0:00 but we also have a agency that sells ad space for um specific videos literally right in the middle of your story it'll cut to us like talking about viagra or something like that whatever our favorite brand amazing the Rhino pills from the gas station it's off [Music] friend and welcome back to another amazing episode of the careful boys where today we have BD back in the building b d hit him Bart so um I think one of the biggest predicaments uh in entrepreneurship is like we already talked about how there's like a lot of times you don't pay yourself you're trying to grow the business you want that to flourish um what's like one of the times
0:52 where cuz I feel like every entrepreneur hits this moment and probably multiple times where like some sort of new Cash Cow comes in but then you have to figure out do I pay the business or do I pay myself if I pay myself I personally benefit which is good and especially like the more um dependence you have you have to do that but then also when you put it back into the business when you pay yourself it's like it's one to one when you pay it back into the business you can 3x or you know your RI is higher like what are some pivotal moments where you kind of have to decide where the money is going to and how did you decide I don't know if we really had an exact plan I think as we got kind of going we invested a lot into the business into the marketing kind of like constantly but I do think
1:45 today before like in any business you never really know what's ahead and I do think you know you do want to like take some money off the table you do want to be able to pay yourself if you can go hey you know you're end we want the bottom line to be this you know and we're going to distribute 20% of that back to the shareholders and the other needs to stay within cash and you know kind of continue the cash flow of the business um some sort of model like that in my mind makes the most sense just cuz you never know kind of what's around the corner so you kind of run lean but if you hit certain markers at the end of the year you can have a big distribution take some money out you know what I mean like that's what you're there for like that's you know but you have to do it in a way that like can you you know we need x amount of cash flow and then we want
2:36 to invest x amount and then you know if you can be able to like take some off the table I mean that really should be you know what I would strive to do um especially kind of after all the years of like having some huge years some smaller years like you never you never know what's going to happen yeah cuz you could have big ones and like all these ups and downs and if you don't pay yourself this whole time the whole whole business can explode and then 5 years later you're like not only did the business explode but I also didn't benefit at all from it totally and there's like you know I think there's a happy medium because it's not like you like you know hey we're going to like pull all this out because then you're not going to have any cash to grow cash to you know Finance inventory Etc so it's kind of finding that like balance to be like okay cool this is what yearend looks like this is what we need
3:26 cash flow wise you know maybe there's some sort of safety net there and and let's distribute the the difference you know does your does your wife work at all or is are you like the single no she I mean she's to work with running around all the kids at the schedule I don't even know how she like maintains this schedule I'm just like it's insane and when it comes to the weekend I'm like just tell me where I need to go there's so much stuff it's easier to run a nine figureure business and a Wrangle four kids totally dude even one kid's crazy how was it like um juggling like that between having a family raising kids and also like running businesses I mean you know when I started the businesses I didn't have kids so it's like they you know kind of
4:16 like and it it was tricky because especially like early on when the businesses were growing it was like talking about all the trade shows and stuff earlier it'd be trade shows here for literally like one on the west coast one on the east coast and then you go to Europe it was like this constant circuit and that was like every season you know um so would you be aware or is your family going with you to all these things too I mean my wife would actually travel with me early on um and then when the kids were young but you know once they start to get in school and they get into a schedule you can't just be like yo we're going on another trip you know so then like really early on like you know I remember them coming on some of the trips and stuff but then once they got into a schedule it's hard to kind of like drag them everywhere yeah um yeah I got 20 baseball games ahead of me I can't just go wherever you're going
5:06 imagine what it sounds like to tell a kid you want to go to magic show and it's not what they where's the magic I just see shoes everywhere so like what if there were moments that you could pinpoint or like particular things what were like internal Investments whether it be like I don't paying for a full page print ad or investing into this or whatever that you felt like were good rois and then maybe what was an example when I was a ████ waste of money um I'll start with the latter one first I mean we grew a lot of our businesses through like athlete endorsements um some of them worked out really well some of them didn't you don't really know until like you get
5:56 going with them um and at that time and they're pretty hefty like contracts yeah and at that time it kind of became like who did DC just sign who did ety sign so it was like became this like war against like who like who's going to sign the next person and obviously those athlet contracts just kept going up and up and up which um don't get me wrong some of them were amazing great for the brand well deserved and then there was kind of the flip of that that some of them started to get very expensive they didn't want to go on tour they didn't want to like compete you know depending on what kind of a genre they were in um so some of those started to get really tricky were these like seven figure contracts yeah I mean it was a mix between cuz especially for DVS it was
