Dragons.Den.CA.S19E01
Dragons.Den.CA.S19E01
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00:00Tonight, on Dragon's Den.
00:08The island of Newfoundland is the foggiest place on earth.
00:11Is it?
00:12We use atmospheric harvesting to collect our water to produce a unique, exquisite vodka.
00:17What?
00:18You're making this stuff up.
00:19So dragons, who would like to see Riley get his teeth brushed?
00:24Yes!
00:26You have no time for this business.
00:28You want $50,000 of our money?
00:30Like, I don't understand why you're here.
00:34Well, if only there was a dragon on this panel who knew something about franchising.
00:40Yeah.
00:41I mean, I don't know.
00:42Or cleaning.
00:43Cleaning.
00:44Shaq Shine.
00:45We can do Ride Shine.
00:47I'm just letting you know, when you stand on that mark, you are signing up to be a gambler.
00:54Well, cheers, dragons, season 19.
00:57Cheers.
00:58Cheers.
00:59To my new peers.
01:00Cheers.
01:01Meet Brian Scudamore, franchise king and
01:28founder of 1-800-GOT-JUNK, and O2E Brands, an international empire of home service companies.
01:36Brian was a high school dropout, but at 19, he used his life savings to buy a $700 pickup
01:42truck and start a one-man junk removal service.
01:46He turned one truck into 2,500 vehicles.
01:49Now 1-800-GOT-JUNK is a global brand with more than 170 franchises between Canada, the
01:56U.S. and Australia.
01:59One, two, three.
02:00Goldberg Road!
02:01Woo!
02:02Let's go!
02:03But being the junk boss wasn't enough for this self-made millionaire.
02:08He's applied his secret formula to turn home services into household brands, revolutionizing
02:13residential makeovers by first founding Wow One Day Painting, and then cleaning up with
02:19his latest venture, home detailing service Shaq Shine.
02:23Thank you for doing this.
02:24This is great.
02:25I was in the neighborhood, wanted to pop by.
02:27Today, his three companies make up half a billion dollar empire.
02:31But Brian has stayed humble despite his huge achievements and credits his success to the
02:36people he employs.
02:38There you go.
02:40Take care of our people.
02:41They'll take care of our customers.
02:43Take care of our customers.
02:44They'll take care of our growth, our profits and our opportunity.
02:47He's gone on to serve as a board member for the Young Entrepreneurs Organization and is
02:51a two-time best-selling author on how to build a business.
02:55It's a big gathering, a thousand franchise partners all coming together.
02:58What can we do to make it better?
03:02Out of the boardroom, Brian enjoys all that beautiful British Columbia has to offer with
03:07his family.
03:08Look at the bunnies.
03:09So another reason to have hula on the beach right now is all the bunnies.
03:12Yeah.
03:13Spending his time out on the water, biking trails or hitting the slopes at Whistler.
03:18Now this business pioneer is ready to blaze a new trail in the den.
03:25Next up.
03:26We're good.
03:27We got this, man.
03:28Yeah, we're good.
03:29Brothers hoping their charming spirit will help them weather the den.
03:35Hello, Dragons.
03:39My name's Bill Tuff.
03:40And I'm Kenny Tuff.
03:41We're brothers originally from Mariestown, Newfoundland.
03:44I now live in Metcalfe, Ontario, and Bill in Moranville, Alberta.
03:48We're here seeking $150,000 for 5% of our company.
03:53Being in Alberta, I'm no stranger to wildfires.
03:56Back in 2016, my family and I found ourselves in some of the most stressful moments of our
03:59lives during the hellish Fort McMurray wildfires.
04:03We finally found safety in my wife's hometown back in Newfoundland and Labrador.
04:06It was a particularly foggy day, and my wife professed her love for how wet and foggy it
04:10actually was.
04:11And it was at that moment, the light bulb went off.
04:13We were literally standing in what seemed like an endless supply of sustainable water.
04:18And the idea was made.
04:20And in that, Fog Distillery Co. was created with our first product, Fog Vodka.
04:25Ah!
04:26Okay.
04:27Oh, wow.
04:28You drink these, you're going to be foggy.
04:29Oh, look at that fog coming in.
04:30I thought what I thought was going to happen.
04:31The fog is coming in, guys.
04:32Let's drink the vodka.
04:33The island of Newfoundland is the foggiest place on earth.
04:39Is it?
04:40Fog Distillery Co., we use atmospheric harvesting to collect our water to produce a unique, exquisite
04:45vodka.
04:46Huh.
04:47What?
04:49And before they're due, we will welcome the dragons to try our vodka.
04:51Okay.
04:52Okay.
04:53Okay.
04:54Well, cheers, dragons.
04:55Season 19.
04:56Cheers.
04:57Cheers.
04:58Cheers.
04:59To my new peers.
05:00Cheers.
05:01Mmm.
05:02Mmm.
05:03Cheers.
05:04Good.
05:05Oh, God, you like it?
05:06It leaves a little bit of a mist in my mouth.
05:07Minjeet, is this good vodka?
05:08This tastes like vodka to me, but I also can't tell the difference.
05:10Yeah, but it actually is smoother.
05:11It is a bit smooth.
05:12It's smooth.
05:13How many times to still it is that I don't see?
05:14Four.
05:15Four times.
05:16Four times to still.
05:17Well, that's not really much.
05:18It's like 10 times or more.
05:19We like to think the fog water helps give it that nice, smooth, refined finish.
05:23I can't wait to hear how you capture the fog.
05:25Yeah.
05:26Yeah.
05:27I'm just like, okay.
05:28Yeah.
05:29Yeah.
05:30It's a big bucket.
