Money Rehab with Nicole Lapin - Joy Mangano on Finding a Million-Dollar Idea (Change Maker)

Episode Date: September 23, 2023

Originally aired 12.17.21 Maybe you know Joy from her innovative products (hello, Miracle Mop!), or maybe you saw Jennifer Lawrence play Joy in the movie oh-so-appropriately called “Joy.” Today, Nicole and Joy answer the question: So I have a million-dollar idea… Now what? Want to start investing, but don't know where to begin? Go to moneyassistant.com and meet Magnifi, your AI money assistant, designed to help you make a plan for your financial goals. Want one-on-one money coaching from Nicole? Book a meeting with her here: intro.co/moneynewsnetwork 

One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that

I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime. Feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.

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reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player, GameStop. And should I have a 401k?

You don't do it? No, I never have. You think the whole world revolves around you and your money. Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg.

The only financial expert you don't need a dictionary to understand. Nicole Lappin. As you know, here on Money Rehab, we feature changemakers. Public figures making change in every sense of the word. And along the way, have been in or are still in Money Rehab. Today, we're talking to Joy Mangano. Maybe you know Joy from her innovative products, Hello Miracle Mop, or maybe you saw Jennifer Lawrence play Joy in the movie,

oh so appropriately called Joy. Today, Joy answers the question, so I have a million dollar idea, now what? So Joy, welcome to Money Rehab. Thank you. I'm so proud to be here. I am so honored to have you. And before we kick things off, we like to have a little fun with a quick game of Money Rehab. Never have I ever. So sometimes this is done with a little alcohol. Unfortunately, we can't do the alcohol over Zoom yet. I'm still hopeful that somebody can invent that. But basically, if you have done something, just say you have. And if you haven't, just say you haven't. Cool? Okay. Great. Let's do it. Never have I ever bought a house. Yes, I have. Yay. Never have I ever negotiated a contract. Oh my goodness. Yes, I have. Never have I ever had buyer's remorse. Yes, I have.

I don't have. Never have I ever purchased a savings bond. Yes, I have. Never have I ever bought someone an expensive gift. Yes, I have. Like how expensive are we talking? Expensive for people I love. It's a beautiful thing. It is. Gifting is my love language as well. Never have I ever been in debt. Oh yes, I have. Yeah, it's the only four letter word I don't like. Never have I ever applied for a patent. Oh my goodness. Oh yes. The answer is yes, yes, yes. How many? Lots, lots, numerous patents. As an inventor, I would think that's part and parcel with me. It makes sense. More than 10? Oh, yes. More than 20? More than 100? Oh, all right. Yeah, around there. Yeah. Wow.

Okay. I can't wait to get into that. We're almost rounding it out. Never have I ever purchased a stock on an investing platform. Yes, I have. Like a boss? Never have I ever had Jennifer Lawrence play me in a movie. Well, absolutely, I haven't. It was awesome. It absolutely was awesome. So I would love to go back to the very beginning when you were a little

what did you want to be when you were growing up well that that is such a great question Nicole because I kept creating things blowing up toasters ripping up the back lawn to make an organic garden before anybody even knew what the words meant. And, you know, my parents would just say, what's the matter with joy? And so I never got definition to the fact, you know, that I was an inventor, a product designer. It's not like I played the piano and they knew I was going to grow up and be a piano virtuoso. It was an undefinable thing, which I never got clarity with until that little twist of a mop, right? So, you know, so not until my 30s, did I know what I was doing my whole life and what I was meant to be.

