Dragons' Dentag:www.cbc.ca,2010-07-06:/dragonsden//7222012-02-15T21:09:37ZMovable Type Enterprise 4.37The Dragons' Den Effect : Episode 16tag:www.cbc.ca,2012:/dragonsden//722.1974152012-02-14T15:52:04Z2012-02-14T16:00:41Z Appearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes...Stuart Duncan
Appearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes and track the big news, and give you the inside scoop on what happened to these entrepreneurs after their big debut. This week we checked in some of our hardworking pitchers from Episode 16.
Boutbuddy
Nancy Yowney of Boutbuddy was the special guest at not one but two Dragons' Den parties when her pitch aired on Wednesday night. She watched the show with about 40 friends and family and said they had a lot of laughs. "The suspense was really great, you never knew what was going to happen," she said. Nancy made a deal with Jim in the Den, but in the end decided it wasn't the best fit, "I had already gained my traction and right now I'm in talks with the largest floral wholesaler in the world. I think that's the right partner for me." Shortly after the episode aired, Nancy received some large orders from her suppliers, but said she will see the real effects of being on the show when she speaks to her suppliers during wedding season. She said, "I definitely think this will be our best wedding season yet!"
Crowdfanatic
Although Yaron Baraz didn't manage to secure a deal in the den, he said web traffic on Crowdfanatic spiked when his pitch aired. Yaron says there was a particular surge in interest about Canadian-related topics, and users even created a new topic which asked voters to make a choice between Dragons Kevin O'Leary and Robert Herjavec. Yaron said "We're getting requests from various political and not-for-profit organizations to assist to promote their cause using the platform." Beyond that, Crowdfanatic is creating an app for Facebook which he said will "enable Facebook groups and pages to directly engage with each other for the first time."
Moms Healthy Secrets
Julie did what very few entrepreneurs have the guts to do - she turned down an offer in the Den. We checked in with Julie after her episode aired and she said she is thrilled with the decision she made. Since Julie is now living in New York City, she set up a Skype chat with her parents and they turned the laptop toward the TV so they could all watch the show together. She said it was probably the first ever international Dragons' Den viewing party. "It was really emotional I think for both me and mom to see her story on air," she said. During the show, the Moms Healthy Secrets website slowed down significantly due to the surge in web traffic, and they had at least 500 people sign up for their newsletter. Julie says the company is continuing to grow; her products were carried in 800 stores before the show aired, and as of this week Moms Healthy Secrets will be in almost 1500 stores. "On a personal level, I've got at least 500 supportive messages from friends. When you have a small business you don't often get validation for it, and this gives you energy to run with it," she said.
OMGCandy
Chris and Larry launched their website www.omgs.ca the day their Dragons' Den segment aired. Since then they've received hundreds of e-mails, half a dozen inquiries to distribute the product, and tons of media attention from across the country. The boys have been working around the clock, seven days a week setting up their brand new OMG Candy factory in Winnipeg so they can get the product ready to hit store shelves (expect to see it in stores nationwide early March). To find out the LATEST on their financing deal with Arlene, you'll have to tune in to watch our Dragons' Den Update Special on Feb. 29th!
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The Den Report : Ploy Rarely Workstag:www.cbc.ca,2012:/dragonsden//722.1961792012-02-09T11:00:00Z2012-02-08T23:39:00Z High valuations are a common technique pitchers use to lure investors into backing their ventures. Sometimes these pitchers are simply greedy, but other times they believe that a high ask combined with a low percentage of the company, or...Stuart Duncan
But valuing a company is a delicate exercise and can easily blow up in the pitcher's face if mishandled. Investors do not take kindly to people who want too much of their money without giving something in return. They get more riled if the pitchers offer little in the way of business potential to back up their demands.
Several pitchers who tried this ploy in last night's episode discovered that the Dragons are on to this game.
For example, Yaron Bazaz of Vancouver valued Crowdfanatic.com, his online debating and confrontation platform, at an absurd $5 million (a $500,000 ask for 10 per cent of the company). Yet he hadn't even launched the website yet, and had no real description of how it was going to make any revenue.
