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Between a Good Idea and a Poor Target Market
The second entrepreneur, Bello Bisama was in the den hoping to secure a 7 million naira investment for a special-interest magazine “Fone Book”, which according to him would be a phone review magazine that will give Nigerians information about cell phones, phone accessories, product specifications, phone software etc. He was offering 20% equity to the dragons. During the usual Q&A, he posited that he intends to commence production and circulation with 20, 000 copies. Alexander Amosu observed that most of his content had been lifted off the internet, and that such a magazine served a very niche market. The entrepreneur and Alexander Amosu had a brief spar on the differences between the UK market and the Nigerian market, with the entrepreneur stating that there were more than 60 million cell phone users in Nigeria. Chris Parkes made an interesting rhetorical comment that examined what would be first on an average mobile phone user’s scale of preference in Nigeria: to spend money on recharge cards or to spend money on a magazine to read about, and ogle at diamond encrusted phones that the user cannot afford? More flaws in his business plan came to the fore, when it was discovered that he was expecting to generate 80% of his revenue from sales of the magazine, and 20% from advertising; to this effect Femi Tejuoso educated him that he stood to make more money from adverts, than sales, and the other dragons informed him that majority of the papers in Nigeria earn more revenue from the advert sales. On a concluding note for Femi Tejuoso, he stated, “I think more people are more interested in gossip (magazines) than something like this”.
The dragons kept their money firmly in the pockets this time.
The third entrepreneur, Nwogbo Michaels came in search of a 7 million naira investment in his company, North Pacific Ltd, to enable him foster his business of palm fruit processing, extraction of edible fat from palm, etc in exchange for 25% equity in his company. After his presentation, Ibukun Awosika asked, “assuming we give you the 7 million naira now, what next?” and Nwogbo declared to the dragons that they are guaranteed of 100% return on their investment, but probing further, Chris Parkes asked the entrepreneur how much salary he was willing to pay himself to run the business, and Nwogbo declared he was going to pay himself 40, 000 naira, meaning that with an initial investment of 500, 000, he was going to recover almost all the money he put into the business within one year while he had no structure in place to guarantee the dragons that they were going to recoup their investment any time soon.
This prompted the dragons to opt out, for lack of confidence in Nwogbo’s business structure.
Obv: Mr. ‘Fone Book’ had a good idea, but why did the dragons reject it?
August 18th, 2008 at 5:30 pm
Hi,
Good to be here. I am impressed with the concept of the program and this ‘back end’ of it. Lovely idea.
Now my hassles.
Line 14 of the comment titled ‘Between a good idea and a poor target market’, the phrase ‘bothered on’ scattered my reading. This phrase does not exist. The right phrase, which incidentally wouldn’t quite fit into the sentence as is, is BORDERED ON which is synonymous with ‘is virtually’ or ‘can be considered as’. Please correct this and don’t let it happen again. I beg you.
Then my overall comment on the show so far is that it appears that the Dragons themselves are overtly cautious. Case in point the fruit seller chap who came on last week. For the life of me, I couldn’t see any other reason for them backing out other than that it wasn’t an upper class business or service and the poor chap didn’t look like he just stepped out of Saville Row or something.
I think the lady Odemwinge who got some money last week like another commentator said, really didn’t need it. However she had a celebrity brother and obviously knew a few popular people, so they wouldn’t be ‘contaminating’ themselves by having dealings with her. Oh and of course she had the right accent, words and carried herself a little haughtily.
If you extrapolate this to the real world, bottom line is, the rich get richer, bank loans only go to people who can show they don’t need them, and yes the poor get angrier.
I think the Dragons need to remember how they (or maybe their parents) started out with nothing. Merit does not always have perfect elocution.
Selah.
August 18th, 2008 at 6:31 pm
Hi Selah, thank you for your observations. Point taken, and corrections already effected. My apologies for the slip.
We appreciate your comments.
Thank you for taking time to read this humble den sweeper’s diary.
DS
September 25th, 2008 at 4:58 pm
hi, this is odemwingie giving a reply to Mr. Dredz comments.
The fact that someone has a big brother, or daddy, or family, does not mean they should not try their best to measure up to them. Everyone has a mark to make in this life, to prove that their purpose on earth is not wasted. There is a lot to a person than just living off the benefits of having someone that they look up to. It is only of great support to have an example of success. And I use those examples to my benefit. SUE ME!!!
Even you will not deal with someone who has no evidence of quality or something to offer. (would you date a girl that does not look the way you’d like it) don’t think so !!!!!
The fact that i can present my case shows a level of preparatory efforts. as again I would advise that you make statements based on facts rather than assumptions, or reacting on what you feel rather than what you know.
Of course knowledge of the background of a person or a business adds some benefits, but i have also seen people who have all it takes to achieve success, but i never made the effort to work with them. Why don’t you ask and have faith in the reasons why the dragons made the deal with me. You may get a more factual statement. i bet that if you get to know me, you will not leave unhappy.
i have come across statements like arrogance but that is only a negative comment, coming from people who are intimidated, or cant recognize authenticity, as self-confidence can have the same outlook as arrogance.
Haughtily- Scornfully and condescendingly proud. See Synonyms at proud. Again negative!!!!!!
i would use the word pride- i have pride in who i am, what i have achieved, who i know, and most importantly where I am going(Future). i guess you don’t know that either. So how can you be proud for me when I succeed?
change your outlook to success and you might just get there. out of the abondance of a heart a man speketh. and if you knew that the world is a boll of energy, you will realize that what you get is what you give. God Bless You My Dear.
Positivity backed up with effort has a lot to do with the level of success in someone’s life.
Aren’t you tired of seeing people who have no eloquence or positive attitudes and actions that handle your future? I SURELY AM, and it’s about time People who exhibit the right package, develop testosterone producing organs, and start doing something. The choice will then remain with the customer if they choose to change. and most will because everyone wants to grow for the better.