05:31I betcha it's complex.
05:32Actually, incredibly easy.
05:34Easy.
05:35What we actually do, we have specialized netting.
05:37So the netting itself is a very passive system.
05:41It requires zero energy to actually collect our water.
05:43You're making this stuff up.
05:44I'm 100% serious.
05:45What?
05:46What?
05:48You're making this stuff up with the net.
05:49No.
05:50Okay.
05:51And during that interaction, the fog is allowed to hit its dew point.
05:52What will happen is the water will turn into a droplet form, and the droplet form will then
05:56be agitated by wind to go down into collection.
05:58Okay.
05:59So how much water do you actually collect?
06:01We can collect enough water in one year to produce 67,000 cases of vodka.
06:05What?
06:06What?
06:07What?
06:08No.
06:09Is this where the term fill your boots came from?
06:10No, but that's an excellent Newfoundland term.
06:12Water is a big cost in alcohol production, as you know.
06:15It absolutely is.
06:16That's right.
06:17So the technology is free.
06:18Exactly.
06:19Wow.
06:20Guys, how did you come up with the idea to trap the fog to make vodka?
06:24When I was young, I was watching a documentary on desert coastal communities and water scarcity,
06:31and the idea just always stuck in my head, and that's where I came to learn about fog
06:33capturing technology.
06:34Cloud capturing, actually, in that case, yeah.
06:36So this existed already.
06:37You didn't just-
06:38Yeah.
06:39So the technology, yeah.
06:40Yet the technology is existing.
06:41It's in Chile and places like that where they have desert communities, but high mountains,
06:45and they collect the water from the clouds, which is piped down to the villages below.
06:48Got it.
06:49And you just said, hey, that could work in the foggiest place in the world.
06:51Exactly.
06:52Absolutely.
06:53Are there any impurities in the vodka, like, I'm sorry, in the fog?
06:57So what we're actually capturing, and we're quite proud of it, is we're capturing water
07:01that's coming off the Grand Banks of Newfoundland.
07:03There's no amounts of air pollution, and that fog that we're bringing in, what is actually
07:08forming around is the salt and minerals that are kicked up from the North Atlantic.
07:11We like to say that you're actually getting a true taste of the North Atlantic right there.
07:15Wow.
07:16That is impressive, guys.
07:18Very impressive.
07:19Tell us about your price, like, what you're selling it for.
07:20Sure.
07:21What it costs us to make a bottle right now is $7.34, and we're selling it for $9.17,
07:27which is a 20% margin right now, but we've, you know, since the inception of that, we've
07:32already negotiated our prices down in the packaging, so we're projecting 50% margins
07:38in future sales.
07:39And then what is it retailed for?
07:40We put it on retail for $39.98.
07:43Our initial market was Newfoundland and Labrador, and one thing that happened with us very recently,
07:48we actually got listing with the LCBO, which I know is, for anyone that knows, that's quite
07:52the accomplishment.
07:53Yeah.
07:54So it's brand new.
07:55First order.
07:56Congratulations.
07:57What are your sales right now?
07:58$34,000 in sales right now, showing a net profit of $7,000, so we are a profitable company.
08:02You aren't paying yourself out of that, so you're not really profitable yet.
08:06Fair point.
08:07But having said that, 34K in sales, $3 million valuation.
08:11Right.
08:13So going back to the amount of water we could produce, if we were to sell those cases, that
08:17would be over $7.4 million in sales.
08:20Right, but you're not there yet.
08:22But we had to try and make a valuation that took into account our capacity and our performance.
08:27And our performance is already showing that, you know, we have broken into the world's
08:31biggest buyer of alcohol, the LCBO.
08:33But at $39 retail, you're competing with a lot of other brands that have a lot of marketing
08:39dollars.
08:41But I'm waiting for the plan that makes me think, yeah, these guys are going to get it
08:44done.
08:45And Manjeet, beyond a plan, is the brand story enough here?
08:50You know alcohol.
08:51Is this enough of a brand story to differentiate in this space?
08:54I think it is.
08:55I think that it could be a couple more times distilled, but I absolutely think there's
09:00a really cool story here, just like all of us thought.
09:03But that's the start.
09:04How do you sell it?
09:05This is where we hope you come in.
09:07Like, we're looking for brand awareness to make people realize that we're actually putting
09:11fog in a bottle.
09:12What I do want you to answer for me is, why did you think you could do this when nobody
09:17else has done it?
09:19Well, just because I know me, and I know Kenny, and I know that we were up to the challenge
09:24on it.
09:25Simple as that.
09:26It's just pure confidence in ourselves.
09:27We know our work ethic.
09:28We know our tenacity.
09:30And here's your proof right here.
09:32Good for you guys.
09:33You guys are very endearing.
09:36Like, what you need as a strategy is someone to follow you guys around all day long.
09:42And bottle what you have.
09:44I actually really mean that.
09:46That is how you are going to build a differentiated brand, is really you guys.
09:50And the best part about that strategy is it costs nearly nothing.
09:53You need to hire a kid to follow you guys around and make content all day long about
09:58how you guys were crazy enough to capture the fog.
10:02That creates leverage.
10:03And you'll get there.
10:04But you're just not there yet.
10:05So, I'm out.
10:10Bill and Kenny, you guys are great.
10:13I want to make vodka with you guys, but your evaluation is kind of giving me a hard time.
10:19You know, I'm seeing double when I'm looking at your evaluation here.
10:28I'm going to be out for that reason.
10:31I am passionate about storytelling.
