What small business owners can learn from the CNBC show.
CNBC’s “The Profit” is one of my favorite shows. Not only is it an entertaining hour of television, “The Profit” also offers up solid business advice.
In each episode, a company facing big challenges invites host Marcus Lemonis to come in and save the day. Marcus is a business consultant, angel investor and life coach rolled up into one very observant, one very blunt package.
As he spends time with each company, he evaluates the owners’ strengths and weaknesses, and he ultimately offers to turn the company around in exchange for a percentage of ownership—all on his terms.
While each business featured is unique, there are three recurring themes in the show that business owners can use to help their own companies.
Mistakes Are Learning Opportunities … If You’re Willing to Learn
All the businesses featured on the show are confronted by tough problems, and “The Profit” shows you exactly how they landed in their particular “worst case scenario.” Issues range from personnel problems to poor marketing to sloppy operations. Each episode serves as a real-life case study of bad decisions and a third-party view of what to do next.
The solutions often involve major changes to the business model, such as outsourcing manufacturing or firing key employees, which result in big adjustments for the owner … and more than a little drama. Some managers with big egos—and that includes Marcus—just won’t listen to anyone else.
The lesson: When you’re facing big problems, leave your ego at the door and try to be open-minded to suggestions.
Know Your Numbers
Each show boils the featured company’s current business model down into a simple calculation of how the company makes money. It is amazing to see how many business owners don’t know the details of their own formula.
For example, a recent show featured a cupcake company whose owner underestimated the cost of each cupcake,
underpriced the product and lost money as a result.
Many of the featured entrepreneurs have no idea where they stand financially. Finance is not their forte, and that’s nothing to be ashamed of. But it is worth the time and money to invest in a good CPA or consultant who can steer you in the right direction.
Consider a Partner
If a small business agrees to work with him, Marcus becomes an active partner, contributing both capital and advice. Business owners should not rule out the possibility of bringing in a partner, whether active or silent, to enhance the business.
To be sure, partnerships bring on their own challenges of meshing personalities, but they can also offer the resources for a business to get to the next level. Silent partners can often be a good fit for small businesses, as they give the owner the ability to make day-to-day business decisions while still having access to capital they wouldn’t have under other circumstances.
If you can see past the occasional drama and the jaw-dropping moments that come along with any reality TV concept, there is valuable business advice in every episode of “The Profit.”
