The sixth entrepreneur, Abiodun Bolaji came to ask for 6 million naira in exchange for 60% equity in his refuse disposal business. His presentation seemed to reveal the ambitions of  a young man out with a laudable social cause, to rid our cities of debris and garbage, but his business plan revealed a young man who had allocated money disguised as “monthly PR” to be disbursed as ‘bribe’ or ‘brown envelope’ for certain undisclosed officials. His lame justification for this “monthly PR” budget led him to confess his intention to consort to bribery in order to advance his business, implicating him as a business man who had no integrity;  whom, if supported would not support the movement to rid the world of the impression that Nigerians were masters at cutting corners, and doing shady deals.

“This doesn’t look good,” John Momoh exclaimed disappointedly, “I wanted to invest in this but you just shot yourself in the foot…I’m out”.  All the dragons opted out.

Obv: This entrepreneur had a good chance until he blew himself up with a self-ignited dynamite. How do you confess on TV that you intend to ‘bribe’ your way to business success? I am shocked, and I wonder how you feel! Share your comments…

–The Den Sweeper

The fourth entrepreneur, Michael Ijegwua and his partner Idu Paul literally waltzed into the den, looking smart, and confident that they were going to secure an investment in a business they had tagged the “Mobile Aided Mail-Box”, which was ear-marked to provide a service that would replace the conventional Private Mail Box (PMB) addressing system with a subscriber’s mobile phone number. Wow! The idea sounded very brilliant, but at the same time very confusing for the dragons, who sought demonstrations form these entrepreneurs. The den for one second took on the traits of a blockbuster comedy show as the dragons volunteered to play-act the processes involved in using this service- John Momoh played the role of the ‘addresser’, while Alexander Amosu played the role of the expectant  ‘addressee’ who was a subscriber of this service- using his calculator as a make-shift mobile phone.  After this demonstration, the mystery and allure of the business ideas was demystified, as it was revealed that all the entrepreneurs wanted to offer to the public was a ‘mail-alert’ service, which will inform subscribers that they’ve got packages or mail at the post office. The dragons informed these entrepreneurs that their business was just a value added service which would prove profitable if only they made plans to work with the postal agency to introduce this concept to their subscribers.

At that, the dragons politely opted out.  

The fifth entrepreneur, Walter Asikaro, the chairman of Consolidated Gems Limited, came to expand his business of exporting rough and processed gem stones with a 6 million naira investment from the dragons. He claimed that he’d been doing this business profitably for the past 6 years, literally boasted of millions of naira in his bank account and assets. But he couldn’t convince the dragons about was the legality of the business. When the dragons cross-examined him after his presentation, he claimed to have documents that will prove that the business was legal, and very profitable, but when he was asked to present the document, he confessed to having left the paper-work at home.

“Like you, who’ve left your papers at home,” Alexander Amosu stated, “I’ve also left my money at home…I’m out”

And he lost all the dragons.

I welcome your comments…

–The Den Sweeper

The second entrepreneur, Emmanuel Achukwu barely escaped being scorched by the infuriated dragons who felt enormously insulted by his bizarre demand for 5 million naira in exchange for 60% equity in a company that  would specialize in writing business plans for other businesses when the business plan he had presented to the dragons for this business was, as deduced from the dragons, marred by an overwhelming and nauseating dose of mediocrity, incompetence, and severe lack of any fundamental knowledge in the art of business writing.  However, Alexander Amosu prodded on, asking if he’d done his research on who will comprise his clientele, to which this entrepreneur revealed that there were over 1, 500 potential business clients available- Alexander Amosu fired back, wanting to know why Emmanuel felt these businesses would come to him – and Emmanuel remained mute. Femi Tejuoso soon discovered that this young man had committed yet another big blunder in his stillborn project by failing to categorize his own plan appropriately. Chris Parkes soon discovered that the last page of Emmanuel’s business plan was upside down. At this point, Femi Tejuoso could not hide his dismay, “I’m starting a new business, which is a campaign to prevent people from getting into trouble with such ( ill-advised, and badly written) business plans.”

John Momoh attempted a few words of encouragement, “go back home, do more work, and try again…”

But Ibukun Awosika was more forthright with her closing remarks, “please don’t try again. Go back to school. Make yourself more qualified to do this kind of work- but for now, you don’t have a business”

The third entrepreneur, Alao Olatunji was bubbling with the idea of starting what he dreamt was a ‘Modern Day Carwash’, and in order to turn his dream into a burgeoning enterprise  he unwittingly requested for 31 million naira in exchange of 70% equity in his business, without adequate research to support his claims that the business would flourish, coupled with the fact that he was temporarily unable to convince the dragons that investing in the business wasn’t as risky and as foolhardy as drilling for water in the Sahara desert. During his presentation he had revealed his plans to roll out a bouquet of car-washing services under the glam titles ‘Flexi’, ‘Supreme’, ‘Instanta’ etc. He pegged the prices for his services at N1, 000. However, at some point he seemed to be communicating his idea effectively until when he proved unable to respond satisfactorily to Ibukun Awosika’s question, “what seperates you from the others at filling stations?” If this seemed like bad news, it got even worse, when it was discovered that according to his business plan that investors were not to expect returns on their investment for at least 3 years.

