Rent A Goat
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 18, 2013
Asking For:
$150,000 for 25%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Rent a Goat offers an eco-friendly solution to landscape maintenance by using goats to clear properties instead of machinery or chemicals.
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Background Story
Rent a Goat was conceived by Matt Richmond, inspired by his observations in Moldova, where he witnessed goats efficiently clearing land. Upon graduating college in 2009, Matt embarked on a journey to bring this eco-friendly landscaping solution to the United States. He partnered with Mike Canaday, a seasoned goat wrangler with over three years of experience in the field and a gross annual income exceeding $600,000.
The idea behind Rent a Goat emerged from Matt’s realization that traditional landscaping methods involving machinery or chemicals were not only costly but also environmentally harmful. Determined to offer a greener alternative, Matt launched Rent a Goat in 2010, initially as a website connecting goat wranglers with potential customers. This innovative approach aimed to capitalize on the natural behavior of goats to clear land efficiently and sustainably.
Located in San Diego, Rent a Goat planned to establish a franchise in the area to expand its operations. Matt and Mike envisioned Rent a Goat as more than just a business venture; it was a mission to promote sustainable land management practices while offering cost-effective solutions to property owners and land managers. With Matt’s entrepreneurial spirit and Mike’s expertise in goat wrangling, Rent a Goat aimed to revolutionize the landscaping industry by harnessing the power of nature.
The Product
Rent a Goat offers a unique and eco-friendly solution for land management and landscaping by utilizing goats to clear vegetation. The process is simple yet highly effective: property owners or managers can rent a herd of goats from Rent a Goat, which will then be deployed to the designated area for vegetation clearing. With their natural grazing behavior, goats efficiently consume unwanted vegetation such as brush, weeds, and overgrown grass, leaving the land cleared and ready for use.
One of the key benefits of Rent a Goat’s service is its environmental sustainability. Unlike traditional methods that involve the use of machinery or harmful chemicals, goat grazing is a natural and chemical-free solution. Additionally, the goats’ grazing activity serves as a form of natural fertilization, enriching the soil as they work.Customers can easily access Rent a Goat’s services through their website or by contacting their local franchise location.
Pricing varies depending on factors such as the size of the area to be cleared and the duration of the rental, with rates ranging from $400 to $1,200 per acre. Overall, Rent a Goat provides a cost-effective, environmentally friendly, and efficient solution for land clearing, making it an attractive option for homeowners, businesses, and municipalities seeking sustainable landscaping alternatives.
How It Went
The company’s position before Shark Tank
Rent a Goat’s performance and position in the market are mixed. While the concept of eco-friendly land clearing using goats has garnered interest, the company has yet to generate revenue since its inception in 2010. However, Rent a Goat has a strategic partnership with Mike Canaday, a successful goat wrangler with extensive experience and a significant annual income of over $600,000. This partnership provides credibility and expertise in the goat rental industry.
The company primarily targets homeowners associations and municipalities as its customer base, with a focus on providing sustainable and cost-effective land clearing solutions. Rent a Goat plans to establish a franchise in San Diego to expand its operations and reach new customers. In terms of funding, Rent a Goat was seeking $150,000 for 25% of the company on Shark Tank, indicating a valuation of $600,000. However, the company failed to secure a deal with the Sharks.
As for its financial health, Rent a Goat has not yet generated any revenue. The lack of revenue raises concerns about the company’s profitability and long-term viability. Additionally, the absence of proprietary aspects to the business model poses challenges in terms of maintaining a competitive advantage in the market. Overall, Rent a Goat’s current structure revolves around its partnership with Mike Canaday and its plan to establish a franchise in San Diego. However, the company faces challenges in generating revenue, establishing a strong market presence, and securing funding for its expansion efforts.
The Negotiations:
During the negotiations on Shark Tank, Rent a Goat entered the tank seeking $150,000 in exchange for 25% of the company. Despite showcasing the eco-friendly and innovative concept of using goats for land clearing, the Sharks expressed concerns about the company’s scalability, competitive landscape, and lack of barriers to entry in the market. Kevin O’Leary was quick to point out that Rent a Goat had not generated any revenue since its inception in 2010, which raised red flags for the Sharks.
While Matt Richmond and Mike Canaday highlighted their partnership and projected profits, the Sharks remained skeptical about the company’s potential for success. The Sharks were particularly concerned about the absence of proprietary aspects to the business model and the ease with which competitors could enter the market. Ultimately, none of the Sharks were convinced enough to make an offer, citing concerns about the company’s business model, profitability, and long-term viability.
Despite their enthusiasm for the eco-friendly concept and admiration for Mike Canaday’s expertise in goat wrangling, the Sharks unanimously decided to pass on investing in Rent a Goat. The negotiations served as a reality check for the founders, highlighting the challenges they would face in scaling their business and attracting investors in the competitive landscape of the landscaping industry.
