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Brian Smith

Episode: 24

Today on the Servant Leadership Podcast Brian Smith, the visionary founder of Ugg, shares his remarkable journey. From introducing sheepskin boots to America to transforming UGG into a global powerhouse, his story is a testament to resilience, passion, and unwavering determination. But success didn’t come easy. Before UGG became a billion-dollar brand, Brian faced the unthinkable—losing ownership of the company he built. Yet, through persistence and grit, he fought to reclaim his vision and turn his dream into a lasting legacy. In this episode, Brian shares how he navigated the extreme highs and lows of entrepreneurship, proving that even our greatest setbacks can pave the way for extraordinary opportunities. Join us and learn from Brian’s journey of reclaiming his vision and hear how your greatest disappointments can become your greatest blessings.

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Brian Smith Intro

0:07
today on the servant leadership podcast Brian Smith the Visionary founder of Ugg shares his remarkable Journey from

0:14
introducing sheep skin boots to America to transforming Ugg into a global Powerhouse his story is a testament to

0:20
resilience passion and unwavering determination but success didn't come easy before Ugg became a billion doll

0:27
brand Brian faced the unthinkable losing ownership of the company he built yet through persistence and grit he fought

0:34
to reclaim his vision and turn his dream into a lasting Legacy in this episode Brian shares how he navigated the

0:41
extreme highs and lows of Entrepreneurship proving that even our greatest setbacks can pave the way for

0:46
Extraordinary opportunities join us and learn from Brian's journey of reclaiming his vision and hear how your greatest

0:52
disappointments can become your greatest blessings Brian it is so good to be with

Welcome Brian Smith

0:57

you thank you for being on the servant leadership podcast hey my pleasure I'm looking forward to it your journey is unbelievable um

Brian's Unbelievable Life/Career Journey

1:06
literally it's hard to believe C could you share with our audience some of your journey and how

1:12
you became really a brand that's synonymous with Australia Ugg boots yeah well that

1:19
that's a very loaded question because we go for three days on that but the short

1:24
version is that I graduated after 10 years of studying to be a ched

1:29
accountant like a CPA I finally graduated and I quit the same day and I

1:36
really didn't want to be an accountant and for quite a while I was trying to figure out what to do and and I was

1:43
meditating one morning and you know this is 45 years ago so this is way before

1:48
yoga and meditating was popular but um I was meditating and thought you know all

1:53
the big trends are coming out of California and I I should go to

1:59
California and find the next big thing and bring it back to Australia and make my fortune you know and so literally

2:06
within a couple of weeks I arrived in LA and I rented a little house in Santa Monica and I I rented a Dodge van and

2:14
and I had my surfboard and the first thing I did was go up to Malibu because I I'd been dreaming of of you know

2:21
looking reading Surfer magazine since I was you know 10 years old wishing I could go to Malibu so I spent several

2:29
months surfing every day up at Malibu and looking around for the next big thing and you know looking at Billboards

2:35
and and newspapers and you know talking to friends and and it was like four or

2:41
five months and I hadn't found it and uh then one afternoon in like November the

2:49
the wind had got really cold and the the water was really chilly and I got out of

2:55
the surf at Malibu and I was pulling on my sheep skin boots that I'd brought from

3:00
Australia and it just hit me like Goosebumps oh my god there are no sheep

3:06
skinn boots in America and one in two Australians had some sort of sheep skinn

3:11
Footwear so I looked at my buddy Doug next to me and said man we got to go into a business we we're got to be

3:17
instant Millionaires and if you have a bunch of entrepreneurs watching this they're all

3:23
gonna have all been with you AA moment where they're going to be instant Millionaires and uh

3:30
bottom line is Doug and I went back to my house and we did some research and we ended up calling a a a manufacturer in

3:38
Western Australia and we talked him into becoming his distributor so we ordered a

3:43
half a dozen pairs of BS and uh and they arrived and uh you know Doug was going

3:50
to be the salesman so he went out to every shoe store in Southern California and came back and said you know Brian

3:57
they think we're crazy trying to sell sheep skin in California and although

4:02
that sounds logical you know California's climate's identical to Australia so that wasn't the reason and

4:09
so you when you're an entrepreneur and you hit a war you have to think laterally and so I thought well how come

4:16
all my friends up at Malibu think this is the greatest idea and it struck me oh my God so many of them had been to

4:23
Australia on their surf trips and they discovered ugs in Australia and they bought a half a dozen pairs back for all

4:29
their buddies So within the surf Community it was well known so Doug and I switched gears and we decided to get a

4:35
list of all the surf shops in California and he took the Inland at Valley up in San San Fernando Valley and

4:43
I took all the coastal stores and I was terrified of sales believe me I was an