"I can't tell if you're the next big thing, or if you're crazy," opined Bruce. "That's a ridiculous valuation, and there is no way to make money," chipped in Kevin.
On the other hand, Julie Arora, of Oakville, Ont. had a much better handle on her business, but not enough sales to back up her valuation. A calm and astute pitcher, Julie had grossed $650,000 from her healthy breakfast cereals, Mum's Healthy Secrets. But she asked $100,000 for 10 per cent of the company, which valued it at $1 million.
When she revealed that the company had made a mere $60,000 in pre-tax profit, most of the Dragons backed off. Arlene termed the valuation as "nuts."
However, Jim offered Julie $100,000 for 50 per cent of the company, which he lowered to 40 pre cent when she balked. Complaining that it still felt as if she were "giving away" her company, Julie turned it down.
Then there were Mark Matteis and Jeff Treanor, of Chatham, Ont., who tried a reverse technique, offering 90 pre cent of their company for a $1 million investment. The pair wanted to open a restaurant and bar for women called Lipstick&Dreams. Matteis, a fast talker who dressed up as Indiana Jones - the bar's all-male waiters would be costumed as "heros" - tried ... uh ... heroically to defend their ask. The bar would celebrate the "beauty of women," he insisted, and would "inspire" them.
Even though the self-confessed ladies man tried to charm Arlene with bad wine and fancy words, she wasn't buying it. She declared the idea "stupid." Kevin was in rare agreement, sneering that the chance of Dragons funding the deal were "zero."
There are times, however, when this negotiating tactic does work. Nancy Yowney of Edmonton asked a more reasonable - but still high - $50,000 for 10 per cent of her company Bout Buddy, which provided a solution to attach boutonnieres. That valued it at $500,000.
Most of the Dragons turned her down. When Jim offered her $50,000 for 25 per cent (valuing it at $200,000), she tried to bring him down to 20 per cent. Jim knew it was a token negotiating gesture however and held his position. Wisely, Nancy eventually accepted.
Tony Wanless is Certified Management Consultant (CMC) who concentrates on the SME segment. He is a frequent business plan writer, pitch guide, and business plan judge for competitions. His businesses include Knowpreneur Consultants, a provider of Content Marketing strategy and services to SME's, Reinventionist, an innovation consultancy to professionals who form their own independent businesses. He is currently launching tonywanless.com, which provides communication guidance and real-time digital editing services for leaders in the technology, finance and academic sectors.
Tony is also a columnist and blogger for BC Business Magazine and the Financial Post. A former financial journalist and editor, Mr. Wanless has a long history as a communicator, writer and advisor with Venture Capital and angel investors in Canada. He is a frequent business plan writer and pitch guide for technology start-ups and often acts as a mentor and judge in business plan competitions. Follow Tony on Twitter at @reinventionist
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Web Pitch : Eat Italian Gluten Freetag:www.cbc.ca,2012:/dragonsden//722.1957132012-02-08T11:00:00Z2012-02-07T16:09:45Z This Grimsby, ON entrepreneur tries to feed the Dragons' her line of frozen, gluten free pasta. Share your thoughts on Eat Italian Gluten Free on their pitch page....Jesse Todd
pitch page.
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The Dragons' Den Effect: Episode 15tag:www.cbc.ca,2012:/dragonsden//722.1956952012-02-07T15:21:08Z2012-02-07T16:15:46ZAppearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes and...Stuart Duncan
Appearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes and track the big news, and give you the inside scoop on what happened to these entrepreneurs after their big debut. This week we checked in some of our hardworking pitchers from Episode 15.
Barricade 2 Go
David, Janelle and Guy had a special viewing party with friends and family at their hometown watering hole McMacken's Pub in Sturgeon Falls. "I've never seen myself in HD before," joked David, who said he was even recognized by total strangers during a trip down to Toronto this past weekend. David was amazed at the effect their Dragons' Den appearance had on their relationship with mining-supply distributors - they've already received a couple of large distribution offers that came directly out of their exposure on the show, AND the heads of several large companies suddenly want to take him out for dinner! They expect deals with some of these companies will lead to a dramatic growth in sales - and help increase safety in mines all across North America.