6:46 you know it was skate surf Snow Motocross four-wheel Motorsports wake porting so it was a lot of like get a lot of athletes that were kind of pushing through so um yeah some would be you know small could be like 5 grand annually some would be like you know two 300 Grand you know so it was it was a pretty big mix you know um who was somebody that you were like really wanted to sign but like you didn't um yeah there's quite a few honestly because we're always kind of like there's a mix of kind of agents and managers and so you know like this contract's coming up maybe they're not happy so when you're trying to kind of like move stuff around but we had like you know some some really good folks I
7:37 think you know we took runs at like a a Travis pastron at one point at a Shawn White you know didn't get them but we all had like great kind of squad already you know but you know at some point you're trying to find like hey is there an athlete that kind of fits our brand um is there an athlete that can actually sell product cuz some sell product some kind of don't yeah yeah so you're trying to kind of and then which ones can we afford you know so you're trying to like put all these pieces together and what about the first part of the question um what was the question basically who was the the opposite of that so or not who but like what was an investment internally that like was huge Roi I'd say probably the biggest investment we made uh was investing into Europe so as like a us or kind of North
8:27 American distributed company um once you're trying to go into these other countries specifically Europe because that's probably the second largest business especially for Action Sports there's a difference of setting up Distributors within these countries right so you're selling them the product then they're reselling it um or you set up your own European company and then you sell direct because you are the distributor um once we set up that European INF infrastructure and we invested into that European infrastructure that was a huge um like growth part of our business because now we then slowly were able to take over all those other countries and go Direct in Europe so does that mean like your margins were just way bigger
9:19 and and your growth was quicker cuz you can have your own team go harder yeah there's two things to it so you gain a lot of margin right cuz now you take out kind of the middleman you're not selling to somebody you're selling to yourself uh but then you also create an expense structure cuz now you just start a whole another company yeah right and that whole other company takes takes marketing it takes you know sales it takes all the stuff so now you also created this other expense structure so cuz essentially it's just a whole another business yeah but that part panned out well for us um and then another large component when you're selling to a distributor and then there reselling it typically they're at a little bit higher retail price so from a consumer standpoint you're going to be more
10:09 expensive than if you're going direct what up guys thank you for watching us for so long if you like what we do please support our patreon Joe tell them what we have to offer so every week you get two videos one never relased director's cut and another one too hot for YouTube patreon only every freaking week you get that and you get access to our Discord where you can come chat with us and ask us questions that become episodes here cuz we're going to answer them and we're going to take it seriously and we want to give you the responses that you want so come stay connected with us join our patreon click the description below for full details so kind of you you gain margin but you also pick up a lot of sales because your retail price came down to more what would be uh kind of average within kind of Europe if that
10:59 makes sense so yeah kind of multiple things happen when you could kind of set up a direct business like that which countries in Europe were like the biggest buyers like Germany or Germany France Spain was there already like a big skateboarding culture in those countries or did you guys have to like kind of bring no no there was already a big culture there was a big culture there there was a lot of businesses too especially the surf Brands were already going direct you know so there was a mix of people selling direct and then the mix of people selling through a distributor so there was kind of like kind of both I'd say when we very first started most of them were pretty much all through Distributors and then slowly people started going direct meaning like setting up their own business there and that's what we did do do you still skate
11:50 till this day I don't really um and honestly even growing up I you know I grew up I grew up kind of doing everything um but I was probably honestly most into surfing and snowboarding even more than like skateboarding um especially in my kind of like I don't know like young like kind of teens young 20s I was kind of most passionate about snow boarding and surfing um but I think all of those just kind of coming out of like a snow skate type of shop we were Inland so it wasn't really like a surf shop but we all surfed but yeah you're just kind of culturally like kind of built into all of it how how important do you think it is for people that want to start a brand to kind of live and breathe whatever the brand is about to I think it's pretty important I mean I think it's kind of
12:42 like you know like what you just did with barbell like would you be able to do that like if you weren't into fitness and lifting and stuff like you know what I mean it' would just be hard to kind of understand the culture and understand the customers you know yeah it's true or even if you own a Jiu-Jitsu Studio but you you don't you don't do Jiu-Jitsu and you're just like a business dude you know what I mean with fake ears these AR real he a surgically yeah I think good marketing I think if you're not like in it that way it'd be hard to kind of like how how do you really understand that you can look at like a business just like oh this what the p&l and the balance sheet looks like but how do you really fix it you know what I mean so I feel like it's it's pretty pretty important if you were to explain only because you guys have had this relationship in the past if you were to
13:32 explain the business of JK news and then you were to ask us really simple questions that would dumbfound him I would love to witness that yeah dude my favorites earlier when he like low key was like so what happens the rest of the month when you're not here like so you guys only shoot twice a month I was like you guys see what he's asking right hey explain the business I I want to know too yeah well you can start with questions about this business yeah what are your burning questions about this place we'll see if me and now we have two people to what are you most curious about off camera is mostly about the holes so you guys are all Equity Partners yeah 50/50 no these two these two yeah oh but what about you three we're uh 1099s we're not we're not
