Founder's Story - From One Pillow Case to 4 Million Dollars | Ep. 22 with Margalit Grunberger Entrepreneur and Certified Coach

Episode Date: May 14, 2020

Margalit Grunberger has a track record of success growing a wholesale linens’ company from one pillowcase into a multi-million bedding company. Her entrepreneurial journey began in 1996 when she started Gotcha Covered with a close friend. After a... --- Support this podcast: https://podcasters.spotify.com/pod/show/ibhshow/supportOur Sponsors:* Check out PrizePicks and use my code FOUNDERS for a great deal: www.prizepicks.com* Check out Rosetta Stone and use my code TODAY for a great deal: www.rosettastone.comAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Welcome to Inspired by Her, the podcast that will give you the inspiration, motivation and tips for success from some of the top executives, CEOs and influencers from around the globe. With your host, serial entrepreneur and named one of the most influential Filipina in the world, Kate Hancock. And we are live. Hi everyone, this is Kate and today I have a special guest, Margalit Grenberger. Hi Margalit. Great to see you Kate. Who would have thought we're meeting on your podcast, right? I know, right? Normally we used to do this do this anyone Margalit is my business coach and I love how she tweaks my brain in a lot of ways I really love her style and so she helped me a lot while you're very inspiring Kate thank you okay so, Margalit has a track record of success growing a wholesale linens company from one pillowcase into a multi-million bidding company.

That's just amazing. I can't wait to dig down her story later on. Her entrepreneurial journey began in 1996 when she started Gotcha! Covered with a close friend. After a 20-year run, Margalit sold her business to start her next venture as a certified business and life coach. Everyone, Margalit Kranberger thank you kate yes so bring me back oh i didn't know so now i mean we've talked so many times and now i'm knowing you started with one telecase tell me that journey all right so i always wanted to be an entrepreneur. My parents were entrepreneurs.

And my dad always said to me, the way to make it in this country is to be an entrepreneur or public speaking. Public speaking was not an option for me. I was terrified. So I had a few careers, but I'll take you to when my business partner, who was a close friend, bought a pillow in 95. And at that time, people didn't even know how to pronounce Tempur-Pedic. She bought this hundred dollar pillow. Like today, that's a lot of money, right? Uh-huh. 95, that's exorbitant. And she went, it's ergonomic, and she went to put a pillowcase on it, and it didn't fit. And she's like, how can I buy a $100 pillow and a pillowcase doesn't fit? So she ended up, she has sewing experience.

She ended up sewing a pillowcase that fit the pillow. And in the meantime, I was always bothering her that what are we going to do, Lisa? We need to start a business together. I was talking to her, we have to start a business together. So to make a long story short, she made this pillowcase. We went to relax the back in Santa Monica. It's a franchise.'s a franchise. Uh, when we sold the company, it might've had like 110 stores and they literally stole our prototype spending all this money on a pillow. And the pillowcase is really big. One of Lisa's sales pitches, you know, when a salesperson, there's a lot of resistance with accessories. The salesperson is afraid to sell a $100 pillow, yet alone an add-on.

And so they would say to Lisa, you know, why aren't you selling this pillowcase? And they would say, because a regular pillowcase would fit. Well, Lisa's a size 4. So her reply back was, well, I could wear a large, but I wouldn't say that fits. So we started and, you know, it grew to almost 4 million by the time we sold. And of course, everyone told us, you know, you're crazy. Don't do this. Wow. That's an amazing story. Yeah. I mean, I can give you more details. You know, we went from pillowcases to sheets to mattress protectors. In 2008, when the recession hit, you know, wholesale plummeted. And so we had

to pivot like, like people are needing to do today. And so what did then? Tell me. It was scary. Talk about, you know, that my passion is mindset because that's where our growth is. I feel like it's a KPI we should monitor, we should pay attention to in our business because it drives our business. It's a line item on our financial statements that's invisible. And in 2008, wholesale plummeted. People didn't want to carry inventory so we tried to figure out what are we going to do are we going to close we chose not to we have employees it wasn't just a linens company i also supported families in our employees and so one of the best things we did was we expanded into hospitality.

And so, and what worked for us is we didn't have to carry the inventory. We could buy inventory, non-packaged inventory, so it wasn't ours, and sell it to bed and breakfast and smaller hotel chains who needed more hand holding than the big chains. And by the way, when we sold our business three years ago, that was a really positive part. It was a benefit to our business.

It became over 30% of our business. Wow. It's diversifying. The other thing we did today, it's no big deal, but e-commerce wasn't where it was, it is today. And we started offering drop shipping to retailers. You don't have to carry our inventory. If a customer comes in, buys a mattress and you sell them sheets, we will send it to them directly. Today, that's like, who cares, right? We do it all the time.