4:49
accountant right but I remember walking into the first store with my little duffle bag a little was a little carry

4:55
bag had three pairs of samples and and you know I open it up really sheepishly

5:01
and he goes oh Ugg boots man they're great all my friends Rave about them I

5:06
went w Really you know he says and I said what are you doing with him and I said well I'm thinking of importing him

5:11
into America oh my God you're gonna make a fortune those things are the best you

5:17
know so I walked out of the store thinking well this sales isn't so bad you know and that happened to me all the

5:25
way down the coast you know from Malibu all the way down to Mexico and Doug got a great reception in the valley at the

5:31
same time so it it never occurred to either of us though that we hadn't asked

5:36
for an order you know I mean we didn't have any inventory so it sort of seemed

5:42
pointless you know but now now we knew we needed we needed inventory and so by

5:49
a pure fluke my roommate overheard us talking and he introduced us to some people at his work who are investors and

5:56
we raised 20 grand which in today's money is probably about 88 80,000 and we bought 500 pairs in and uh you know we

6:05
put the order in and and they arrived uh in the middle of December and uh we picked them up from the airport from

6:11
customs and put them in the third bedroom in my little house and uh so now

6:16
we packed up our our cars with really big duffel bags full of product and we

6:22
had order pads and I remember going back to that same first store and I go okay Jim how many do you want and he he just

6:29
looked at me and went oh my God Brian you know well done but we couldn't sell them in our store we just sell

6:35
surfboards and Trunks and flipflops and you're G to do great in the shoe stores I oh my God you know and so went

6:44
to the next store oh well done Brian but we just sell surf boards and bikinis and Trunks and flipflops and you're going to

6:51
do great in the shoe stores and I I went to every single store that on my that I

6:56
had on my first trip and Doug did the same and the first Year's sales orders

7:01
for you know we delivered by the end of December was 28

7:07
pairs so you can imagine what a disappointment that was you know we bought 500 pairs in anticipation and we

7:14
sold 28 Pairs and you know the the as as

7:20
as much of a setback as that was at the time I've learned over years and years and years of watching people watching

7:27
entrepreneurs and and being you know starting several businesses myself there's a common theme for every

7:34
entrepreneur and that is that you can't give birth to adults

7:40
right every entrepreneur conceives you you know conceives of the idea and then

7:46
they have the biggera and they and they they take the first action which is the birth like the the birth of a was me

7:52
buying six pairs of samples and then every business just goes into this horrible infancy and it just lies there

7:59
and it lies there and every entrepreneur will have gone through this and you know

8:06
it's just so demoralizing but you can't give up you got to keep feeding the baby and changing diapers and stuff but

8:12
eventually it'll start toddling and that's when you know the first True Believers are out there talking about

8:18
your product and magazines are writing articles about you and that toddling eventually goes into the youth phase

8:24
which is a really good phase because you have sales and marketing is working and

8:29
production is working um the warehouse and the office staff are working and you

8:34
know all all of the elements are working and you can run a 2030 million company

8:40
in that youth phase but if it's a really great product or a really great service

8:46
you know like a was a great product you're G to hit the teenage years and do

8:51
you remember when you were a teenager you on Saturday night you wanted to be in every party in town right well it's

8:58
exactly the same in business you you you just want to be at every major trade show and every Mass retailer and it's

9:04
suicidal if you go too fast during that period And I almost lost the company a couple of times during that phase but

9:11
eventually you know the the accountants put all the controls in and it becomes a mature company so that you know I'll

9:18
hold my book up it's called the birth of a brand and uh it's a road map for

"The Birth Of A Brand" - A Roadmap For Entrepreneurs

9:25
entrepreneurs and uh it it it starts off the day I you know had the idea all the

9:31
way through till I sold the company which was 19 years and it it's just got so many points of philosophy and

9:39
spirituality you know how to get up after you being knocked down you know how to work around people how to you

9:46
know overcome Financial situations and it's just turned into being you know a really good book and and so that's the

9:53
short version of how ug got started with the sale of 28 pairs it is such an amazing story and

Persevering Through Challenges

10:01
and I think one of the things that that really interest me personally is what you said you thought it was a million

10:07
dollar idea from the get-go yeah and maybe it was but that perseverance to

10:12
get there um it's unbelievable but I don't think people realize when they

10:17
look at you and some of the some of the things you've built and ug especially uh

10:24
the there it was riddled with challenges and times that it might have gone under even uh oh many many many many times yes

10:32
sh share with us what was that like because it wasn't easy and you really did almost go under a couple times yeah

10:37
well it took nearly five years for me to figure it out and I could have given up

10:43
so many times in that five years but you know the the uh you know I because

