Drain Strain – Prevents Clogged Drains
DEAL
EPISODE SUMMARY
🕓 Air Date: February 3, 2015
Asking For:
$110,000 for 15%
Investor:
Robert Herjavec
Deal:
$110,000 for 10%
PRODUCT SUMMARY
Drain Strain is a revolutionary drain-clog solution with TLC technology, aiming to eliminate the hassle of cleaning clogged drains by providing an easy-to-use mechanism.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Naushad Ali, the entrepreneur behind Drain Strain, hails from Woodinville, Washington. His journey into entrepreneurship followed a challenging period during the 2008 recession, where he faced significant financial setbacks, including the foreclosure of his home. Undeterred by adversity, Naushad, who had a thriving career in real estate, chose to rebuild rather than succumb to the difficulties. Driven by the frustration of dealing with chronically clogged drains, Naushad conceived the idea for Drain Strain. He recognized the universal inconvenience of cleaning clogged drains, whether through unpleasant hair-fishing or the use of environmentally harmful drain cleaners.
Naushad envisioned a solution that would eliminate the need for expensive plumbing calls while keeping users’ hands clean. The revolutionary Drain Strain with TLC technology was born from this vision. The product’s simple turn, lift, and click mechanism presented a user-friendly approach to solving drain clogs without the mess associated with traditional methods. Naushad’s aspiration is not only to provide a practical solution for households but also to establish Drain Strain as a game-changer in the plumbing industry.
Despite experiencing the hardships of the economic downturn, Naushad leveraged his resilience and determination to refocus on his real estate career successfully. His transition into entrepreneurship with Drain Strain showcases not only his innovative thinking but also his commitment to overcoming challenges. Naushad’s background in real estate and his personal experience with financial setbacks uniquely position him to navigate the complexities of bringing a novel product to market.
The Product
Drain Strain is a groundbreaking solution designed to address the perennial issue of clogged drains. The product’s innovative TLC (Turn, Lift, Click) technology ensures a hassle-free and efficient method to tackle drain clogs, eliminating the need for conventional and messy cleaning methods.
To use Drain Strain, users simply turn the device to the left, lift it out, and click to activate the TLC mechanism, solving the drain clog with ease. The product comes equipped with a replacement basket for straightforward maintenance, providing a clean and environmentally friendly alternative to traditional drain cleaners.
Key features of Drain Strain include its user-friendly design, allowing individuals to maintain their drains without getting their hands dirty. The 3D prototypes are fragile but represent the product’s imminent transition to production. Naushad Ali, the founder, envisions the product’s potential in both households and commercial settings.
How It Went
The company’s position before Shark Tank
Drain Strain is in the early stages of development, and its financial standing is a reflection of its startup status. The company is actively seeking funding to cover sourcing costs, manufacturing, and initial market entry. Naushad Ali, the founder, is focused on securing partnerships and licensing deals with major plumbing manufacturers to propel Drain Strain into the market. Partnerships and wholesalers are yet to be established, given the product’s pre-production phase. The strategy involves approaching significant players in the plumbing industry, such as Kohler, to negotiate licensing agreements and leverage their distribution networks.
The primary target customers for Drain Strain are households and businesses grappling with the inconvenience of clogged drains. The product aims to offer an efficient and eco-friendly alternative to traditional drain cleaning methods. Naushad envisions Drain Strain becoming a household name and an industry-standard solution for addressing drain clogs. In terms of funding, Naushad is actively seeking investment to bring Drain Strain to market. The funding structure may evolve as additional investors or strategic partners join the venture.
Profits and losses are not applicable at this early stage, as the company is pre-revenue. Drain Strain’s financial health and performance metrics will likely become more defined as it progresses through the production and distribution phases. The available capital, which includes the recent $110,000 investment secured from Robert Herjavec on “Shark Tank,” will play a crucial role in advancing the product toward manufacturing and commercialization. The current company structure is predominantly centered around Naushad Ali as the founder and visionary behind Drain Strain.
The Negotiations:
The negotiations for Drain Strain on “Shark Tank” were marked by strategic considerations and contrasting offers from the sharks. Naushad Ali initially sought $110,000 for a 15% stake in his company. Kevin O’Leary stepped in with an offer of $110,000, but for a 20% equity share, contingent on securing a licensing deal for Drain Strain. Robert Herjavec, recognizing the potential in the product, made a competitive offer. He also proposed $110,000 but for a smaller 10% stake, under the same contingency of securing a licensing deal.
The negotiation took an interesting turn as Robert emphasized the long-term benefits of a smaller equity stake and recurring royalty income. The dynamics intensified when Kevin underscored the need for Naushad to decide promptly, urging him not to wait for other sharks. Lori Greiner and Mark Cuban expressed concerns about the product’s complexity and the lack of proof of concept. Lori eventually opted out, citing the perceived complications.
Ultimately, Naushad accepted Robert’s offer, valuing the guidance and partnership over a larger equity stake. His decision showcased a preference for a smaller share with the belief that working closely with Robert would enhance the chances of securing licensing deals with major plumbing manufacturers. The negotiation highlighted the strategic considerations in balancing equity, expertise, and long-term success, with Naushad opting for a path that aligned with his vision for the future of Drain Strain.