But that was also, it exploded and became a major part of our business. Wow. Did you use any software now that you're telling me that you have a category for a small boutique hotel, and then you have dropshipper? How do you manage that different logistics and transactions? Yeah, we did it a little old-fashioned. You know, one of the reasons that Lisa and I decided to sell is I'm 61. She's five years older.

And full transparency, we didn't have the passion or the desire to elevate our business to where it needs to be in terms of technology and software programs. We were doing it through QuickBooks. We didn't have like a CSR system. You know, it worked, but it wouldn't work today. And we actually sold it to a business person who was ready to take it to the next level and one thing I talk about to clients with is it's just as important to know what you want to do as what you don't want to do so that was the big decision to sell we we didn't have that passion we would have either had to you know hire experts let someone else do it we brought it 20 years into

it move on yeah I want to get I want to you know I want to get that story of how it is after exiting now Margalit I want to know where did you grow up tell me so I was born in Israel. I came here when I was a year and we're both from immigrant families. Yes. And I, my parents went to Cleveland, Ohio for some reason, as you know, they were Holocaust survivors. For some reason, there were a lot of Holocaust survivors from Hungary and Czechoslovakia in Cleveland. And my father's sister also lived there. And my dad was a dentist in Israel. When he came to the States, and he has two young daughters, he would have had to go to dental school. And so they didn't have the where, you know, they can't financials to do that. And so he had also been a dental technician in Europe. So he ended up being a dental technician and I had a good life. My parents didn't just survive the

Holocaust, they thrived. They were so grateful for this country. My dad, who wasn't religious, used to say GBA, God bless America. Really interesting, Kate, is I not only own Gotcha Covered, but we also bought our building. And the name of that company was called GBA, but it was really Grunberger, Bernadette, Lisa's last name, and Associates. But the nickname was GBA from my dad. Wow, that's so sweet. But I, you know, I grew up, you know, life is a gift. They didn't expect to make it like they did. You know, I had an example of how do you create what you want no matter what happens in your life? You know, my mother used to say way before what we know about neuroscience today and

the neural pathways. At that time, we weren't as well aware that we can change the way we think. She literally used to say to me when things weren't going as well as she wanted is, Margalit, don't worry, because she's from Czechoslovakia. Don't worry. I'm training my brain. And it's kind of interesting that that's how I coach today. Like, all right, this is our situation. How do we, you know, be here and move forward?

Yeah. I really like your technique of coaching because I remember when my e-commerce collapsed and I was so down and you, you went, you helped me get through that. And I was like, Oh, should I do this? Or should I do one thing? And you keep, you have this positive mindset. It's like, why can you not do all three I was like wait a minute yeah that's that's true yeah yeah you're bringing up a good point we all we all live in the world of either or why can't we do and yeah and talking about your example, you know, you were really afraid and you were concentrating on what you can't do, what's going wrong, which is where our brain goes, right? That's called the human condition. And I like to switch is what can you do? What is, you know, it's kind of, it's the moving forward because things happen. Yeah. Business and life. You know, it's kind of, it's the moving forward because things happen. Yeah.

Business and life. Right? Yeah. Yeah. That, that really helped me a lot. And so I had to thank you. Well, how did it, how did it move you forward? May I ask?

I ended up like just doing all of it and I'm fine. But I remember that moment I was such in a dark place. And I feel like we have to talk to you because I'm questioning myself because it's hard to get a better mindset when you are in the middle of a terrible moment. And, but you somehow got me out of it and helped me really, you know what? I told you I'm good at finding gold. So I started finding gold and it worked. Yeah. And I would challenge you. You didn't get out of it. We, we questioned it. What's going on? What's possible? What are your options? What are you afraid of?

You know, what's 5% more you can do that will move you in the direction that you want to go? Because I know what you want to create and it's big. Yeah, yeah, yeah, yeah. So now, Markley, I'm going to give it back to you. What kind of kid are you in the high school? Tell me. Oh, God. Full transparency. I was a little bit of a nerd. I love to study. Did have a lot of friends, but I would, I was good. I was so good. You know, today I'm like, I wish I wasn't that good. I was very responsible. The only time I got in trouble was, you know how I laugh.

I laugh so loud, right? And when I laugh like that, I can't control it. And so I would be in the library and the only time I got in trouble was they would throw me out because I laughed too hard. Wow. About it. I was, you know, I would have done it a little differently, but in a way, no, because that's, I am who I am, right? We are who we are because of what we went through. So I was a good kid. There's not a, I did graduate early though, because I was bored.