10:52
December was like the end of the year that's why we had a 28 per year right but I sold January February March at

11:00
you know swap meets and street fairs and and everything and the best deal I had going was the back of my van in the

11:07
parking lot at Malibu so excuse me

11:12
so um the best thing I had going was the back of my you know Dodge van in in the

11:20
parking lot at Malibu because I would go up there at 6:30 in the morning I'd Surf and then I get a cup of coffee and and

11:26
I'd open up the back of the van and I'd be open for BS business you know and after a few months like the word of

11:32
mouth got out that you know hey where'd you get those ug boots oh well there's a guy in the parking lot at Malibu you

11:38
know so so like I had a popup store 40 years before popup stores were really

11:44
popular you know and and so I ended up selling about $5,000 worth of product

11:50
over January February March and then the summer came I had to get a summer job and uh the next season I thought okay

Advertising Lessons

11:58
I'm going to advertise so I got this you know good-look girl and a good-looking guy and posed them on the beach down at

12:04
La Hoya and the perfect hair and and clothing and the Ugg boots were like you

12:10
know this big in the in the in the photograph you know and uh I ran the ads

12:15
October November December in Surfer and surfing magazines and the sales went to like $110,000 which should have been way

12:23
way more so I shut it down for the next summer and and the next summer I was in working con ruction in Beverly Hills and

12:30
Belair you know and I thought okay next season I'm I'm going to get better looking models and a more expensive

12:37
photographer right so we did that and we posed them on the beach at Malibu the you know the boots were like main

12:44
feature of the photo and the sales that year went to

12:49
$20,000 and I couldn't figure it out it should have been way way more and so my

12:55
next summer job the third summer was uh um working on a golf course in East San

13:01
Diego as a greens keeper I really loved that job but during that summer I realized you know I'm just going to go

13:07
out of business because Americans don't understand sheep skin you know Australians were born with sheep skin

13:13
knowledge and you cannot rip one and you can get them wet while while you're wearing them and they they stay warm and

13:21
you can wash them and Americans was oh it's too hot and it's too prickly and we have mud and slush where we are they'll

13:28
never work you know and so there was a huge disconnect in in just general knowledge about sheep skin and so I

13:36
decided okay I'm just going to quit off the inventory and and go out of business

13:41
and so October rolls around and every every October the first storm hits the coast of California and and California's

13:49
go oh oh it's winter you know so so I got home from the golf course what this

13:55
October afternoon and I was soaking wet and I walked in my house and and the

14:01
answering machine had about 25 messages from all of my surf shop retailers and

14:06
they going Brian Brian I've I've been swamped all day Everybody's In Here Wanting Ugg boots and I've run out can I

14:12
come down and get some more you know and I I started to realize I can't even go out of business properly you know and uh

14:20
so I ordered a whole bunch more from Australia and I delivered everything I could and and this year I thought you

14:27
know I got to figure out this advertising and so I was having a beer

14:34
with one of my surf shop retailers and and I was explaining this advertising and he says shut up BR he calls out the

14:40
back to all these 12 13 year old kids who store their boards in the surf shop you know and he said what do you guys

14:46
think of ug birds and every one of them they just

14:52
went oh man those Uggs they're so fake have you seen those models they can't

14:59
Surf and I realized that I've been sending the wrong message to my target

15:04
market for three years and not knowing I was absolutely damaging my brand by

15:10
doing this really shitty advertising right and so this time again lateral

15:16
thinking I I called up a buddy of mine who was in Orange County who's running a Scholastic surf team I said hey Pete do

15:22
you have any young kids who are going to go pro soon and he gave me two guys Mike Parsons and Ted Robinson and instead of

15:29
the expensive photographer I just took my little Canon sh shot you know we went surfing at Black's Beach down in La Hoya

15:36
and trestles which is up in s Clemente and these are two iconic walks they are a mile to get to the water there's

15:44
always fantastic surf there and I knew that every kid who reads Surfer magazine

15:50
would identify with these walks and so I just took a couple of shots of them

15:55
walking to and from the the the beach and I ran the ads in October and November December

16:02
the sales went to $220,000 you know why because I'd

16:08
finally figured out that marketing and advertising is about you never advertise

16:15
your product you advertise the feeling or the benefits of it what it's going to

16:21
do to your consumer like I knew that every little kid who saw that would be G oh my God I would die to be walking on

16:28
that road to trestles with Mike Parsons you know so what does he do at you know Christmas so Mom Mom all the cool kids

16:35
at school have got Ugg boots you know and so thousands and thousands of moms got inundated with this Ugg fever

16:42
because it was it became a real movement and uh the the whole thing turned out to

