This week, we have may have found a cure from the common cold… or have we..? A super cool unique lamp design, a clever fresh food storage solution which extends the life of our fresh produce (love this idea) and Maggie Beers recipe for a cake – done differently.
FLU AWAY 48
(no website available yet)
This pitch had massive claims, one that may be too good to be true. Nicole and Steve purchased the rights to a product called Flu Away 48 from a Belgian company. They claim that this all natural product can cure the common cold in 48 hours and that they had proof: Clinical trials of 10,000 people (in South Perth) and a detailed report from Harvard.
The common cold is worth billions of dollars to both the medical and natural therapy industries, so it was hard to believe that for $100K, they bought the global rights to this product, and that the creators did not prefer to sell it to someone who has mass distribution, experience and deep pockets to market the product. Why would they sell the rights to someone who has never done this before, with no medical experience whatsoever and no proven track record in business?
When you are looking for an investor you cannot value the business at what you need, it has to be based on a true valuation of the business.
Nicole and Steve were purely asking for what they wanted.
Without a solid plan and marketing ideas, the ask was not realistic and it was naive. It is all very well to not know how to value a business, but to say that they were experts in business and marketing and that is why they were valuing the business at the very high amount made them look very inexperienced which gave me no confidence in their ability to deliver on the business strategy.
Some people may think I was harsh, but you have to remember that he wanted us to invest 15 times more than he had without any evidence that he could deliver. With claims and an ask like this, you should be able to take the feedback.
My hope is that Steve learnt a lot during the pitch that will assist them in their pursuit of the business.
I wish then all the best for their business, but I am concerned for them that they may themselves be duped, and the product is not what they think it is.
Emma is a delight to work with and she has done an amazing job. I enjoyed working with her and seeing the sheer determination that she has to get this business to where it needs to be. She is not only a great lady, she is a very clever businesswoman. She will go far.
I really liked their idea. I like a product that makes me smile.
They have a very clever design, sales and are so likable. You can tell that there are going to be more big ideas to come from Georgie and Mark.
I was loving the tension between Steve and Naomi!
At this stage, this business is more of an idea. With only one product and just ideas for future designs it is hard to invest. They can create the products but as investors we need to ensure there are plans and we have longevity in the business. Unfortunately at this early time they were not an investment for me.
I love their goal of becoming a design icon in Australia – I hope to see their brand around in the future.
I did not know that this type of product exists, and I loved the idea. Not only great for the environment but a great solution to the effects of plastics on fresh produce and best of all it lengthens the life of fruit and veggies while they are stored in the fridge.
Unfortunately Peita valued the business too high. It is not her fault, once again so called experts have told her that the business is worth something that it is not.
“The value of the business is the profit times a multiple that indicates the growth profile of the business”.
The offer I made was really based on a more realistic valuation of what the business would be worth.
To all the ‘financial experts’ offering advice: You need to be realistic in your approach with helping entrepreneurs.
Peita was only 18 months into the business, so she needed to get the foundations right before she grew. If she focuses on being overseas too quickly then the business is going to fail. Spend time getting confident and successful in Australia first before you look to expand. It is a fantastic product and idea but you need to do the ground work first.
Because I like her product, the only way to make an offer was for me to get creative. My offer included an ongoing return which enable me to get the valuation down to a point that made sense.
I am really happy for Peita that she got a deal. Best of luck to her and Glenn.
James is great, and he has that X factor that is required to make a business work.
The product is a cake that is in a mason jar. The good thing about it is that once the cake has been devoured, the jar is a reusable.
I like that James created a product to rival the overpopulated cupcake market.
Clearly Steve loved the pudding as he hoovered it within seconds, and then kept going for more!
I also have to admit that I have a crush on Maggie Beer, she is one of the good ones and I have her books (do I cook from them? I plan to… one day…. 🙂 )
The jar really concerned me due to the weight of the product, $12 dollars for delivery seemed quite high, but Naomi knows this space and she said that the delivery was OK.
I love that James is doing whatever it takes, but the gifting space is so crowded. I was not sure it was an investment for me.
Next week we meet some very keen environmentalists, see some baby products, a modern version of the photo booth and some aeronautical items to improve businesses requiring photography and filming from up above.