Transcript for How Scrub Daddy's Sponge Sales Skyrocketed, and 8 Secrets of Pixar's Success
Welcome to real -- I'm Rebecca Jarvis here in New York City here's what's happening right now we'll take a peek inside the shark tank how valuable is a yes from one of the sharks plus. Will only main street back to Wall Street and the not so accidental secrets to success for some of America's fastest growing company -- so. If you're a fan of shark -- I certainly am are you always wondering what happens after the sharks -- to help your company. Well right now we're gonna meet -- -- he got shark take Laurie premier. To back his company scrapped daddy in the -- -- it's a nice to have you with us Aaron thank you so -- for how to it's it's an honor so it's an honor to be here and I'm sure it was an honor to be a shark tank. It's a miracle to be accepted on that show they've got probably forty to 50000 applicants a year I don't know how they chose. You don't find us but they did I even sent us an email and and that's how they found us. You sends an email email. And what happens to -- on the show it's on Friday night what happens affecting -- on the show argue getting -- people visiting your website what happened. -- the -- the show aired there was probably 30000. Hits to our website instantly most web sites crashed the night of the show. We knew that in advance so we boosted up our our server to make sure that we are prepared. And from that point you know it airs all over the world right so instantly you have a name brand and you need to be ready and prepared when that happens and we. We tried to be ready for that that he boosted the server what other things to -- -- to prepare we brought in a whole bunch of inventory which is very risky but we really believe the plot is -- yet. We believe in the product we believe in the show and the power of the show so we did bring in enough inventory that we felt if this many people we're watching the show. We kind did as a numbers game you know this -- people should watch this percentage might buy let's be in a position to supply and it really didn't work out well. And one -- -- interesting things about -- take a lot of people don't realize this but the sharks themselves. Are the investors I mean they say -- the investors on the show but weeks sometimes assume TV -- -- made for TV but Laurie really put her. Her money into your company. Well I can tell you unequivocally the show is as real as it gets the sharks are not privy like the producers are the producers know everything about you and the sharks. But when I walked into that room it was the first time I ever met them or -- them -- they even heard anything about my business and they actually do invest with their own money. And Laura wrote me a check and she gives us a shareholder in my company so how involved is she as a shareholder well Laurie it turns out Noory -- -- like kindred spirits -- an inventor she's an inventor and just much less qualified her she's got a 114 patents or so and I've got about ten. We both -- on QVC we have that in common. She is. Actually a personal family friend now she comes to a lot of my holiday dinners geez the Christmas yellow kettle at the thought were re election Monica. Diego looks like she's been to several months -- events and we got than a regular basis. -- -- a workaholic and she is available to me sometimes in our tactics are at 2 in the morning so what happens when you Laurie have a disagreement about a part of the business who -- -- well it's not that who wins you know Laurie one time we did have a pretty big disagreement about. It was about the direction you know she wanted to do -- in for Marshall and I really wasn't comfortable about what with the in from Marshall. And we worked it out and -- and she said to me afterwards and I'll never forget this when the most important things about a partnership. Between people. Is that you overcome that controversy and you move by quickly. And you get back to business it doesn't become some that you harbor and that you continue to you know -- occupies her time and ends of you don't have being destructive to the business. So the night here on the show you get 30000 hits on your website how much has your business what was your business the night of the show and how much is it grown to today. Well we were in five supermarkets before the show aired and we had done about a 100000 dollars in total sales and those were mostly on QVC. So after the show we were approached by Bed, Bath & Beyond and we're now and every Bed, Bath & Beyond across the country. They're selling -- upwards of 20000 units a week. And our sales have hit eighteen million dollars since the -- since the show actually air. What would be different view the holy Grail of -- daddy -- you say you're in Bed, Bath & Beyond these. We're else do you want to be and what do you want your company. Well we're trying to build a name brand we don't -- -- be a one trick pony on the show Mark Cuban actually said to me well you're just a one product company and I immediately rejected that said no we're gonna have all different -- because I'm an inventor. And I'm gonna keep this going and you're looking here at the breath of our product line now we had the original -- diagnosis the orange one. And so many people that's us now for colors for food allergies for it to -- in the kitchen and to keep you know once funds separate and different -- -- the house because you can use -- the bathroom you know what he's one in the kitchen arts and then we decided you know the