16:47
be um the turning point for me and marketing the brand and the interesting

16:54
thing is in the early ads the the ug boots were probably half the page

17:00
in the ads that worked with Mike and Ted you couldn't even see them they're almost invisible and so it just shows that you

17:06
never advertise the product per se you advertise what it's going to make you feel like and the more successful you

17:13
can draw people into the photograph or the you know the website or whether it's

17:18
a video the more you can draw them in and get them invested in that feeling the better the ads will be and so that

17:25
that was really the beginning of the the the the surge of ug ug is one of those brands that that

Ambassador/Influencer Groups - Boots On The Ground

17:32
you just built such an amazing Ambassador group for maybe you didn't even know that they were becoming

17:38
ambassadors but people just started talking about ug like wildfire just yeah

17:44
if you didn't have a pair of Ugg boots at lagona high or Malibu high you're just not one of the cool kids as you

17:51
think through that how easy or hard is that to replicate as people try to think

17:57
through how how do you help a brand get ambassadors and catch on well to because

18:03
of the internet today now keep in mind I sold the company in 95 so that's right the the year the internet started right

18:10
um uh but today you the the equivalent would be using

18:16
influencers right but you got to be very careful with influencers because they they've got to you know the the ads that

18:23
I showed were so realistic that these influencers everybody knew that they were you know good um today there's so

18:31
many influencers you don't really know what you're getting but um the bottom

18:36
line is you can't do it overnight it t it took five years for me to figure that

18:41
marketing piece out the advertising piece and then you know it was years

18:47
more of with my Salesforce with boots on the ground you know doing trade shows

18:53
going out to visit customers and stuff like that they all needed to get on the same plan and and this is where you know

19:01
I know the title of your your show is about leadership and and I can't say

19:06
that I had any special leadership tricks but except for one and that is and it's

19:13
not a trick if you have the vision and the passion then other people follow so you

19:19
don't really thrust leadership on them you just go out yourself and people

19:26
who will believe in what you're doing will follow so that that to me is the best leader when there's no rules and

19:33
everybody just wants to do whatever it is to help the you know the movement go forward and so you know I started

19:40
duplicating the the surf model in uh snowboarding which had just started then

19:47
and skiing was pretty old but there there was a crossover with snowboarding and skiing so I I I sponsored a bunch of

19:54
young kids in the in the snowboarding market and they just took it off and it

19:59
was like the ug surfing thing happening all over over again in the snow and I was stuck for a couple of years with the

20:06
Midwest and back East because I you know there's no surfing and very little snowboarding and and I and I was I was

20:13
finally in in a big Sporting Goods store and I just happen to ask the guy you know the buyer I said well what do the

20:19
kids here do for sport in the in the wintertime and he sort of rolled his

20:24
eyes you know and he goes well they play hockey and I'm Australian we we don't

20:30
have hockey so I had no idea that that was a big movement and when I started to

20:35
research it I found oh my God it's bigger than surfing you know so I started advertising in a little magazine

20:42
in Min Minnesota called let's play hockey in Minneapolis it was a Kids magazine and I started sponsoring you

20:49
know the mom of the week and and had all these young young hockey players you

20:54
know wearing the product and so that did you know surfing then snowboarding and now hockey across the rest of the world

21:01
and all the kids back East are going Mom all the cool kids have got a pair of UGGs at high school you know I want a

21:07
pair and so mom's in the department store you know buying them and she go oh my God that my daughter would like these

21:14
you know oh my God I have to sit in that rink for three hours at 40 degrees you know I might get a pair for myself so

21:21
the whole thing you know it didn't just take off Nationwide IT pocket by pocket

21:27
by pocket was discovered and that that was a secret because it wasn't a fake

21:33
Big Marketing push it it it was a boots on the ground awareness uh thing that

21:39
happened and each area reacted differently and uh you know the timeline

21:44
was amazing so yeah it was a lot about understanding who the consumer is and trying to find what fits them to make

21:53
them want to be part of your movement I I think that story line is so

How Do You Start A Billion Dollar Business?

