Sometimes, simple ideas are the best, and this cap hat is seriously simple and, with skin cancer becoming more common, we need more solutions. I had a few issues with this pitch- firstly was the fact that just a week before I actually purchased from an outdoor retailer, something very similar, that included a fly net, so I was not sure how unique this product was. The other issue, was the cost of the product, it was just too expensive. The product should cost about $2-$3, (if not less)and his was twice that.
High starting margins were not great, and without the right margins, you have not got a business.
Thrilled he got a deal, but not for me this one.
Tip: When you are starting a business, make sure you do a business plan, and look at all the numbers. You have to remember that when you cost a product, there are a lot of expenses before it get to the customer, including freight, commissions, rent, wages etc. So you have to get your cost of the product spot on or you do not have a business.
Concept is – whatever you want, delivered in 60 minutes. Nice idea, and one that I believe is much needed but they had only been going for 6 months, and had already valued their business at $1.6million dollars! There was no proof of concept, and the main thing that made me run a mile was when they started throwing lines in like ‘Most popular delivery service in Australia’, now, I am not sure what Australia Post would think of this, but when you dig a bit deeper, their claims are not exactly based on anything too scientific. You have to be careful when pitching as when you start exaggerating, you make your investor very nervous on what else you are exaggerating.
Their promise is to deliver within 60 minutes, and for them to then say, this is mostly the case…. Well then this is not a promise to deliver, it is a hope, and customers are not that forgiving. Saying that, the experiment that we did during the pitch, did come within 60minutes. Big tick.
They need to prove that they can execute on this business plan and look at ways of promoting their product. They did not convince me that night, that they could do this.
Wish them well, but not for me..
Tip: Under-promise and over-deliver, is the best way to get investors to trust you. Look at the public listed market; businesses that give too much blue sky and do not delivery on that vision, pay the price by the market taking years to forgive them, as trust is the number one asset you have in business
How cute was that dog?! He was like a little teddy bear, the poor puppy was melting under the light with his long hair.
This product is not new, I have seem similar concepts before, but not on mass, so she did have an opportunity to be the first. The concept was a subscription model, which means you sign up for a period of time and your grass gets delivered regularly. Subscription models are great if you can get them to work, as you can get regular income on a monthly basis, and the business model is all about getting more people to subscribe at the same time, making sure the people you have on your books, are happy and they do not unsubscribe.
My concern was that she was growing the grass at home, but did not have a solution for when and if it took off. Investors want to see that you have a tangible plan for growth. Steve was also correct with his comment on the high-rises everywhere and it is a very easy market to tap into.
My reasons for not investing: great idea, but not great margin, no proof of scalability.
Thrilled she got the best partner for her which was Glen. Congrats Potty Plan
Tip: When looking for a partner in your business, look for what they can bring above and beyond money. In fact you may find that the person is more valuable than money
Great solution to a problem. I used to drive past traffic stoppers and think it would be a really boring job, but you could have a lot of fun with this product, but making up funny characters, to be the ones that hold the stop and go sign..
He was not after creating a business but just wanted to pass his idea on. He wanted a case of beer and he left with five times his asked. I would have to say this is the biggest increase on shark tank history!