10:37This isn't for me, but I would love to sit down with you guys over a vodka or two and
10:43talk storytelling and figure out, because I agree with Michelle, like, you two, brothers
10:48getting content out there, telling your story, talking about the fog, the free water.
10:54It's unbelievable.
10:55There's something here.
10:58One of the reasons I came to the Den was to understand all the different Canadian innovation.
11:03And I would have never thought you can harvest fog and make vodka.
11:07I wish you all the best and hope we sit down for a vodka one day.
11:11Thank you very much.
11:12Appreciate it.
11:14Bill and Kenny, for me, I think it's a really fun, unique story.
11:17It's a decent product.
11:19Like, I do think that they're absolutely for a premium product.
11:23There needs to be some tweaks.
11:25And you're going to need a lot more than $150,000.
11:28I wish you all the best, but I'm out.
11:33The wonderful thing about great stories is it gives you a foundation for a wonderful brand.
11:42The challenge with building a wonderful brand is that it takes time, effort, and money for
11:46people to understand it enough that they start to go to the stores to buy it off the shelf.
11:51And I admire both of you, like, immensely.
11:54I love the story.
11:55I'm just, I'm really torn.
11:57Like, the valuation is just so high.
12:02So, I'm going to be out.
12:04But, man, I love what you're doing.
12:12Good guys.
12:13I would love to be their partner if they're a little bit further ahead.
12:17Yeah.
12:18I think we all would.
12:19They're just too early.
12:21And I don't have the foggiest idea about making vodka.
12:26People love cat videos, and if you can incorporate a toothbrush and maybe some floss.
12:31Hey, you guys didn't talk about floss.
12:34I'm really concerned.
12:35They actually love floss.
12:36They actually love floss.
12:51Next in the den.
12:52It was a 45-hour drive, but it's awesome to be here finally.
12:57Super great.
12:59Good boy.
13:00You're going to do great.
13:03All the way from BC.
13:06A pair of entrepreneurs and their cat companion who think they have the perfect pitch for the dragons.
13:13A big cat.
13:14Oh, hi.
13:15Hi.
13:17Hi, dragons.
13:18My name is Melanie, and this is my beautiful partner, Samantha.
13:21And this is our cat, Riley.
13:23We drove here all the way from Vancouver, BC, seeking $150,000 in exchange for 15% of our company, RyreCat.
13:33Our story is, we took our cat, Henry, in for a routine vet visit, only to realize that his teeth were covered in tartar and plaque.
13:40It was so bad that he needed surgery in order to remove it.
13:43It was then that we discovered that over 70% of cats have some form of dental disease.
13:49And after spending $2,000 at the vet, we knew it was time to start brushing our cat's teeth.
13:55But the biggest problem was that all the cat toothbrushes on the market were way too big for a cat's mouth.
14:02Not to mention, they were hitting this big open nerve ending behind our cat's front teeth.
14:07Of course, they're going to hate it if you bump that at all while brushing.
14:11So, we decided to make our very own cat toothbrush.
14:16Of course you did.
14:18Our toothbrushes are a patented design based on feline anatomy to avoid hitting that open nerve ending behind cat's front teeth.
14:26It's micro-headed, dual-sided. It's made out of soft, biodegradable cornstarch, so you won't chip your cat's teeth.
14:33So, Dragons, who would like to see Riley get his teeth brushed?
14:36Yes! Yeah!
14:37Ideally, you want to brush your cat's teeth once a day.
14:39That's it?
14:40Kind of similar to our own teeth, right?
14:42The Ryercat toothbrush comes in nine different colors and retails online for $28.
14:48We also have the pick side, so you can pick out extra debris in his teeth that gets stuck in the back very often.
14:55Melissa and Samantha say cats should change their toothbrush every three to four months.
15:01Does Riley's mouth smell better after this?
15:03Absolutely.
15:04Yeah.
15:05What will they think of next?
15:07There's nothing else to think of, Wes. They got it all.
15:10This is it. I've seen it all in the den.
15:12This is really expensive packaging.
15:14This is, I know. This is amazing packaging.
15:16We wanted to make it premium, so we went with that.
15:19It is premium.
15:20How did cats ever survive before humans?
15:23I'm always curious about how cats actually made it in the wild.
15:27Like, how did they actually survive?
15:29So, cats that live on the street, cats that are in the wild, they have dental disease.
15:33That's the short answer, is that cats are suffering in the wild with dental disease.
15:37Okay, but cats, like, is it a bridge too far? Maybe, like, is it a little bit too much?
15:44I'm not, like, I'm not deemed disrespectful to the idea, but I...
15:49Arlene has a good point, but I also know that humans are price insensitive in three categories.
15:55Babies, weddings, and pets.
15:57Just because you're going to make money at it doesn't mean you should.
16:00So, Samantha and Melanie, are you guys dental hygienists?
16:03Like, what makes you the authority in cat teeth?
16:07So, my background, I work in Vancouver at a place called Anesthesia for Dentistry.
16:12I'm a registered nurse there.
16:14Okay.
16:15So, I do have a background in dentistry.
16:17That's kind of a background, then.
16:18Yes.
16:19Okay. How about yourself?
16:20My background is actually film and TV, but my biggest thing is the branding for RyreCat.
16:24I'm very picky.
16:25I'm a perfectionist, so when it comes to colours and colour schemes and how the packaging looks...
16:29You have it going on.
16:30Exactly.
16:31I will say that shows in the packaging, too.
16:33Like, it's very well made, produced.
16:35The packaging, the graphics, the designs, like, it's very well done.
16:40Both of you, very credible with the cat.
16:45So, are you really good at making content?
16:47Yes.
16:48Yes.
16:49Have you blown this up making content if you're an ex-film producer?