21:58
helpful because people really are looking for the next overnight success or how to get rich quick or whatever and

22:04
and I just don't see it happen really um yeah I I get asked a lot you know how do

22:10
you start a billion dollar business you know because this is a third year ugs of being two billion right and I just tell

22:17
them you can't start a billion dollar business because it takes two things one's a you know breakthrough product or

22:23
service you can control that you can hire a bunch of Engineers to build a website you engineer to build a product

22:30
that's so that's doable but you need a worldwide societal shift to happen

22:37
before a product gets picked up and goes Nationwide or International and there

22:42
were two I looked at them as competitors they didn't know I existed but when I

22:48
started ug there was Nike who for years five or six years have been trying to

22:53
get into the running market and and uh they were advertising running magazines

23:00
and trying to get into college you know athletic departments and stuff but completely outside of their control the

23:06
spoted jogging took off right back in the in the very early 80s and everyone

23:13
who wants to get into jogging you know picking up running magazines going what's the best shoe and here's this

23:19
Nike being Nike's been there Nike you know year after year after year has been there so they all started buying Nikes

23:25
and as jogging took off worldwide Nike got sucked into this Vortex of demand

23:31
and went into the billions right the other company at the same time was

23:37
trying to get into the dance Market they had a little white kid leather shoe which they were advertising for dance

23:44
studios and they're trying to get into the all the cheerleading teams in the high schools and the colleges and they'd

23:51
been nearly 10 years floundering getting nowhere nowhere nowhere and then the sport of aerobics takes off

23:58
right and uh that obviously was Reebok and they just got sucked into this

24:04
demand like people started going well the best you looks like Reebok been around forever you know and so Reebok

24:10
got sucked into this millions and hundreds of millions and billions and the interesting thing which which your

24:17
listeners will love is that I read the book called shoe dog by Phil Knight who

24:24
started Nike and he wrote his book like I did I started Ed at chapter one and the sales

24:30
zero right and and went year by year by year by what the the volume was would

24:36
you believe that the first five years sales of ug was greater than the first five years sales of

24:42
Nike right so even companies like that had to go through the birth to adult

24:48
growth pattern it's just infallible that is so good and and just

24:54
so cool uh and by the way you are such a gifted story um yeah I love that well you talk about

Servant Leadership Perspectives

25:02
one of your gifts as a leader was Vision casting yes when you hear the word servant leadership or that term what do

25:10
you think of well F my first blush is that it's religious right as in Jesus

25:17
serving you know Mankind and so we should all serve and and you know hopefully people will follow um but I

25:26
you know the best way you can serve you know all my employees was to um have a

25:32
fun environment and they got paid every week you know with a potential for bonuses and that that was that was how I

25:40
was able to get lots of people to to see the same vision that I had and to help

25:46
work towards that yeah well one of the things that I've I've heard you say previously and I

Greatest Disappointments Become Your Greatest Blessings

25:53
don't know how often you say it but you talk about some of your greatest disappointments becoming your greatest blessings yeah how how do you see that

26:02
play out and has it continued to play out post ug it it'll play out for

26:08
eternity and it's been playing out for the eternity in the past that you know I

26:13
asked the question you know from the stage a lot because I my real you know

26:18
Forte is speaking on from the stage and I asked people I tell some stories about

26:23
you know how I I lost control of the company and then by hanging in there I finally got it back again and you know

26:31
there was so many times I could have given up and I asked people you know raise your hand if in the last 12 months

26:37
something happened in your personal life because I don't just talk about business I talk about personality and and

26:44
spirituality and stuff like that something disastrous happened in the last 12 months and now you look back and

26:50
think thank God that happened and I promise you 80% of the audience puts

26:56
their hands up you you know it's such an infallible thing and I I could tell you you know many times of of you know

27:03
problems that I had sometimes with investors who I would it was a disaster because my sales were so much greater

27:10
next year and they the old investors didn't have any more money to put in so I had to buy them out and bring in bigger ones and and each one of those

27:18
was a horrible disappointment to have to get rid of the old company and start a new one but but within six months we're

27:25
like rocketing off on a new trajectory and so every time the the new you know

27:31
the new environment became much much better so yeah there there's and especially in a personal life you know

27:37
with friends or with family and stuff like that you know something can happen that's a real disaster and it'll maybe

27:43
kick you out of the house and you look back six months later and think I love being by myself you know this is the

27:50
best thing that ever happened I got kicked out right so there's always a silver lining to you know any disaster

27:57
that can happen well so you've talked a little bit about selling UG and you've talked a little

Dealing With Investors

28:04
bit about about Investors uh from afar you've had an interesting journey of in

28:09
and out of ug um and how did you first even decide we should we should sell

28:17
some equity and then share with our audience some of the story because that in and of itself whatever you can share

28:22
is a crazy story of uh some of the partners you brought in and how that kind of shook loose throughout time sure

28:30
sure the the each time I had to buy out the smaller investor to get the bigger

28:36
one in was a personal cost to me because I had to go on the line and promise to pay these guys you know back with a

28:43
piece of profits it was all every deal was different but but finally um I I had

28:51
lost control of the company through having to sell investment put you know but by a pure fluke I ended up getting

28:59
100% of the company back it's not enough time to go into that here but uh it's it's a great two chapters in my book

