HOLY SH*# -- IM GOING TO BE ON SHARK TANK (DRAGONS DEN)

23 replies
Hey WARRIORS!

Sweet news -- I'm going to film for the original version of Shark Tank, the Canadian one -- Dragon's Den.

I will be pitching a NEW restaurant/bar/comedy club. We will be bringing in TOP celebrities and comedians from the USA -- mostly LA, to sell out our club. Big profits.

I need some capital to get started here..

* plane tickets and hotel for these comedians
* minor renovations
* venue costs/small renovations to performance hall (seats 600 right now)

I don't know what to offer the investors and what to ask for.

I was hoping for a ticket royalty/loan. $25,000 -- they get $5 from every ticket and $1 from every restaurant meal until they get their money back. Once they have been refunded in full they will have a lifetime royalty of $2.00/ticket.

What do you guys think? Am I smart to do the royalties and not offer equity, or do I have it backwards?

We already have the PERFECT VENUE to go -- just need to sign the lease and order an LED sign!

Let me know what you guys are thinking!
#den #dragons #holy #sh# #shark #tank
  • Profile picture of the author iAmNameLess
    Man... a lifetime royalty would be crazy I think. That's a lot to commit.

    I guess it depends on how bad you want the investment, but instead of lifetime I would offer equity + royalty until they recoup their initial investment.

    Man... congrats on this, sure it an awesome opportunity for you.
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  • Profile picture of the author savidge4
    Originally Posted by Jon Martin View Post

    I need some capital to get started here..

    * plane tickets and hotel for these comedians
    * minor renovations
    * venue costs/small renovations to performance hall (seats 600 right now)
    If these are the things you are concerned with I would HATE to see your advertising budget.

    How many bars or restaurants or clubs have you owned? do you have any experience in any of these areas?

    Is the motivation to get into this just to get on TV?

    Basically if you are asking for chump change now.. what is going to happen when you need real money? Go to the bank, get a loan on your house put some skin in the game and go from there.

    Think about this for a moment.. you are coming to an open forum asking for $25,000 with a presentation like that. This is not thought out at all I can see it from here.


    Lets see "Dragons Den" first.. then "Bar Rescue" then "Kitchen Nightmares" that would be AWESOME!
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    • Profile picture of the author iAmNameLess
      Originally Posted by savidge4 View Post

      If these are the things you are concerned with I would HATE to see your advertising budget.

      How many bars or restaurants or clubs have you owned? do you have any experience in any of these areas?

      Is the motivation to get into this just to get on TV?

      Basically if you are asking for chump change now.. what is going to happen when you need real money? Go to the bank, get a loan on your house put some skin in the game and go from there.

      Think about this for a moment.. you are coming to an open forum asking for $25,000 with a presentation like that. This is not thought out at all I can see it from here.
      That is a good point. I mean, even the power bill, insurance, and liquor license will probably put you above 25k.

      Cost of advertising, and regular costs of operations usually amount to much more than what you need in order to get going.
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  • Profile picture of the author sandalwood
    Originally Posted by Jon Martin View Post

    Hey WARRIORS!

    Sweet news -- I'm going to film for the original version of Shark Tank, the Canadian one -- Dragon's Den.

    I will be pitching a NEW restaurant/bar/comedy club. We will be bringing in TOP celebrities and comedians from the USA -- mostly LA, to sell out our club. Big profits.

    I need some capital to get started here..

    * plane tickets and hotel for these comedians
    * minor renovations
    * venue costs/small renovations to performance hall (seats 600 right now)

    I don't know what to offer the investors and what to ask for.

    I was hoping for a ticket royalty/loan. $25,000 -- they get $5 from every ticket and $1 from every restaurant meal until they get their money back. Once they have been refunded in full they will have a lifetime royalty of $2.00/ticket.

    What do you guys think? Am I smart to do the royalties and not offer equity, or do I have it backwards?

    We already have the PERFECT VENUE to go -- just need to sign the lease and order an LED sign!

    Let me know what you guys are thinking!
    From what I've read about the show (USA version) it really doesn't matter what you offer. The shark will say yeay or nay. If it is a yes, they tell you what they want. Then you go from there.

    I hope it is that easy for you. Congratulations...
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  • Profile picture of the author Mav91890
    Mr Wonderful is going to ask for your proof of concept and past sales, be ready for that! haha

    Good luck man!
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  • Profile picture of the author Mav91890
    Are you already accepted or auditioning for it?
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  • Profile picture of the author Mav91890
    What happens if a big corporation comes and squashes you like the cockroach you are? lol
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    • Profile picture of the author umc
      Originally Posted by Mav91890 View Post

      What happens if a big corporation comes and squashes you like the cockroach you are? lol
      Then you'll be dead to him.
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    • Profile picture of the author BigFrank
      Banned
      "You're dead to me!"

