Next to face the Sharks a Raphael and John a pair of entrepreneurs who are Keen to get the job done we hope that The Sharks will think our product is Pretty robust it's very technological It's very Innovative and it deals with The sector that's been left behind for Quite some time We are ready to take on the Sharks It's not what you know it's who you know Hi sharks my name is Raphael hi sharks My name's John Have you ever had any property Maintenance issues aren't they Frustrating how do you find a good Trades person do you search Google maybe Yellow Pages maybe even a Facebook Recommendation and then how many phone Calls you need to make and receive in Order to find one or multiple quotes and Once you get your quote are you Satisfied with it and didn't they say They were coming at 2PM yeah I'm sure it Was two o'clock it's four o'clock now Finding trades people is hard until now Brexit agent allows consumers and Businesses to be matched with qualified Trades professionals to have small or Big tasks done simply quickly easily and All in one place creating a job takes as Little as two minutes and once the Trade's been accepted for the job you Can watch them arrive on our tradie Tracker map and once the job has been
Completed the trader can post a photo to Their profile so you can review it and Give legitimate feedback with more than 70 million property maintenance jobs in Australia alone every year at an Estimated 140 billion dollars that's a Lot of property maintenance frustration And a lot of money we're here today to Ask for 250 000 for 10 of our company Brixton agent so sharks get on board With us today and help take a big bite Out of property maintenance frustrations In Australia and globally Okay you're looking for 250 000 for 10 So you're valuing your company at a cool Two and a half mil correct why don't you Demonstrate it Who's the trading me don't I look like One oh yeah okay got it Okay so I'm a tenant in a property so We've taken a photo of the light fitting As you can see here so we'll post this Job now I then go and place a quote I'm Available to start today So you can see I've received the quote There from Raphael there's a nice photo Of him from a couple of years ago I can See that my quote has now been accepted And what's happened now is it's put in My task list to complete we check in we Do the job the timer starts and the Timer finishes when we complete the job Upload pictures videos Etc and then
Basically move on to the next job that's Essentially the nuts and bolts of it Nice interface very simple so you can Post the job you can set the job you can Communicate you can do the job you can Post photos you can do payment you'll Sign off and you're all done you're done Yeah pretty much now the reason I'm Saying that is because there's a lot of These things around Rome So basically what these other platforms Do is they put trades people in touch With people they're looking for quotes Yeah what we've done is we've targeted The property manager Market you haven't Gone for the mum or the dad that wants One job done you've gone for the people Who manage lots of properties right who Are doing maintenance all the time is That a correct answer correct Where does this entrepreneurial Influence come from well my family is Probably the anticism business I'm the Only one that really has ever done Anything of worth in the entrepreneurial Space and John what about you my Father's been in business for as long as I've been alive and has been very Successful at it what sort of business Uh he had a giftware business and is now In toys always yes so who is your dad Many still oh Yeah we know Manny he's the first ever Australian World entrepreneur correct
How is it being this Well a billionaire Um it hasn't really changed life for me At all Um self-made I'm doing things myself uh Very good to have a father like that to Go to business advice for but this is Something that's completely not in the Field that he's got any experience in so You've got to knock him off Great success story Tell me about how them business model Works okay so basically it's a Subscription model and the reason we've Done that is because we're targeting the Business to business market right we Believe the longevity of the customers Will be there so a property management Office we're looking at a fee of 150 a Month Yeah and for the Trade Services it's 50 A month right I can say strata managers are also a Really different market and and building Management because building managers Strata managers property managers so if You're that good and that different you Must have traction to prove it what's Your Traction in the market well we've Only just just launched the product this Week We basically wanted to build our Technology out first As it's a business to business product
We can't really prototype it and give it To people because we'll get one chance And we'll be thrown to the curb so we've Invested really heavily to build it up To where it is How much have you put into this business 750 Grand wow You have put that's just a moment Silence please You have put 750 000 into this business Correct okay well that's serious Investment yes walk me through where We're going to be in the next few years Okay so basically we're looking at Seventy thousand dollars income to Finish out this financial year 2019 Financial Year we're looking at one and A half million dollars turnover with Approximately 540 profit and I just Walked through that so 1.5 million Turnover 540k profit correct the Assumption there is there's an average Of 10 trades per office and the way We've done those figures is 30 offices Were already be on board by beginning of Financial year 2019 yep and then we're Only adding 25 offices a month that's Pretty good then so we've been very Conservative it is refreshing for a Company that's using a tech platform to Come in and be pitching positive cash Flow well done yeah very good our goal Is that even at this simple modeling by The time we have 125 Property Management