And I remember calling my parents, you know, at that time they were pay phones. I'm aging myself from the hallway and and telling them I just made the decision went to my counselor and said I'm graduating really because I was bored now I I wouldn't I as I share this experience I it's not something I recommend but um I was just bored so it's like I'm always moving next what's next so I went to college early wow what now how did your parents react to that they thought I was nuts but whenever even though they were entrepreneurs neither of them are are on this planet anymore they my mother would had a lot of fear in her I don't know if you know

she was an Auschwitz so I just know what? It's like, there's reason to be fearful. They still were hesitant. Like when I left a really good PR job to start Gotcha Covered, they're like pillowcases for Tempur-Pedic pillows, but who of us started a new business? And people said, yay, go do it. That's not what parents do. So, but they did support me as it continued on. And I miss my dad because whenever I would go, one of the reasons is whenever I would go to see him, you know, for dinner or something, he'd want to see my financials and collections. And he, he's so afraid that a big customer wasn't going to pay us. And I miss that, you know, at that time, sometimes I thought it was a little bit of a pain in the neck, but now I miss, I miss those questions. Oh, so like, that's so sweet. So your dad was really like making sure you're okay and you're

running your company really well. And they were proud. I mean, we, you know, we grew to 4 million, but it was a strategic move. Lisa had a young son at the time when we first started and neither of us wanted to be in our business 24 7 so we chose to grow it we could have done higher but we didn't want to spend 24 7 in the business so again like I'm working with clients now and I'm working with myself we created what we wanted to create. That's what life's about. So who decided to exit? It was that you or both of you? Actually, it was Lisa. And such a good question, Kate. I was afraid to exit because even I've always wanted to be a coach. I was always, you know, kind of coaching

friends and, you know, employees, but to do it full time was a little scary. And I liked my business, but Lisa was done. She's not five years older. She wanted to travel. And one of the things we did, we kept saying, okay, we're going to sell in three to five years. And you know, like what a rolling goal is. It just keeps three to five never came. Like, I remember we were walking into this major presentation to a major betting company. And she looked at me and she said, we've been saying three to five years for like two to three years. So we finally decided it's time to sell. It was at a good place. I mean, we really paid attention to our net profits and the diversity of our products. And so we were really grateful and lucky to sell when we did.

Now tell me, what did you learn? What you have to do before selling your company? What a question one of the one of the things first of all my coach um mentor coach actually from eo really changed the way we looked at our business. And he recommended a way to classify, like we had hospitality, medical, e-tailing, wholesale. And it gave us the ability to evaluate how we're doing easier versus like, you know, 522 customers. Yeah. Today, I think to myself, why wouldn't we have done that? But we needed to talk to someone else outside of our business

to get that clarity. Right. And so he allowed us, he suggested that we segmented a certain way. And my, my experience sharing, I don't like giving advice, you know, advice, the magic, you know, in this process is just keep your eye, when we kept our eye on the ball of profit margin, because, you know, when you sell, that's what's important. You know, had we done that a bit earlier, who knows, we might have sold for more. But once we paid attention to that profit margin and what's moving the needle, it changed everything. And then when the buyers, the potential buyers came, we were able to present our business in a much more organized way and describe different areas. And then even in wholesale, like we had American Leather as a big customer they're an amazing company we separated that out so we

could show them potential okay so were you happy with the evaluation then yeah it really was because as much as we didn't want we we didn't market ourselves this way. It was really a commodity, never branded ourselves that way. We never spoke like that. But the truth is when you look at the financials, we did really well. And it's because of the diversity that we did and the, and the growth, we were slow and steady. We weren't this like, you know, like this growth, but we were slow and steady. I think 2008, 2009 were the only time we had a decrease. We never decreased in the whole time.

Yeah. Well, that's really good to know. I'm not sure. I think I've shared to you that I'm in this masterclass of buying companies. And so I have all my list of due diligence. It's good hearing from you, exited a business because I know they're looking for the process and procedure.

And I learned how to evaluate a company based on each category of EBITDA of each category, which is amazing. And there's a formula. Yeah. Right. And there's a formula. Yeah. Right. And there's different formulas, you know, this broker worked with us on that and due diligence. Like I'm not an anxious person. I mean, I'm anxious a little now, you know,

what we're going through now with COVID-19, but I was so anxious. Simon, my husband would, he's, he happens to be a CPA. And at that time he was my boyfriend and he would like, if I would come to him and say, what about this? Because we had a due diligence meeting every week. And the potential buyer was amazing. So what if he's going to ask me about this? And he'd be like, that's financially insignificant.

Fine. Yeah. And have that support is really important. Yeah. And what I learned is sometimes people will just sell their company even though it doesn't have any sale you can't really put a volume to that like you have to look at net profit and have the calculation because a lot of people oh this i value this xyz because everything is pre-assumption well that's not how you value a company may i ask you what you're looking for i think I really want to do focus more in media

this time. So I'm trying to buy maybe Facebook group and other things. That's why I'm promoting this podcast, right? And so I want to buy a lot of media and build whatever that company I wanted to promote in the future. So I'm building my basis that way. And yeah, so I'm still learning, but I'm so excited what I'm learning now. You're really good at that. I want to acknowledge you. I know it's difficult for you to acknowledge,

you know, it's difficult for us women, right? Is that you really know like where you want to go and then you move your future into the present, how you're going to get there. And so I applaud you. Thank you. You're, you're one of my, like, thank you for motivating me. Now, Margalit, what is your favorite aspect of being entrepreneur?