Jitterbee
Frank Santiago watched the show with his wife and four children at home in Sherwood Park Alberta. Although he received some harsh words from at least one dragon, he lives to tell the story: "When Robert started on me, my kids hid under the blankets and my oldest was watching from around the corner of a wall!" But while the reaction may have been cringe-worthy, Frank says "the butt kicking I took on TV was worth all the exposure I got in the end!" He's had more than 200 inquiries about Jitterbee, and Arlene even tweeted him suggesting a new name for Jitterbee Pancakes: Panshakes! He's had many encouraging emails and calls, and even some conversations with potential investors. And in addition, Frank's sending samples out to Save on Foods and is working on expanding to 10 independent Sobeys stores.
Squito Wear
It's been a big week for David Sinclair and his mother, Edith. Since the episode aired last Wednesday, David says website hits are up from 60 a day to 3,000 daily, and they've sold plenty of jackets. They've also had interest from other investors, and David says they've been approached by a couple of manufacturers eager to produce Squito Wear, moving the production line out of Edith's basement! Edith adds that she was very pleased to have the opportunity to present her jackets on Dragons' Den, and that through 2012 she and her son will continue with Squito Wear, aiming to increase sales.
Laundry Detergent Machine
Martin Gagne watched the show at home in Montreal with his family, and couldn't be happier with how things went. He says he loved his Den experience and would do it all again. Martin was quick to say he has no regrets, especially now that a Quebec company "Dans un Jardin" has offered buy 50% of his company - "they made a better offer than Jim!" And, it appears some influential eyes were watching the show. Executives from Metro grocery stores tracked him down immediately after, and in a matter of days Martin signed a deal to put his machines in 400 stores. He's still in talks with Sobeys and Loblaws as well. And Martin is very happy to report that despite the Dragons' predictions, "we have no competition yet!"
Move it To Lose It
Near Halifax in Beaverton, NS, Karen's segment on the show garnered some less-than-flattering attention for her fitness video concept: "Now I know how Kirstie Alley feels," she said. "I can overcome the nasty remarks by getting thin again. They're not bashing something that I can't change so I'll show them!!!" Karen has not given up: while some were quick to put her down, she says she's also received some fan mail...even some guys asking her on a date! Starting next week, Karen will be recording her journey to wellness on video, and hopes to see some major results in six months.
Chillbeds
Adam Berson watched the show from home in Vancouver and saw his web traffic spike and stay steady for a few days. He noticed an increase in sales, but is still working on the next steps for his business. Despite being a short segment, Adam is proud to report that Kevin and Bruce both purchased Chillbeds for their own use.
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The Den Report : Simple Trumps Slicktag:www.cbc.ca,2012:/dragonsden//722.1946922012-02-02T11:00:00Z2012-02-02T03:07:24ZIn last night's episode, a Northern Ontario family that travelled from mining country to the slick environs of a Toronto television studio gave the Dragons a lesson in value. The Courchesne family also reaffirmed for the Dragons that a simple...Jesse Todd
The Courchesne family also reaffirmed for the Dragons that a simple idea isn't necessarily stupid or inconsequential. Sometimes simple makes for the best businesses.
Guy Courchesne, his daughter Janelle and her partner David Lalancette - all from the hard-rock mining town of Sturgeon Falls, Ont., appeared in front of the Dragons with a simple proposition: They wanted to improve safety in Canadian mines.
Apparently, mines don't have much in the way of notifying its workers about dangerous conditions - not for lack of trying, simply because outdated methods haven't changed much over the years. The Courchesnes illustrated this issue by stringing a rope across a makeshift accident scene and attaching a single warning sign made of cardboard.
Of course, as the scene played out, this didn't do much to prevent an unwary miner from getting badly hurt.
