“You’re Making $455,000 - Why Don’t You Pay Your Poor Old Mom!” | Shark Tank AUS

first into the tank tonight is a young entrepreneur with a very tasty proposition I'm feeling way too excited I'm full of confidence right now and cannot wait to go in there and make sure I spice up the shark tank [Music] hello sharks this is ice from Melbourne and I'm the founder of your flavor seasonings and today I'm seeking for $80,000 in return for 10% of my company sharks healthy eating is the most important and vital aspect of life and it's great for mind body and soul in Australia our health food and supplement industry turn over roughly 1.8 billion dollars a year and still increasing by 10 to 15 percent each year and yet we are one of the most and healthy nations in the world at your flavor our goal is to keep seasonings 100% gluten-free vegan paleo friendly keeping low soft levels at the same time making it more enjoyable fun full and tasty your flavor cysteine brand is Australia's only seasoning brand which makes onion and garlic free seasonings great for people who follow low fodmap diet so sharks I need your help to take my small home business to the next level and together we can give Australia a reason to season thank you a reason to season yes ok so you're looking for $80,000 for 10% of your business so you're valuing it at 800,000 that's correct yes ok so tell us a bit more about the product yeah great ok I'll bring some products you throw this in first no ok you can give him 2 because we're always left so in total we have 8 flavors all together it's been 15 months so far since I've been running this as a smaller home business and so far my online sales are four hundred and fifty five thousand dollars Oh going in say that again 455,000 I like it after 18 months 15 AB just a little over 15 months yeah so tell me your background why are you an expert in this area well roughly end of 2014 me and couple of my friends and we tried to go on a diet and by the fourth day I was hating my life having broccoli chicken three times a day four days a week is like torture I know it is a mental torture and I'm like you know what let's go find some flavours and see what we can flavor the seasonings with I have nothing to do with seasonings or cooking in the past I work in a corporate company and I resigned to focus full-time on this good man good man however I still have a part-time job to keep my weekly expenses on the go as I'm not taking any money from the business and what's your part-time job I worked as at Kohl's as a retail assistant I want to keep there because I just love the people I work with and I only work set it in Sundays I Monday to Friday I'm full-time on this business very good stuff you said you've got a home kitchen or where is it being that all the experiment happened in the initial phase in my kitchen right so what the mighty must know you have no idea how angry my mom was so you live with your mom but I live with my parents and she was on the verge of kicking me out of the house entire house smell like spices funny there did your mom help you she helps me all the time she's the best unpaid worker ever sweat equity I hope you make it 450 grand while you're playing your poor old mom well she helps me everyday all the time and you know I'll never say no to her for anything just proud of you absolutely I'm going to find out how much money you're making on four or fifty thousand bucks yeah sorry I have netted 20% you knitted 20% after after everything after all the expenses ninety so one of these cost on average to make fearless three bucks more you sell it for $20 online single bottles including shipping for this bottle yes that's right but that including you were to keep at 19,000 bucks what's going on there I mean sorry but if you were actually it's costing you three bucks you saw on 4/20 yeah right and you knew only knitting 90 yes there's something something second up because I invest every single dollar which I've made even from the profits back in the business understand any marketing billion in that 15 months for 40 or 50 grand how much would you spend on marketing anywhere between 175,000 to 200,000 so you spending a lot on marketing yes that's right yeah I teamed up with a social-media influencer for barbecue flavor she is a fitness trainer and she helped me did social media marketing great exposure for me and great sales for me and she gets a reasonable cut for that she has been great for me so wise you're clearly success are seen as your digital engagement in your social media strategy that's impressive ice your ice all right I know I started to say it um the young your product is really good I really really like it thank you um I think you've got great Drive in your great passion I'm not I'm not gonna sale I'll be a customer sorry am a customer just bought some online so it's on its way Wow awesome you know you're just high five you get coming on I am now a customer of yours 100% amazing I'm not going to be so much amazing because the competitive space is too big for me that's correct so for me for this one I am a customer but I'm out I think thank spare time I mean there's already a lot of competitors out there so the question is what's your competitive advantage you personally if we could sort of duplicate you and fly you around the world and bottle you and stick you on every stone that would be easy but we can't I mean I love your enthusiasm I think you you've got a good business going for yourself here you should push the online space you need to really work on your margins and get your cost down yeah I wish you well but I'm out thank you thanks for time so I so I'm not buying it mate you know paleo is supposed to be back to the caveman type diet and you're given me a fully processed product doesn't fit in the other thing you're slapped on here is vegan and I'm thinking it's just slap Holly oh and vegan on this and see if we can get into the health food market look at all the bloody paleo vegan Robert gets trumped in here and is the first Corey gave a hard time to give me a break we see somebody we see so many compost balls coming here that a paleo vegan god knows what else is protein rot you were doing really