Tell me. Oh God, your question's favorite. You you know i went into being an entrepreneur because i thought i would have the freedom to do what i want and we're wrong i don't need to explain it to you but because freedom is um is one of my core values and it's really interesting someone reflected reflected, a colleague reflected, a coach, another coach, reflected back to me that I wonder why freedom is so important to you. You're standing for your parents who didn't have freedom. They were victims. They did survive. They did thrive. But, you know, I put a stake in the ground with freedom. And so there is a freedom in entrepreneurship once you, you know,

start and grow and look to sell a company. You have to spend a lot of time investing in it. But I think my favorite part is, you know, being creative and growing it and seeing what could happen. You know, who knew that hospitality would be 30% of our business? Or even when we sold, and I got so much coaching and mentorship through EO, my biggest worry, I love my employees. My biggest worry was them. How do I help them? What do I tell them? Because you can't tell them before you sell, right?

And I really got a lot of coaching out of that. And even till today, I help them if they need a referral or reference or coaching or things like that. I'm still in the place that wanted a job, got a job. And so that that was fun. You know, that was that felt good to me, too, because, again, I didn't look at myself as just a linens company. We helped support 15 families. So when we went to sell, it's like, oh, my God. But the ones who wanted a job, I helped them find that. So tell me, when your company was acquired, did they have some of the employees or no?

No. No, unfortunately, they're in Texas. So we didn't, we had to find everyone their next step. Some people didn't want a job, but we did arrange, you know, the company wanted the employees to train their employees. We came up with the benefit package for our employees if they stay. I forgot the word I used, but it was like a stay, like not leave company bonus. That was really helpful. Okay. So basically the company acquired your customer list and your brand, but not the employee because they're in a different state

exactly did you stay for a little 90 days yeah we so we sold yeah we sold sorry to interrupt you we we sold in October of 2016 and we still stayed until the end of the year truthfully he didn't need Lisa Lisa and I much I was there but he was there, but he wanted to do it his own way. He has a really big company. His parent company is a $32 million company. He also had a bedding company that their main customer base was Neiman Marcus, 90%. So he did more of the foo-foo, the decorative bedding, and we were very basic neutral. It was, you know, it was intentional. So he wanted to compliment that and he actually bought it for his sister. Oh, wow. Yeah. Great, great experience.

Great experience. Yeah. Now, Margalit, what's the highest honor or award you've ever received? You know, I thought you might be asking me this question. I was like, oh, my God, I don't remember an award. So I had to dig a little deep. I was in PR. And PRSA, Public Relations Society of America gave, I was the PR director at the time, and they gave us an award for a campaign we did for an HMO.

I didn't get a lot of awards in my business and got you covered. And thank you for the question because I had to think about it. We actually chose not to apply for awards that we might be eligible for because I didn't want to, I chose not to spend the time to do it. You know, there's, there's a bedding and furniture show we could have done. And I just, I don't have anything exciting to tell you about that. I, I've never even, I, I think, I think you might've mentioned that you're in PR, but you know, it's something that I haven't, haven't heard you talk more about it, but you're like in an executive. Yeah, it was interesting.

Talk about self-doubt, you know, that we all talk about, right? Impossible. I fell into PR. I came from, I was a nutritionist in the science world in kidney research because when in the old days when I went to school, nutrition was considered quackery, like it was about illness and not good health, nowhere where it is today. And I saw that I didn't want to work in a hospital because nobody understood nutrition. So I ended up going into kidney research, and I was going to go for my master's in nutrition. In the summer, I ended up getting a temp job at an advertising PR agency. And I was a secretary.

I was a terrible secretary, so they kept promoting me. And, I mean, when I started, I couldn't even spell public relations. I come from science. You know, I couldn't even spell public relations. I come from science. Anyways, I spent six years there, and it really taught me a lot. It taught me that I can do whatever I want to do, even when I don't know what's going on. When I would get called into the president's office, I thought I was being fired, and he was promoting me. I think you'll get a kick out of this.

And when I own got you covered, I realized he recognized that I was a good employee. I knew I may not have known what I was going to do, but I had the resources to do it. And so it got you covered, you know, employees. It's one of the most challenging parts of owning a business don't you think yeah yeah I would I would kind of smirk to myself like oh now I see what he saw I was responsible I you know I acted like it was my own business it so it was a great experience great experience so do you think that gave you the confidence, like you can start your own company? Because, yeah, because I didn't even know what I was doing. We were the biggest PR agency for movie studios. You know, I did the national premiere of broadcast news, you know, Albert Brooks, Holly Hunter, it was it was huge. You know, I had to work from the ushers of the movie theater to the president of 20th

Century Fox. So if I can, if I can coordinate that and be in charge of that, I can do anything. But it was, I mean, it's also my parents and that I, I worked on myself. I mean, I do train my brain. You know, it has changed my life. That what can I do? You know, when we started Gotcha Covered, I didn't know. Did you know what your business was going to be? Like, like what you have? I don't mean today COVID. COVID is so different. You know, the world is changing. And, you know, how do we change with it? But before then, did you know how it was going to go? No, it didn't go as you're in it. And you've played so many, so many times. I don't even know, like I'm going to own a spa. Like I have no clue how to run a spa, but somehow I have a spa.