16:52We, on our TikTok and Instagram, we do have millions of views.
16:56Wow.
16:57We've had several videos that have had millions of views.
17:00Okay.
17:01So, what were your sales in 2023?
17:03Last 12 months, we did $1.1 million in sales.
17:06In kitten toothbrushes.
17:08Wow.
17:09Yes.
17:10Who would have thought?
17:11Wow.
17:12What a demand.
17:13Wow.
17:14Cat toothbrushes.
17:15Yes.
17:16Lifetime sales is $1.7 million.
17:17I did not think you were going to say that to me.
17:18So, you know, just goes to prove my point.
17:21Yay.
17:22You got your million bucks.
17:25Million dollar baby.
17:26Bring it on.
17:29$1.1 million.
17:30Man.
17:31Okay.
17:32And what are you projecting for 2024?
17:34So, we are working on launching a cat toothpaste.
17:37Obviously, that's the next thing.
17:38Of course.
17:39Of course.
17:40Of course.
17:41Why wouldn't you?
17:42Deep into cat dental.
17:43Deep into cat dental because that's why everybody asks, well, what do I use for toothpaste?
17:46Yeah.
17:47Right?
17:48Right.
17:49So, automatically, if we would have already had a toothpaste on the market designed specifically
17:53for cats, that's double revenue right there because they're buying two products.
17:57So, to add in that to toothbrush, your revenue is going to be what do you think?
18:02I would project us to be making between $3.5 to $4 million next year.
18:09Wow.
18:10How much money did you guys make on the $1.1 million?
18:12So, our margins after advertising is 52%.
18:17What?
18:18Okay.
18:19So, net profit overall would be about 250.
18:22And you own 100% of this?
18:24Yes.
18:25Okay.
18:26Okay.
18:27So, you know, sometimes you get these businesses that are niche, that I'd put in the weird
18:31and wonderful category, that can print money.
18:34And you might have discovered one of those right here.
18:37Where do you see yourself in five years?
18:39Paint a picture of that future.
18:41So, ideally, I would like to be in all the vet clinics.
18:45You know, when you go to the store, you can find our product.
18:47When you search for it online, you can find our product.
18:49But vet clinics is exactly where you should be.
18:52I mean, that makes a ton of sense.
18:53Yes.
18:54Because they'll do the educating for you.
18:55Exactly.
18:56Get it in the hands of all of their pet owners, their cat owners.
18:59I got to think social must just be the ticket.
19:01Oh, yeah.
19:02Like, people love cat videos and if you can incorporate...
19:05Yeah, love.
19:06Entertaining.
19:07A toothbrush and maybe some floss.
19:08Hey, you guys didn't talk about floss.
19:10I'm really concerned.
19:11They actually love floss.
19:12They actually love floss.
19:13They do.
19:15So, actually making a catnip floss is...
19:19Oh, my God, catnip floss.
19:22It's in the brain.
19:25Well, ladies, listen.
19:26I love your numbers.
19:29Good job.
19:31I'm still here going, why?
19:33You know, I grew up poor in rural Jamaica
19:35and there are certain things that I just don't get,
19:38like this business.
19:40And so, I'm going to be out.
19:45When Wes says he doesn't get it, I get it.
19:48I mean, people buy organic food now for their pets.
19:51You know, our dog eats some New Zealand organic fresh meat diet
19:55and it seems to work.
19:56That's what dog does, you know.
19:58Yeah.
20:00I think it's cool what you guys are doing
20:02and I hope you start a floss business.
20:05I think it's a good add-on.
20:07I wish you all the best, but I'm out.
20:15Melanie and Samantha, you guys are impressive.
20:18Not only in a short amount of time have you built a business
20:21that is profitable, but has long runway and can become huge.
20:26Utility, design, price, you got it.
20:29Now it's about selling this.
20:45Before the break, two dragons are out.
20:48But will Manjeet see any potential in this cat toothbrush business?
20:52You guys are impressive.
20:54Not only in a short amount of time have you built a business
20:57that is profitable, but has long runway and can become huge.
21:02Utility, design, price, you got it.
21:05Now it's about selling this.
21:07And I want to help you do that.
21:08I will offer you $150,000 for 20%.
21:12I'm most compelled that you did this from a knowledge base
21:16with the passion that you have.
21:18And I'm really interested that you already kind of have
21:21a road map to what you want to do into the future.
21:24So I would give you $150,000.
21:27Nah, I'd give you $150,000 for 17%.
21:31And I promise you I do like cats.
21:33I'm most compelled that you did this from a knowledge base.
21:36With the passion that you have.
21:38And I promise you I do like cats.
21:44Look, I'm a cat person through and through.
21:48I have a meme chat with my siblings that is
21:51our retirement plan is to own a giant cat farm, so no way.
21:54You're going to need a lot of toothbrushes.
21:56This is a great niche that I actually think you can build
21:59into a real company.
22:01I would give you...
22:04I would give you $150,000 for 15%,
22:11but I would just want a 5% royalty
22:13just until I get my money back.
22:15And then the equity is the valuation you came for.
22:23There is something to be said for a partner
22:25who doesn't make money until you make money.
22:27So that's the difference.
22:29If you get your money back on a royalty deal,
22:31you take it out of the business.
22:33you have nothing at risk in the business.
22:35I don't think that's fair.
22:37No, that's true. That's true.
22:41Never in a million years would I have guessed joining this show
22:44that some of the smartest investors on the planet
22:47would be competing for a cat deal.
22:50For a cat toothbrush company.
22:53Is there a world
22:55where all three of you would come in on a deal?
23:02In a parallel universe.
