What's The Offer For Supercharged Foods? | Shark Tank Australia | Shark Tank Global

Summary

Lee Holmes, the founder of Supercharged Food, pitches her health-focused business, which offers online programs, recipes, and products aimed at improving gut health. Despite a personal health struggle that inspired the venture, the business is heavily reliant on Lee's personal brand. The investors express concerns over this dependency and make offers, with varying degrees of involvement and equity. After evaluating several proposals, Lee chooses Janine’s offer to partner and grow the business together. This decision marks a new chapter for Lee, who now looks forward to scaling her company with the right business expertise.

Takeaways

• 😀 Lee Holmes, founder of Supercharged Food, is seeking $200,000 for 20% of her business.
• 😀 Supercharged Food was born out of Lee's personal health struggles, including severe reactions to medical treatments and a focus on food as a solution.
• 😀 Lee's blog, Supercharged Food, gained popularity through health-focused recipes, leading her to publish multiple bestselling books.
• 😀 Lee's online program, Heal Your Gut, is one of the core components of the business, generating significant revenue.
• 😀 The business model includes revenue from books (120,000 units sold), an online store ($65,000 in sales), and online programs ($94,800).
• 😀 Lee's program is designed to heal gut health, offering recipes and expert advice in a 4-week online course.
• 😀 A key challenge for investors is that the business heavily relies on Lee’s personal brand, raising concerns about scalability and future growth.
• 😀 One investor, Naomi, makes an offer involving $200,000 split into two parts: $100,000 repaid through program sales and $100,000 for 35% equity.
• 😀 Another investor, Janine, offers a partnership by funding a business manager and providing expertise, with an equity request of 50%.
• 😀 Lee ultimately accepts Janine’s offer, valuing her experience and business acumen, and looks forward to taking the business to the next level.
• 😀 Lee’s business success is attributed to her strong personal brand, but the next phase of growth requires a business partner and operational expansion.

Q & A

What was the initial health issue that led Lee Holmes to create Supercharged Food?

Lee Holmes struggled with severe health issues, including hives, hair loss, and an ineffective medical system, which led her to explore food as a potential solution for her health problems.

How did Lee Holmes' Supercharged Food blog become successful?

Lee started by creating recipes and sharing them on her blog, Supercharged Food. The blog gained popularity due to the delicious and health-focused recipes, which eventually led to the success of her books and online programs.

What is the Heal Your Gut program, and what makes it unique?

The Heal Your Gut program is a 4-week online program designed to help individuals improve gut health. It was created with a team of experts and includes recipes delivered via email, with highly positive testimonials from participants.

How has Lee Holmes monetized her business so far?

Lee has generated revenue through book sales, online store sales (amounting to $65,000 in the last 12 months), and her 4-week program, which earned around $94,800.

What challenge did the investors raise about the Supercharged Food business?

The investors raised concerns that the business is heavily reliant on Lee Holmes' personal brand and reputation. They questioned whether the business could succeed without her being the central figure.

What kind of business structure does Lee Holmes envision for her company in the future?

Lee envisions expanding her business by building a digital platform that can run various programs beyond the gut health program. She sees the potential to create a scalable business model that doesn't rely solely on her personal presence.

What did the investors propose as a solution to reduce the risk of relying on Lee’s personal brand?

Some investors proposed bringing in a business manager to handle the operations, suggesting that Lee could focus on the creative side while someone else runs the day-to-day activities of the business.

What offer did one investor make, and how did it differ from others?

One investor offered $200,000 for 35% equity in the business, with the repayment for the first $100,000 coming from $10 payments for each program sold. Another investor proposed offering $200,000 in exchange for 50% of the business but also suggested hiring a business manager.

Why was Lee hesitant about the 50% equity offer?

Lee was hesitant about giving away 50% of her business because it would mean losing half of her company, which felt overwhelming and significant given her personal investment in the brand.

How did Lee ultimately decide on the investment offer?

Lee chose the investor who offered to take 50% equity, as she was inspired by the investor's business acumen and felt that working with her would help take the business to the next level. She viewed the offer as a valuable opportunity for growth.