The pitchers had a simple idea to correct this problem - they devised a bag that contained a better rope with better signs.
It was so obvious as to be almost ridiculous, and the Dragons didn't quite know what to make of it. It seemed just too simple.
Surely, no one could make a business out of this very particular situation. And surely, the family's ask of $275,000 for 15 per cent of their company (meaning a valuation of $1.83 million) was way out of line!
That is until Guy told them that the company, called Barrier 2 Go, earned $650,000 a year selling its kits to only two mines.
Suddenly the Dragons sat up.
Jim sprang into action, offering them their ask but for a 25 per cent stake in the company. He recognized that hiring a few sales people would probably bring in far more revenue by exposing the product to the continent's multi-billion-dollar mining industry.
Kevin, who's always up for a deal that spins money, followed up with another offer. He said he'd match Jim's bid and the two would split a 50 per cent cut.
The family retreated to discuss the offers, but it was clear that while they may have had a "simple" business, they weren't simple minded. They quickly saw through Kevin's offer and understood they would lose control.
They went with Jim's initial offer.
Even the ever opportunistic Mr. Wonderful appeared amused and approving of their decision, because in the end, it was the right one.
Tony Wanless is Certified Management Consultant (CMC) who concentrates on the SME segment. He is a frequent business plan writer, pitch guide, and business plan judge for competitions. His businesses include Knowpreneur Consultants, a provider of Content Marketing strategy and services to SME's, Reinventionist, an innovation consultancy to professionals who form their own independent businesses. He is currently launching tonywanless.com, which provides communication guidance and real-time digital editing services for leaders in the technology, finance and academic sectors.
Tony is also a columnist and blogger for BC Business Magazine and the Financial Post. A former financial journalist and editor, Mr. Wanless has a long history as a communicator, writer and advisor with Venture Capital and angel investors in Canada. He is a frequent business plan writer and pitch guide for technology start-ups and often acts as a mentor and judge in business plan competitions. Follow Tony on Twitter at @reinventionist
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Web Pitch : Games Patrol Mobile Entertainmenttag:www.cbc.ca,2012:/dragonsden//722.1937402012-02-01T11:00:00Z2012-02-01T14:14:39Z This Oshawa, ON duo hopes the Dragons' will get on board with their mobile gaming truck. Share your thoughts on Games Patrol Mobile Entertainment on their pitch page....Jesse Todd
pitch page.
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The Dragons' Den Effect: Episode 14tag:www.cbc.ca,2012:/dragonsden//722.1938352012-01-31T11:00:00Z2012-01-31T17:26:53Z Appearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes...Stuart Duncan
Appearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes and track the big news, and give you the inside scoop on what happened to these entrepreneurs after their big debut. This week we checked in some of our hardworking pitchers from Episode 14.
Elaine Popove of Miss Fix Fashion-Aid said that the hardest part of the Dragons' Den experience wasn't facing the Dragons - it was keeping the outcome a secret until the pitch aired! Elaine celebrated by watching the show along with 50 friends at Boston Pizza Campbell River. She says that within 24 hours of the pitch airing, her web traffic increased 500%. Elaine is also proud to report that the product is now available in over 400 Canadian National and Independent stores, and in the next couple of weeks, Fashion-Aid will be sold at London Drugs Save-On-Foods Nationwide.
And she's not the only busy one. For the past five days, Dougie of Dougie Dogs hasn't slept. Every day since his Dragons' Den segment aired he's had lineups of people waiting outside his store before opening and has run out of dogs before closing. He's had at least 500 e-mails and 25 franchise requests. Dougie also says he's had more than 120 TV and radio interviews from media around the world and can't walk down the street without being recognized. And amazingly, he's sold more than 100 "Dragon Dogs" - the new $100 hot dog he launched for the occasion of his Dragons' Den appearance (the first ever "three-figure" hot dog features a foot-long bratwurst infused with hundred-year-old Louis XIII cognac, Kobe beef and fresh lobster). To top things off, Dougie got a surprise visit from none other than Kevin O'Leary, who grabbed a couple dogs and root beers during a quick stop in Vancouver last week.