23:10Well, I think that we already knew
23:13who we were coming here for today.
23:16And Michelle, we would like to know
23:20And Michelle, we would like to take your offer.
23:25It seems like Riley knew that too.
23:31Oh my goodness.
23:32Thank you so much.
23:34I'm excited to work with you.
23:36They're not looking for a Gumby Mom.
23:37One of the things I woke up today thinking I would not do
23:40was invest in kitten toothbrushes.
23:42But this is amazing.
23:43Awesome. Thank you so much.
23:45Thank you everybody. Appreciate it.
23:47Was it perfect?
23:49Now the work begins.
23:52You did it. You got the deal.
23:55I'm also not willing to say that I don't stick my neck out
24:00or that I'm not special.
24:02I will not subscribe to that. I'm sorry.
24:05Sorry. I didn't say you're not special.
24:08You did. You said I'm not special enough.
24:10There's nothing special about what you're doing in the business.
24:12And me as a person.
24:13I didn't say about you as a person.
24:14You could watch the film. You did.
24:18You did.
24:30Next in the den, a mom hoping her motivational jewelry
24:34will inspire the Dragons to make a deal.
24:39Hello Dragons.
24:40My name is Rikki Barrett.
24:42I'm from Napanee, Ontario.
24:44My business is Glass House Goods.
24:46And I am here seeking $50,000 for a 10% share in my company.
24:53Six years ago, I was adjusting very poorly
24:57to life with a newborn and a toddler.
25:00As many moms are, I was in a group chat with other moms
25:04who had kids around the same age as mine.
25:07Except that I was dealing with postpartum depression and anxiety.
25:11And out of a moment of self-preservation,
25:13I messaged the group to say, I have to bow out.
25:16I need to just take a step back for my own self.
25:20After what felt like an endless silence,
25:23someone in the group wrote in,
25:25I'm so glad someone finally said something.
25:28This really struck me.
25:30We had wasted so much time just not being honest
25:33and supporting one another.
25:35So this sparked my need to create Glass House Goods.
25:38My jewelry brand is meant to give strength
25:41and messages of hope in a funny and sassy,
25:45sometimes sweary way, to other women.
25:48All of my pieces have all the messaging on the inside only.
25:51You can wear them around your kids.
25:53You can wear them to church.
25:55And no one will know what is written on the inside except for you.
25:58My goal is that women can gift these pieces to other women
26:02when they need to have that special boost.
26:05So, Dragons, I'll have you take a look
26:07at the pieces that I've brought for you.
26:09When I look at bracelets, it's like,
26:11shut the f*** up to my own brain.
26:13Um, okay, so you're going to be happy with what you see.
26:16F*** what they think. I love it.
26:19Oh, dear stress, let's break up.
26:21I like that.
26:22There's going to be a lot of bleeping.
26:24They go low, you go high.
26:25Yes.
26:26Mine says, I am enough, which I like.
26:28And I am enough, Brian.
26:29The other one says, remember who the f*** you are.
26:32Can I ask what message is underneath your bracelet?
26:35Yep, I have one that says,
26:38because today is going to be a day that would create a lot of anxiety.
26:41And the third one I can't read on, or can't say on television,
26:44but it's fresh out of the f***.
26:46Ah, I like that one.
26:47That's the one that you gave me.
26:48I love that one.
26:49I love that one, yeah.
26:51I agree.
26:52That's a bestseller at market.
26:53I did not anticipate you guys saying them out loud.
26:55I love it.
26:57So tell us about the business.
26:59How many styles?
27:00I have 39 phrases of bangles.
27:03I also have rings that have hidden messages.
27:06I have necklaces that have hidden messages.
27:08Where do you get them made?
27:09I get them made overseas, in China.
27:11How much does it cost you to produce?
27:13How much does it cost you to land it?
27:14Delivered, packaged to my house, $5 apiece.
27:17Okay.
27:18And I retail them for $24.
27:20And it's all online, your sales?
27:21Yes.
27:22And what was your sales last year?
27:24The year before, I was at $277,000.
27:27Yep.
27:28And then last year, I had a dip to just under $200,000.
27:32Okay, and this year, what do you think you'll do?
27:34I'm projecting to be the same as the year before.
27:37So about $200,000?
27:38Just around $300,000.
27:39Why not more growth?
27:41The reason why I believe I haven't grown more
27:44is that I'm just one woman.
27:46And I have two kids, a husband,
27:48and I work full-time as a high school counselor.
27:50So while I eat, sleep, and breathe this business...
27:53It's a side hustle still.
27:54Yeah, and the goal was never to work two full-time jobs,
27:58which is currently what I'm doing.
27:59I've reached the ceiling as far as I can bring it.
28:02Now I need to...
28:04Well, have you really?
28:05Because you're not working full-time in it.
28:08Imagine if you put all of your hours in this.
28:11Yeah, well, I'm stuck because I love my career.
28:16Is this making you enough money
28:18that you could leave your career counselor job?
28:20It is, but I'm not a gambler,
28:23and I work for the government.
28:25Rikki, Rikki, Rikki.
28:26I have a penchant.
28:27You're standing on that mark.
28:29I'm just letting you know,
28:30when you stand on that mark,
28:32you are signing up to be a gambler.
28:34Yes, a risk taker, nothing else.
28:36No risk, no reward.
28:37I'm sorry, I'm sorry.
28:38Those that don't take risks don't drink champagne.
28:39I feel like this is my risk, by coming here.
28:42No, no, no, I'm sorry.
28:43I'm sitting here going,
28:44are we seriously not challenging Rikki on this stuff?
28:48You have no time for this business,
28:50or very little time for this business.
