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 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 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?

Still maintaining the world-class standard with which it premiered last week, Dragons’ Den returns with more fiery business drama in episode 2. The entrepreneurs are getting more ambitious, and the dragons, as savvy as before have become more meticulous, making it more difficult for the ill-prepared to survive their fiery scrutiny.

Some of us may have thought that slaying the dragons was a well lubricated modern myth, but we were proved wrong last night as one of the entrepreneurs wrenched N10 million off the dragons in the den, with a unique business idea…one by one, let’s examine how what each entrepreneur did in episode 2.