“I think you’re going into shark-infested water…I suggest you stick to the manual option” Chris Parkes suggested.

“this is a high risk business” John Momoh revealed.

And it was out! Out!! Out!!! For all the dragons.

Phew!

If Dragons’ Den business TV show was an athlete, one would be justified to say that episode 3 was on some kind of quality-enhancement steroids. Since the show premiered 3 weeks ago, it’s been the subject of adoration, critiques, and a business template for entrepreneurs. Episode 3 was packed with more dramatic energy, more ambitious smooth-talking entrepreneurs, and more ruthless dragons. Episode 3 on Dragons Den was like a one-hour lecture that made mince-meal of an entire session in business school.

The first entrepreneur Aniekeme Friday Bassey came in search of 8 million naira in exchange of 20% equity in a business he believed would solve Nigeria’s electricity problem for good. He came hoping to convince the dragons to invest in a business that would make wind turbine power-generating sets available in Nigeria. He gave an impressive presentation to support the necessity, benefits, and presumed viability of the business; during his presentation he revealed that the wind turbine apparatus generated up to 2 mega watts of electricity, and was currently being employed in Europe, where this technology is responsible for generating more than 40% of the continent’s energy.

His proposal held a lot of promise, especially for Nigerians who are currently plagued by the living nightmare of epileptic and sometimes non-existent power supply, his idea represented hope, and his presentation seemed to be sliding into our bowels with the aid of a well-lubricated speculative presentation, until Femi Tejuoso asked, “can you tell us what you think is responsible for the fact that the wind-turbine technology is used in some countries and not in others?” This question proved to be an exposition of the peripheral nature of the idea. However this entrepreneur responded by saying that the countries believed that the wind in their regions was not strong enough to power the wind turbine.

Alexander Amosu was arrested by the prospect of supporting a business idea that would fulfill the most basic and fundamental needs of individuals and businesses in Nigeria. Alexander Amosu however needed scientific proof that will convince him that the product works. The entrepreneur, being unable to assert the workability of this product, then decided to do a little ‘name-dropping’ by attesting that his partners in Spain the country where this product was to be imported from have demonstrated the proof that it works.  His problems have just begun. The dragons had initially held onto the notion that the technology was developed by him. They began to gradually distrust this entrepreneur, as they began to dig deeper into his business plan, where they soon discovered what proved to be a fatal flaw for Friday Bassey, in the character of what he’d elaborately described as his “exit-strategy” in an event the business failed. In this “exit-strategy he had described how he was going to switch to another business, without explaining what the fate of his investors would be in the event of this ‘foretold’ collapse.

His “exit-strategy” resulted in his quick and cashless exit from the den, but not until Ibukun Awosika gave him a well deserved ‘tongue-lashing’ in her characteristic motherly manner, informing this entrepreneur that failing to communicate and convince any investor of his undying passion, trust-worthiness,  and unwavering belief in his project would repel prospects. Meaning that thinking about defeat or failure even before a project is launched spelled doom for any entrepreneur.

Of course all the dragons had opted out, who wouldn’t?

The seventh, and the last entrepreneur for episode 2, Yusuf Bello came to the den seeking a 10 million naira investment in “Naijacities.com”, a mobile directory solution company. He was able to demonstrate the service on his mobile phone, and gave the dragons the opportunity to do the same. And it worked perfectly. Yusuf Bello was also confident, and articulate, even when the dragons began to spit fire at his business idea, asking why he felt he was qualified to do this business, he quickly reeled out a very impressive CV which boasted of a Bachelors degree in Mathematics and Computer Science, an MBA, and a Microsoft Certification in Software Development. He was able to prove to the dragons that he had the passion, the focus, and the prerequisite skills for running “Naijacities.com” but how well did he sell himself as a business man?