28:52You want $50,000 of her money,
28:55and you're telling us all the things
28:57that you're not able to do
28:58to take this business to the next level.
29:00Like, I don't understand why you're here.
29:03I think, Wes, she's here for help.
29:05I mean, she's an entrepreneur.
29:07We're not here to do that.
29:09We're here to build people's businesses for them.
29:12She's asking us to build her business.
29:14And you get to a certain point where you need to say,
29:16now I need to take someone on, I need to...
29:19No, working smarter means that you be all in.
29:23I feel like it's smart business to be able to say,
29:26when you've taken something,
29:27as far as you can, and you need more for it.
29:30It's smart business to do that.
29:31What's not smart is to ask an investor
29:34to then invest in that.
29:36Do it for you.
29:37So, the problem is that you're basically saying,
29:39I've taken it as far as I can, and I can't take it farther.
29:42That's somebody who should sell their business.
29:44Like, you should actually sell your business.
29:46But I still want to own this business.
29:48I want to be the person behind this business, but I...
29:51You have to take the risk.
29:52You can...
29:53You have to take the risk.
29:54There is no way around this.
29:55Unless you want just a lifestyle business.
29:57Ricky, you can keep talking to these guys,
29:59but I can give you my answer, okay?
30:01There's no moat around your business,
30:03so anyone can do it.
30:04Usually, when there's no moat around a business,
30:06then we look at the person behind the business,
30:08the entrepreneur, and go,
30:09are they going to kill the competition
30:11because there's something special about them?
30:13You haven't shown that.
30:16I'm out.
30:19Ricky, $300,000 is nothing to sneeze at.
30:22You've done really well as a side hustle.
30:24And Wes, I think that's a little harsh
30:26because I think she's got a lifestyle business,
30:28not a scalable, investable business.
30:31But she's asking for my money.
30:33Well, that's what I'm saying.
30:34You're already not giving it.
30:36And you said no.
30:37I think it's fair as an investable business
30:40to have someone say,
30:41I don't want to invest.
30:42And Wes has voted,
30:44but you still have a great business.
30:47I understand what you're saying about going all in,
30:49but I am also just not from the school of people
30:53that think that a woman can only do one thing.
30:55I am a mom, and I am a wife,
30:57and I am a counselor,
30:59and I am a businesswoman,
31:00and I can do them all.
31:02But I'm also not willing to say
31:04that I don't stick my neck out
31:06or that I'm not special.
31:08I will not subscribe to that.
31:11I'm sorry.
31:12I didn't say you're not special.
31:14You did.
31:15You said I'm not special enough.
31:17There's nothing special about what you're doing in the business.
31:19And me as a person.
31:20I didn't say about you as a person.
31:21You could watch the film.
31:22I'm not special.
31:25Look, I get it.
31:26When I started Bytopia, the e-commerce company,
31:29I had a really good corporate job.
31:31I was one of the youngest directors ever.
31:33I did not want to leave.
31:35And I literally had to sit there with my business partner
31:37as he yelled at me, and he goes,
31:38Michelle, if you don't quit your job,
31:39this is never going to work.
31:41And I probably cried,
31:42and then I quit three days later.
31:44And it was the only thing that changed my career.
31:46So you're going to have to take that plunge
31:49if you want to build something more than a lifestyle business,
31:51and those are the ones that I invest in.
31:53So for that reason, I'm out.
31:57I think as an entrepreneur, we need to take some risks.
32:00I dropped out of college.
32:01That was a big risk that I didn't know if it would pay off or not.
32:04Full respect for what you've built
32:06and the side hustle you've built, and keep building it.
32:09But I think if you hold on to both and that's okay,
32:11there's just not the opportunity to grow it as an investment,
32:14and for that reason, I'm out.
32:17If you're not willing to take the risk, neither am I.
32:19I'm out.
32:23McKeith, you are a small business owner.
32:25There is nothing wrong with that.
32:28But it's just not the type of investment that I would invest in,
32:32so I'll be out for that reason.
32:41Wow.
32:42Earlene, how are you?
32:44Wow.
32:45Earlene, how is this a small business?
32:47This is not a small business.
32:50What do you call a small business?
32:53This is not a small business.
32:55It's a side hustle.
32:56There's a difference between a small business and a side hustle.
32:59No.
33:00She's generating revenue and she's paying taxes.
33:02That's not the definition of a small business.
33:04Come on, you guys.
33:06Knocking on doors puts hair on your chest.
33:08Oh, yeah.
33:09It makes you the strongest.
33:11I knocked on doors.
33:13When you go door to door and talk to a client.
33:15The best training to be an entrepreneur is knock on people's doors.
33:17It is so hard.
33:32And finally, an entrepreneur from Toronto,
33:35hoping the Dragons will appreciate his attention to detail.
33:40Dragons, my name is Ryan O'Neal Knight.
33:43Here from Ajax, Ontario,
33:45pitching for $150,000 for 18% of my company, Detailing Knights Canada.
33:51We provide mobile, waterless car cleaning
33:54using plant-based eco-friendly cleaning supplies.
33:57But what best to demonstrate than going out
34:00and finding the dirtiest car in the parking lot.
34:02The dirtiest car in the parking lot.
34:04I love it.
34:05It's not Western.
34:06My car is never dirty.
34:07I know, right?
34:08What happened to my car?
34:09What the?
34:13If the car comes with the deal, I'm in.
34:16Hey, Ryan, if you scratch that bad boy,
34:18I'm coming after you, man.
34:20With Detailing Knights, we provide mobile, waterless car cleaning,
34:23going to clients' homes or their offices,
34:25cleaning their cars on the spot without using water.