So how do you do it? So how do you, how do you move forward from that? I think it's just like doing a test and, you know, it's something related to what you're doing now because I like to create, they call it dog tailing. So you sell e-commerce skincare and then it makes sense for you to have a spa. And it's around in that ecosystem, so that makes sense because you can use it. And then now I'm going to have a media because then it works as a whole and that's how you create a bigger company.

Right. And then in times like this, like COVID, you know, we really have to dig deep and what can we do? What's possible? What's going on? What's 5% more that we can do? Yeah. Yeah. So tell me what you talk a lot about your parents so much. What have you learned from them? Honestly, I learned that it doesn't matter what's going on or circumstances. We can always create what we want. I mean, as a little kid, you know, my job was to bring joy to my parents because they've already gone through Hitler, already suffered. They don't need to suffer more, right? Well, obviously they had their good times and their bad times. It did show me, you know, how to just keep pursuing.

You know, my parents didn't know English when they came here. My mother, she told me she would sit in front of the TV. She was afraid to go out because she didn't want to speak. She learned her English from TV. Wow. But between training her brain and just entrepreneurship, you know, they retired. They had a dental lab.

And it's really funny. A lot of my friends in high school there at that time, dads, not moms as much, were dentists. And they were my dad's clients. They called him the Nordstrom of dental labs. I mean, he was at that level. And he had 25 employees. I mean, today I wish I knew his financials. I don't.

Wow. Yeah. So what do they know? My mother maybe had an elementary education before she was taken to the concentration camps. But she was smart. She was wise. Yeah. Absolutely.

Now, Magalie, how would your 10-year-old self react to what you do? She would be shocked. Tell me. So, you know, I was painfully shy. Painfully shy. I changed that when I was in a car accident when I was 23. I realized that I could have died. I could a car accident when I was 23. I realized that I could have died.

I could have been a quadriplegic. I ended up just having a bad ankle. But that's what, talk about a mindset switch. I switched how I show up in the world. But 10 years old, she'd be surprised. She'd be proud. You know, she never trusted that she can do what she wants that you know she could have a voice in this world that she could impact others that she could find the love of her life at 16.

No I love that. She was she was um she had a lot of fear. Now tell me what is your greatest fear and how do you manage fear so I'm there I was very fearful that's a great question I could not have started and grown got you covered with the fear and that was actually a conversation between my business partner and I she I love her she is one of the most fearless people I know and we actually had a conversation before we started and she said we cannot be in business together if you're going to be this fearful and so I had to figure out you know know, I, now I have more of the tools and the language around

this because of, you know, my experience as a coach and growing a business, but what I do on it, it's almost daily now, especially today is I don't allow it to, I don't give it the attention it wants because it, you know, it's, it's our ego. Fear is all about our ego. It's a human condition. It's how we keep ourselves in the same place, right? It wants to protect me. If I do something that's different, it doesn't understand it. Me, that part of my brain doesn't understand what I'm doing. So it wants to keep me here. And I, you know, that's a big question, but mainly it's one of the ways as I, I might put it in the passenger seat. I don't let it drive my life. I might visit it and live in it. I mean, to give you an example,

before I started got you covered, we literally, I said to Lisa, I am going to put, you can't squash an emotion. If you squash an emotion, it's just going to get bigger, right? So I literally put it, visually put it like in a box. Because Lisa said, you don't have to get rid of it. And I would put it on the shelf. And I could grab it anytime I wanted. Because I can grow a business and be fearful. But I just can't let it drive what I do.

Because when we're fearful, we see like this. And the magic is over here, right? And we can't create. I'm talking sustainably. We can't create sustainably from a place of fear. But I tend to come, you know, my mother was a fearful person. But it doesn't serve me anymore. So those are other ways. Like how does it serve me? It doesn't. And think about what, what right now, my, my safe, I have a roof over my head. I'm good.

You can. Yeah. Oh yeah. Wow. Now tell me, I like how Lisa, your partner, I mean that conversation is like, well, you can't be, you know, fearful or else we can't be a partner. Like, how did you take that? I thought she was right. You know, we talk about being vulnerable, right? I mean, she saw right through me. And I didn't want to be on this journey with her that afraid.

