For those people who are reading this and may have never seen the Shark Tank TV show,
it is on channel TEN at 7.30 every Tuesday. Five self-made Aussie business people sit on the panel ready to be convinced that the businesses are worth the investment and fight for their part of the action.
I do this weekly blog to give people a look behind the doors of the tank.
Here are my thoughts on each of the businesses that were on tonight’s episode.
Cardly are an online card retailer, providing a custom card for you to be able to send to a friend or family member.. It doesn’t get much simpler than this. All they need now is a calendar that reminds you when Birthdays are approaching with enough time for production and distribution.
I loved this idea. I would use this product. The business is very new and still in Beta stage (for those like me who are learning all the new lingo for this era, it means in trial). The best thing about this business is its scalability, the worst is that they have not proven that they can grow to where they need to grow.
The gifting market is huge, but there was an obvious partner here and that was Naomi, she is in the gifting space and already has millions of transactions that she can tap into. What a partnership.
Patrick and Tom were valuing their business at $3.5 million dollars which is a lot for a business that has turned over $30K.
My favourite part of the pitch was when Naomi put her mummy voice on, she was not happy.. Having Naomi in the business allows them immediate access to an enormous database of their core audience and in her opinion they were not valuing her contacts, expertise and knowledge while considering the deal. Red Balloon had spent millions developing their customer base, hence why Naomi was not happy that they were not taking this into consideration while valuing the deal. What I liked about Naomi’s offer was that she was putting her money where her mouth was, and she guaranteed a certain amount of customers as part of the deal.
.. Great deal.
I really felt for him, the product just would not work…..
If I cannot believe in it as a customer, I could never invest.
Nice idea, but I have seen it before.
360 Gym is basically a gym on a trailer that can be taken anywhere. It folds out, packs up neatly, enables exercises that are not normally able to be done outdoors and is covered in branding – what is not to like?
This was a really really good idea. There are so many personal trainers around that would love this product. It certainly has features that are difficult to replicate by the average park trainer & the cost was really reasonable at only $25K. It creates a point of difference for any personal trainer’s program.
The problem with Brad is that he is clever enough to build the gym but was not yet a great business man. It cost Brad about $16K to create. He business model was just not right. He would be better off franchising the business; Charge a franchisee $100K for the whole package – the gym, the programs and a communal website and get going. But it is not the vision that Brad had for the business he want to just make the gym and then on sell it.
Brad is a clever creator of products, he just needs to pivot to make the business work. Getting the price down and creating a plan will really help to build this business.
There is no doubt in my mind that people will see this and will want it.
Good luck brad.
Foddies is a specialty food business & café that produces a range of LoFo (Low FODMAP), gluten free and other allergy-friendly foods.
I am interested in anything food related. Especially if it is catering to a market that assists people to find foods they cannot find elsewhere.
Luke and Chrissy met online and have been dating for 2.5 years. I also work with my partner in the business and if you can get it right (and not kill each other in the process) you can be a very powerful business team. Often after years of being together people can drift apart, doing business together keeps you on that same journey.
Who has heard of FODMAP? I had not, and I am in the food business. For those of you who have not; FODMAP is referring to Fermentable Oligosaccharides, Disaccharides, Monosaccharides and Polyols. These are complex names for a collection of molecules found in foods that can often be poorly absorbed by some people. In other words, people that bloat and fart and that is not a good thing.
I loved that their vision is to be the largest specialty food brand in the world in their market and often the best businesses start with a belief, so they have made a great start.
As you can see Steve thinks healthy food is a cult not a lifestyle choice. Steve seriously has the worst diet and I will do another season of shark tank to continue to work on Steve to improve his diet. It is my new mission in life!
Foddies have a Café and sell the product to wholesale so the business model was a mix between a Café and a distribution business. The Café turning over $130K which is 80% of the business and is a business losing money. So despite the 80% of the sales coming from the café, they see that the growth is coming from the wholesale business which they correct, this is where the growth is, but they have not established that people care enough or for that matter understand what FODMAP is.
I like Luke and Chrissy; they are a good balance of skills and the determination to get the business right. I invest in people not businesses and they are very investable.
BUT. I do not like the numbers. The biggest thing in business is to never take no for an answer and because they did not take NO, I was convinced that they are worth a shot.
And to top it all off, they created the best ending to a Shark Tank episode ever, they were clearly in love and to propose on TV was just awesome!!!!!
Woo woo…. Congrats Luke and Chrissy.
Join me next week for the latest update on ‘behind the tank’. New time of 7.30pm Tuesday nights on TEN.