Episode 283: Making an Idea into a Business with Serial Entrepreneur Marc Lickfett

Welcome to this episode of the Million Dollar Mastermind. I'm Larry Weddell. And before we get started, if you want to know exactly how to win again and again, go to Wydell on winning.com webinar now to watch something I've put together for you. Now let's get going into this episode of Million Dollar Mastermind.

I'm here with Mark Ligfett. He is the founder of Knife Aid and he said many successes already in his short career with Knife Aid. And I'm going to take this time to find out about how he launched that company and how it got it off to such a fast start. So welcome Mark.

Thanks Larry. Good to be here.

It's fun talking with you and.

You.

Had the idea, you know, you had many different things you did, but when you got, it's kind of like you were really prepared to do something big and fast when you got the idea for Knife Aid. And so let's talk about taking an idea and making an idea into a business. How about that?

Yes. Yeah, I mean I'm sort of, I believe in this sort of what's called agile approach in terms of really launching a prototype. I think even that one ties back into the sort of don't hesitate, decide sort of credo is not over engineering. It was literally our first iteration of the website was super rough. The first kind of packaging material we used and we just did reached out to kind of friends and family and have them try the service and just get it out there, see what happens. And that's why where we found out, okay, maybe this glue doesn't work because when it gets hot and maybe knives over this size don't work and these issues and so forth. We found all the teething problems really early just by going out there with our hypothesis as a simple prototype, this sort of minimum viable product and just go out there and do it and then just be open minded and realize didn't work change, didn't work change. Get feedback from anyone and everyone and openly accept it and hear what needs changing. So that was really the approach is hitting the ground running and not waiting too long to launch the product and not to overthink it.

Well, you know Mark, this comes up all the time in talking to entrepreneurs that the great thing about launching your first launch, even if it's a limited launch and even it's with insiders, you know, the people you know pretty well, that's really what they do with movies, isn't it? I mean they call it market testing or something, they'll Take a movie, they'll get a selected audience and of a thousand people or something like that, give them questionnaires, maybe pay them, and then they'll let them watch the movie. And then they'll get the reaction, but you can do the same thing. And then they go back to the. Into the editing room and make the adjustments. And they didn't like the sad ending. They liked the happy ending. You know, they didn't like the middle part where she went off to college. They liked the middle part where she got married. And then, you know. But anyway, they get the feedback, and they know if they can get it past 1,000 people in a way that'll probably go out to the world. And so this is not any different than that. But all the time we hear people say, you know, we found out things right off the bat that we needed to fix. And I tell you, Mark, I had the same thing happen on Saturday. I'm a painter in addition to the other, you know, I've got a restless spirit, so I wind up doing a little of everything. But I have my paintings. And we're trying a different thing on the marketing now. So somebody came, you know, we've got a girl working with us out of Miami, and she suggested studio tour. So people like to come into the studio. So we say, okay. And so we had a studio tour. And it's in an industrial district over here off. Way off the right, next to the railroad tracks, by the way, and hard to get to. And then it's, you know, we got fencing around and you got to get through the gate. Well, we found out that after about three of the. We're only there for about four hours. We found out in the third hour, we found out that a ton of people were parking outside. The parking instructions were good, but how you got from parking on the side of the road inside the fence and found the right door inside the compound, nobody could figure that out. So they would just drive off. And of course, you know, the staff said, note to self, next time, better instructions. Here, here, here. You know, overdo the signs. One of my principals would not just do it, but we'll overdo it. You know, there'll be three different ways they'll know where to park, how to get in, what door to go to, turn left, turn right. But it's such an obvious thing. We should have thought of that, but we didn't. We had so many other things. Like, when you launch a business, I'll promise you there's going to be lots of obvious things. You didn't think about because you just didn't have time. And it's funny how this played out of my own life in a simple situation just this weekend. I mean, we deal with these things all the time. It's not gonna change, is it?

No one is. And it's crazy how those details can then kill your business. How it's really. The details are so essential and it's just. Exactly. Yeah. No, I love that I had the short little time I did work in corporate in that car company. I love the guy who ran it and he was really a very big cheese. But he would walk through the car dealership every morning. He'd park in one of the customer spots and walk through the car dealership and look at everything. And when he visited other dealerships that he was responsible for, he'd always work through the shop and he'd pick up pieces of paper. He closed the door somewhere. And this is really. All those details matter. And really being in your customer's shoes and playing it through is so essential. It's crazy and it's so easy to forget because it feels so mundane, but it's just so essential for sales, isn't it?

And I never. I don't think I ever mentioned this on here. My gallery where you could find the paintings is Axion Gallery. A X I O N, which is for dark matter, by the way.

