OVER THE MOO
As you can see from the show, I LOVED the product. Forget that it is gluten free, it is just great tasting ice-cream. In fact I was thinking that I wanted to curl up and watch a chick flick with my tub of ice cream, unfortunately for my desire to indulge I had a job to do. (The chick flick will have to wait – but it’s on my mind, along with a tub to myself of mmMangooo!)
I really like Alex, he was new to business but had the passion and commitment to be a success. You can tell from the emotion that he showed that he was fully committed, emotionally as well as financially. To be successful you have to have this passion and desire to truly grow a business.
One year in he was doing a great job. Over the Moo is stocked in over 900 stores nationally and was already making a profit. He believed he could do 3 million in three years, which was great growth.
I love that they have Australia’s first dairy free ice cream van. Being able to pull up alongside the regular ice cream vans at the beach or festivals and share delicious, creamy ice cream with the health conscious, lactose intolerant or lovers of coconut is a great opportunity to get the name out there.
I was in…. huge valuation, so I put forward a deal that was more reasonable for the time the business had been around as well as the current profit.
Then Andrew asked the question that we all should have asked. ‘Do you own your Intellectual Property (IP)?’ and surprisingly the answer was no. So he was tied to the factory that makes the product. This means if they want to put the price up they can, if the quality of the product reduces, then bad luck. You cannot run a business if you give control to your supplier, one thing that is guaranteed is that at some point it will end in tears. This was too high a risk for any of us to take.
ADVICE: own the IP of everything you do from your design of the logo to the recipe of your product.
Do not assume anything, check and ask the right questions. Always make sure that you own the recipe.
Peter is a smart, experienced businessman who does not believe in retirement… I second thatJ. Peter told us that he was 72 years young.
People sometimes think that you work your butt off so that you can stop working. What people forget is that many of us love to work. It’s about the social aspect, the problem solving, the purpose, the highs and lows and the financial gains. But most importantly it is the spikes that come with working that is hard to find in retirement. There are only so many lunches and golf that some people can play.
It is a shame that someone like Peter retires as we would be missing out on the great ideas and experience that only result from years of hard yakka.
Developing something that can reduce the physical strain for logistics and factory workers is a fantastic initiative, hopefully it contributes to a reduction in lifting injuries caused in workplaces.
He has sold 100K units, which is great. I found Peter inspiring, but not the product nor an investment for me.
Maree is brave and in some respects is doing what you need to do, which is throw everything you have at the business to make it work.
However, Maree could not have picked a more competitive and changing industry. Technology is moving at such a fast pace that products that you invested in 18mths ago are pretty much old news today. QR codes are not that popular in Australia and as Steve said very unreliable… Maree who does not have a technical background, will always be at the mercy of the experts in tech for her app, and her product.
I, like Steve worry for Maree that she will not see her investment again. My hope is that she can pivot and make the required changes to make the business a success…
I wish Maree all the best. She has the determination and the courage to be a great business women. Good luck…
Wow, two very very impressive women. The product was kind of like UBER; it is a double sided market place where they connect the salon with the client and clip a ticket along the way.
I am a believer that you invest in the person not the business and these girls were very investable. The girls obviously know their beauty and have found an opportunity in the market where time poor people are unable to book appointments in advance and instead are booking them on demand, capitalising on the openings and cancellations. The inconvenience of not being able to get an appointment at your favourite salon before a spontaneous night out has become a whole lot easier to resolve.
However, they have been in business for only 4 months and they have not even started to understand the challengers of business let alone their customers’ needs and their professional service’s needs.
I would have love to see then in 12 mths time, but it was far too early for me.
Good luck Steve you will have fun working with these very smart ladies.