Jobloft blows a done deal on Dragon's Den thanks to big mouthed Professor

As many of you know, I enjoy Dragon's Den and Shark Tank as these shows feature successful entrepreneurs as Venture Capitalists helping smaller entrepreneurs with big ideas but need funds to expand or take it to the next level.  Last night on the CBC, they did a reflection of the past several seasons regarding the most memorable moments on the show.  These moments included times when those making their elevator pitch broke down in tears at Kevin O'Leary's caustic response to ridiculous valuations, funny moments when the Dragon's clowned around, times when pitchers used scantily clad men or women to pursuade the Dragons, and even a time when a Food Pitcher served up a dish to the Dragon's that was revealed to be Dog Food!!!

However the most memorable moment came from the first season when the founders of JobLoft.com, an internet job site that would alert job seekers in service businesses such as restaurants, hospitality and retail stores, who was hiring in what areas via Text and enable faster application filing for those in those industries.



Jim Treliving, Franchise Baron of Boston Pizza and Mister Lube  was very interested, as were the other Dragons.  A deal was done--first deal closed of the first season.  However, at the closing, the founders of Jobloft (a group of University students) brought their mentor, a business professor, along for the signing of the deal and the cheque being issues.  However, that business professor (a bigger blowhard than I am) ruined things:


Suffice it to say, the Professor's behavior is very disappointing on many levels.  For one, the student entrepreneurs had made a successful elevator pitch and had a done deal, cheque written etc.  Although I am sure the Professor had good intentions, if he had ANY business sense AT ALL, he would have voiced his feelings about the deal PRIVATELY with those students he was mentoring and not done any grandstanding at the closing.

As someone who would be very pleased to help mentor students that are serious about becoming entrepreneurs or advancing into a career in business, and as someone who spent more than 16 years of his life in the Financial Services realm prior to teaching college & university students, I would consider it my role to advise anyone I was mentoring at appropriate moments and then step back and allow them to do what they felt best, including reject some or all of the advice I provide, and reap the benefits, or suffer the consequences.  That closing was Jobloft's moment to enjoy and their mentor should have just said "Congratulations" and been happy for them, rather than shoot his mouth off.  If I'd been in his shoes, I'd have  kept any ruminations about it to myself during the closing and would have been more jazzed to meet some of the Dragons.

Future participants on Dragon's Den learned a valuable lesson at Jobloft's expense:  BE  VERY CAREFUL who you invite to the closing of the deal.

Until next time,

Professor Hank Lewis

Economics Professor Approved Television: Dragon's Den and Shark Tank

Economics Students and Readers:

In the first week of class, we learn about the categories of Economic Resources--Land, Labor, Capital and Entrepreneurship.  We define them, look at specific examples and explain how they are scarce.  The TV shows Dragon's Den on the CBC in Canada and Shark Tank on ABC in the US/CTV in Canada feature Entrepreneurs that are self-made multimillionaires and billionaires who are engaging in Venture Capital Investment.  Small entrepreneurs who have existing businesses or products go on these shows and make what we like to call an elevator pitch where they sell a portion of the equity in their firms in exchange for money to grow the firm and access to the Dragons'/Sharks' contacts and experience in order to help develop and grow their firms. Biographies of the Dragons and the Sharks can be found by clicking on the hotlinks in those words

Some of these small entrepreneurs ink deals with the Dragons/Sharks and end up growing and becoming very successful.  Others refuse the deal but are still successful thanks in part to their exposure on Nationwide North American Television.  Still Others offend the Dragons/Sharks and get rejected, and despite having a good product, end up failing.  Finally, there are always a few entrepreneurs who come on the show that are sloppy, unprepared and get mocked out of the room.

Below is a video from Dragon's Den where the owners of EthicalOcean.com are making a pitch regarding their online marketplace for sweatshop free, econ-friendly products and we see Jim Treliving, Kevin O'Leary, Arlene Dickenson, W. Brett Wilson and Robert Herjavec debate the merits of such an investment.

 


Below is Dougie Luv, the owner/operator of Dougie Dogs making a pitch on Dragon's Den very recently. Jim Treliving, Kevin O'Leary, Arlene Dickenson, W. Brett Wilson and Bruce Croxon send him away since his Total Revenue aren't profitable enough.   Jim Treliving is the majority owner of Bostons: The Gourmet Pizza in Canada, the US and Mexico, and his knowledge of profits needed base upon square feet of operating space is based on years of experience.  Dougie is invited to come back once he hits minimum targets set by the Dragons.



Last but not least, Donny McCall the owner and developer of the Invis-A-Rack cargo management system for pickup trucks appeared on Shark Tank this past Friday, January 27, 2012.  I can't post the video directly here, and he spoke with the Sharks at the very end.  However here is the Link to the Full Episode on ABC.com.  Note that Kevin O'Leary and Robert Herjavec are on both Dragon's Den and Shark Tank.  Shark Tank also includes Daymond John (founder and CEO of FUBU), Barbara Corcoran (a real estate mogul) and Mark Cuban (Owner of the Dallas Mavericks and founder of a ton of various businesses and enterprises).

I hope those of you that are not entrepreneurs can appreciate just how much knowledge, creativity and inspiration it takes to be one of the Dragons/Sharks, as well as one of the entrepreneurs that goes on the show and makes their pitch.  Also note: useful business and economics vocabulary appear in bold italic in these articles.

Success to you all!!!

Prof. Lewis