worst thing about sponges -- they stink. They smell bad after just a couple uses and we thought wouldn't it be interesting that this fund is always smelled good so we just -- the new lemon sentenced. -- and it has Mary Lemony very limited evidence -- that was in response knowing that it smells great. So the whole -- crosses we're gonna build a name brand company and we're gonna grow this into it will worldwide recognized brand with all new different. -- what's your number what number would you sell this company for. It holiday -- go sit on a beach somewhere I'm not Cyril. Ever do that it turns out that I have a drive that you know punch for -- have -- inventors have -- never gonna retire. You could sell this company -- go to another. Yeah indexer and that's something else I love this -- and I loved this this company hires but I love this funds it makes me happy. I think you know this could be some that I like to keep in the family you know my son and my daughter -- scrubbed ID there a year olds. And not -- -- in the factory help me out and I think this could be a future for him and -- -- and -- -- hold onto it for awhile. You know there's always an exit strategy any Smart does person is looking for where you gonna go would be Yaris. I mean if obviously if you know the number was right and the and the company was buying it had the same vision as me in in making this a worldwide brand name. Then I would I would be instant the Wall Street Journal did an article recently and they said that 3M you know obviously owns the world market share the -- 500 million dollars a year and sponges just sold United States so. You know between one of those larger companies may be 3 AM may be -- -- who knows. We would entertain it. But I'm not sure I could retire. Our air -- -- in terms of the -- -- from shark tank and street keep in touch with some of them. How many are actually successful activation of this shows like this there's a lot of successful people get in sometimes there's good casting. Yeah I agree you know the thing about the show is it doesn't matter if you're successful or not in getting a deal sometimes because the exposure that the show gives you worldwide. Instantly makes you -- recognized brand is what you do with that after that happens that really makes you successful or not. The one to the friends that I have been on the show mostly to deals with -- Rainier and they've been highly successful. Your product parties well I'm actually very -- the guys from drops. We do a lot of QVC shows to -- -- -- them all the time. QVC. One -- -- report about what that's like this for people who don't know QVC behind the scenes are they crazy what. Like like the first woman ever went on QVC -- elected deer caught in the headlights at the show is. Is 100% live you know when you mess up it's been fun of probably -- millions of and experience you know luckily I happen -- prepared and prepared and and it. I'll -- -- -- funny experience that's cute little about that he -- plans and your mate and I'm doing this scrubbing demonstration. And the the wheels volunteer is hitting my mind. And the producers that. Aaron it's hitting your -- to him and I can't stop on the middle -- -- the host reaches it -- like you know and my -- -- -- like scrubbing with -- the camera's not on me and you know this woman both of their handlers -- -- -- -- -- Those those kind of a stressful moment Clinton QBC knows how to do this organized chaos better than anyone. And you know they just move -- the camera around to different areas of -- -- you know the parts that. -- are going so well. But QVC is like 321 Euro on live you'd better be ready and I've done. About 85 shows at this point so I feel comfortable and I go there like I'm -- -- the mice that. Well congratulations to work so glad you are ready for real this holiday but it's an honor to -- thank you so much for -- thanks for coming in -- and crowds of -- daddy. Since the financial crisis most of main street has been pretty afraid to trust Wall Street and unfortunately that means millions and millions of Americans. Have missed out on one of the biggest bull markets ever so the question is. What's gonna take to restore the trust in the financial community is that even possible. Well joining me via Skype from Vermont is when Smith junior he spent a lifetime Merrill -- And his father was one of the original founders -- also the author of the book catching lightning in a bottle which depicts how Merrill Lynch. Revolutionize. The financial world think so much for joining us some real -- win. -- -- -- -- -- -- So it -- book talks about how Merrill Lynch sought out to regain the public's trust after the crash of 1929. How did your father do that. You know -- -- -- -- is seen as I think there's some parallels to today that. Saw in 1939. A market that really did not have a trusted main street America they -- a lot of production on a street a lot of conflicts of interest. It is to build a very different this is following Wall Street to main street. It is fundamental things that took her resolve commissions they trained to brokers and those states they separated reservist who went into the community Samuel became part of the community. In over a period of time getting the trust of the average American. And he brought main street Wall Street which I think was one of the great fuels the US economy after World War II. You know it was in your blood I guess you could say to go and up working on Wall Street you -- your lifetime at Merrill and they do whacked. What was the decision