And I want to talk art. We need to talk art. And at some point, because I still. I started an art publishing company and we have a big framing workshop and we publish, for example, Herring, Heath Haring for Europe, Warhol for Europe, Picasso. So I'm a big art guy. And there's another. We have a proper big framing factory and everything in the uk, so. So I love arts and it's also such an interesting niche and there's so much left to be done in that niche.

Well, you and I are going to be talking more then, because. And I saw that that was in your bio. But is that still going on?

Yeah, I'm still. I've only had the conversation. It's obviously a little bit tricky with the UK time and everything, but this morning. No, I'm still a shareholder. I'm on the board. And it's just such a. It's just such an amazing product. And it's also something. I mean, it's also so primal with art and it enriches people's lives to such an extent that I'm glad to still be involved there and lots of great people and great opportunities. Like you talk about kind of openings, whether it's museums.

Well, you know what I love about art, we're digressing, but what I love about art is that you talk to people about things they like. You don't get in there and you're talking politics and take over. Some people in photography will do photojournalism and, you know, all of the bad things of the world we take pictures of. But most of art is about positive things, looking for encouragement. And those are the kind of conversations and people you meet. You can expand on that. It's so much fun. I got involved in it when I was. My father was stationed at Camp Darby over in Tuscany, and we would, you know, early, early teens, we would go to Rome and Florence constantly, and so in and out of those museums. So that's how I kind of got the bug and started painting, abstracts and doing photography from the time I was 12, 13 years old. Once it gets in you, you know, it never leaves, but, you know, it's the pleasant side of life. The reason why that applies here is the whole reason for you to keep, you know, put yourself. Those of y' all listening through what you're doing now is so that you can add that quality of life, that fun side of life that you can be. You can get in that positive groove yourself to where you're moved. Of course you're working, of course, you have trials and everything, but you're basically living a quality life because you're making things accomplished that matter to you. You're not being bullied into this, bullied into that. You're moving ahead towards things that you know are important to you, and you really don't care what anybody else thinks. But it creates a satisfaction and confidence you can't get any other way. And, you know, this all kind of ties in together. And so the art side of it, I'm going to have Luna call you and let you know what we're doing. So maybe this will be good for both of us. But tell us about how you got. How do you go to Shark Tank? And that was pretty quick in the game, right?

Yeah, we were super, super lucky that they actually reached out to us. So there seemed to be two processes. One is where you apply and you go to cast. And it's quite a convoluted process because obviously so many thousands and thousands of entrepreneurs want to go. We were really lucky. One of the executive producers actually ordered from us because they make a point of trying new products. So he tried us and then reached out and says, where are you guys? At development wise and do you want to be on the show? So then we had to send them a video and just they wanted to make sure we can, we're decent on camera. But that was the extent of the, the process. So it was really, really lucky that they reached out and they liked us and they brought us on the show that way.

And so what kind of hoops did you have to jump through to get to where you look decent on camera?

Yeah, I think it was more, it was kind of just a pass, fail sort of scenario. I think they just tape and they said, we can't have those guys on national tv. That's not going to work. Or yeah, maybe that, maybe that might work. And we were just lucky we caught them on a good day, I think.

Now how did they, you catch their notice? You said they use the service, but how did they find you to even know that you had the service? Were you advertising on Facebook? Were you advertising local?

I think it was Instagram. I think they found us through our Instagram ads. And I think they are obviously this sort of. It's part of their job is just to find new niche services that are kind of novel and different. So they're on the lookout for that sort of thing. And the guy who, one of the executive producers who tried us, he was also a cook, so he just like enjoys cooking. So he just thought, oh, this is great to try, this would be fun. And it's just something different for the show.

Hey, listen, there's a lot of information online, but there aren't a lot of people who have actually done something. In my case, I've actually built a successful business, has accrued over $5 billion in assets under management, and has done well even during trying times. Now, if you want to know exactly how I've done this, go to Whiteellawinning.com webinar Now, I've compressed a decade of learning into five short weeks. Just for those of you who want to give yourself an incredible advantage and are tired of waiting and watching others move up.

Yeah, I think that's, you know, like if you were not, you and I were in that role, we would be, I'm sure we'd have the pressure on us to get a variety of things, different things. You know, it's like people get bored with anything. But I'm sure that was a novel type thing. But what was that like to go through that? Did you expect a big deal? Did you get what you expected? Did you know what to expect? How you know, when you start a new company. How far along were you before you were on there? Were you even in business? A year?

