Temperance (group)

Transcription

Diana Swain: There are so many points in this book where it does seem like you're right on the edge. It's this close to the whole thing just shutting down and then, by mercy, something happens that just buys you a little time. Jim Treliving: And I think you create that. I think some of it is the right place at the right time, but I think you create it and I think it's the enthusiasm. I walked into that business and if I hadn't walked in, and I say to people on Dragons' Den, you probably heard me if you watched the show last night, I didn't put my house on the line, I never put my family... I was taught right from day one you never put your family in jeopardy no matter what. Now, I put them in jeopardy by moving them, but I never took the way that you could walk in and take our house away. JT: I looked at business this way, the business had to pay for it and the only guy that can make that work was me. And the only thing I had to do was work hard and have to be there every day. When I say we were there everyday, for two and a half years we never missed a day. Seven days a week we were open. The only day we closed was Christmas day. So, we knew what hard work was and that's what the police force taught me. It taught me to work your butt right off. JT: What do you mean? You didn't worry about your payday, we didn't have overtime in the RCMP at one time. One of the guys came back, we were doing a case one day and he said to me, "Jim, you know we're working for about 17 cents an hour." I said, "Really? I'm enjoying the work, I never thought of the payday." But that's because the passion was there. And I think when you've got passion of anything you do. I collected garbage, I scrubbed floors, I've done as many things you do to make it work. When I left the police force before I got into the Boston Pizza I took five or six jobs. I sold appliances at Sears on a commission and I never... JT: I had friends of mine walk in... When I earned that red uniform, when I walked out of that room and they were saying, "What the hell are you doing? You're driving a cab at night and you're doing this? Is something gone wrong with you or what?" And it was the passion. I wanted to do that business 'cause I could see when I went into that restaurant at night how many people were lining up and they were all young. And I thought, "Boy, if they're gonna be like that across Canada," or in my little town, now, we picked the worst town in the world going to a retirement centre, that was the worst thing we did. But you make mistakes along the way and you learn. JT: But you know what? When we opened our store, and where you're talking about the nightclub business, this is how goofy you get like I was at that time. We walked in and there was... We took over an S&S store, it was called Shop and Save. On the top floor was the 2300, 2500 square feet and they had a basement for getting rid of their bad lines, and it was a big stairway going downstairs. So, I'm sitting in there and thinking, "We put tables and chairs and maybe we'll get some beer and wine... " Next thing, I didn't know you had to have a license for all that stuff. [laughter] JT: And yet, I'd been a policeman. And so, I phoned the liquor department, the liquor store and he said, "Yeah, the liquor inspector lives on the corner, he'll drive down tomorrow and talk to you." So, he said you have to have this, this, this, and this. I thought, "Oh boy, you have to have all that stuff? You just can't throw tables and chairs down?" No. You have to have a plan. So, I went to Woodwards. Woodwards was a big department store in Vancouver in those days. And I walked in to see them and they had a whole area where they did a plan for you. If you bought their stuff, it didn't cost you anything for the plan. JT: So, I went to them and I said, "We're talking about putting a speakeasy type thing down below or pizza shop." And they said, "Oh great, we'll do a plan up for you as long as you buy... It'll cost you $500 if you don't buy all our furniture." I thought, "500 bucks and 50,000 for the furniture, yeah let's go with the plan." So, we get the plan. I said, "You know what, you're too expensive. I'll pay you the 500 bucks." JT: So, I got the plan, went back to Penticton. Went to the liquor board. Now, every church in Penticton, including my own which was an Anglican church, all had petitions out about me opening a nightclub five blocks away from the high school. It was the first nightclub ever in Penticton and the reason I got the license is when I went to Victoria to see the guy that was the head of the liquor board, his name was Colonel McGugan, and he had pants that the braces came and the tops came to here, and he sat there and this lady got up, I'll never forget her, she had beautiful hair, big snow white hair and a little husband standing beside her. And she, honest to God, she was from the Women's League against alcoholism, whatever it was called... S?: Temperance Group. JT: Temperance Group. And I thought, "We're dead, that's it. The nightclub's built, we haven't paid for it yet, and this woman's gonna shoot me down." And she stood up in the middle of this thing and she preached for five minutes or 10 minutes and then 15, then 20, we're sitting there. And I'm looking at the Colonel who was well beyond 70, with the pants up to here sitting there looking at her and nodding like this. JT: And finally it got to the noon hour and he said, "We gotta stop now 'cause it's lunch time." So, we walk out, we're dead. I walk out there. "Don," I said, "It's over." I said, "You