29:06
it's phenomenal chapters on how I got the company back and then I was much

29:11
more Savvy in bringing in the final investors who we could take it you know from the the uh two to three million you

29:19
know four million range up into the the you know 10 to 15 20 million range and

29:25
um it got to the point where after about five years of that group um we had an

29:33
incredibly good season and we just done about 15 million in sales and I and I

29:38
was looking at all the preseason orders for next year and I realized it's going to be around 25 million and I had no way

29:45
in hell of financing that nor did my current investors and so I started

29:52
looking around for you know ways to to try and finance it and you know that didn't look good

29:58
and you know I thought God if I don't figure out something this whole thing's going to implode and the company will

30:04
disappear and the flakiest thing happened I'm going to backtrack remember

30:10
my little spot at Malibu well two or three spaces up was another guy called Dog Doug Auto and he had these sandals

30:19
that were pink yellow and pink neoprene flip-flops and uh he built his company

30:26
and we were in and out of surf shops all the time seeing each other is 45 years ago right and uh and he eventually took

30:35
on a bunch of licenses and built his company that way and one of the licenses he took on was T sandals and you recall

30:43
when the outdoor Market took off in the early 80s that that early 90s I should say that market just went through the

30:49
roof and so he took his company from like 16 million to 66 million in one

30:57
season and then he took his company public on top of that and so he was sitting on a

31:03
war chest of about $30 million in cash right so back to my story where I'm

31:10
faced with 25 million sales next year not having to know how to finance it I

31:15
was going to a big trade show in Atlanta called the Super Show Sporting Good Show

31:21
and way at the other end of baggage claim at the airport I saw a Doug and

31:26
and I just got these good bumps you know I thought oh my God it's perfect his

31:32
company dies every every winter our company dies every summer so if you can

31:37
put them together you got a year round Salesforce year round accounting Administration year round shipping and

31:44
it was brilliant and I knew he had 30 million in cash and so I walked up to

31:49
him and we joked about buying each other out all the time you know and uh finally

31:54
I said Doug if ever we're going to do it Now's the Time you know and we we high-fived and that afternoon we had the

32:01
accountants back in California talking to each other and like eight eight or

32:06
nine months later we finally closed on the on the sale it was all for cash so it was it was equivalent to me going

32:13
public without having to go public you know so we we cashed out with a little royalty stream on the end of that so it

32:20
was just one of those fluky lucky things but the only way you can get to those

32:25
lucky things happening is if you haven't given up in the time yeah well and it seems like maybe

Lessons Learned On Structuring Investments

32:31
before even that exit happened there were a lot of trouble times getting investors on and and just the structure

32:40
of some of the deals you learned a lot along the way with how to structure Investments better it sounds like yeah

32:47
well I'll I'll try and squeeze in one more little story that one of those instances happened with getting three

32:53
new investors from Anaheim and they were already in the distribution business so I signed a new deal with them and but

33:01
there was a two provisors one I was going to be full-time on the road selling which I absolutely loved by this

33:07
stage because I was really really good at it and I loved the product the other thing though was I didn't get my 25% we

33:14
were all going to share at 25% each and I didn't get my 25% stock certificate

33:19
issued until I finished the trademark lawsuit right and so we moved all the

33:26
inventry up to Anaheim and I got them all set up there and I went on the road the first day and I the very first store

33:32
I walked into was Huntington Surf and Sport and and my buddy there the owner he goes hey Bri I heard you sold the

33:38
company and I went what he said yeah I called an ordering this morning they said you don't own the company anymore

33:45
and I just went you're kidding me they said that and I couldn't wait to go out to the Shell gas station next door

33:52
because that was before cell phones right and I called up anah what the hell are you telling people people he says

33:58
what do you mean I saidou telling them I don't own the company he says well you don't you know you don't get your stock

34:03
certificate and I go you're my three new partners we're all 25 no you

34:09
don't you know and I hung up the phone and I drove back to San Diego and I I looked at the contract and I reread the

34:15
contract and went oh I don't even own the company you know and uh I went

34:21
into this massive depression for three days and I didn't speak to anybody outside of my wife you know

34:28
I I I couldn't take a phone call I couldn't make a phone call I couldn't get my head around how I'd lost the

34:34
company and uh now three strangers you know who didn't even know about ug three

34:39
months ago when now own the C you know just just bewildered and it was about

34:44
the third night that I was uh lying on my back you know on on the floor in the

34:49
living room and my wife was sitting on the couch and the the TV show finished I clicked it off and I I rolled over onto

34:56
my stomach and got up on my hands and knees and started crawling to the

35:01
bedroom and my wife just looked at me and go and she's really quiet right she

35:06
just looked at me and goes you get up now and walk to bed like a man you know