She actually gave me a gift. You know, Margoly, you're fearful. You know, what are you going to do? I mean, what do you do with your fear? Majority, like, I would go in a roller coaster. I'll just do it, but I'll close my eyes. I jump off the plane. I just close my eyes and then I open like, oh, this is actually not bad. Exactly.

And, you know, we all have a relationship with our emotions. So the relationship with fear today, you know, what am I going to do? I was a little afraid of being on a podcast. So what? Yeah. Yeah. I'm not in danger. That they're going through what they're going through now. It's a different conversation. And it's a question of what can they change with their fear? You know, I don't want to, you know, there are times when fear is front and center and it's justified. And also on the other end of fear is desire. What do you desire? You know, I love the image of, I learned that fear and excitement is created in the same part of our brain.

And the only difference, the only way we can distinguish the difference is with breath. And I'm not a meditator. I wish I was, but breath changes it. So I'm a little afraid of being on a podcast. I'm also excited because I want to. And that changes the energy. Yeah. So that, you know? Yeah. I've learned that one half half method i've been doing that a lot i'm not sure if you've heard of this guy yeah you told me it helps me like change how does it help

you i think it really clear my mind a lot and i don't know there's something about breathing. Like I know there's some big signs on that one, but it really does work. Well, I do three belly breaths in the morning because it changes the chemistry of our brain. And, you know, we all have access to it. Everyone talks about breath, but I don't meditate, but I do take breaths. And the day I take breaths, it helps center me because I want to move forward. If I don't do that, I tend to, you know, be where I am, you know, a little bit of stuck or, you know, not knowing what I'm doing next. Now, Margalit, can you tell me, like an incident maybe with having a partner,

did you guys ever butt head with Lisa Or can you share me a story? Because I'm very curious about it. I'm really struggling with having a business partner because I've never done that. It's good when I just, you know, I'd like to hear you. So it's a great question. And I've actually coached, I'm actually coaching partners who are sisters right now. And Lisa and I were amazing together. We balanced each other a lot and we butted heads. I also believed that when there was conflict, our employees sometimes would get scared. We tried to explain to them that I don't want, we don't want each other to agree on always

because there's magic in the conflict. So that was kind of our premise. There was a time, let me see if I could explain this well. She was the kind of person, she had an idea and she would come into my office and we're going to do it. And then I had to find the money because I was the financial person. I was financial HR and she was the new product. She was incredible, right? We always had to come up with new products, right? And so by the end, you know, after like 15, 16 years, I didn't want to hear about another product because it costs money. So we had to come to an agreement. You know, you and I have spoken about expectations versus agreement.

And so we talked about our fears. Her fear was that I wouldn't support her on new products. How do you grow a company without new products? You don't. And my fear was that she was going to create a product, new product without my support. So we agreed that I would listen to her and support her, meaning because we created things well together. We were a good team. It wasn't just her creating the product.

I gave my input as well, right? And then she agreed that we'd have to figure out how we're going to do this before she launched ahead. And it was brilliant. But it has to be a conversation. Yeah. Oh, I, she was right. She can't be with a partner who isn't excited for new products. I had developed a mindset of like, Oh my God, another product, new products, you know, grow a company. So that's what I love that story because it complete. And also,

I like to be a part of new products. You know, I was more the integrator. She's a visionary, but I like to be in the visionary seat once in a while, like, let's do this and let's do that. You know, we patented some products and it was both of our contributions, not just Lisa. I think that's my fear of having a partner because I'm a visionary and someone's going to block my idea. I would like to have fit. So I, I challenge you that that won't happen, especially if we speak because it, again, it's expectations and you come to an agreement, but yeah, partnerships are challenging. It's like a romance-less marriage, Kate. That's what Lisa and I used to do. I mean, you spend more time with a business partner sometimes.

I didn't have a husband at the time. But yeah, and we can talk about that, like the pros and cons and what to look for. I mean, one of the major things Lisa and I didn't really look for, but we're lucky that we both had good, excellent credit ratings. When we first started our business, I didn't know that was important. But where do we get the money? We both have to have excellent ratings. So I would do all these balance transfers. I was like a magician with balance transfers.

Honestly, I don't know how I did it, but I did it. So that's amazing like you you you met I mean do you basically use your um credit limit I mean your credit cards to um start a business oh yeah funding what did you learn from that wow you have to keep your eye on the ball I used to think because I don't do that personally. Thankfully, you know, when I first started my business two years into it, my CPA said to me, I don't know how you live. I live, right? I live. It was fine. But, um, I realized that, you know, what does it take to start a business, especially at inventory rich company, you know, we had a half a million dollars of inventory at times six that's

a lot of inventory that you have to pay for in advance but keep your eye on the ball make sure you know where it's going what's coming up and it was and thankfully we got a line of credit after a while but you have to be in business for a year or two you have to have some or three i don't even know how long it took us and then in in 2008, the line of credit was withdrawn. Poof, gone. Right? And then you have to find another one. It's like, yeah.