The guys from Urban Cultivator got together with friends and family at Vancouver's Nicli Antica Pizzeria for their long-awaited televised pitch. Tarren Wolfe reported that as of Friday, they'd been inundated with calls and emails -- and are SOLD OUT of Kitchen Cultivators! But they're still taking orders, and they're ramping up production to help with the 5-week backlog on orders. They've also met with Subway, sent a test unit to a school board, and are working on a deal with Liquid Nutrition. They also report that they now have a Booster Juice location with a Commercial Cultivator in operation growing fresh wheat grass. Tarren says the attention is awesome: "We have had several hundred inquiries from restaurants, hotels, kitchen showrooms, builders and large housing projects."
And how has the deal worked out? Tarren Wolfe wanted to report that they're still working out their deal, and "Arlene is an upfront person who acts with integrity. She has a great sense of humour and has been a pleasure to work with. Look for our marketing campaign to roll out with her help in the near future!"]]>
The Den Report : Franchising - It's All About The Numberstag:www.cbc.ca,2012:/dragonsden//722.1928802012-01-26T11:00:00Z2012-01-26T19:36:00ZMost Canadians who want to scratch their entrepreneurial itch start by operating franchises because most of the essential requirements to run a business are already completed for them. By buying a franchise, a budding business person receives a turnkey operation...Jesse Todd
By buying a franchise, a budding business person receives a turnkey
operation and thus avoids having to create elaborate business plans,
find locations, and undertake all the other myriad aspects of building
a business.
Because there is such an ensuing demand for franchises in the current
entrepreneurial climate, many other would-be Canadians take
franchising system a step farther -- they attempt to create the
franchise system itself.
But "franchising out," as it's called, is not an easy road, which is
why there are many consulting firms offering to show entrepreneurs how
to do it. Franchising requires that every business process be
documented so as to train franchisees, that products and services are
always available and up to par, and, especially, that the businesses
have a proven system that will make enough money to justify the
franchise fees.
Last night's episode of Dragon's Den illustrated the good and the bad
of developing a franchise system.
On the good side was Krista Castellarin and her husband Dwayne of
Edmonton, who had started a franchise system called Fabulous Furballs.
Cradling a small Chihuahua named Mr. Natcho in her arms, Krista asked
for $200,000 for 15 per cent (a valuation of $1.33 million) of her pet
products company, spa/pet boutique, and a corollary training
institute.
The Dragons appeared skeptical until Krista pointed out that her
company had earned $1.3 million in the previous year, had posted a net
profit of $390,000, and had franchised out three locations - yielding
a margin of around 350 per cent.
"This is a real business," exclaimed Arlene.
Though all the Dragons were interested, Bruce beat them to the punch
with an offer that was even better than Krista's ask. He said he'd
lend Krista the $200,000 she was asking for, but with the right to
convert the loan to 10 per cent of the company.
"There's no need to give up 15 per cent of your company," he explained.
Fabulous Furballs was an example of a great franchising system, but
earlier, the Dragons witnessed a potential franchise system that
wasn't.
Dougieluv, of Vancouver, wanted $200,000 for 25 per cent of DougieDOG,
his gourmet and healthy hot-dog restaurant in Vancouver's
entertainment district, but had ambitions to be a chain of hot-dog
shops.The restaurant had taken in about $300,000 in its first year,
and Dougieluv had lost $10,000.
While they liked the concept and thought the Dougiedogs were
delicious, the Dragons didn't find Dougie's numbers all that tasty.
Jim, a franchise expert who had earlier pointed out that a store of
DougieDOG's size needed to earn $700,000 a year to break even,
estimated that the restaurant would "make Dougie some money, but not
enough to franchise it."
That set the tone for the other Dragons.
"Your sales aren't where we can invest (in a franchise)," said Arlene
gently, adding, "but as an entrepreneur, you rock."