know, I can't figure it out. He never said a word. I thought McGugan would stop her." So, he said, "We'll re-convene at 2 o'clock." So, I go over to the liquor inspector and I said, "Have you got any feeling?" He said, "Jim, I don't, but wait till after lunch, I think there's gonna be a change." What we didn't know is McGugan went down about four blocks or four doors down and there was a restaurant he went to everyday and had four scotches at lunch. [laughter] JT: And I guess he had six that day 'cause she was preaching about temperance about any man that drinks is going to hell. That's what she told everybody. Well, he was going to hell. So, instead of 2 o'clock, we reconvened at 2:15. He walked in the door and he looked up like this and he said, "Lady, you've said enough. Sit down. You've got to listen. Right now, you're getting a liquor license, so you people can leave." So, they all left. The Temperance Group all got up and left. They were muttering as they walked out the door. And he walked up and I stood in front of him, and he said to me, "Do you know a drunk when you see one?" I said, "Yes, sir." [laughter] JT: He said, "How do you know a drunk when you see one?" I said, "I was stationed in Prince George for three years in a row. We arrested about 100 a day." "Yeah, you know drunks," he said. [laughter] "Don't you screw up. You get a license and I don't ever want to see a drunk on your premises." And we didn't, and that's how we got the licenses. We opened a place called Boston's Bottom. It was Bubble Boston Pizza. DS: The book is full of great anecdotes, I highly recommend it but I do wanna get people in the audience to shout out a question or two if you have them, so just a show of hands and a microphone here. S?: I haven't read your book, but I've got it. But the question I've got is we were Gravenhurst, we went to Boston Pizza. So we figure, "Okay, we're gonna get a pizza," we had a meal, and we wanted to get the Boston Ale. We figured this is... How did you get the name Boston? Was it something you bought? And there's a Boston Ale that you buy all over the States, you can't buy... It's pretty difficult to buy here. JT: Yup. S?: And I think you know the one I'm talking about... JT: Yes, I do, very well. Sam Adams. S?: That's right, but they don't have it. So, I figured why don't they have something like this in a Boston Pizza of all places? That's my story. [laughter] DS: Good question. JT: Good question, actually. The name Boston Pizza came from... In those days, there were no numbered companies. Everything had to be names. So, when the Greeks put it together, they went to their lawyer and they wanted to call it Parthenon Pizza, to start with. [laughter] JT: Thank God, we never got that one. The second name was Santorini Pizza where were they were from. And somebody said to them, you actually have to have three names. A fellow lived upstairs by the named Bill Boston. I think about this, in two more years, we're gonna be 50 years old. In 1964, is when they started, September. There was a young kid from Ontario here by the name of Orr, went to the Boston Bruins. That's one of the reasons that Gus used this... Boston that came up he called up with. The Greeks don't pronounce it Boston Pizza, they called it "Boson Pizza." If you talk to a Greek person, and they're from the old country, they'll say "Boson." So, that's what it came. It was easy for them to spell. Now, also Gus thought about the Boston Tea Party. He kept talking about that, but all of those things... But the real reason was because Bill Boston lived up above us, who's an accountant, his name was Bill Boston. That's the third choice and they didn't think they'd get that name. Thank God, we did. That's the story. DS: Gentleman at the microphone. S?: Congratulations on the book, Jim. I look forward to reading it. JT: Thank you. S?: I actually remember tasting Boston Pizza in Alberta in the early '80s when I was a kid and liking it there, so I'm glad you're here. What advice would you give entrepreneurs about valuing their businesses properly? JT: Good question. I think you hear this all the time, and I think the biggest thing is you can't valuate what your time and your effort is. You got to actually look at your sales and what your business is. When we did the valuation for me getting into the business, my first store cost $23,000 of which I had to actually get... We actually got a loan to do it form the Federal Development Bank. It was called IDB at the time. And our valuation was based -- that was the first time I had ever heard the word 'valuation' -- was based on what we thought was volume and what the other stores were doing. So, we had some of the numbers from the other stores that I was their first franchisee, but they had... I was their fourth store. The Brakes Brothers had had three of them open by that time. JT: So, the valuation should be based on what the business is doing, not what you have put into it and time and effort. We get a lot of people who come on the show and anybody is going to a bank or whatever. You can't go on what your time is worth. That's just a misnomer. You can't do that. You have to look at what the business is, project what you see based on what you've got. That's why you hear... And what's changed in Dragons' Den across the country and what's changed with entrepreneurs across the country is, they see the show and they understand now when they come on they do have their numbers. They got to have some sales. JT: It's hard for me to walk in... If I had walked in to my partners to buy Boston Pizza and