The much anticipated second season of the entrepreneurship show KCB Lions’ Den aired today on KTN TV where a total two deals were made worth 8.5 million shillings. Compared to the first season, this was better in terms of the maturity of ideas and how the lions handled the different ventures. The first season of KCB Lions’ Den saw 30 out of 72 businesses being funded. The lions were able to make investments worth more than KES 150 million on the businesses that showed potential to grow and make money. The five lions from season one were retained incuding Wandia Gichuru, Myke Rabar, Olive Gachara, Darshan Chandaria and Kris Senanu. A total of four ventures pitched to the lions and here is a look at each of them;
This is a company that helps you recover lost documents. We all know the stress we go through when we lose our most important documents like national ID, passport, certificates or ATM cards. I think everyone would welcome a safer and convenient way of recovering these documents any time. So, Pata Documents has 3500 documents in their possession that need to be re-united with their owners, but just like the KCB Lions’ Den judges, how safe are these documents since this should be safest place where one is confident in retrieving their lost documents? They also couldn’t explain how they were going to incorporate the legal framework involved and didn’t bring out the commercial viability of the product, where investors are most interested. The presenters were also not confident and it seemed as if they didn’t understand their product well.
Baraka Bora Products
This is a company offering ecofriendly car care and home care products including tyre shine, carpet shampoo and bleach among others. Made by an experienced chemistry expert, Baraka products offer high quality products for cleaning your home and car. They seek 1 million shillings for a 20% equity in the company to help them set up a physical site, improve packaging and marketing of their products. Myke Rabar offers 1 million for 30% equity but after much negotiation, Darshan Chandaria, a strategic manufacturing partner deals at 1 million shillings for 35% equity. A good product but more needs to be done on coming up with a marketing and distribution strategy to reach a bigger market.
Weight Watchers Kenya
With a commitment to help you get fit, Weight Watchers Kenya incorporates nutrition and fitness programs and challenges to individuals and corporates. This is not a unique idea and with a net profit of 600 thousand shillings, I believe they can raise the amount of money they need to purchase more equipment. The company has about seven shareholders, something that put off one of the lions from investing in. They didn’t bring out the unique value proposition for their business, a key factor when you want to stand out in a such a crowded industry.
Just like the name suggests, Wing it is a fast food company specializing in chicken wings. A great and unique idea that can only be rivaled by a few companies the likes of KFC and Burger King. Wing It seeks 7.5 million shillings in exchange for 25% equity to help them renovate one of their branches and expand its operations. The company has been growing since 2014 and has moved from just 4 million shillings to 16 million shillings in sales last year and with a projection of 24 million shillings in sales this year operating within a net margin of between 32 and 34 percent. Wandia Gichuru offers 3.25 million for 15% equity but seeks to partner with another lion. Kris Senanu comes on board and the deal is made at 7.5 million shillings for 33% equity.
The first episode of KCB Lions’ Den season 2 has showed improvement but also some setbacks especially on the side of the entrepreneurs.
- Poor pitching skills from some of the presenters especially the guys who presented Pata Documents. Remember a great idea is as good as the way it’s presented. You might have a good idea but poor presentation might make someone miss out on the important aspects.
- Entrepreneurs need to come up with a proper business plan for their business because it will clearly help you articulate what’s missing and at what point you need an investor and for what purpose. Investors will look also at this to gauge whether your business is worth being invested in.
- You have to prepare well before pitching your idea to any investor. This includes knowing your product and/or service in and out in terms of production, costing, marketing and distribution. You should be in a position to explain for example how you arrived at the product price.
- Finally, be bold. I was told that investors might not like your product or service but they might like your confidence and passion for the business. Investors are confident about someone who’s confident with their business and vice versa.