how did you determined to make that choice. I was a little bit impulses were back at the time -- been -- 28 years I expected to retire there. But it CEO took over -- very clear to me and a conversation I had with him that he didn't understand the history -- -- didn't understand what made -- what we work. He did not -- the same principles that I probably did that I did to somebody my colleagues did. And I realized that it I would really have been -- Tony I'd say there's so Iceland and possibly last. And unfortunately. What I saw -- -- in 2007. As you know from almost went down and had to be saved by America. So -- it the pull of a ski resort or something like that -- that got you believe. Now announcers -- -- afterwards I'm loving my second -- -- -- sugar bush but I also loved. All but the -- -- about twenty years -- Angela makes me. You know actually come -- right now as I think that Merrill Lynch within Bank of America is still trying to restore those pretzels. And so many of the advisors who were out there in the communities in mainstream our columnists -- I think it bodes well for the future. But when you look at banks today eat you can tell that people in America are just not -- they don't like. There -- they don't like they're -- experience is going to the bank they also don't trust the banking community you see it in the way that people are not investing in the stock market anymore. If you -- give Wall Street one piece of advice of how to restore that trust how to make people believe. In Wall Street what would that piece of advice be. What they -- -- many pieces Wall Street I think though the Wall Street that exists in the communities is doing the right thing but. In my opinion believes Wall Street have to -- mortar and main street there has -- less humorous arresting more -- -- -- They really have to understand the damage is done to the average American and -- have to understand is some -- -- conflicts that existed in some of the trading mentality really needs to change. -- that I mean and this is that this -- an interesting point because you're saying that the people at the heads of these banks have to understand how Wall Street perceives them. Do you think that the heads of these banks who are receiving multimillion dollar pay packages. Do you think they realize. How mean -- perceives them do you think they care. Well I don't know it's always hard choose to reject and to people but I didn't know the way the community's out here arguing Wall Street and it's not good. You know one thing that happened Rebecca. In 2007. Most of the big firms were run by people to grow on the trading side of the business as opposed the client side of the business and just say about the language they're using instead talking about customers and clients are talking about counter parties and I think that's sentimentality and actually -- -- changed and I hope. That big banks and the big Wall Street firms once again be run by people to grow on the client side of the business. Winds -- thank you so much for joining us we really appreciate it -- he -- great deal you this morning thanks so much. I'm real -- we like to try and help you understand what it takes to create a successful business because we know -- so many odds for viewers out there watching. What are the keys well this month our friends at fast company are taking a rare look inside Pixar which is part of our family here at Disney. To see how even in a creative culture like the movies you can create an environment that focuses on making money because at the end of the day that's really what it takes to continue the business. The issue out on Monday looks at Pixar president -- capital and his new book. -- -- Fast company's executive editor no -- John is here with a sneak peek at Nellis so nice to have you with us again we love having fast company on our show here real this so. What common themes are you finding here. So one of the themes that we got out at top poll and his new book and we asked him for leadership lessons and and how to bring creativity in your business and have a successful creative business and one of the interesting things that everybody -- creative business deals -- Is how to balance art and commerce. And his answer was somewhat surprising because. -- who you know he's done fourteen number one hits that Pixar and he was -- Steve Jobs called him wise and Smart and Steve Jobs is not someone who was hearing with his right for you get out of lighting and heating about a lot of praise. So so what he says with surprising because he said. Basically he took a movie like wall he said I'm gonna make a movie about a robot that collects trash. Who would say yes to that we're right under a minute movie about Iraq cooks well what it's like yeah I can -- -- great -- -- a cooking rack so. His point is you have to -- some rest sometimes you have to believe in your creative. Side and give it time to develop into something that is going to be hit and indeed you can -- with those two movies feud started I notice that -- gonna watch that movie but they turned into great movies that made -- -- So much easier said than done because in practice a lot of people will make the argument well I took a risk because you have to take risks and business. How do you separate and distinguish the logical Smart race that has -- potential return vs the illogical one that doesn't. -- I mean it's very hard to deal and I think part of what his answer is is that you have to create systems within -- organization that allow you to. Find out when