Tip 1: It’s not your idea; it’s YOU…
Obviously your idea is important. If you don’t have an absolute cracker of a concept, you’re not going to get far. But the thing that will make you stand out from the rest is who you are. People invest in people, not concepts.
When I look for the perfect partner to do business with, I look for someone who is driven, passionate, smart, good with their numbers and not a V.E.R.B.
A VERB is:
V: Victim, you know the ones who are half empty, they always see the negatives before the positives, seems like every time some bad happens, everyone knows about it…
E: Entitled, the people who think that just because they have been in a job a long time they are entitled to get the promotion; or just because they have sacrificed everything for their business that they are entitled to be successful.
R: Rescue, the ones who never can never find the answer and always look for help, when they could easily find the answers.
And my favourite the…
B: Blame: where it is never their fault and always someone else’s.
Now, we all know we can be VERBs sometimes and that’s ok as long as we recognise it and then choose to S.O.A.R. That is when you communicate in a way that is:
S: Solutions based.
O: Ownership for this problem
A: Accountability for you actions and
R: Responsibility for the outcome.
With that attitude, you will win and you will succeed.
Try it and see the difference in your life and business!
When I’m considering investing in an idea, I’m not just looking for a brilliant concept, I’m looking for people who can SOAR.
Scope My Project
Alex Piroux and Nicholas Dogulin
Offer: $50K for 20%
MMMM… what do they say? Arrogance leads to failure – and this was a typical example of this. In my opinion they did not do the research and I did not believe they would listen. They admitted that they did not have time to prepare. I did not believe in the business or the operators. They just did not do their research. This investment was not for me.
Dr. Drum Furniture
Offer: $250K for 33%
Now this guys was great he totally SOARed. They didn’t have time to tell his full story but though he has his challenges, his product was actually really comfortable and well made. He was a delight to meet and talk too. I mentioned in the intro that people can be a VERB or SOAR. This man was an example of someone who had very good reason to complain but chose to see a life that was positive. Thoroughly enjoyed the presentation. He was honest and down to earth. There are some businesses that don’t need to be a multinational brand. He didn’t need us and he was better continuing on his journey.
Offer: $2million for 10%
Stan has an amazing ability to not only speak fast – he is the fastest-talking person I have ever spoken to – but every word was perfect. I have not got that skill and you will notice from my face that I was in awe that he articulated so well at 10x the normal speaking rate! OK, you may have noticed by now that I stumble my words and even occasionally make them up so this man has a real talent. He seemed to have a good business model that was profitable. His aim of growing from $5million to $14million in one year was very ambitious and I am not sure he understood how hard that would be and how many challenges that would involve. In my opinion, his business was massively overvalued. This view was not shared by all the sharks, as Steve made the offer. It was $500,000 cash and $1.5million on a listing. This meant that Stan would have had to list the business on the stock exchange. This was, in fact, a great idea, as this is the only way the valuation of the business made sense and the only way Steve was able to get his money out one day.
Brooke Annan (Chookie)
Offer: $96K for 12%
How could you not love Chookie! She looked amazing and the difference in her looks was huge with the wigs. She would do a great job with home shopping. The type of wig looked so real, it was amazing. Unfortunately, I thought that the amount of time it would take me to help was just too much. Chookie will do a great job and I have no doubt she will succeed. She was beautiful with every wig she tried. Loved Simba look. She really could sell anything. She will do well!!!!
Giselle and Emilio Cano
Offer: $60K for 30%
Bugger I missed out on this. John was seriously the most amazing salesman on the planet. He even convinced me that he was a better partner than me by the time he finished. I quickly recovered and realised that was not true. To clarify; my thinking on the offer was this: I offered $75,000 for 45% with a royalty on the wholesale (which is the lower amount). So I offered more money than they wanted in exchange for 15% more equity. I actually thought it was quite fair. The royalty component was designed for me to get a return on my investment because, that is what investing is. We all have our charities that we support; this is business. And yes, it really is our money, so we do want a return. During their pitch I calculated what I believed the business could afford with our hindering their cashflow and making sure the Giselle and Emilio still received a great return. Because I’m already operating in the Mexican space, I also believed that I had more experience than John to help them, which is of more value to the potential business person. Unfortunately Giselle and Emilio did not agree. They have a very good partner in John and they will enjoy working with him. I have been in contact with them and think they are a great couple who will be very successful. We saw over 120 businesses during the filming of the show and this was a real standout.