeah, I don't know. It's not a, it's not anything crazy. It was meant to be like the path to a bigger thing, but it just kind of has grown to become the thing that I'm doing. Um, despite my best efforts to have that not be the case. So the. Task right now is $450,000 for 15% of the business, a $3 million valuation. And that will be used just to blow up the sales team. I've got one salesperson. He's been working with me for three years. He's been the sole salesperson of company for the last two years. Uh, it's been a little over two years since I've sold. Uh, we've got a few SDRs that are overseas. And that's really like the only obstacle for us right now is sales. We just need more sales, more people to throw at sales. We've tried. Uh, remote sales. That's not great. I think we need an in-person sales office and, uh, I'm looking for the money to do that. And a strategic partnership with someone who knows how to do it.
Speaker 2Thank you, James. What did your growth do when you finished your MBA? Like once you went full time on this, what happened to growth?
Speaker 17Um, I had a graph. I wish I knew the numbers better, but it was pretty steady, uh, through the MBA in the last 12 months. We've gone from, um, I think we were at 70,000 of MRR. So it took us about two years. You get 70,000. And since I've been full time, we've gotten up to 122.
Speaker 2So I'll get detail. What does your average customer look like? What type of business? What size business?
Speaker 17Yeah, they're small, right? They're primarily, we're all cold calling. That's how we get our customers. And so we tend to deal with smaller businesses that don't have gatekeepers. Uh, they're generally doing between 300,000 and 1.5 million. Some of like the HVAC businesses will do a little bit more because they can do more with the owner operator. Uh, but yeah, they're, they're owner operator businesses. Um, initially we kind of sold to everybody. So we do have some customers still. Uh, you know, uh, we have accounts still that are not home services, but for the last two years, it's been exclusively home services. What's like the 80, 20 or you're like a bunch of tree trimmers, bunch of, or is it all over the map? It's all over the map. Okay. It's funny. I wish there was an 80, 20, cause they say there's always an 80, 20 and I have yet to find that to be the case.
Speaker 2So for 50 average revenue per month, what were your margins again?
Speaker 17Uh, our net margin is 45%.
Speaker 2Wow. Okay. Are you building this on a platform like high level or something else or what's the 80, 20 of what you're offering for them?
Speaker 17Like voice agents, paid ads. Website SEO. And we recently offered paid ads, I think about 10,000 or MRR and spade ads.
Speaker 2Okay. Building a website and helping them get inbound leads.
Speaker 17Yeah. I would say like, truly it's like websites and Google business profile management, right? Like the SEO, you know, uh, isn't, isn't all as robust as it probably could be because of the price point.
Speaker 2What is your churn?
Speaker 173% a month. Net revenue retention is 78% at 12 months. Okay. Hit me, dude. I knew I, I was a little nervous. I get in front of you for this. So if I hit me, I
Speaker 3already know you. Yeah. Yeah. And I, and we just tweeted back and forth the other day. We did, um, love to see the progress. Yeah. Sorry. That sounds weird. Um, so SEO and websites, how much do you use AI?
Speaker 17We are nearly AI native at this point. I do still have some team members that are driving the AI, but we're, we've, we're building true AI agents at this, at this point. The do what? Uh, on page. Yeah. Optimization, onboarding, uh, Google business profile, optimization posts, new pages, uh, you know, are you doing citations? Not well. Okay. Uh, what platform are the websites built on that you built? We built them on Duda and we recently have moved. Well, we're in the process of moving. We're like 60% migrated to CloudFlare with Astro and hosting in GitHub.
Speaker 3Okay. So they're just like custom. I think it's Gmail sites that were made with AI. What platforms are you using? What AI platforms?
Speaker 17Uh, primarily, well, okay. I'm a little new to this, but we've got ingest, right? Doing all of our orchestration layer. Uh, Vercel is our gateway. And so our agents are living, um, I guess like our agents live in GitHub and then it's deployed to Vercel or we can run the agents and they're pushing to whatever model we choose in the gateway, whether it's X or crock, crock or Claude or, uh, Gemini opening. Okay. And then we're just like, Oh, I don't know. I'm new to that.
Speaker 3So is there a guy on your team that's more of the tech guy or are you doing all this AI stuff? I'm doing AI stuff. I'm trying to hire, but I've had no luck so far. Okay. Um, okay.
Speaker 2I'll just say what Brandon is not saying. Brandon owns a direct competitor. I know. Am I right here? Okay. That's what's going on here for proof that we were in fact blinded these pictures. Yeah. Um, I'm an investor in Brandon's company. Um, but I love what you're doing. Like I, I was. I love what I'm doing. I no, not more. I'm just, no less. We're not as good at it. It's proof that I love the industry because I have already invested in the industry. So that gives me pause. My business partners right here. That would be a very awkward public conflict. Conflict of interest. The valuation also gives me pause. Um, I don't even know what to say, what, but I love what you're doing in it. That's really good growth.