Yeah, this is. We've been trading really for. I mean, because the filming was a couple of months before it aired. So we'd been in business six months only. And what we did is. And it was quite funny because both my partner who helped me set up the business and I, because we've both have had business in the past and it's sort of, we, when we were driving there at six o' clock in the morning from kind of from Malibu into the studios here in la, we literally said, okay, this actually has a massive downside because we could from forevermore completely ruin our reputation on national tv. And we said, maybe we should go to Palm Springs instead and just sit by the pool and get drunk. Because this is maybe the risk is just simply too high to go onto the show. So we're definitely mindful that there's a downside to it. And it's also intimidating, the whole thing. It was definitely intimidating because it's so high powered. But then obviously we said, no, we'll go and we'll give it a try. But we, we didn't know what to expect and I think the outcome was much better than what we could have hoped for.

What did you do with the money and how did it help?

It's basically, it's marketing. I mean, most of the funding we have goes into marketing because the kind of production that was all set up, we had financed all that. And it is really the customer acquisition and just getting more people to understand that the service exists and why it's beneficial to sharpen knives and how easy it is. And once people try it, you can buy a subscription. Once people try it, they come back and they subscribe. Because a lot of us in the head, it's so hard to remember what the sharp knife feels like. So once you hold one in your hand again and you cut with it, you go, oh, that's what it was like. This is so much nicer. And then they make a point of coming back. So it's really customer acquisition is what all funding goes to.

Well, one point to bring out for everybody is the obvious. As you're considering options, you. You're going to have to go in the direction of a product or a service. And when you have a product, a product, you got to make it, you're going to have factories, you got to store it, you got to show it, you got to tote it around, you have to improve it. And you know you have the competition on your product, people say, oh, I never thought of that. And so I can make a better one. Because you. So you see, given them the example and so products, there's a lot more to a product than just having a service like you have. Yes, you didn't have to build a.

Factory, but at the same time, usually the margins are an awful lot better with the product and scaling is easier. So it's really. I think so too. It's easier to get a product off the ground, but then it's harder to scale it and make it as profitable. I think building a valuable business takes a bit longer. So.

And how are you evaluating your business in knife aid versus your business, say in the framing business?

How do you mean, evaluate?

Yeah. In other words, where it's an entity unto itself that possibly could be sold.

Let'S say entirely, yet they have nothing to do with each other, the two businesses. And it's different teams, different owners, different everything. I think it's more that I've moved on from the art business operation.

There are other people running that already. Without you, you're just an investor.

I mean, I'm sort of founder and former CEO and now I'm just a very active board member and sort of sounding board to the team and everything.

And so are you planning to have that same career path with Knife Aid?

It depends. I think some businesses are easier sold than others, so I think it depends. I mean, the art business is both because it's a labor of love and then it is not. There are no obvious buyers for a business in the art space because it's not, because we're more artsy. And the museums, they don't buy that sort of thing. The galleries are small, so it's not really a space where it makes more sense to turn a business into a cash cow and just hold it than it is, especially when it's so much fun. Whereas in other spaces, in all the previous companies, for example, an agency, I mean, an agency is a marketing agency I've started that's so easy to sell. And they get sold and bought all the time. And there it's easier to just sell it and move on. So it depends on. With Knif aid, it's interesting. I mean, there might well be because all the big knife manufacturers, they have need for our sort of service. So it might well be that one of the big knife brands might buy us. It could be. Be somebody like.

It's the kind of thing you're at the point where you're just going to grow that thing as big as you can, as fast as you can, and see what it turns into. Is that what you're saying?

It's sort of. I've always found that. I mean, I like starting a business and actually thinking about kind of who are potential buyers and what would they appreciate in a business. I like to start with sort of the end in mind. The. But then I also know that really it's the easiest to sell a business when you don't want to sell it. So if it works really well and grows nicely and is profitable or well funded, then it's the easiest to sell. So I think I like to start with the end in mind, but then keep a very open mind about it during the journey.

Well, that causes you to do the right things because you're building a business where one way or the other, you can be independent from it, operating whether you own it or not, because you've built it and you put it in place where it will run itself to a large degree. And rather than being sloppy and letting some of the key pieces not get done due to time constraints or whatever.

And.

So tell me about. Do I have to make some apologies here for attacking the life coaches and the.

No, I think. I think actually now thinking back to it, I think what you said is in one of your episodes, I think it's the life coaches that don't know what they're talking about because they haven't done any of this themselves.

Haven't done anything. You know, I think it's the people.

Who don't who speak from books rather than from experience. And I try to coach from a sort of a point of experience and hard knocks and lessons learned rather than from books I've read. So I was kind of misquoting you probably.