said, "Gee, I don't know what... There are no sales, but we've got a great idea." Probably got it shot down. I would've been still being a policeman somewhere or retired. But that's what you have to have. Make sure you have sales. You've got the passion to stay in it. You've got your numbers. When we say numbers, do a projection. I never graduated from high school. I'm not proud of that. I thought I was smarter and I got away with it. And I don't recommend it. JT: Everyone of my kids including my grandchildren, and my step children, have gone to university, and I believe in that. Don't do it my way. I was fortunate. But what I'm saying is make sure that you learn it. I said the kids coming up today, I took a long time to find that out, because I didn't have the knowledge of a school or going onto school. I had the chance to go. My parents were disappointed when I didn't. I learned the hard way and that sometimes is not the easy way. So do your valuation based on what the business is, not on what you put into it. DS: Okay. The next question here. S?: Hi. My husband and I really enjoy the show, Dragons' Den, and you're terrific on it. JT: Thank you. S?: It's always surprising to me to see how many crazy, but creative new ideas are out there. My question is what has been your best investment and what company on Dragons' Den has been the best thing that you've ever decided to invest in? JT: I think there's a number of businesses I'm invest in. Last year I invested in 43 of which, if everyone had come to fruition, it would have been about $6.3 million. The year before, I think I did 28 or something. But you remember that we do due diligence after, so I have a team of people. I have an accountant, I have an MBA and I've got two other MBAs and a lawyer and all that stuff to look after that stuff. I think the biggest ones for me have been... The newest one for... This year you saw... In fact we shot the show in April/May this year, and it's called Steeped Tea. S?: Yes. JT: It was the first in the first show. That's been a very successful business. In fact, we're meeting up with them tomorrow in Toronto here and they're out of Hamilton. The other one's Frogbox, I don't know if you remember Frogbox. I was involved with Brett on that one. There's a bunch of... They're not gonna make me big money, but what it does is, it gives me a partnership with a lot of the people that I think are great people to work with. We get small pieces of it. I'm not there to have to make the money to make another meal right now, but it's great to do business and show them what we've done and they take it and run it. I mean, they just need an opportunity or a connection or something, but there's a lot of them, and we're into them in small ways. DS: There's been two or three. There's one I missed and I often talk about... Somebody asked me when what I missed was a really big one. And I don't... If you remember, it was the one with the hockey girdle thing that helps from having any injuries to your groins, right? And my son actually who works for the... He's assistant general manager with the Coyotes. Teams that are not playing. But he was the one that phoned me the night before and said, "Dad, you're getting one of the trainers that I used to know when I played for Vancouver." He said, "he's coming on with this girdle and I think it's a great thing." I didn't get it in my mind. I thought, "Well, it's just gonna be for hockey," and I think as Canadians we always think like that. But there's a whole world that's used that and that business today is worth about 10 million. So, Steeped Tea, watch for it because it's another one that's doing really... And Frogbox was the other one that's done really well for me. Thank you. DS: Thank you. We've got time for the two more gentlemen lined up at the microphone. S?: Thanks for taking questions. Going back to advice for entrepreneurs if we can. One of the themes that comes up, particularly on this show, The Big Decision, which I was a fan of, is how entrepreneurs are spending, I guess, their time, particularly in the early days, kinda between spending time in the business versus kinda on the business. Like spending time in the day-to-day operations versus, say, getting the next customer, that kind of stuff. Particular advice on how to spend your time, particularly in the early days. JT: Well, like Diane said, there's parts of the book where I probably was broke and didn't know it, and that was a good thing. Maybe if I had the education I would have been broke and walked away from it. But I think at the time, and I look at entrepreneurs today, on that program that you saw just last year, this is the second year of it, but you're gonna see another episode, I think, next Tuesday night at 9 o'clock, it's... I look at businesses at 500,000 up to as high as 15 million, and we look at them on the basis... All the businesses I've looked in that businesses all come down to one thing. Their accounting side, their numbers side. JT: They're not that they aren't hard workers. They've been very, very successful. What they didn't take the time and effort, and which I did, which I was fortunate enough to have a guy that was doing my accounting for five years and then became my partner, was the fact that I went in and got professional help from a professional to look at my numbers and say where I was wrong. 