35:12
she scared the crap out of me you know and and it sort of snapped out of me as

35:17
I'm coming up off the floor I thought oh my God there's so much more to life than this crappy little sheep skin company

35:24
and so the next day I got you know medit again and got back to being you know

35:29
Brian Mr positive and I thought well what can I sell you know what can I do

35:36
and you know finally I thought sales I've come to love sales now what can I sell and you know I got these Goosebumps

35:43
again which which to me is a very spiritual thing I go into that in my book a lot quite in depth about

35:49
Goosebumps but I got these Goosebumps and I thought oh my God I love Uggs you know so I I ate Humble Pie and I called

35:56
the guys up and at Anaheim and uh said listen I may never own the company but I

36:02
I promise you I'm going to go on the road I'm going to get every American in the country to wear a pair of ug boots

36:07
and you and so I started out you know on the road that that that month and went

36:13
out visit we promised never to tell anybody that I sold the company okay that was a big deal so nobody knew out

36:20
there in the in the marketplace and and I was just sales wasn't even a job to me

36:26
anymore sales was so much fun because I knew all the the the retailers we'd play

36:31
golf or we'd surf or we you know and I I would go into their store and organize the sheep skin section and they would

36:37
just sign a PO when I walked out they didn't even really look at it you know and so I had that amount of trust with

36:43
them all and uh you know I got back after that first month and Neil hands me

36:49
an envelope and I open up a check for $5,000 and he says well that's your commissions I went and I went back

36:56
on the road the next month was a check for 10 grand and the next month another check for 10 grand and that's when that

37:02
saying we talked about earlier you know nearly always your most disappointing disappointments will become your

37:08
greatest blessings here I was not even working making you know tons of money

37:15
and having a great time with all my friends and over the next three years that led into me traveling all across

37:23
the country I had 30 sales reps in the country and each one every time I came

37:29
to to their town they had to have their 10 best retailers lined up for an appointment to go see them and so over

37:36
the course of three years three times I got to see 300 retailers right which was

37:43
like you couldn't do that online anymore it's just you had to be there physically

37:48
and so they'd take me hunting in Idaho or playing golf in New Jersey I mean it was just like the best best time and uh

37:58
after three years the the weirdest thing happened Neil bought Joe and Paul out so

38:03
he now owned 100% of the company and he called me up and said hey

38:09
come on in you know you you finished that lawsuit come on in next Wednesday I'm GNA you know get the lawyers in

38:15
we'll issue your stock and and you know oh we bought company cars and we took

38:20
out life insurance policies on each other you know I was in heaven and at the weekend my my wife called and now I

38:27
did have a cell phone it was a big thing like a brick in the car right and she was crying and she goes oh Brian Neils

38:34
just died and everything that was so positive just crashed again and I called up his

38:42
widow and I made a promise to her the next day that I'll stick around for a year no salary I'll just try and figure

38:48
out what works and see if we can save the company and there's another two

38:54
chapters in the book about that period which was you know but the bottom line is um the life insurance came through at

39:01
the very last moment and it was enough to buy Neil's Widow out plus all the

39:07
assets plus all of the profits for the year and she was so thankful because she'd never stepped foot inside the

39:13
business she had no idea what was going on so I basically saved her retirement

39:19
and I got 100% of the company back as a consequence and yeah I mean I was

39:25
totally broke because I gave her all the money but I know I owned 100% of the company and it enabled me then to start

39:31
off getting new and better investors in with being a little bit

39:37
smarter your resilience is unbelievable because so many people would have given up along the way yeah you know I'm so

Building Resilience In Others Through Stories

39:46
impressed by that Journey but also what you're doing now you're going around the world speaking at conferences and with

39:53
teams to help build some resiliency in in people talk real quick about what

39:58
you're doing with speaking now sure it's I never intended to be a speaker but I

40:05
uh after I sold the company and and you know maybe 10 years later I'd started another concrete and steel company in

40:10
the meantime which did fantastically but got wiped out in the 2009 recession so

40:16
in 2010 I just decided to write the book and uh it published it went pretty it

40:23
was 2014 actually so was almost 15 years and I published the book and everybody

40:30
that read it just went oh my God this is so good you should be on the stage talking about

40:35
this and so I I got an opportunity to speak on a friend stage you know where

40:42
everybody was friendly and uh I I I met a girl who

40:48
used to run the floor for Tony Robbins and she said Brian you need three good

40:53
stories three bad stories a beginning and an end so I over the weekend I put that together right um and everybody

41:01
stood up and clapped and laugh they loved it and I and the what was surprising me is that all the people uh

41:08
that got gave me testimonials were so genuinely helped by hearing the stories