He was able to demonstrate his passion for the immediate kick-off of this business by confirming that he was ready to resign form his day job in order to run this business. When asked if he was ready to transfer the working knowledge of the programming required to run the business, since it was risky to have a huge idea like this vested on one man alone, he readily confirmed his willingness to mentor a programmer and transfer the knowledge. Finally Alexander Amosu, impressed by this entrepreneur’s dedication invested 2 million naira for 10% equity; sensing the viability of the business, John Momoh offered the entrepreneur a whooping 3.5 million naira worth of advertising on Channels TV in addition to 2 million naira cash investment for 35% equity; Femi Tejuoso came on board the business with 2 million naira, while Ibukun Awosika invested 2 million naira…in the end the entrepreneur had an offer of 11.5 million naira from four dragons. Now his negotiation skills came to the test when Ibukun Awosika assured him that the four dragons were ready to provide the 10 million naira which he was asking for, in addition to coming on board the business with the various levels and areas of expertise and experience for a total of 75% equity to be split between the four dragons who had invested. He was offered time to think the offer through, and was even encouraged to consult his financial or legal adviser or anyone who could advise him before making his final decision. Yusuf Bello got on the phone and called a close associate of his, who advised him to accept the offer the dragons were making without further hesitation. He returned to the den, and accepted the offer. Handshakes were exchanged between Yusuf Bello and the four dragons…sealing the first deal in the Dragons’ Den.

Ibukun Awosika later revealed that the dragons had expected the entrepreneur to bargain the equity, but choosing not to do so shows that he understands the value of their contribution to the board of this business.

Speaking to Yusuf Bello after the deal was sealed; he expressed his delight in being able to persuade the dragons to invest in his business. On the issue of the 75% equity he ceded to the dragons, he posited that though it seemed like much, but in reality he sees their investment and the fact that they will be running the business with him as a milestone achievement which will ensure the huge success of the business.  

Yusuf Bello goes down in the history of Dragons Den Nigeria as the first entrepreneur to have slain four dragons with one idea.

What do you think?

The fifth entrepreneur, Simon came in search of 7 million naira for a sports viewing centre he’d tagged “Just Football”, and in exchange he was offering the dragons 70% equity in this business. After describing the infrastructural, mechanical, and logistics requirement of this viewing centre, which he enthused was to seat at least 300 persons in a football-inspired environment, Chris Parkes who we discovered was also in the football viewing centre business told Simon, “I don’t think you’re asking for enough money because I do football viewing centers too, and just the equipments without the rent (for the space) will take up all your budget…” His choice of Surulere, a densely populated area in Lagos, excited Chris Parkes, who felt the site was a good choice, who advised the entrepreneur to go home, do his homework and get in touch with him personally to discuss this business idea properly. Simon was offered a partial deal by Chris Parkes, like Ibukun Awosika put it, “the idea is good, but the business is not together yet” and on that basis, Ibukun Awosika and all the other dragons opted out of the business.

Bottom-line, he didn’t ask for enough money…but the idea was great, and Chris Parkes offered him an opportunity to do this business with him when he gets his figures right…

But then,

The sixth entrepreneur, Carl came with what seemed like a bright idea; he claimed to have found a way to eliminate the cumbersome processes involved in bus-ticket booking in Nigeria. He was asking for 3 million naira for 20% equity. In the description and presentation of this business idea, he failed to convince the dragons that he had the technology, nor the exclusive rights to the technology, a direct market link, and a justifiably viable motive for consumers to patronize this business. Also the cost of his service to the consumer (200 naira) was not thoroughly researched, “the cost is important because the people who use the buses have some economic constraints…” remarked Ibukun Awosika. What however broke the camel’s back for Alexander Amosu who due to his experience and expertise in the digital terrain, was the fact that this entrepreneur had not bothered to secure an exclusive agreement with the hardware/ software manufacturer to cover his operations in Nigeria. The dragons opted out.

He ignored an essential document…How else was he hoping to convince and persuade the dragons that the business was viable if he had not agreement whatsoever with the manufacturer?

What’s your take?

For these two, the ideas were good…but the paper-work was not so good.

 The fourth set of entrepreneurs were Titus Emmanuel and Simi Oluwa, they came seeking 10.5 million naira for their food processes and food processing business, in exchange of 25% equity. They were proposing to develop and market of range of products derived from the soya bean – they even proposed the conversion of soya bean to bio-fuel. To demonstrate their meticulous research and preparation, they presented the dragons with a glass of soya milk, which Chris Parkes tasted, and seemed to like the taste.  At this point, Femi Tejuoso noted, “you haven’t told us anything about the processes that lead to the product…” after which these vibrant and brave entrepreneurs who were both undergraduates explained their manufacturing and production process, positing that they’ve only been experimenting in a make-shift lab in their kitchen. Another ambitious idea they presented was to process a food product which was a mixture of soya bean and garri.  A lot of sound ideas flew back and forth from these entrepreneurs, until John Momoh asked if they’ve bothered to conduct a market research, after Ibukun Awosika wondered, “how sure are you that consumers will like the taste derived from the combination of cassava and soya bean?”. At this point, these young entrepreneurs exposed the fact that they’ve based their entire business idea on speculations, and very little research or market survey.

