Lori & Robert Line Up For A Deal With Hidrent | Shark Tank US | Shark Tank Global

Summary

Dave Heimbuck from Dallas, Texas, pitches his company 'Hydrant' on Shark Tank, seeking $300,000 for 8% equity. The company connects local firefighters with homeowners needing help for tasks like moving furniture or home repairs. Dave highlights how trusted community members, like firefighters, can be heroes for seniors, his main customer base. Despite concerns from some sharks about scaling, Lori and Robert offer $300,000 for 33.3% equity. After negotiation, Dave accepts their deal, hopeful for future growth in the home service industry.

Takeaways

• 🏡 Dave Heimbuck, from Dallas, Texas, presents his company and seeks $300,000 for 8% equity.
• 👵 The company addresses home service needs for people like Rose, who lives alone and needs help with household tasks.
• 🚒 Daniel, a firefighter and trusted community member, helps with tasks like moving furniture and hanging artwork.
• 📱 The solution involves a mobile app called 'Hydrant', where users can request help and pay for services directly.
• 💵 Lifetime sales since 2018 amount to $850,000, with recent annual figures showing consistent growth.
• 🎯 Most of the company's customers are senior citizens, and it currently operates in Phoenix and Tampa.
• 👩‍💻 Dave’s background is in digital marketing and sales, not firefighting, and he built the app with the help of his brother-in-law, a firefighter.
• 🌎 Expanding the business requires entering new neighborhoods, but some investors express concerns about the challenges.
• 💰 Dave receives offers from multiple investors, eventually accepting a deal for $300,000 in exchange for 33.33% equity.
• 🔥 The investors appreciate the concept but suggest rebranding and emphasize targeting senior citizens and women.

Q & A

What is the main problem that Dave Heimbuck is trying to solve with his business idea?

Dave Heimbuck's business idea aims to help individuals like Rose, who need trustworthy help with tasks around the house but are unsure of who to trust. His app connects people with local firefighters who are known and trusted members of their communities.

What is the name of Dave's business and how does it work?

Dave's business is called Hydrant. It works by allowing people to post home projects on the Hydrant Pro mobile app, which are then picked up by local firefighters who are registered on the platform. After completing the tasks, the firefighter logs their hours and gets paid directly through the app.

How much equity is Dave offering to the Sharks, and what is he asking for in return?

Dave is offering 8% equity in his company in exchange for $300,000.

What inspired Dave to create this app, even though he is not a firefighter?

Dave was inspired to create the app after talking to his brother-in-law, a firefighter. His brother-in-law mentioned that firefighters often help people in the community with various tasks, and Dave saw an opportunity to formalize this through an app, leveraging his background in digital marketing.

What have the sales been for Hydrant since its launch?

Since its launch in 2018, Hydrant has made $850,000 in lifetime sales. In 2019, sales were $25,000, in 2020 sales reached $260,000, and by the current year-to-date, sales had reached $325,000.

How much does Hydrant charge the homeowner, and how much do firefighters get paid per hour?

Hydrant charges homeowners around $72 per hour, and firefighters are paid approximately $60 per hour.

Who are the main users of Hydrant's services, and where is the business currently operating?

The main users of Hydrant's services are senior citizens. The business currently operates in Phoenix, Arizona, and Tampa, Florida.

What marketing channels does Hydrant use to attract customers?

Hydrant primarily uses Google, Facebook, and Nextdoor for marketing to attract customers.

Why do some Sharks express concern about Hydrant's growth potential?

Some Sharks, like the representative from Nextdoor, express concerns about the challenges of scaling a business that operates at the local level, especially when trying to reach neighborhoods across the country. They point out that local marketplace businesses often face a slow, neighborhood-by-neighborhood expansion.

What final offer do the Sharks Lori and Robert present to Dave, and what was his response?

Lori and Robert offer $300,000 for 33.33% equity in the business, which significantly lowers the valuation. After some negotiation, Dave accepts their offer, agreeing to the deal.