Offices at that minimum we'll be break Even and cash flow positive and when you Say 125 offices their individual offices That you have to sell to correct there's Not a lot of hard leg work to go walk in Show them what's going on and say and we Just want to sign you up if we sign up The big organizations we get them on Board There's nowhere they're changing because This is going to save them a huge amount Of time Why are you guys going to win These are everywhere everywhere the main Thing you've got to understand is Property managers spend 50 percent of Their day on the phone trying to call Trades we're not targeting the mum and Dad who want their house painted once Every five years no no this is a Constant burn for them so they give you A nap you go here's my job click and Then the communication happens between The tenant and the trading there's Calendars they consent they organize and For 750 Grand you've bought that Function that exists that happens right Now it happens right now I'm curious to Know how quickly you're going to get the Tradies on and how you're going to Because it's only going to be as good as The quality of the tradies we sent out a Cold email to 4 000 trades people and We've got 250 sign up within three days
So we're not worried about the trades People they're so frustrated with what They've got at the moment and if we're Giving them the opportunity to work with Property management offices for 50 bucks A month how can they go wrong so let's Assume this works you've got zero Revenue so you haven't really tested Your system you've put a few Transactions through and it looks like It pays and the money arrives in the Right place yep so we've got to test the Software we've got to support it then We've got to sell it at both sides and Both sides of the marketplace have to Grow together to ensure success because If you grow one side or not the other You'll quickly die so you've got all of That risk out there cool so how do you Then value your business at two and a Half million with all that risk [Music] But what we thought I mean and you guys Are probably going to have your own Opinions on this of course Really really Funnily enough we looked at our first Year and what we've done is we've been Really conservative so what we said is 540 Grand it's 4.6 times multiple the Average on a software business they Reckon is 5.7 so we thought we'll give a Bit of a discount and that's how we came Up with evaluation yes it's like okay
What do we do but yeah very very Refreshing honest answer well done So let's cut to the chase what do you Need from sharks do you need any Particular sharks which sharks do you Want what do you need apart from money Take the American shark take the American shark he's good in America I Think this is this is the local plus not Just a local play I mean we've already started Negotiations with people overseas So that's that's interesting The property management business is very Efficient in the US I'm stunned that there isn't something Like this there already but you you know There isn't anything well we've Researched it heavily but I'm curious You've got a lot of the answers so I Want to know what gaps you think you Need At the end of the day if you think you Can add value to what we're doing that's What we want and if you've got some Connection in the US that's a giant Market that's just waiting to be eaten Up You guys are so likable the the problem With me is I can never get my head Around the valuations of tech businesses Like fair enough it's just it's just how I work fair enough I'm out thank you thank you
Look over I have thoroughly enjoyed your Pitch you know your stuff you've worked Out exactly the market you're going After Um the only thing about this whole pitch Is that it's Tech and I have a number of Tech Investments and I've got a few in The two-sided Marketplace that um just Quite didn't reach those Milestones are You in or out Glenn look I'm going to be I'm going to be a nanny I'm going to I'm Out Okay thank you cheers Yeah guys John Raphael I've enjoyed it You're really refreshing you've got some Great answers you're not the standard Typical rot that comes out of the Average Tech startup right I do Appreciate that thanks um when I see Lots and lots of pictures in the same Space I I see that in artificial Intelligence I sit in blockchain and I See it in many spaces including this one Yeah I don't know who's going to win I Don't know how they're going to win this Is not good for you guys and I wish you All the best but I I just I don't know Who's got the right answer here Good luck and I wish you all the best Thanks Dave I'm out no worries mate Thank you Is the 10 negotiable sure we don't come In here with a fixed viewpoint All right 250 000 for 20 percent
Thanks for your offer what are you doing Oh look I'm very tempted well get on With it I'll match Andrew's offer Woohoo We have two offers yes 250 000 20 of Naomi and the same for me would there be Any way to meet in the middle at 15. No I'm not moving I I can't see enough So you'll take 15. yep We'll do it right now oh there you go How about 16 just to make me feel good How about working those around now I Like straight even 15 I think it sounds A lot better don't you hit the 16 year Muppet what are you doing well I've Worked and built lots of two-sided Marketplaces [Music] 16 done all right there you go good job Cheers good job thank you Glenn thanks Yeah you're having too much fun but Anyway we've got to have fun exactly see You out there thanks guys [Applause] Much better I think Raphael I love his Approach to business he had a lot of the Answers but I think I'd have fun working With us yeah no crowded Market you'll be All roadkill all right thank you very Much thanks for the vote of confidence Roadkill Good