So they saw you blowing up toasters. You didn't know what the word inventor meant yet, because we think of inventors like we think of like Thomas Edison or something like that. And so what was your path to that? Tell me a little bit more about your life before Miracle Mob. What did a day in the life look like? First of all, I was always inquisitive. I was very, very much into firing and education. I was a great student. Teachers loved me. And I was always full of energy from the minute I opened my eyes, I was always doing and creating. And, you know, whether it be sports, I love sports, I actually trained to be an Olympic skier in my teenage years, I moved to Vermont and but I was that I was too skinny and

didn't weigh enough to really get down that hill fast enough. So I always was doing something. I believe that creative minds in one area have creativity, many I've seen in life. So the life before that was really just growing up, doing all of this, going, you know, I grew up in an Italian family. So my grandmother, my great grandmother, my mother said, you know, you grow up, you get married, you have children and you cook. Or actually I graduated high school a year early. So I, cause I was very, again, very scholastic and I wanted, I thought I wanted to be a veterinarian. I loved animals and I was always creating things for my dogs. And so I said, I have a year, you know, ahead, I'm going to go and work in an animal hospital. So I did and found out that most of

the surgeries we did in the animal hospital were dogs and cats hit by cars. So way back then, real back, I said, I've got to do something to help them. And I created, at that time, all pets wore flea collars. So I created a fluorescent flea collar and I pitched it to some veterinarians. And at 16 years old, I never followed through with it. But a year later, Hearts Mountain, a major company, pet company, came out with the first ever fluorescent flea collar. So that was my little bit of a window into, you know what, there's something to all the things I'm always making. So that was pre that. And when I then went to school, got very much involved. The veterinarian at the time was creating an amazing, healthy pet food. So I got very much involved in

naming it, making the labels. And so I therefore realized it was the product creation that I loved, went to school, went to college, graduated and thought, well, you know what? I don't know what I'm going to do because I didn't know what I was really good at yet. And I ended up working for the airlines and traveling and doing a lot of that. So and then I got married and I had children and that was all pre-mop. So here I am 30 something and I still haven't really understood what was in my heart and passion for what I did. I kept doing it my whole life, but I just didn't have any way to define it. You know, if I told my children, if they ask what your mommy does, tell them she's an inventor.

That wouldn't have been my answer. But you had all these ideas. You just didn't have the skills or the execution yet. So when you made this fluorescent color, you were like, well, there's there there. Clearly, I know what the marketplace needs or I know, you know, how to put something interesting together

to appeal to consumers, but it's not going to be me just yet. And before Miracle Mob, what was your relationship with money like? Yes. So I had none. I was always, you know, it was always, you know, scraping to make sure I had enough money to go to the supermarket to get the, you know, what I needed to get. We had purchased a small little home and it was, you know, it was really, you know, what I needed to get. We had purchased a small little home and it was, you know, it was really, you know, you're always purchasing something that you say, well, we can do it. Right. And this all happened at a time where I had three children. I had one,

you know, when I do things, I do them. I'm always, I told you, I'm always active. So I had three children one year after the other, a girl, boy, girl. Yeah. Cause I, I mean, I'm always active. So I had three children one year after the other, a girl, boy, girl. Yeah, because I mean, I just always wanted a big family nonetheless. So I ended up raising the, making it the richest PTA in, in the state of New York. And that's when I said, Joy, you gotta, you have to really get a real job and make money for yourself. So at that point, you know, it was very interesting because, you know, my, my husband at the time, and I'm sure if you saw the movie and when you see the musical, you'll see a lot of reference there. But, you know, he just, you know, wasn't it wasn't his moment of time to have children and have those kinds of responsibilities. So I would say that

that was probably the darkest time of my life. At that point, doing little things for myself, I was making grapevine wreaths, believe it or not, and working, hostessing in a restaurant on a few nights to make some money. So, and I went, we went through, we divorced and here I was now a single mom. And I said, I've just got to do something. And to make a very long story short, I was tinkering with this, To make a very long story short, I was tinkering with this concept of there's got to be a better way to mop through various reasons. And I said, I'm just going to follow through with this product now. And my very dear friend in the PTA said, joy, it's a great idea. Do it.

So I had nothing behind me in the way of money, just very little savings. I dusted off a back room in my father's auto body shop. Literally, the windows were broken. The doors were shattered because they did gun practice. You know, they were practicing with cans, with guns in all the auto body shops. You know, we looked at each other. We said, we're crazy. I said, I can't believe I'm doing this. But we started from this messy, awful little desk in a room in the back of an auto body shop. And the path of the miracle mop was an amazing story path, but amazing financial path as well. Hold on to your wallets, boys and girls. Money rehab will be right back. One of the most stressful periods of my life was when I

was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener

by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.