Speaker 4And sure. What's your favorite coding language. Let's put everyone to sleep. Oh man. Just kidding. Um, okay. Here. Here are my concerns. Number one, um, you said $450,000 to grow. Typically Brandon, you correct me if you have a business that's doing well in this space, the cash flows from a business, your size can be enough to, to generate sustainable growth, right? So my concern is you, do you have a low margin business? No, 45% net margins. Okay. So then why aren't you going faster? They 5%. Yeah. So you do $1.5 million a year. You're netting, let's say 650 to 700. Yeah. No above that $700. Yeah. So you're netting $700 to 750, how much are you spending on ads a month? Zero. That's dumb. Well, that's like, why would you take an investment to like, why? Oh, you don't want to let your money on fire.
Speaker 17You want to like an investment. Yeah. And you know the truth. That's probably it. Right. Okay. I, uh, three years ago it was absolutely broke, you know? And so I've got three kids, a fourth on the way. And, uh, we've been stockpiling cash.
Speaker 4It's hard to make them to be outside of my family. You're right. Get it.
Speaker 17Uh, yeah. No, but like, no, I could absolutely do that. I probably should do that. I think at this point, I've been doing this for three years and I'm like, I think that there's probably somebody that knows how to do this better than me that could show me how to do it.
Speaker 4I don't need to figure it out. I'll let go, Chris. I would be much more inclined to invest if I had seen, like you've tried and you've burned some money and you're like, all right, I figured out the formula. I just need gas to pour on the fire. I'm not trying to build the fire with your money. Like I got the fire going. And so I would just encourage you to dig into, I don't even know, but the funnels that you have, but so that. When you take the money, it's not being learned how to do it, you're just pouring that money on the fire so that there's growth.
Speaker 3I think you already have a good thing going. I think there is a lot of low-hanging fruit that you could do. I do happen to know your industry and business very well. I would be interested in investing if there's a way where I could make sure that you wouldn't become a bigger competitor of my own. It's an acqui-hire. Yeah. Yeah. Or a merger. I'd like to purchase you right now for $10 million. Done. Yeah. Let's do it. But no, I think there's something there and I would love to talk more.
Speaker 2Okay. Yeah. I'll follow Brandon's lead on this. I think you're going to get a bunch of customers when this airs and you deserve every bit of it. We all have four kids. You're about to have four. I'm proud of you. You're doing Southern Austin and you're profiting. And I know that feeling of scarcity, trying to let go of that and trying to take that step of faith into the darkness. And you're just about there. So I do encourage you to burn some of that money on ads because there are people in this industry finding customers with paid ads, which is a lot more efficient than cold call. But yeah, no, you don't need to, but thank you for coming and pitching today. Thank you guys.
Speaker 6All right. All right. That was everybody. That was awesome. Huge round of applause for everybody that came up and pitch. Yes. So now we have the people's choice award
Speaker 3that everybody gets to vote on. Chris is amazing. And I mean, all the content he puts out, he's brought us all together in a unique way. You know, we're all on different, you know, parts of our entrepreneur journey, but I just wanted to sort of recognize the amazingness of Chris because he is so incredible and he, you know, fuels our passions like nobody else. So if we could all give a round of applause for Chris, I think that'd be cool.
Speaker 6All right. Let's go through everybody that we saw. So we have Eamon with Utah Veterans Massage. Yes. Eamon. All right. We have Tyler and Nate with Fixalo. We have Hilton with Next to Kin. Cam Finley with Go Seeds. Yeah, Cam. All right. We have Chris. Chris Prinster with Cast Iron Spa. Jake Nelson with Dog House Out. Cameron and Jason with Pick a Path Letters. We have Nisha and Dushar with Secure Pocket. Caleb with First Door. And then James with Goodly Growth. That was the 10. So keep doing your thing. Keep voting. And then we'll, we'll tally that up.
Speaker 2I just want to thank you guys for coming. Um, it's like, I have the best job in the world. I talk about business and I get paid for it. So I genuinely don't believe like I need any thanks from anyone because I have such an amazing job and life. Uh, so I just thank you. Thank you guys for being here, honestly. Um, and if you want to get something out of this, do something like leave here and go start something, go do something that is the biggest gift you would ever give to me. Not that I deserve anything or need anything from you, put down the podcast, go start something, earn some revenue and your life will be immeasurably
Speaker 4better. Can I see how many hands are from Utah in here? Okay. All right. Non-Utah. All right. Uh, does anybody beat Saskatchewan as our farthest? No. Uh, who, who's from somewhere far from it besides Saskatchewan? Anybody?
Speaker 2Bueller? I only emailed this to our Utah and Idaho subscribers. How does Saskatchewan get in here?
Speaker 4They snuck in. Says on Facebook. Okay. There you go. That's all. You ready?
Speaker 6All right. This was good. This was really good. Okay. So I'm going to give you the top three, starting with third in third place. We have 38 votes for Utah veterans massage. Awesome. Awesome. Okay. So first and second, we're tight, tight. Second place with 100 votes, pick a path letters and first place with 102 votes. Go seeds. That was awesome. So rad guys, we are done for the Thank you, guys. This was awesome. Thank you.
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