It sounds like you mainly used what you got out of that to grow your own business and kind of tighten up your thinking for yourself rather than as a way to make money. You know, it's kind of like people, the people that I really need. It's like someone who wants to give you a golf tip and they can't break 90. You know, you're out in the driving range and they want to give you a golf tip and they can't play golf, you know, but they want to somehow they want to help you. It's like, shut up. You know, it's like. Or somebody that's just had lunch with three professional golfers and heard them talk about the game and then gone out in the range and seen them swing and then all of A sudden, now they've got golf. No, you don't.

You know, the sideline commentators. Exactly. It's definitely the worst.

Yeah. And so the thing. Well, since we're on the subject, I'll wrap it up. What I resent about is the fact that so many great people, you know, you're naive and you're vulnerable when you're at the startup stage, which is when you're paying the most attention to those people and you can follow them. Exactly. And fail because they didn't have all the pieces in there, you know, because they didn't know all the pieces. And you think it's your fault, you know, and you think I'm. And you assume I'm not good enough. That's wrong. And you just got to stay at it a little longer, you know, because most people fail. So many people fail stupidly. They go 98, 99% of the way and then they say, I'm just not good enough. No, you're not quite good enough, dummy. Keep working. You're almost good enough. You know.

I'm still with you.

And so anyway, that's why. That's what my point is.

All that.

That's why it's such a great thing to hear, have you on and share today. And Mark, I. I was really pleased and happy, you know, to hear that you've listened to some of the episodes and knew the mindset and appreciate what we're trying to do here and was willing to jump in. What do you notice from listening to other people talk that, you know, you're obviously very knowledgeable and got great instincts about how to react to situations. Why is that a good time. Use of your time to listen to some of these things.

What I loved about listening to different episodes is that they are just so varied and you do such a great job of letting people take it in their direction in a way. So I like it that it's. I think for me it's a combination. I love the episodes because we talked art as well with Seth Resnick. I love those because he obviously he's winning, but he's winning. And he might well be winning monetarily as well, but he's winning in so many other kind of life dimensions and has such a great way of viewing that. So that I loved. Which kind of helps to reinforce some of my ideas and then it opens up blind spots. But even other episodes, it's just great to hear what other kind of switched on people are doing and how they're putting it, how they're phrasing. It. There's also just some of the. I think some of the episodes I took away a mental image that sort of an idea that I also had, but the image I didn't have. So I think it helps to reconfirm some of the things I want to do more of. And it helps to highlight some of the blind spots that I have, just because I'm obviously different background, different personality. And then those blind spots, it's great to have them highlighted. And in a way, some of your guests, they just complement my worldview or my character and experience.

So I get the same thing out of it, Mark. And you know, steel sharpens steel and people that are really got a real strong backbone and a really sharp going through life, they can help sharpen you and. Because they're already pretty sharp, you know. But life will make life. It's like your knife folks life. If you, if you live, you're gonna run into things that are gonna take the edge off of you and you got to have ways of sharpening yourself back up. And part of it is to spend time with positive, high energy people that are on the attack, doing things, learning things themselves, you know, not the people that are making a lot of excuses and whining. In other words, the people are still got their foot on the accelerator, moving forward through life rather than backing off and, you know, looking around, looking for, you know, being scared and intimidated by things, you know, that's not going to do you good, that's going to dull you. And so you really need to evaluate the voices that come into your head. Are they inspiring you? Are they sharpening you up? Are they energizing you? Are they sucking the life out of you?

Yeah, I like what you did. That's the steel, sharpened steel that obviously very much resonates with me. But it's exactly, it's exactly like you say, it's really nice and it's not always easy to get access to those people readily. And it's nice just pick up the podcast and get that sort of boost of. So, yeah, no, it's great.

Yeah.

Well, thank you so much, Mark. Look forward to talking to you again down the road and hearing the next chapter of Knife Aid and whatever else comes your way. I just feel like you're. You've got a lot of adventures in front of you. And I want to see that house out in Malibu. My brother's up. My brother worked for Tom Petty for 40 years and he was the right hand man. And he lives right up the road there in Santa Maria, up that way. And so I've got to go up there and see the, the kids sometime soon. And so I'm going to look you up, man.

Perfect. You're always welcome.

All right. Great talking with you, and look forward to your next adventure. Thanks so much.

Thanks so much, Larry.

If you enjoyed what you've heard and are dead serious about finding out for yourself exactly how this works in the real world, I've taken the most valuable business lessons I've learned over 40 years and put them into something for you to watch. Go to Whiteellumwinning.com webinar now in order to move up as fast as possible. I'm Larry Wydell, and I run the Million Dollar Mastermind. Go, go, go.