41:15
of the you know the desperate stories that I went through and I thought oh my God I had no idea how powerful these

41:23
stories are to help entrepreneurs who are all going through the same sort you know totally different businesses but

41:29
the same business issues and so that made me become you know a a student of

41:36
speaking and I went to a lot of seminars I bought a lot of books and I I've got now to where I'm I I've become like a

41:43
really really good Storyteller and I I roll these stories off you know and

41:49
people are on the high with the high and then they're in the dolrs with the lows and and I can I can feel myself taking

41:56
them on this journey and without a doubt every time I come off and I I sign books

42:01
you know at the end of every talk they tell me their stories and it's just like I am so blessed to have been put in a

42:09
position where I can help so many people and I just intend to keep doing that as long as they're willing to listen yeah

42:15
well I'm excited for some of our listeners to probably reach out to you and and have you come speak to their

Impact Of Societal Shifts On Zoom

42:21
teams and oh that would be fantastic yeah any anything entrepreneurial or

42:26
sales Force oriented you know like I spoke to the the sales force at Zoom

42:32
here here's another great uh example of the the the uh societal shift I spoke to

42:38
230 Zoom employees in the sales in and they were all even the the the owners

42:44
who took me out to dinner afterwards they would just be moaning the fact that oh my God it's 230 million we can't seem

42:50
to grow it there's I think we've reached every business in the country and there's no more room for growth for zoom

42:58
and this was like six months before Co happened and I think they went into the

43:04
billions faster than any other company I've ever heard of you know because the that worldwide societal shift happened

43:11
and they at the they they paid their dues yeah they were 200 million they weren't a small company but they thought

43:18
they were done and it was just the beginning of a whole new phase so yeah that that uh it's it's just a great

43:26
great story to tell people I love that I I want to close this out with 10 rapid fire questions oh

10-Rapid-Fire Questions

43:34
my God okay I'm gonna ask you something and just say the first thing that comes to your mind okay who's the first person

43:41
you think of when I say servant leadership go Jesus all right five words

43:47
that most describe yourself um easygoing pretty ordinary and never give

43:55
up author or book uh Wilbur

44:01
Smith favorite

44:07
movie there next one favorite food oh

44:12
Mexican because I live here in San Diego favorite thing to do in your free

44:17
time um meditate and read okay I'm surprised you didn't say

44:24
surf no I I stopped that about 2 years ago cuz the water here is so cold in

44:30
California I mean when I go to the gym I exercise every muscle for surfing so I could I could pick it up like that if I

44:37
go to Jamaica but I'm just done with surfing in California all right surprising fact about

44:44
you um that nobody really knows is I played rugby against the New Zealand All

44:51
Blacks and against England that was a pretty big deal for me wow all right favorite place you've been

44:58
uh without a doubt um Instanbul where's somewhere you want to

45:04
go that you have not been instan well I've been there but I I can't wait to get back to instan because I never gave

45:11
it justice it's the cradle of civilization right there and I mean

45:16
Jesus walks through there and and uh every Merchant for 2,000 3,000 years has

45:23
walked through there and or sailed through there it's just such an amazing

45:29
amazing place and final rapid fire question what's the best advice you have ever

45:37
gotten um I'm gonna finish that with a little

45:43
story I felt like a failure after about 10 years because I couldn't get into all the big box department stores and I'd

45:52
finally made an appointment with the the uh the buyer at montgom Ward which was a

45:57
really big shoe retailer in in Southern California at the time and I gave my best sales pitch of all time and he just

46:05
looked at me and said Brian why are you here and I went well because I want to

46:10
get an order for the California stores and he just sat back and crossed his arms and said Brian don't you get it

46:17
where the elephants we don't move until the mice are running around under our

46:22
feet and instantly I knew what he meant was that when all the special retailers

46:30
can't get enough of it then the department stores will look at it right but the other thing it told me was Brian

46:36
you're not a failure you just haven't got to that stage yet right so that was

46:42
probably the best advice I ever got that is so good well Brian thank you for

Closing

46:48
sharing some of your story I'm excited for people to go buy your book excited for people to even ask you to come speak

46:54
and I'm just thankful for you great well my website is ugf founder. comom you can

47:00
look up UG and go to my website the email will be at the bottom I'd love to hear from anybody who could uh benefit

47:07
from their staff or employees having a great keynote talk or a convention especially I'm really good at opening

47:13
and closing conventions we will make sure to link that in our in our video too so thank

47:19
you thank you so much thank you for listening to this episode of the servant leadership podcast if you enjoyed what

47:26
you heard please give it a thumbs up and leave a comment below don't forget to

47:31
subscribe and hit the notification Bell to never miss an update be sure to check out the servant leadership podcast. org

47:38
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