find out how to make things better since he straight -- said let's look at some point every Pixar movie -- Actually you know he got that he's and so what he's got at Pixar is -- thing he does this thing called a brain trust and a brain trust is when he gets all of his directors and craters together. And they're really candid with each other about what's wrong with the movies that they're making which is so important that we which comes back to this question of the people. In building that type of strategy right. And part of the reason he's been able to keep that talent and -- people at Pixar stay at a long time is because of these these brain trust meetings where they got to get together and people would tell them look this is what's wrong with your movie right now here's how to make it better and indeed they would come back -- -- -- My movie was better because of this or sometimes they would they would take -- -- everything this movie is just not gonna work it shouldn't be done. And that would lead to a new idea out of that -- -- -- good idea out of that became some other movie got made. That they didn't think was going to be the original movie and that brain trust idea is actually something that got pulled over to Disney and is one of the reasons that frozen has been so successful. Is because they use the brain trust method actually act is now. That is to be a leader in an organization like that you have to be willing to listen to the brain trust -- you have say -- to determine. When you're gonna take their advice and when you're going to pass on their advice how did he do that. So a lot of what what capital talks about in his new book and in the magazine this month is. How what it means to have candor in the organization how to creatively how to tell somebody that they're doing something wrong without being mean about it. And how are also be honest and he actually says the bigger problem is not is not. Necessarily being critical in the wrong -- but also just not really being honest he thinks people are not often enough. Honest with each other with what's wrong in what's right. And since he says he really need to create a space where people feel comfortable and feel okay he really -- in the magazine you can read this how he -- How to set up a brain trust in your own organization that's -- Put people in the place where they feel -- criticizing each other and not that they're not -- fight afterwards -- feel you know like animosity afterwards what is eight secrets to leading his success he's got a bunch of great and so so -- this secrets are -- -- than the one with how to balance -- commerce right one is that you -- one that we have is why things will always go wrong even picks -- -- talks about that you have to be prepared things are not -- -- be right this is where he talked about. The movies at some point or ugly babies he talks about them the right at. This show so why real risk means real failure not being afraid of failure got that idea that sometimes you just have to say this wasn't working. We can't do what we're not gonna do that he talks a couple of times without actually movies that they didn't make which sounded great actually and he says they just never came together -- that was like about emotions inside somebody's brain. It sounded really interesting. Another woman I really like is your best tool is a genius for a disaster and not one is about the fact that. But -- he needed genius and there aren't that many geniuses out there let's be honest and he says this if you -- a genius in -- organization you're really lucky and that's great and you need that. But if you don't have that he needed disaster disasters are these failures and they bring your organization together you have to learn the people in your team have to learn. That it's okay to fail and that you're gonna figure it out and also one of the things that people don't realize -- -- story to for a long time was a complete disaster and they had almost scrapped everything they had done at a certain point 12 sports very true and start over and are the result was it was -- -- was hit movie and they wanted to make -- story three rate and it did really well but that that idea that your best tool sometimes of the disaster is really important. I think that's such a good point and especially in a world where in many companies because of the financial crisis because of the fact that so many companies have had to cut costs. There is this fear of making mistakes which ultimately I think is one of the biggest things that hinders people from getting innovation. Because if you're afraid of making mistakes -- not gonna try anything new you're not -- innovate. Yes -- -- governor we often point out that failure is the key ingredient innovation you have to learn to fail and learn quickly if the bill quickly. And learn from it and that's one of the things that Pixar did so well that made him such a successful company over the years. Fast company -- -- -- really interesting read about picks are the secrets inside of the company so much more than an article that what we just discussed -- -- I really appreciate it's great conversation -- makes -- appreciate it. And thank you for joining us some real this we hear from you what do you think. About -- daddy and shark -- are you more inclined to buy products from the start ups after their featured on the show. Tweet us at real -- with RJ until next time this is Rebecca Jarvis from New York every --
This transcript has been automatically generated and may not be 100% accurate.