Canadian entrepreneur pitches Ball Bra Business
Posted on March 13th, 2010 by admin
The business: Novelty Men’s Underwear
Sales: 10,000 units for the last year totalling about $200,000 gross revenues
Marketing budget: Zero
Asking: $300,000 for 20%
Company Valuation: $1.5 million
The counteroffer: $300,000 for 100% if Arlene will take charge of marketing.
Arlene refused so there was no deal.
Let us hear your comments!!!
Filed under: Entrepreneurship 101
I think that Arlene is a little shy about the novelty underwear. How do you explain to respectable people that you are selling ball bra? This entrepreneur’s second product – the travelling underwear with pockets is actually a great idea – but he didn’t spend anytime on it. He would have a better chance if he did just that! Too bad!
His valuation for the company was way too high. If he did not start out too high, he might just get a chance. At $200,000 gross revenue, he might just make $60,000 net, and the $300,000 offer would be an offer of 5 times annual earnings. That’s a pretty good offer with a 10% royalty. Too bad the deal fell apart.
This Canadian entrepreneur has just got the publicity of a life time. Now, a lot of people know about the Ball Bra. That’s tremendous value!!