Another loophole presented itself in their presentation when they started brandishing the word “if” in the middle of the cross-questioning…echoing the stance taken by Chris Parkes in his announcement, “I’m out because there are too many ifs…” the other dragons soon opted based on the speculative nature of the business.

Young and ambitious, brave and confident…these are words that best describe these young men…I think we’ve not heard the last of them…with a little business knowledge, these young men would blossom into successful entrepreneurs. Maybe they would know better to research and survey their market rather than base their pitch on speculations.

What do you think?

The third entrepreneur Mr. Emmanuel came seeking 7.5 million naira to commence the exportation of agricultural products to Russia. He claimed his company was in partnership with major agricultural groups in Germany, Singapore, Russia; that his company specialized in developing bio-fuel. His pitch to export bio-fuel extracted from agricultural produce got Femi Tejuoso concerned, “Industries in Nigeria are looking for this product to buy, so it doesn’t make sense for you to say that you’re exporting to Russia…” not getting the clue, this entrepreneur was insistent on exporting, “I have documents to prove that I’ve been exporting to Russia…” and when the dragons demanded to see this document, this entrepreneur announced, “it’s not here, it’s upstairs..” He received a little lecture in ‘pitching’ from the ringtone millionaire Alexander Amosu, “if you’re looking for 7.5 million naira from dragons or any other investor, and your presentation requires that you bring your house to convince them, you have to do that…but what you’ve done is leave the most important document you needed for this presentation somewhere else…”

Without saying, all the dragons opted out. Not before he was advised by Ibukun Awosika to use simpler diction in his presentations; cut down on the scientific and technical jargons.

Isn’t this the classic case of the famer who went to harvest, but left his hoe and cutlass at home?

The second entrepreneur who may be referred to as “Mr. Rebirth” came to the den looking for 24 million naira to develop his idea for what he tagged ‘Centre for the rebirth of African culture and arts’, and in exchange he was offering to give up 30% equity of this business.

Shortly after he introduced his idea, Femi Tejuoso made a remarkable observation, “this business plan you’ve given us looks like one written by a very confused person…you call it the Centre for the Rebirth of African Arts and Culture, yet you’re advertising a breakfast menu that parades Scrambled eggs and bread, German potato salad, Sandwiches, French fries etc…where’s the Akara and Ogi, where’s the moi moi?”

Chris Parkes, as an advertising guru advised the entrepreneur to device means of encouraging Nigerians to tune in and be proud of their culture, while Femi Tejuoso insisted that entrepreneurs like him in the arts and culture business should endeavor not to dilute our culture, while disguising western culture as the prevalent culture of Nigerians. All the dragons opted out. But Ibukun Awosika shared a motherly concern after the entrepreneur had left the den, “I’m tired of our children having the best of education but having no understanding of Nigeria, which is the reason I refused to send my children to British-curriculum schools…I don’t want a British Nigerian, I want a Nigerian that understands who he is first…” Alexander Amosu concurred immediately, humorously indicating that that was the reason why he returned to Nigeria to understand more of his culture. The dragons shared a brief moment of humor.

How many Nigerians have sandwiches for breakfast, not to mention German potato salad?

Well, what’s your opinion?

The first entrepreneur in episode 2, announced himself as James Ogwonoja, a legal practitioner looking for 46 million naira to invest in the hospitality sector. He came proposing to expand on his 11-room hotel. He intends to upgrade the facility by erecting 23 more rooms, halls, restaurants, and bar. He posited that he was currently running 11 rooms, along with a restaurant and bar, but he was seeking the dragons’ investment to take his hotel plans to the next phase. He got the dragons interested after he claimed to have a stream of patrons from the corporate sector, especially bankers, in addition to the fact that he posited that he almost had a near-monopoly in the hotel business in Lokoja. His claim however inspired a few questions like “why haven’t you approached the banks for finance?”, to which he responded that he preferred to work with investors like the dragons, “unlike a bank that will come with a bullion van to pack all the money” but just when his pitch was getting high-pitched, Ibukun Awosika discovered that he was on the board of several unrelated companies, and wanted to know how that was possible, to which he responded, “I have almost 210 staff that work for me…”. At this point, Ibukun Awosika exclaimed in awe, “you’re the big guy, you don’t need us”.

The dragons soon opted out on the basis that this entrepreneur, running a lot of unrelated companies would not have time to focus on the business he was pitching. He was simply sitting on top too many businesses.

If you ask me, I’d say that this entrepreneur had brandished his resume hoping to impress the dragons, but succeeded in turning them off with his ‘jack-of-all-trade’ CV. And come to think of it, with 210 staff working for him…I think I’d have to agree with Ibukun Awosika, he is the BIG GUY!

What do you think?