34:28Over the years, we've worked with over 5,000 clients.
34:31Clients include Zipcar, Enterprise, AutoShare,
34:34and car dealerships around the city.
34:36But I feel the next evolution of our company is franchising.
34:39So is it crazy for a knight to be here asking a dragon for help?
34:43Wes, you want to come check it out?
34:45Oh, absolutely, man.
34:46I've got to check it out.
34:48Check that bad boy out.
34:50Detailing Knights has three locations
34:52in the greater Toronto area.
34:54And you'll notice it is not scratching.
34:56So we're able to go to a person's house.
34:58Packages range from basic detailing for $129
35:02to a premium exterior and interior cleaning
35:05for $279.
35:07Whoever owns this Ferrari shouldn't own a Ferrari.
35:10Seriously.
35:11I appreciate that.
35:12That's good, man.
35:13Fantastic.
35:14Well done.
35:15I approve.
35:16Yeah.
35:17Ryan, so I've never heard of waterless cleaning.
35:20So what's the advantages?
35:22It really helps to increase convenience.
35:24Also, instead of wasting 100 gallons of water cleaning a car,
35:28we're able to use only 6 ounces.
35:30So what's your story?
35:31What's your background?
35:32You know, I started a company back in 2009,
35:35was laid off two weeks before my wedding,
35:37and that was a real gut shot.
35:40No kidding.
35:41It reminded me that my dad always said,
35:43hey, if you want to control your own destiny,
35:45start a business.
35:46So true.
35:47Being able to start the business and use it as a tool
35:49to teach others to start businesses, too.
35:51Because I've gone through College Pro Painters.
35:54I know you've hired through College Pro Painters.
35:56So I love the concept of being able to teach
35:58high school, university students,
36:01to show them they have the potential to start a business
36:03by using our company as a mini example.
36:06But the road to success is paved with hundreds
36:09of car deal-tailing companies, like hundreds.
36:11Yes.
36:12The thing I love right now is there's no household name
36:15in car cleaning.
36:16So we want to become that household name,
36:18similar to Molly Maid.
36:19I know Wow One Day Painting is a household name.
36:22So being able to take car cleaning into that open space
36:26to actually have a proper system that you can put in a box,
36:29teach to anybody in any city where there are cars
36:32around the world.
36:33That's what we want to build here.
36:35Well, if only there was a dragon on this panel
36:38who knew something about franchising.
36:40Yeah.
36:41I mean, I don't know.
36:42Cleaning.
36:43Home services.
36:44I'm cleaning.
36:45We can do ride shine.
36:48So what were your revenues in 2023?
36:51I would say on average $120.
36:54The downtown area did about $150.
36:56All together?
36:58Over $400,000.
37:01What will you do this year?
37:03We're projecting to hit that half a million.
37:05I want to see each location do $150 each.
37:08That, to me, proves the viability
37:10that we can open up a new city.
37:12How much money did you make on the $400K last year?
37:15Gross is about 48%.
37:16Are you paying yourself a salary?
37:18No.
37:20How are you living without a salary?
37:23I do work part-time for a non-profit,
37:25the Afro-Caribbean Business Network.
37:27So that does offer a bit of salary,
37:29but I'm ready to go full 100%.
37:31Could you talk about that network?
37:33Absolutely.
37:34So we started the Afro-Caribbean Business Network
37:36about six years ago,
37:38and it was really because I was building back
37:40from a personal bankruptcy.
37:42I didn't have the support around me
37:44to build this company properly.
37:45So we brought six other entrepreneurs together
37:47to create an entity that would help them
37:49exponentially grow their companies.
37:51And to date, we have over 6,000 black entrepreneurs
37:54in our network.
37:55Amazing.
37:56We do marketing and sales for them.
37:58We've worked with youth that are out of detention
38:00to show them they have the potential to start a business.
38:02You're a real community builder, Ryan.
38:04I appreciate that, Manjeet.
38:06What would you charge for a franchise?
38:08About $25,000 would get you up and going.
38:11That's it? No franchisee?
38:13There's no percentage?
38:14Oh, the royalty.
38:15Yeah, the royalty.
38:16Right, we do 8% of sales.
38:178% of sales. Okay.
38:19That's pretty standard.
38:20That's pretty standard.
38:22I'm reading your book, that's why.
38:23Oh, you are? Awesome. Thank you.
38:25You have some franchise experience
38:27having been with College Pro.
38:28Yes.
38:29Some of our best people have come from College Pro.
38:31They nail how to systematize a business.
38:34Why do you want to franchise?
38:36I feel being able and learning from them
38:38that you can put a business in a box
38:40and learning how to clean, I mean, to paint houses
38:43is way more difficult than cleaning cars, I feel.
38:46Of course, yeah, you're right.
38:47So if you can teach a college student
38:48or a high school student or a university student
38:50how to start a painting company,
38:52that business in a box, I feel, is really powerful.
38:55And one of my missions is to teach young entrepreneurs
38:58that they can start businesses,
39:00and then from there, we're able to grow with them.
39:02I'm a big fan of that, too.
39:03I think when you start really early
39:05becoming an entrepreneur,
39:06it's so much easier to grow out.
39:09College Pro is very good at getting their franchisees
39:12to find customers by door-knocking.
39:14Yes.
39:15How do you acquire customers?
39:16We love door-knocking.
39:17And to me, knocking on doors puts hair on your chest.
39:20Oh, yeah.
39:21We work with our clients.
39:22It makes you the strongest.
39:24I knock on doors.
39:25Right?
39:26And that, to me, battle-tests you.