I love hosting on Airbnb. It's a great way to bring in some extra cash, but I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your reservations,

messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble. So I don't end up making time to make my house look guest friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host. Now for some more money rehab. So with Miracle Mob, did you have the sixth sense that it was going to be a success? Yeah. Well, you know, a lot of people said,

no, who cares about a mop? Nobody's going to pay $20 for a mop at the time. So I knew that it was a great product. I knew it. And so I had always been pretty good with my instincts. And I, that's what I give people advice. Don't, I didn't have to sell my instincts. And I, that's what I give people advice. Don't, I didn't have to sell my house. I did it one step at a time. My father was in charge at that time of joy. I'll help you. He took care of the money that changed shortly thereafter because it was a mess. So we won't go there exactly, but I always say, be in charge of your own money. So, you know, what's going on. But, you know, with, with the craziness of, you know, his help and a little bit of, you know, here and there, we were, I was able to get molds built for the mop. And it was, you know, again,

I did not put a second mortgage on my house. I didn't risk my family. I always say if you're going to do something, do it within reason so that you don't risk your life and your well-being of yourself and your family. So once we had the mop and we're making it in a very, very tiny way, I would demonstrate it in fairs and flea markets. And everybody that saw it demonstrated would buy it virtually. I mean, it was that impressive. The path of work that went into like 25 times sending letters to Kmart to have even a buyer look at the product, you know, and, you know, I was up against

companies that had lines of stick goods and also, and I had this one mop that I called the miracle mop, but I knew that people, when they saw it, they loved it. So which took me to a path to QVC, which was a platform where you ultimately, I was able to demonstrate it, which I did, but which brings me to the fine back to the financial aspect that, that, you know, when you have success, money becomes even a bigger problem. And I'm going to explain that because here I was standing on a live stage on QVC and I sold out of the month. Okay. And when, you know, so their next step was, oh my gosh, we're going to make it big. step was, oh, my gosh, we're going to make it big. And I got a huge order. And what happens, right? You're a little company, a little person that's trying to put ends together financially.

And then you get this huge order. How do you support that, right? You know, the finances. So in the product business, you know, it's always how do you support that timeline, that path of money, because you have to get it made, pay those people and then sell it and get paid, right? So it's, there's a gap there. So I thought, I think the most challenging times in my business career financially were connecting the dots to that gap, right? And the bigger it got. So ultimately, I was building, you know, $10 million days of product for HSN. And, you know, in one day, I had to build that amount of product and know and have the wherewithal to know it was going to sell in one day. the wherewithal to know it was going to sell in that in one day. That's an amazing task,

an amazing financial situation. So, you know, I always say that and that's why I say with success, the money problems become bigger because they become much more complicated. And you have to be able to not only support business wise, right, for the success of any business, but you have to support it financially. Yeah, I hosted a show called Hatched where we interviewed consumer product entrepreneurs and tested their products in retail. And this was a common issue that we would see, purchase order financing, right? You think of these are high-class problems that you get these big orders from Walmart and Target and big box retailers. But if you're a mom and pop and you're baking your goods in like a little kitchen and then you get this ginormous order, how do you do that? So it's this delicate dance.

How do you dance the dance? Big businesses are the titans. Without that helping hand, I had it at the time from QVC. They knew they had a great product. They knew I couldn't do it. So they gave me advance money, right? So that's one way that, you know, not everybody can do that. But I said, I can't make this product unless you pay me something in advance so that I can pay for the raw material, you know, things like that. So what we do as Retail Titans on the show America's Big Deal is that we are like

mentors. So they can take that leap from small business to national retail distribution when you have a helping hand there, right? So that helping hand can come in many forms, right? A great bank. Just tell me where that great bank is and I'll let me know so I know. You and me both. Yeah. And I think a lot of people think they want to get to that destination to continue the metaphor as quickly as possible. And there are a lot of entrepreneurial experts out there who will say like, go just do it, like bet your house, bet the farm, bet all the things on it. And I love your advice so much because it's so

