Your flavour is a handmade, Australian food flavouring product. They claim to be a healthier version of what is out there in the flavouring market while giving Australians a ‘reason to season’.
Ace, for a start what a cool name. We have had a number of ‘spice’ businesses come through the tank and they were all same old, same old. But Ace’s products was different, for a start it was full of vibrant colour that was from the spices themselves and as you open the lid, you can smell the quality. I love that some of the seasonings available are gluten free, paleo, Vegan and there are onion and garlic free options.
Now I’m not sure about you, but the spices I have a home, all look the same and smell the same. Ok, I admit it I am not the best cook on the planet. My kids killed my passion years ago as I would create what I believed were some amazing dishes to receive in return turned up noses and complaints! Really all they wanted was grilled protein and boiled veggies, which I eventually happily complied with.
So Your Flavour could be my answer to re-inspiring me to be a bit more creative…. But I digress.
Ace’s sales were solid with 450K in sales and good margins, so we were all confused as to why only 90K was dropping to the bottom line, what we discovered was that he was spending so much on marketing that most of his profits was being sucked up on brand building, which in fairness is not unusual in businesses who are starting out.
He was pushing the health angle which was not required, just simply quality should be more his angle.
You would have noticed that there was some back and forth, when he offered Naomi 25% and if he did not hit his numbers he would give her a further 35%. Naomi had a good point, that it was a disincentive for her to assist in the first 12 mths so that she would obtain an additional 10%.
Congratulations Naomi and Ace on the deal
TIP: When putting together deals, focus on the outcome you want to achieve and incentivise the reward so that everyone wins with success. The most powerful position in businesses is when everyone is focused on the same goal.
LUSH U LASHES
Brent was a manufacturer of eyelashes and a trainer of eyelash technicians. After meeting Mel B from the Spice Girls, he thought it would be great idea to create a mobile ‘we come to you’ eyelash business in Los Angeles. As a result, Lush U Lashes was born.
Many (many) people come on Shark Tank having looked at a business in the USA market and thinking, ‘how hard can it be?’. They think that an idea is enough for success, the reality is most businesses that go into the USA fail and fail badly. Like any businesses you need to put in 100% focus and passion to get a business off the ground, and Brent was only looking at putting 50% of his time into this start up.
He had no proof that he can do it, and he wanted an investor to invest and him only focusing on the business part-time.
Also with complex structures like having the same name but two different businesses, does allow for moving profit and expenses for one business to another, which can cause all sorts of problems with partnerships and can often end in tears (and court).
Tip: when going into a partnership, make sure you consider what works for you, but also what works for you partnership. Successful partnerships are a win win for both sides, not just one.
The guys were not quite cool, unless the new cool is daggy. Which I must admit, I quite like. This was not a business for me.
I think you can tell from my face that in a million years I could not be passionate about cutting squids up. However, there were other sharks who loved the product…
Not for me but I hope they make their quid… in squid..
MELANIE NEWMAN SALON ESSENTIALS
Melanie Newman Salon Essentials are a range of organic pet grooming products using essential oils that not only smell amazing but are gentle on both the dog and their human’s skin.
Melanie is a highly awarded dog snipper, and is extremely well known in Europe in her field.
As a women who constantly dealing with dog shampoo Mel know that there had to be a better way, not just to save her hands but also the dogs skins. Mel looked everywhere for the right product but after trying everything on the market place she decided that there had to be a better way, hence after research, they have come up with a sulphate free range using plant derived ingredients with a coconut base and scented with essential oils. (Seriously, is there anything that coconut cannot do?)
Melanie is my third cousin which I had not seen for 15 years. Clearly we are not close, but I remember her as a great little kid and she comes from a great family. Doing business with Family and Friends can be quite difficult, in fact if need to always think very carefully before you take the plunge… The reasons are simple, just because you get along well as friends does not mean that you are aligned as business partners and if you love your friend, sometimes it does not always end well.. There of course examples of partnerships with friends working extremely well, they are normally people who go into business with their eyes open and make sure that they have already talked about the potential pitfalls. Same with family, it can be a huge success and I have seen it many times work extremely well, but it is the downside is so much worse than with friends. It can make for a very average Xmas dinner
I really really loved the product and if anyone out there buys the product I guarantee THEY WILL LOVE IT.
Loving working with Mel, she is an absolute delight.
TIP : when doing business with friends and family, make sure you go into the business with your eyes open, ensure that you discuss and exit strategy make it very clear who is doing what in the relationship. Communication is critical in ensuring a successful partnership.
Only 2 episodes left to go of season 3! Join us in the tank at 7:30pm next Tuesday