A question many ask us is “How did Dragons Den go?” What they mean is… did you get a deal for your Ottawa Boat Tour Business? Yes! We got a great deal! But it’s not what you think. Of course, prior to the episode being broadcast we knew the results, but we were under a non-disclosure agreement until the episode aired. So, was there a handshake? No, we didn’t get one, but we still did get great deal and we are thrilled with the overall results and experience. Our only disappointment is that with sixty minutes of filming it has been edited down to 7 minutes leaving lots of good stuff on the cutting room floor. If you tune in to the episode and blink, you may miss the video clip of our Boat Tours in the water. We were hoping for at least 30 seconds. As for the dragons and their comments – see below for our thoughts.
Truth be told, we really don’t need any funding and we are debt free. Adding an investor to our Ottawa Boat Tour location would have complicated our future plans. In due course, we want our children to oversee the Ottawa Palapa business operation unencumbered by outside investors. Gaby and Mike in turn will focus on expansion with investor/operators in other cities with Palapa Tours International. So how is this still a great deal? Keep reading…
What we enjoyed most about the Dragon Den Experience is that they not only did they validate the business idea, but two of the Dragons said that this is the BEST lifestyle business they have ever seen. That’s powerful!
So, what exactly is a lifestyle business?
A lifestyle business (also referred to as a lifestyle venture) is a business set up and run by its founders primarily with the aim of sustaining a particular level of income (ie net 300k) and no more; or to provide a foundation from which to enjoy a particular lifestyle.
Yes, Ottawa Palapa Boat Tours is exactly that. But is that something the Dragons want to invest in? The answer is no… they want to see something bigger and although we have ambitious plans of 100 boats within the next 10 years, Palapa Tours International has yet to derive revenue from the licence partnerships it is establishing.
The Dragons love franchise models because it mitigates risk on their investment. Although we are not a Franchise our business license model (www.palapa.boats) will derive a significant revenue source, but not yet and that’s where they got stuck. A Lifestyle business in a single location did not “float their boat.”
So, although no handshake, Dragon’s Den exposure is worth well over 125,000K of free advertising across Canada. Entrepreneurs who are interested in doing what we do and being part of “The Best Lifestyle Business” the Dragons have ever seen now know about us… tell us that’s not a GREAT DEAL!
We had the honour and privilege to meet up with Wes Hall from Dragons Den prior to our episode airing. Immediately upon seeing us, he said, “Hey the Tiki Boat Tour People” and went on to say we had a great pitch. He gave some insight about no deal, and it was something we never considered. One of the stumbling blocks for an investor was the “seasonality” of the business. Despite great revenue, he felt that if we were a year-round operation, then it would have been more in line with an investors ROI. He did reiterate that our pitch was great and he remembered his FunGlasses!
We chatted about our plans to go south and establish expansion of Palapa Boat Tour river cruises in Mexico. Wes owns the Harbour Club Resort in St. Lucia and he gave us the name of his managing director. The Harbour Club has a fantastic Bay area… so stay tuned 🙂
Looking Ahead: Once Palapa Tours International has solid revenue numbers from expansion, we do plan on revisiting the Den and possibly Shark Tank. Why not! The exposure is amazing, our business model is solid, and we love our clients. As we grow, we want to help as many people as we can gain the lifestyle we are building.
We want to thank all the Dragons for their enthusiasm, and feedback. We want to thank our producers and those who have been with us each step of the way including our children. Palapa Tours has marked many special occasions, from birthday parties and engagements to bachelorette parties and weddings. We thank you for allowing us to be a part of your lives.
What’s next? As mentioned, Gaby and Mike are preparing to spend 2 months in Mexico, relaxing and visiting Resorts for expansion. We are also looking for solid investors to partner with us in their respective cities as well as at the Palapa Tours International level. We can’t wait for next season and hope you enjoyed the episode.
https://www.cbc.ca/dragonsden/m_pitches/palapa-tours
If you would like to read about our journey to the Den; The Ottawa Business Journal has some articles published about the experience. You can find theme here:
- Applying for Dragons Den
- Preparing for the Pitch
- Facing the Fire
- What Happened
COMMENTS ON EACH DRAGON:
ROBERT HERJAVEC – During our entire presentation Robert was the most excited. Why? Because he sees Tiki Boats on the water in front of his house in California all the time. He validated our business and said the ones in front of his home are always full. However, Robert said he saw it as a limited size market for himself. We think he missed the boat in understanding the overall expansion plan vs just a business in Ottawa. Nonetheless, we loved his overall excitement and enthusiasm.
WES HALL – Also validated that this is a great “lifestyle business” but not one for him. We shall see what the future holds with the resort down in St. Lucia. A deal may still be made for a single location vs investing in our corporate expansion plans. Time will tell and we agree with what Wes said when we met him the 2nd time… to keep knocking on doors and never give up.
MANJIT MINHAS – She was excited, but said that we should focus on booze sales as she felt they were low. Yet, we don’t want to be focused on only selling more drinks as the experience in our opinion is more important. Manjit went on to say that it is a “Fun Idea” but that there are no real barriers to entry. We wholeheartedly disagree. The American boats never came to Canada, because there is a barrier to craftsmanship and safety as per Transport Canada Regulations – which we have meet. We are not simply a “raft with a bar”. We built a better boat than what is available in the States. We don’t think competition will come easily because there is a HUGE barrier to entry.
MICHELE ROMANOW – Michelle said that she felt the ticket price at $85 was expensive. We are not sure where she grabbed that number from? On average our tickets are $60 with $45 on Tuesday’s and $75 on Saturdays. If you charter the boat it’s $50pp. Michelle believes we will expand with many boats, it’s a great business but not an investment for her.
VINCENZO GUZZO – Booze cruise? Sees it as a risk. He was comparing us to larger boats of 150 people where safety mosquito nets are in place, so people don’t fall off. Yes, we limit our alcohol sales for the safety of all, yet Manjit felt the sales were too low. Can’t have it both ways. Either we focus on being a cool experience attraction or we focus on being a booze cruise. Risk is part of Business but we choose safety first. Sorry Manjit!
ARLENE DICKINSON- Notice no answer from Arlene. Why? Is there something missing? The truth is that our pitch was supposed to be over when ALL the Dragons opt out or we do a deal, but Arlene vanished from any answer. So, we will allow this to remain a mystery 🙂
Our takeaway is that what you see on TV is very far from reality. We are thrilled with the experience, we are thankful to everyone and we already have expansion contracts in place for other cities. Thanks for taking the time to be on this journey with us and our doors are open for any future entrepreneurs seeking to face the Dragons.
Malaho!