"Your numbers don't add up for franchising," counseled Bruce.
"It doesn't make any money!" wailed Kevin, who always relish-es the
opportunity to be Frank.
For Dougie, it looked like Mustards Last Stand.
Tony Wanless is Certified Management Consultant (CMC) who concentrates on the SME segment. He is a frequent business plan writer, pitch guide, and business plan judge for competitions. His businesses include Knowpreneur Consultants, a provider of Content Marketing strategy and services to SME's, Reinventionist, an innovation consultancy to professionals who form their own independent businesses. He is currently launching tonywanless.com, which provides communication guidance and real-time digital editing services for leaders in the technology, finance and academic sectors.
Tony is also a columnist and blogger for BC Business Magazine and the Financial Post. A former financial journalist and editor, Mr. Wanless has a long history as a communicator, writer and advisor with Venture Capital and angel investors in Canada. He is a frequent business plan writer and pitch guide for technology start-ups and often acts as a mentor and judge in business plan competitions. Follow Tony on Twitter at @reinventionist
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Web Pitch : Rebound Spraytag:www.cbc.ca,2012:/dragonsden//722.1924912012-01-25T11:00:00Z2012-01-24T21:36:37Z This Toronto, ON entrepreneur is looking to entice the Dragons with a spray that eliminates tough odours from hands. Share your thoughts on Rebound Spray, on their pitch page....Jesse Todd
pitch page.
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The Dragons' Den Effect : Episode 13tag:www.cbc.ca,2012:/dragonsden//722.1924842012-01-24T21:20:21Z2012-01-25T14:40:36Z It was a rip-roaring episode of Dragons' Den last week where two businesses slayed the Dragons and emerged from the Den victorious. After five days, here's a digest of what happened to some of the show's entrepreneurs after their...Stuart Duncan
It was a rip-roaring episode of Dragons' Den last week where two businesses slayed the Dragons and emerged from the Den victorious. After five days, here's a digest of what happened to some of the show's entrepreneurs after their episode hit the airwaves.
TRAVEL ROLLER
We caught up with Travel Roller inventors Adam and Arysta Wood at their Calgary office. "We've had an amazing response," said Arysta, "I've had to make a few trips to the post office this week, carrying about twenty-five rollers at a time!" Also, wholesale orders from distributors, chiropractors and boutique stores have increased substantially. "We don't regret turning down the offer from Bruce," reflects Adam, "and we felt like his response to the product was perfect so if he'd offered 50% but just for the travel roller; that's something we would been interested in. An offer for half of everything we do to make a living was kind of a weird thing to hear." So do the Woods' think Kevin was right in calling Bruce's offer a 'slavery deal'? "Yeah, that helped us make our minds up for sure!" laughs Adam. This year he says they're focused on expanding into the US market.
URBAN VENDOR
Since last Wednesday, A.J from Urban Vendor says they've received some really positive feedback from friends, customers and interested parties telling them they have good idea, and that the Dragons may have got it wrong on this one. He adds that they've even had an offer or two from other investors or partners to help to grow the company. But the most common question they're getting? "Is Kevin really that mean?!"
APPLE CHEEKS CLOTH DIAPERS
Ilana and Amy watched the program at Amy's house with an intimate gathering of family and friends. "We were very nervous going in but once we got the Dragons' attention with our sales, we definitely felt like we were in control of the conversation," said Ilana. "The feedback has been superb... we've had calls, emails from people saying it's the best result they remember seeing in the Den! And our appearance has had a positive affect for the cloth diaper industry in Canada - we've had other companies calling us to say their orders have gone up as well." Since the show, sales have increased and they've even had interest from a major Canadian big box retailer. Check out Apple Cheeks' blog for Ilana and Amy's more detailed response to their episode airing.
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The Den Report : Entrepreneurship Is Always A Gambletag:www.cbc.ca,2012:/dragonsden//722.1910892012-01-19T11:00:00Z2012-01-18T17:49:33ZTo an extent, every entrepreneur rolls the dice when he or she starts a new business venture. The most successful ones give themselves better odds through rigorous planning, careful execution and the creation of strong business models; the worst ones...Jesse Todd
Buddies Bernie Ruoff and Larry Yurkiw of Caledonia, Ontario fall into the latter category.