'Cause you're so focused on your business every day. I walked in, I didn't even know whether there was a light bulb burnt out in our place. I was focused on working in the business and making sure that worked. JT: What I wasn't looking at was my bottom line. And you remember when you get a statement, that's your report card. That's all it is, is a report card, and you'd better get one. And I've often said these businesses... The one interesting business I went into in New Brunswick was 13 million... I think they were as high as 13-14 million a year and they had dropped down to 9 million, and they couldn't... And it was still dropping. And I asked who the accountant was and it was a cousin who had no training, formal training. Imagine a $13 million business and you don't have an accountant. "Oh yeah, Dad helped and did some on the weekends." JT: Another business in Winnipeg I walked into, which was a steel company. The people in there were great people and I loved working with them, but they weren't people that run the business. They were people that should have been out on the floor 'cause that's where all these people should have been, working out there, and brought in professional help. When we bought Mr. Lube, the first thing we did was bring in, and we had good... And they were great partners and it was a good business. But what is the first thing I sat down with the guys in the board room and said, and the partners? And we're not a public company, we're a private company. It was a good friend of mine, I used to golf with him and my partner and I. JT: When we bought that one, he was dying. We bought the thing. He had prostate cancer and went out in 15 months. In the meantime, he wanted... He said, "Jim, my brothers and my family are not gonna run this business. We need somebody to do it." And we thought, "Oh my God, how do you take on something like this?" So we did, and we've turned that company into a full franchise company because that's what we're good at and we know. But we brought in professional, what I call professional people. They're well educated, been in business and look at the numbers daily. And you have to have it. You've gotta also have the entrepreneurship piece, but you have to... As much as you work hard in your business, you have to have the numbers as well. It's gotta be equal and where a lot of guys in the entrepreneurship, they work like crazy up here, but there's nothing going on down here. So make those equal. S?: Thank you. Most inspirational. I thought you'd end up talking about business and just investment, but you've just been utterly inspiring. My family has much of the background that you started with, I mean of course you've done so much more, but they came here with nothing after the war from China, washed dishes, and became one of the largest restaurant accounts in North America of Chinese food. We were in Edmonton, so that might have been our restaurant that you went to. [laughter] JT: Probably ate at their restaurant. S?: Yep, through the back door, exactly. And then my father chased my mom out here and they started their restaurant and the rest is history. Yeah, it was the third Chinese restaurant in Toronto, but anyway, I give you that little background 'cause of this, and then my dad went on, and partly because of the things that my parents did and we did, he got the Order of Canada. So, I put to you this, I head up a management group and our concern is that Canadians are, just as you said, it's about cash, hard work, and now we've reached the point where tainted, corrupt and different whatever politicians and people are just destroying the goodness of generations. Maybe I'm wrong, I'd love your comment. And if so, what can we do? I don't know if that's too broad, but for what it's worth. JT: I travel around the world. I've been fortunate to travel around the world. I've been to Russia, I've been to China, spent... In China when you were about half your age now. I was back there opening in Taiwan when, in 1977. Went into mainland China, went into Shanghai when it was... You had a hard time getting through the border. Went to Russia when it was falling down. We were going there one day and I was at the Kremlin, and just outside the Kremlin, and Gorbachev... And I met Gorbachev. You'll see I think there's, maybe not in this, but I do have a picture standing with Gorbachev and we're talking and I've had a chance to meet Bill Clinton and Gerald Ford at his house. So I've been fortunate, really, really fortunate because of business. JT: We are living in the best country in the world. I don't care what anybody tries to tell me or what anybody has to say. There's no corruption here compared to anything I see around the world. And we are, as Canadians, we are the most fortunate people in the world. And that's why we got people, 200,000, 300,000 people want to come to this country every year. We have to limit it. It's not... You know, if you were investing, if I give you $1 million today, and said, "Here, go and invest it anywhere you want in the world and I want it back in six months." Where would you go? S?: Here or China. JT: Here. Because China you wouldn't get the same amount in dollars back, trust me, you wouldn't. And I've been there. When the Yuan was going up, as you know, they don't even want to... It's useless outside the country. Is it a good country that's growing and going to be part of our deal? Yes, it is. But we are living in the best country in the world. [applause] JT: I've lived in the United States for 12 years. Our banks are the strongest you've ever seen. Where does everybody want to look at banks today in the world? You know, we think about how tough they were when I was growing up and my dad saying the same thing. Banks were tough to me. You had to have 30% down or 