14:22 employees they're not employees they're contracted California wants us to be employees and they want that money for us they want us to be employees so bad but we're not but no and so all the revenues created by what comes from YouTube yeah AdSense and then is there other other Revenue channels no that's I'd say 50% is no yeah maybe 60 would be AdSense 10% um no um yeah it's divided by like the half of it is patreon and then maybe merchandising and then the other half is um ads yeah oh okay but then how like the views work like how does like I I sometimes will read about it but how does YouTube pay you for views subscribers Etc so they'll have like cpms like per thousand views it could be
15:12 a dollar $2 $5 depending on the genre and then so they'll take your cumulative views for the month and then they pretty much are buying against your viewership and they buying ads yeah buying ads and then they'll sell ads to whatever like that you'll see like Advil or yeah but we also have a agency that sells ad space for um specific videos and then those like let's say we get a sponsorship from rocket money or yeah literally right in the middle of your story it'll cut to us like talking about viagra or something like that whatever our favorite brand amazing but it's not V it's the Rhino pills from the gas station those are the it's off brand by and and we sell merch we sell merch we
16:03 sell merch yeah got it he's like those are all question I so for you guys like how how do you continually grow the business like when you're asking me the questions of like paying yourselves and investing you know into the company do you guys distribute the funds do they stay in the business no we skip payments for ourselves and pay everybody else welcome to business I think there's been a lot of different eras for us like I think um we we there was a time between I don't know when we started till 20 I want to say 19 when this was our fulltime thing and we and the main thing and yeah we had other side projects I mean barbell started in when um 2013 yeah so I think with Bart it's
16:55 always been JK and barbell kind of moving you know and building um and I've always had different Ventures I got into but JK took most of our times seven days a week kind of stuff right had four or five channels active and then we decided to kind of scale back and say hey this is going to be like an excuse for us to get together as a part-time thing and then most of our like Bart went full force with barbell trying to get it ready for acquisition and then I started um opening up tea shops yeah yeah so then that's kind of where we're at today and we had to go through a rebranding where the careful boys now that was 20 2122 yeah and right now I think it was all all about like hey we were at this
17:46 stage of kind of holding it holding on to it with our fan base seeing how long it will just last and taking a more casual approach but then after the rebranding I feel like there's actual growth now so um yeah I don't know where it's going to go but we're kind of enjoying the ride yeah so is it JK news now or is it JK news care so what's careful boys it's just the era of the yeah just yeah that's like the cast yeah JK news is the channel the cast is the careful boys cuz we have to be very careful that's the crew yeah we're trying not to get canell so we're very careful and this also happens to be one of those things where uh this is everybody's uh fun side job because everybody still has to do like kind of their main thing and like Joe said it's it's a it's too fun and in a
18:36 sense to easy kind of for us to get together and banter about the stupidest and most serious ████ in our lives and we enjoy each other's company so it's more like a we got to keep doing this somehow and and and our fans now especially the era of the fans and our relationship with them is really strong right now um and we love our fans and the support that we get from them so sick yeah so it's kind of like keeping status quo going we're growing I mean we're I think it's more like in the sense of content that we keep changing things up and growing rather than like um I think we don't have the bandwidth to hit it full force but I'm holding on to it so that once I do I can yeah but I mean I think once we you know partner with you to make the news shoes news shoes things are going to explode we
19:26 2.09 million subscribers our fans are so loil though like if we came out with a news shoe I guarantee they'll buy it be part of the joke yeah so we so so we all got a bunch of these ████ tattoos check us out you know you know I watched this some of the fans got their own tattoos we all got matching tattoos some of the fans what does it say fear everyone fear everyone but in broken English though it's like broken I CU I I feel like I picked up that part of it somewhere so the the long like long story short uh back when I was 19 me and my best friend got matching tattoos in the Marine Corps okay and we what does that say it says fear we thought it says fear no one and we Google translated it so we couldn't double check it and then so we got it and then the guy in North Carolina tattooed uses he was like Hey I don't
20:17 like read whatever the hell that is so you guys just got to double check what it is so me and him thought says uh fear no one then Joe's mom saw it Joe's mom actually reads ja jaanese you're like oh what's your friend scared of and then we're like what do you mean he like well he's scared of everybody and then so me and my friend realized that we actually got it wrong I told the story here and then we thought it was so stupid that we're like okay if we ever break this subscriber threshold which we never thought we were going to break we'll all get mashing tattoos and we broke the threshold so now we I have two of them this was with my best friend this with them so wait one says fear everyone both the same Mark got it on both cuz I said when we all get matching tattoos he has to get the other leg and we all have to get one leg Yeah but it doesn't even it's not
21:08 even grammatically correct either way like it's his first tattoo ever all my wife my wife hates me had one that looks like a part that would really hurt right there yeah we made merch around that and now we just make merch that's wrong Asian thing bear everyone that's the wrong tie version wrong tie so it's kind of our thing grammatically incorrect and here's a message from Viagra
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