well Mike just don't listen to him at all all right yeah I'm still not buying the health benefits Oh yep you lost me on trying to convince me this is some new health fad it's not so unfortunately that reason I'm out thank you thanks for your time ice it's such a low barrier to entry market maybe if you put this in the supermarkets and you actually start competing on price they're gonna go look this is selling really well why don't we commit to their own low garlic sugar onion whatever it was yeah and compete against them don't know just don't braid you out look if I was thinking that that thing now they will do that no no trust me I would there will be at this time I do every time I'm looking for to try this at lunch I'm out thank you thanks for time one shark left a red shark you see the thing is there's not many barriers to entry so this is a land grab and what is missing is your brand really what you need more than anything is marketing help yep but I'm also looking at who you as a leader your manager and could I work with you awesome who died or would I so I am gonna make you an offer great but you know gotta like it ice is seeking $80,000 for a 10% stake in his spice business together we can give Australia a reason to season so far four of our sharks find the deal unsavory you need to really work on your margins and get your cost down yeah only my ami remains to make an offer really what you need more than anything is marketing help yep so I am gonna make you an offer great but you're not gonna like it ice the reason why I have to make you this offer yeah is because of the risk the execution risk yeah and I do need to make sure that we check everything from the licenses of your commercial kitchen to your trademarks yep you actually don't have a background in food technology yep look you don't have to have a background in something to come up and bring it to the market Detroit how many juices you so before you started boost none dared Roy so my offer is yeah $80,000 for 50% of your business oh ouch 50% run scared eighty eighty thousand for fifty percent look I think so far I've worked quite really hard to get to this point and proof that there is a market for it keeping away 50% just like that is something no startup should do in the first and in the very early stages a real investor should offer either mode so you're saying no well I would like to counter okay and I would say $80,000 for 25% and I will guarantee you your money back in the first 24 months if I don't you get 35% you've got to be careful making those sort of promises I agree that there's there's a minefield you'll be about to walk through here right with that with that with that counter I just need to talk to you about what you've counted okay yeah so you've said here's 25% but if it doesn't work out I'll give you more now that is a disincentive for me to grow your business because I'll end up with me you see what you want from me is a business partner is to grow your business yeah so I want you to be in 10,000 retail outlets within 24 months but if I do that oh is that on my next 10% so you've actually offered me a disincentive to grow your business yeah okay okay so I'm gonna pretend you didn't say it yep okay okay cuz that's the way a partnership start right is looking after each other that's right okay so let me repeat my offer to you which is 50% of your business for $80,000 yeah okay so that is my offer are you able to come down any less than 50% as it's quite it's quite hard for me it's half your business and so I want you to think about how long would it take yeah you to get into 10000 supermarkets how long would it take you what it will take quite a few years is speed to market yeah and I want to get a return on that turban that let's face it like what we being off the ride is an opportunity to get on red balloon right I would never put this on red balloon that is not what I put this in attempt at the supermarket's look at your margins right now and understand what's gonna happen to your margins I understand where you make the best amount of money 50 points is ridiculous yeah right you can't do this for 50 points you can listen to him all you like yeah I have no intention of turning this into an experienced gift yep so that is not my intention I'm talking about retailers he's out the only deal you've got is her you got to make it as long that if friendlies got brothers here no but as well so it's really up to you if you want to listen to him go right ahead but then the deal will be off the table I know what I bring to the market you either want it or you don't and I've talked you out of the other deal because there's a disincentive for me as a partner yep Naomi would you accept $80,000 for 40% and we will make it work 40 points and you know I came here with a concrete offer not to go more than 25 percent and with didi guns on stick at 25 percent put it back to her if it doesn't work so I'll be back next year to pitch it to you at double the valuation you finish those finish what you're gonna say is I really think you can bring a lot to the table and I believe together if you work as a team 40 percent is a reasonable chunk from someone who is sort of proving the point I would like you to consider that you [Music] have a deal go get them go get a nice great great energy finally it happened Wow I love the smell I have to say really is amazing amazing smoke to aspiring entrepreneurs I say don't let anyone tell you what you can and can't do just be yourself and you know if we don't invest they get really good advice [Music] [Music] you [Music]

Channel: Shark Tank Australia

Views: 1,274,902

Keywords: best shark tank ideas, business, deal, entrepreneurs, mark cuban, millionaire, money, most successful shark tank pitches, rejected shark tank pitches that became successful, rejected shark tank, shark tank episode, shark tank pitches, shark tank show, shark tank success, shark tank, watchmojo, worst shark tank pitches, best shark tank pitches, full episode, shark tank full episode, shark tank 2020, Annas 'Ace' Ahsan shark tank, pay your mom shark tank, food products shark tank

Id: lmhQ2WASP4A

Length: 14min 55sec (895 seconds)

Published: Fri May 29 2020