The budding casino kings spent a decade developing Chuck 'Em, a three-dice casino game which they wanted the Dragons to back to the tune of $350,000. In return they offered up 20 per cent of their company, which valued it at $1.7 million dollars.
Let's have a quick summary of what was then brought to light:
Exhibit A: Their first business model was to have casinos feature the game, which produced better revenue than traditional dice games like Craps. However, this made them completely dependent on casino operations, and casinos are notorious for their resistance to change.
Exhibit B: The game was tested in an Ontario casino and was dropped after a few months. Bernie and Larry now planned to market it "on the Internet," which appeared to involve a completely different business model.
Exhibit C: They had invested $300,000 of their own money - robbed from their pension funds - to pay for the game's development, which included expensive travel and research. As a result, Bernie was now working as a roofer to make ends meet.
Exhibit D: They hoped a Dragons investment would cover their losses.
Robert pointed out they had spent too much on development.
Jim told them their valuation was "out of whack."
Bruce explained that Internet marketing was immensely expensive and doesn't always pan out.
Kevin highlighted the obstacle of having to train millions of people how to play the game.
Arlene said their story broke her heart.
"It's over, my friend," concluded Mr. Wonderful. "You gotta stop." Larry replied that one day he would make Kevin "eat those words."
But it was plain for all to see the dice they'd rolled had already come up snake eyes.
Tony Wanless is Certified Management Consultant (CMC) who concentrates on the SME segment. He is a frequent business plan writer, pitch guide, and business plan judge for competitions. His businesses include Knowpreneur Consultants, a provider of Content Marketing strategy and services to SME's, Reinventionist, an innovation consultancy to professionals who form their own independent businesses. He is currently launching tonywanless.com, which provides communication guidance and real-time digital editing services for leaders in the technology, finance and academic sectors.
Tony is also a columnist and blogger for BC Business Magazine and the Financial Post. A former financial journalist and editor, Mr. Wanless has a long history as a communicator, writer and advisor with Venture Capital and angel investors in Canada. He is a frequent business plan writer and pitch guide for technology start-ups and often acts as a mentor and judge in business plan competitions. Follow Tony on Twitter at @reinventionist
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Web Pitch : Change Me Uptag:www.cbc.ca,2012:/dragonsden//722.1910762012-01-18T17:17:32Z2012-01-18T17:44:32Z A Shannon, QC, couple pitches a baby changing table that attaches to the side of a crib. Share your thoughts on Change Me Up, on their pitch page....Jesse Todd
pitch page.
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The Dragons' Den Effect : Episode Twelvetag:www.cbc.ca,2012:/dragonsden//722.1906122012-01-17T11:00:00Z2012-01-17T16:13:07Z Appearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes...Stuart Duncan
Appearing in the Den has a tendency to change lives - increased sales, new distributors, and emails from across the country. We like to call it "The Dragons' Den Effect." Each week, Dragons' Den producers will follow the successes and track the big news, and give you the inside scoop on what happened to these entrepreneurs after their big debut. This week we checked in on some of our hardworking pitchers from Episode Twelve.
This week's Second Chance pitchers were no stranger to the amazing impact appearing in the Den can have on your business. These veterans weren't shy about celebrating their do-overs. Here's a roundup of how each pitch celebrated their second chance, and how Canada has responded:
Joel Primus of Naked underwear hosted a live-tweeteing event throughout his pitch which generated their best single day spike in followers and likes on their Facebook, and even sparked the idea of Joel and Robert having a 'Blue-Eyed Competition for Charity!' On top of that, within 3 hours of the show airing they had 80 emails in their inbox, 13 different investment firms called or emailed, and they received thousands of dollars in online orders. And if that weren't enough, America's Next Top Model contacted them for a possible 'model challenge' on their show next season and they even received resumes from people who want to work for the company!