You know, our lifeline was our line of credit. That's amazing how you're able to. And it's funny because I think I've shared it to you. That's basically how I scale my business is relying to my American Express. Yes, I know credit and you know it was like okay well I have unlimited credit well if you charge 100 or 250 was my maximum for a month to use and anything above that then they will be scared like oh my gosh you're gonna buy a boat and credit card? Like, is it a runaway?

But like, I think what opened up my eyes is when disaster happened, you can't really do that because you really need to get funding correctly. And then I learned how to do SBA loan or not use your own money. And as you go, but in the beginning, when you're just creating this from nothing, you just have to use whatever you have. That's right. Just, you just do whatever you could do, but you have to be in the space of what can I do? What comes next? You know, not live in the, I didn't know that I could build a $4 million business. If you would have asked me, I would have bet no. Yeah. You know, that wasn't my experience because, you know, Lisa and I talked

about this really persistence is just, and relentlessness is really important. And, and also resetting, reviewing what you're doing. Is it working? You know, we were in Bed Bath and Beyond and I was thinking, you know, it took us four years to get into Bed Bath & Beyond. And even then, they tested our pillowcases in their top stores. They didn't put them in all thousand stores. We can do the same with ourselves. Let's test it. Does this work? Should we expand into mattress protectors?

Let's try it. Wow. I love that part's try it. Wow. I love that part of the journey. Yeah. And Margalit, tell me, what have been the biggest challenges you've had to overcome? Well, personally, as you know, I had breast cancer 10 years ago. So that was pretty uh hard and but thankfully I'm healthy and and you know that was a time like talk about mindset

and gratitude you know a lot of people think why me they went from the point of why not me? I don't want you to get it. It's me. So how do I move forward? How do I, you know, how do I come from this place in the way I want to? So I'm very grateful for health. And I also learned that, honestly, we can do whatever we want. It doesn't mean everything's going to go as planned like today. I didn't know there'd be COVID. And, you know, it's a little like cancer because cancer,

the way I explained it, you know, I was my fittest at that time. You know, I was with a trainer, eating well, and then, right? You can do all that. the your foundation shifts my foundation shifted healthy margalit and and so how do i move from there and in my business i learned that you can actually create what you want but it is about mindset it is about acknowledging what's important to to me um and then you know and and i look at life as a gift. I mean, sometimes I think like that. So like, but it's a gift. I'm not entitled to this. I want to create what I want. And I am and I work on it. You know, it's fun. And I get to meet people like you. And this is our most important asset yeah absolutely and you helped me realize that i'm glad thank you now um can you name a person who has had tremendous impact on you as leader

um i think i would have to say i wish I could think of a business person that, oh, you know who? I was going to say my mom, but this is more interesting, I think. Marcus Limonis, do you know him? Yeah, the prophet. The prophet. We watch the prophet all the time. And he, the reason I respect him so much

is because he puts such an emphasis on people. You know, he, he talks about business people, processes and products or services. Right. And just the way he connects with people, it's all about relationships. And yet he invests in all these businesses. He's taught me a lot. He still does. Yeah, it is. He's a me a lot. He still does. Yeah, it is.

He's a very emotional person. Yeah. Yeah. I love that show. That's all. Now, what advice would you give to an aspiring entrepreneur? Well, you know me, I don't like giving advice cause, but I can share experience or, but since you're asking it, you know, just be really clear on what you want, why you want it, how you know, and what are you feeding your mind? That's really the most important.

If you're spending a lot of time and I can't, I invite you to be an I can. What's possible, you know, in some of my sessions, especially like workshops, you know, one of the agreements is what's not possible isn't invited to the session. We're all experts at that, right? We all know what we can't do.

We know that, but how about what we can? And so if you have an idea, if you want to create something, think about what's possible. What can you do? That's the energy to move forward. Now, if you could do it all over again, would you do the same thing? Oh, my initial response is no, because I don't want inventory. But that's my gut reaction. But the reason I want to say a resounding yes is because it's made me who I am today. And I've created the life I want. It's a, you know, I'm continuing to create the life I want, you know.

So, yes, I would. Would I have done it differently in the business? Would I have focused and paid attention on our financials a little more? Would I have expanded our product line more you know yes of course i can go on and on but no i and you know i had a great business partner regardless in spite of our differences um so is that an answer yes and no i get gray hair just thinking about inventory like when i walk into a cost Costco and stuff I'm like oh because you know it's a responsibility to hold inventory

now what do you see as your place or purpose in life these are such big questions I feel like I shine a light on others you You know, I bring a lot of laughter. And I want people to feel like they can create. I know I'm like a parrot in a certain way, like create whatever they want in a lighter, less, it's a serious subject, but a less serious way. Because we can't create from a place of fear. You know, we can create from a place of joy. I think one of the reasons I have this ridiculously loud laugh is because it's a way for me to bring joy to the world. I love your laugh.