important to remember there is no shame in feeding your family. There is no need to race through this and put yourself in financial turmoil unnecessarily. What would you say about this pacing that sometimes entrepreneurs want to just race ahead and unfortunately put their own finances at risk or that of their family? Right. Well, my answer is to not race ahead, right? To not do that. So today is very different from when I started, right? It's today there are so many, like our show, America's Big Deal. If you have a great product, I'm going to say it right now, anybody listening, if you have a great product, you can apply to America's Big Deal because you step on that stage and be exposed nationwide. So we're really excited about that. But I think that it's really important

today. First of all, there's so many people that can start small and a little digital site, right? There was never that ability to do that and get a barometer there. There are a lot of lot of entities out there that are looking at small businesses and entrepreneurs across America and are looking for a great idea, a great product, a great little business to finance, right? So raising money has a different profile today than it did 30 years ago when I started, right? Oh my God, that sounds like a lifetime ago. So the opportunities are much different today. And I think in a way there are more opportunities and more options to take because the one thing that I everybody forgets is that over 90 percent of the firms in the United States are small businesses they are the engine to this country and so therefore hence why I'm so focused on the mission of helping ignite that, inspiring them again, you know, because it's really, I think the small businesses really at large have taken the biggest hit in what's all been happening.

Well, yeah, it drives me crazy when I hear entrepreneurs say like, I don't do the finance stuff. I just do the design stuff. Like I'll have somebody else do the design stuff. What would you say to that? No. Yeah. Well, that's that's one thing I started out saying. Right. I started out. My father said, don't worry, I can take care of everything. I'll take care of the money part. You just do what you do. And, you know, I don't want anybody to say to go against their father. But I'm just saying, you know, ultimately, right. You know, I miss independent, right. It's, it's, I think it's self-reliance. You must be aware of what you're,

if you are growing a business, you have to be aware of the financial aspects of it, because that will come back to bite you. There are a million, you know, there are a million obstacles, right. But, but the financial ones are the ones that absolutely will cripple you. Did they cripple you? Well, you know, I have to tell you, there are many times that I thought, you know, that was the case. But I, you know, I picked myself up and I said, there has to be a solution. So an example I gave you was, you know, here was this great success. I got an order for 60,000 mops, you know, let's just say, you know, $10 a mop, right? You know, cost, right? This is hypothetically,

that's a lot of money that I would be getting, but wouldn't have prior in making it. So, you know, my solution, I said, what do I have to lose? I'm going to talk to the company, the retailer and say, I need an advance, right? There were, you know, times where there were other times where, you know, when you have a business, you have a line of credit with a bank and, you know, and they're looking at the patterns of financials. And, you know, and I was in a very unusual business. My primary customer was QVC, and it was building a whole lot of product for one day. And then, you know, and it wasn't like retail where it's things are selling every day. So it was, you know, I, you know, then now I'm talking to a bank saying, well, I need all this money to build this product for this one day, and I'm going to sell it

in one day. And they didn't get it really. So it was, you know, it's your every business has its different intricacies. So whether it's a banker, whether it's, you know, investors, whether it's your money, whether whatever it is, you really need to understand your business enough and I think have enough knowledge and confidence that what you're doing is going to be the payback that you need to keep building that. Yeah, I agree. I don't think there's a work life and a personal life. I think it's your one full life. And if you're not good in one part, you're not going to be good in general, especially when you're an entrepreneur starting out. You are your own business card. So if you're not well financially or otherwise, you're not going to be well in business. For today's tip, you can

take straight to the bank. If you cringed when Joy told the story about her pitching the fluorescent flea collar only to have it manufactured by a big company right afterwards, take that as a cautionary tale. If you have a million-dollar idea, you need to protect it so that million dollars ends up in your pocket, not someone else's. To figure out how to lay claim to your ideas, go back and listen to Money Rehab episode 158 titled Protect Your Brain Child for your next steps. Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy.

Huge thanks to OG Money Rehab team Michelle Lanz for her development work, Catherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering, and sound design. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.