40%... Thank God, now we all look back and say, "Wow!" Guess what's happening in the United States? That same thing is happening. I sat with Warren Buffet and I was telling the story about Warren Buffet and I was sitting one day and talking at an event. And he's a most amazing person to tell stories because he's 81 years old and still wants to be 91 when he's still doing deals. And his partner, Charlie Munger, is the same kind of a person, he's older, and Warren will always tell you, that's the old guy over there. [laughter] JT: And he's 83 and one's 81. But you look at the two countries we've got. Where do anybody in the world want to go to? What dollar do you deal with in China or Russia or anywhere in the world? It's the United States dollar, that's all you worry about. Is the US coming back? Absolutely, but they're coming back the same way as we were taught and he was taught. He said, "Jim, the rules don't have to be changed in the United States, they just have to be adhered to." People were flipping houses and doing all kinds of stuff. There's guys... You just read, I don't know if you read the Wall Street Journal today, I did, and there was a guy that ran one of the biggest brokerage houses went to jail for two years. It's a tough... JT: These two countries are the two biggest things that we have in the world that everybody looks to. And to me, this country here, is the banking guru of the world. People are coming from China, they're coming from Japan, they're coming from Europe, to look at what we did. And I think that that's why we're the strength and we will be. And recession, we don't have a recession compared to the other countries. You gotta go on your... Can you imagine being in Greece today? Your valuation of your whole amount of money that you've saved all you life is worth less than 50%. I mean, come on, I'm not a rocket scientist here, but man was I fortunate. JT: The biggest thing that ever happened to me in my life, I was born in this country. And I will always be a Canadian, always, always, always. Because I believe and I see and I understand. I look at countries around the world and I see guys like Italy and places, and people in this room that came from those countries, why? Why did my grandparents come from Ireland, 'cause there was a famine, there was nothing left. You come out here and you could... As long as you could stake some land, you could live on it. We are living in the greatest country in the world and our kids are realizing this. And we're seeing this when I meet young kids. People come up to me and say, you know, you were fortunate, you did this and you did that. I said, "Look at these kids coming today, they're smarter, quicker, faster." JT: Oh sure we got some duds that are going to be out there, we have them in every society. But our real kids, the kids that are... If you're teaching your kids at home the way I was taught, you wouldn't have a problem. You're the parent. Nobody left it up to the teacher. You know who I was scared of when I was growing up at home? Coming home when the policeman brought me home. God help you if you walked in with him. I remember coming home one time and we got into... And I was a bit wild. Brought me into the room one day and took me home and my mom and dad... My dad met me at the door. And it was, "Thanks, Constable, for bringing him home." And the fear in my face was a hell of a lot more than what that policeman ever gave me. JT: And I'm telling you that's what you have to do with our kids today. Understand them. I said to my kids and my grandchildren, "I will send you anywhere in the world to get educated." I have now got a doctor that's 24 years old in my family, who is my granddaughter. She went to England, she did really well in Scotland, then she's mentioned she's coming home. Where she's coming back? Not staying there she's coming back here, but she was one in one of the highly educated schools in the world. JT: We live in the best part of the world. Everybody wants to come here. Thank God. But we don't have to worry about graft and what's going on here. Sure there's little bits of stuff you go around in every little city. I mean it's come on, you're not starving. We've got people in the street we should be going after. That's what our business is now. That's what I look at in my business, my time left on this Earth is gonna be making sure... You know what, I call it the Monopoly game. I'd be very fortunate to make all kinds of money. And I can't tell you how much I'm worth because I don't know, I don't ask. I work hard every day and I buy another business every other day. And I look at that stuff and I'm having fun with it. The day it isn't fun, I'm outta here. JT: When I look at it this way, I gotta start giving back. And the reason I have to give back is because you can't take it with you. When's the last time you seen a hearse going down the street with a Brink's truck following? You haven't, so look at people who are less fortunate. I have a heck of a time, my wife will tell you, I have a heck of a time walking down the street and passing somebody sitting on the street because that could've been me. And that's why I think in this country we have to really... If we're gonna give out and we have to give to people, look at the people just around this city that are giving everyday, every company, and to me that's what it's all about. You're living in the best country in the world. DS: That is the perfect point to end this on. Thank you. [applause] DS: Thank you. JT: Thank you. Thanks for doing that. You were great. Thank you. [applause]