It's not ridiculous. Thank you. It's a bit loud. Now, I really wanted to know, how did you feel after you exited your business? Did you feel sad the very next day? What are the emotions like? Tell me. And I believe you're asking me that because that's what you're are you thinking about yeah you know there was a sadness because gotcha covered was I don't

have kids but Lisa felt the same way it was our baby and we watched it grow from one pillowcase to this for almost four million dollar company so it was sad and kind of like, Oh, my God, what's what's going to happen now? And can I really go on to my next venture? But honestly, I shifted right away. Because to me, you know, some, some of my friends have said, how have you reinvented yourself so many times, I didn't even realize I had reinvented myself, you know, nutritionist, PR entrepreneur. Now I'm a coach. I think I like that. There's something exciting. Again, it's fear and desire. You know, they're dancing together. And so sometimes I do miss it. I do miss being part of a team. Definitely led in a team spirit,

not like I'm the boss I mean they called me boss but you know everyone was important um so I I don't miss it as much I'm very grateful for it it's given me a lot of good experiences met great people and it's it's so much fun to be able to start, grow, and sell a business. You know, I did what I wanted. Does that answer your question? Yes, absolutely. Now tell me, what was the reason why now you, I know you've opened up into coaching.

Tell me what was your purpose and why you started your own coaching business? Because I realized that, you know, we're all coaches, coaches, the word comes, it used to be called leader. I have specific, you know, I got certified. And, you know, I take a lot of classes, I have a lot of coaches that I train with. So I have this, the skills now and more of a knowledge base. But I've always noticed that I'm not the kind of person that gives as much advice as I ask you questions. Because for me, questions open doors. You know, what's next? Answers close them. So I wanted to be able to partner with entrepreneurs, people like me, and make the journey as much fun,

impactful, whatever the word is, as possible. De-stress a little, see the light. You know, a coach, you know, I think one of the, it's hard to describe coaching. You really have to experience it, right? But I see it as I'm holding a mirror and a flashlight on the person. Can't see that ourselves. You know, I, I don't, I don't see what I do. Like when I was in my forum, you know, 15 years ago, they used to tell me, you dismiss yourself all the time. And they actually gave me permission, you know, they, cause they, I didn't know I did that,

that stop doing it and you know how foreign mates are they're they're on you right yeah well you know I want to I love to grow I'm always learning I mean I was into neuroscience in high school a professional but just reading right and so I'm always you know if say something, I've always been interested in, oh, I wonder why you think that, even if I disagree with you. You know, I'm not asking you a question, judging you. I'm just, because you know me,

curiosity and judgment can't live in the same world. So it's more I want to support people to grow in whatever way they want to grow lots of options yeah you know what's one thing too that's so powerful while I was working with you is I've sometimes I've shared you some scenario how I feel and it's always one-sided but when you give me your input like you know what do you think the other person think and that now like when you feel like you know when you get mad about someone like you know what do you think the other person think and that now like when you feel like you know when you get mad about someone like you it's always about your feelings and you're

sticking to it she was wrong and now I'm checking like you know what you know there's the other side too so I consider that so thank you for opening my brain to that scenario sure changing perspective I mean it opens our world like I would have never known certain So I consider that. So thank you for opening my brain to that scenario. Sure. Changing perspective. I mean, it opens our world. Like I would have never known certain things if I didn't ask why you feel that way. Or if you're coming to me, like if my business partner is yelling about something and the first thing I do, I don't say, why are you yelling at me? I'll say, Lisa, what's going on?

Is everything okay? It just opens the door to a discussion instead of resisting it. Yeah. Yeah. Yeah, absolutely. Now, Margalit, what, what are you most grateful for? Right now, sitting in front of you and talking to, to you, finding the love of my life, starting a new venture, health. Love that. And how do you want to be remembered? I think just bringing joy to people and allowing them to live the life they want. I wish there's a better way to say it.

I just want to tell everyone who's interested, you can create what you want. Despite cancer, despite Auschwitz, despite the recession, in spite of COVID, none of it is easy. Lisa and I used to laugh at each other when we'd say to each other, none of it is easy. You know, Lisa and I used to have, we used to laugh at each other when we, you know, we'd say to each other, especially when just the two of us, this is really hard, whatever we were doing. And our answer back was, does that mean you're not going to do it? Like, it's hard, but we can create what we want. You know, it's like our creativity is more impactful than our circumstances. Love that. Love that. Now, where can they find you? What's your website for the coaching? Margolietmethod.com and on LinkedIn, Margoliet Grunberger.

I love that. Margolietmethod. Method, because question your thinking, you know, if you trademark that, I did not have to think about it. I guess I need should. Thank you. Thank you. I had so much fun with you. Right was great. Thank you, Kate. You're amazing. Thank you for doing this. The podcast. It's really wonderful. Thank you.

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