Originally Posted by nomad2king:
“I see that Charleine's current businesses were to be kept as her sole property. That was on the first page of her business plan. It was the academies and franchises that were on offer. Even by year 5, her training academies were only go to have a turnover of around £100,000. Not much scope for profit there.
Vana's gamification of dating was playing games such as brainteasers with the other person. How would you repeatedly synchronise schedules to do that? Basically instead of having an online conversation, you play online games with them. If the games were silly and fun and you could have an online audio dialogue, it might work. You would get an idea of their sense of humour. Is the dating and the picture reveal side of it really needed?
If Richard's idea is so great, why doesn't he implement it in his current business with his brother? The 4 stages that were meant to be key to his idea were obvious ones, ie "basecamp", "sell more to your existing customers", "find new customers" and "raise you profile". Most people could come up with that list all by themselves.
Not sure what Gary would be offering people except to watch the events. That would require multiple cameras and operators. Any 2 way interaction at something like a wedding could only be done at prearranged times at the event and that could be replaced by a prerecorded video message.
Why do they think they can just easily set up franchises. What would the franchisees get in return? With places like McDonalds and Subway, it is clear what you are getting and it has a true value that is difficult to do without, eg national advertising. What could Charleine and Joseph offer that the franchisees couldn't do for themselves?
Not sure how in the final task that Joseph can launch anything worth showing. At least Vana could create a small scale prototype of the app. Might have been fun seeing Gary's idea in action.”
I'm broadly in agreement. A few comments:
Charleine's plan showed a profit of £75k in year 5 - so £37.5k to Sugar (as a 50% investor). Nowhere near enough based on a £250k investment.
I don't think Vana's app would necessarily require synchronous play. Apps like SongPop involve playing in 'turns', so it could maybe work like that?
I quite liked Richard's plan - I can see how it could benefit smaller businesses who have no idea how to grow other than to knock on doors or "work their socks off" (ahem, Charleine). Few small businesses really know anything about marketing other than placing ads in local papers or having a webpage.
Gary's idea - well, Linda Plant summed it up when she said it was "just a mobile disco". It really was.
I think often candidates latch on to franchising because it's a quick way to expand and build the kind of numbers you need for an attractive investment. But, as you say, the franchisee has to see some tangible benefit - generally a brand (McDonald's, Starbucks) or some differentiating product/process (Avon). As Mike Soutar showed Joseph, he wouldn't have been able to afford being his own franchisee!
Fundamentally, Joseph's revised plan isn't actually a new business at all - it's just an expansion of his existing business. Relatively safe but not overly exciting and I can't see it generating massive returns. But if Sugar wants to get a modest payback on his investment, it might work.
Vana will burn through the £250k in months, probably before she has earned £1 in revenue. But £250k would get the add through development and possibly a pilot phase, at which point she could target venture capital funding to push her through the next phase. If it works it will be huge, but it's a crowded marketplace with a very high failure rate.
It all comes down to whether Sugar really does want to take a risk, or whether he wants to play safe.