39:27And even when we talk to our high school and college students,
39:29when you go door-to-door and talk to a client...
39:31The best training to be an entrepreneur
39:32is knock on people's doors.
39:33It is so hard.
39:34And that's what we do.
39:35All that teaches you how to be resilient.
39:37And for me, entrepreneurship is persistency and consistency.
39:40You're very impressive.
39:41You really are.
39:42I appreciate that.
39:43You're very impressive.
39:44Thank you so much.
39:45This is a space we've been following forever.
39:47We knew that one day we would be in the space.
39:49It makes sense.
39:50Shine people's homes.
39:51Why not shine their rides?
39:52Yes.
39:53What excites me the most about this is you.
39:55Okay.
39:56You're building a community with a massive smile.
39:58You believe in entrepreneurship.
40:00100%.
40:01I will give you the 150 you're asking for,
40:04but I want 25% of the business.
40:07All right.
40:09It's a great offer.
40:11You're very impressive.
40:13Thank you so much.
40:14And you think big, which is what we want on the show.
40:16Yes, worldwide.
40:17We want people who think big.
40:19But as far as investing, I'm going to be out.
40:25Ryan, I love what you're doing for the community.
40:27Congratulations.
40:28What you've done this far, I wish you luck.
40:30But I'm up.
40:33Okay.
40:34I think you as a founder has an enormous amount of presence,
40:40of optimism, and of grit.
40:42And I would back you in a heartbeat.
40:44I think on this deal, you have, you know, a way stronger partner.
40:47I'm going to be out.
40:52I support the work you're doing to build up other entrepreneurs.
40:56Yes, I appreciate that, Wes.
40:58You know, sometimes in our community we go,
41:00I'm successful so everybody else can stand behind me.
41:03And you're bringing everybody else along.
41:05That's fantastic.
41:06But I'm going to be out because I think you have an amazing partner already.
41:14I'll kick myself if I don't ask.
41:18Are you willing to do 22.5?
41:20Ryan, you have three locations.
41:23This man can take you nationally, okay?
41:26Whatever you're going to haggle over and negotiate over
41:29pales in comparison to what he's going to be able to do for you.
41:34I got to stick to the 25.
41:44Ryan, you got a deal.
41:47Yes!
41:53It's awesome.
41:54Great meeting you.
41:55Congratulations, Ryan.
41:56Thank you, Ryan.
41:57Let's go!
41:58Ryan's going to be a great partner for him.
42:00He's going to be fun.
42:01He's a community builder.
42:02He's doing this for the right reasons.
42:04And it's going to be awesome.
42:08Coming up this season.
42:12I like the walk.
42:13I like the swagger.
42:14Look at that.
42:16I am here today for $4 million.
42:20What?
42:2110% of my company.
42:23What?
42:24What?
42:25I'm not kidding.
42:28And later.
42:29Hello there.
42:30Okay.
42:31Feels kind of nice.
42:32For the first time ever, a celebrity dragon
42:35looking to carve out his own space in the den.
42:38I want to do $100,000, but I would want a 2% royalty on all sales.
42:42This season, the drama is real.
42:45I'm here for a franchise.
42:47Don't say the F word.
42:48So what's your offer, Michelle?
42:50$225,000 for $20,000?
42:51Yeah.
42:52Or the royalty deal.
42:53Not or.
42:54I think you guys are going to figure this out.
42:56And that's what I hope entrepreneurs do,
42:59is they learn from the nose.
43:01I'm going to throw you a curveball.
43:02Okay.
43:03I want to buy the company.
43:04Whoa.
43:05Oh, wow.
43:06And the stakes are higher than ever.
43:09I wanted to make my parents proud.
43:11They had passed away just when I had launched this 10 years ago.
43:14Just the fact that someone has a little bit of faith in me,
43:17it means a lot.
43:18I feel it's a very out-of-body experience right now.
43:20Look, we're just a couple of Asian kids from the 905, right?
43:23Michelle and Brian, we would love to do a deal with you.
43:26Oh, no way.
43:28I love that.
43:30There's no words to describe that life, y'all.
43:32I don't get surprised much in the den, but I just got surprised.
43:35Blown away.
43:36Mind blown.
43:37Mind blown.
43:38Mind blown.
43:39Mind blown.
43:40Mind blown.
43:41Mind blown.
43:42Mind blown.
43:43Mind blown.
43:44Mind blown.
43:45Mind blown.
43:46Mind blown.
43:47Mind blown.
43:48Mind blown.
43:49Mind blown.
43:50Mind blown.
43:51Mind blown.
43:52Mind blown.
43:53Mind blown.
43:54Mind blown.
43:55Mind blown.
43:56Mind blown.
43:57Mind blown.
43:58Mind blown.
43:59Mind blown.
44:00Mind blown.
44:01Mind blown.
44:02Mind blown.
44:03Mind blown.
44:04Mind blown.
44:05Mind blown.
44:06Mind blown.
44:07Mind blown.
44:08Mind blown.
44:09Mind blown.
44:10Mind blown.
44:11Mind blown.
44:12Mind blown.
44:13Mind blown.
44:14Mind blown.
44:15Mind blown.
44:16Mind blown.
44:17Mind blown.
44:18Mind blown.
44:19Mind blown.
44:20Mind blown.
44:21Mind blown.
44:22Mind blown.
44:23Mind blown.
44:24Mind blown.
44:25Mind blown.
44:26Mind blown.
44:27Mind blown.
44:28Mind blown.
44:29Mind blown.
44:30Mind blown.
44:31Mind blown.
44:32Mind blown.
44:33Mind blown.
44:34Mind blown.
44:35Mind blown.
44:36Mind blown.