Karyn Climans of Tailwags also held a live-tweeting event and watched the show at home with a dozen close friends and family. Within 24 hours of her pitch airing, she had 60,000 new hits to her website and has seen an increase in web traffic of almost 1200%. And all those clicks are tuning into cash -- she's had thousands in sales from customers and even bought on some potential new retailers.
The very popular woman of Woofstock, Marlene Cook, watched the show at a Toronto lounge with more than 50 friends, family, sponsors and vendors. They started getting calls at 3 am, and in total they've received over 100 emails -- many from fans asking Woofstock to come to their towns and vendors looking to be a part of big event.
And the dynamic duo of Luke and Jock held a huge bash at a Boston Pizza in Sackville, NS - and as usual, they hammed it up for this group shot.
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The Den Report : Sniffing Out The Scent Of Successtag:www.cbc.ca,2012:/dragonsden//722.1887072012-01-12T15:54:07Z2012-01-13T17:57:30ZSometimes, the best way to lead an investor along the trail to backing your company is simply to offer them the scent of success. This was certainly the case in last night's episode when Toronto's Marlene Cook returned to the...Jesse Todd
This was certainly the case in last night's episode when Toronto's Marlene Cook returned to the Den for a "Second Chance" with the Dragons. She quickly had them panting for a bigger bone than the one they all turned their noses up at in Season 4.
With terrier-like determination, Marlene had built her company Woofstock into "North America's largest festival for dogs," even though she dropped the ball when she first appeared in the Den.
In that initial pitch, Marlene wanted $150,000 for 20 per cent of the new company, which valued it at $600,000. Most of the Dragons found it to be too big a bite and refused. Only Jim pounced on the opportunity, but he wanted 50 per cent. Marlene turned him down.
Ms. Woofstock was back again last night and this time she wanted even more - $200,000 for 30 per cent of the company, which valued it at $700,000.
When the Dragons balked at that, she pointed out they had cleared half a million dollars in revenue with a couple of shows in Canada.
Now, she was lining up corporate sponsors for her next show. She also wanted to run with the big dogs of event staging in the much more lucrative U.S. market.
This caused Kevin's ears to perk up. He smelled big money to be made. Suddenly he became a dog lover and offered $200,000 for half the company. "What you're doing is negotiating with corporations," he howled. "I'm very good at that."
Soon Jim hopped on the dog pile, pointing out that as partners he and Kevin would "do it differently," by which he meant they were going to promote the one-of-a-kind festival heavily around the world.
"I hate to say this, but I think you might have the right partner in Kevin. I think you need ... somebody who's going to be a hard-ass," Arlene said before turning tail and bowing out.
Marlene agreed and took the deal, proving that a company with a desirable product, a ready market, and a bold vision can always catch the Dragons' attention.
Tony Wanless is Certified Management Consultant (CMC) who concentrates on the SME segment. He is a frequent business plan writer, pitch guide, and business plan judge for competitions. His businesses include Knowpreneur Consultants, a provider of Content Marketing strategy and services to SME's, Reinventionist, an innovation consultancy to professionals who form their own independent businesses. He is currently launching tonywanless.com, which provides communication guidance and real-time digital editing services for leaders in the technology, finance and academic sectors.
Tony is also a columnist and blogger for BC Business Magazine and the Financial Post. A former financial journalist and editor, Mr. Wanless has a long history as a communicator, writer and advisor with Venture Capital and angel investors in Canada. He is a frequent business plan writer and pitch guide for technology start-ups and often acts as a mentor and judge in business plan competitions. Follow Tony on Twitter at @reinventionist
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Web Pitch : 9 to 5 bratag:www.cbc.ca,2012:/dragonsden//722.1884532012-01-11T17:06:03Z2012-01-11T17:06:40Z This Toronto woman pitches a bra to the Dragons that makes low cut clothes work appropriate. Share your thoughts on 9 to 5 bra, on their pitch page....Stuart Duncan
pitch page.
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