      Cheers. - Frank
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  • Profile picture of the author Virtualghost
    First off Mr Wonderful is not on Dragons Den.
    I would go in with double the money you asking for,do Royalty $5 till paid then 10% after they are paid off.
    Drop the idea of a continuous royalty.
    Your going to have a Chef on the Dragons Vikram Vij side do some homework on him before going in.
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  • Profile picture of the author Mav91890
    He was, maybe he isn't on the newer season. I only saw the first few.
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  • Profile picture of the author joe golfer
    Sounds cool. One question: Do you have an experienced comedy club manager ready to join your operation?
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    • Profile picture of the author savidge4
      Originally Posted by joe golfer View Post

      Sounds cool. One question: Do you have an experienced comedy club manager ready to join your operation?

      Doesn't something like that require a budget?
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  • Profile picture of the author bizgrower
    What sort of renovations do you need?
    We have bids for $1500.00 on up just to drywall, texture and paint one hotel room.

    Do you have acts booked already?
    Do they require a minimum guarantee that will kill you if you don't sell enough
    tickets and liquor? Better make sure they are popular in Canada as well as LA.

    I worked for an experienced bar owner who booked a popular ten years ago country
    act. His minimum to book was $15,000. She lost at least $10,000 that night. Poof.

    I don't get that $25,000 is enough unless you are talking per $25,000 invested they get
    the royalties/payback you mentioned. And, we don't know what you have invested, but
    a 600 seat venue seems more like at least a million to open and run. A nice restaurant
    alone can be that much.

    Be prepared for them to say no to royalties and ask for equity, or x invested at x return.
    If a show bombs, royalties are not coming from that show and you get behind.
    Just think about the different kinds of things they are likely to offer so you don't turn
    down a good one.

    Dan

    You want to get out of most debt asap.
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    • Profile picture of the author Oziboomer
      Originally Posted by bizgrower View Post

      I don't get that $25,000 is enough unless you are talking per $25,000 invested they get
      the royalties/payback you mentioned. And, we don't know what you have invested, but
      a 600 seat venue seems more like at least a million to open and run. A nice restaurant
      alone can be that much.
      In the OP they say
      We already have the PERFECT VENUE to go -- just need to sign the lease and order an LED sign!
      and it sounds like no investment has been made in the business yet.

      Any decent fit out on a venue of 600 seats is at least what Dan says above if not more so the $25K is not congruent with anything mentioned.

      How would $25K be even a drop in what it would take to set up a venue, book acts, pay staff, even buy food and alcohol for just one night let alone build a sustainable business of this size?
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      • Profile picture of the author Talltom1
        I totally agree with Oziboomer and his perspective. You have a tentative lease on the perfect venue. Now...what are your projected monthly operating costs for utilities, payroll, just keeping the lites on so to speak. Then you have the incremental costs of food and beverages. Beyond that comes the expenses of putting on an act.

        So on that particular line of thought, what are the first three acts that you've tentatively booked? How much are they going to cost you out of pocket?

        The more I think about this, there's a song by Elton John that fits perfectly...something about a candle blowing in the wind...

        T/
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  • Profile picture of the author bizgrower
    I've seen Shark Tank a few times. They all seem to want to become partners or probably unsilent
    investors. If that's the case, I'd do all I could to get a loan and get out of debt ASAP and not have a partner or unsilent investor. Experienced manager - maybe. Good partners/investors are harder to find than good employees, and employees can be fired.
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  • Profile picture of the author mediamarket
    I think this is an equity play because there's too many factors that depend on a pure royalty deal. What if you get no customer and or numbers aren't doing as expected?
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  • Profile picture of the author iVentureBiz
    I wish you the best luck. Though you probably won't get anything. Generally ideas don't get money on that show. only proven businesses that are making money get anywhere unless it's some patentable invention. There are a million restaurant comedy clubs out there that are already making money why should they invest in yours?

    Restaurants are rarely profitable within the first few years they are open too.

    I would say without some sort of committed sales and some sort of global business strategy beyond one restaurant barely turning a profit you are dead in the water. Profit potential in your eyes means nothing to them.
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  • Profile picture of the author whatjut
    I don't think you are ready for Dragon's Den. And I don't think your business plan is ready for an investment.
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  • Profile picture of the author NewParadigm
    you should contact a major comedian and get them to lend their name. Give them a small equity play. they may even come on the show with you.
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  • Profile picture of the author AndrewAdamSmith
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    • Profile picture of the author The Niche Man
      As others have said. It would be nice if you could get a famous comedian or comedians to go with you for added credibility. Barring that, (pardon the pun) a string of well known comedians signed on contingency to perform at the bar would help.

      If Dragons Den is anything like "Shark Tank" They expect you ...

      • To know your numbers cold!
      • Have a track record or experience in the business.
      • Have a compelling story to tell about your goal/dream.
      Note: Helps to be able to shed tear on cue while telling story with cracking voice. Good for any women investors or sensitive men on the panel.
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