Major Mom – Home Organization Service
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 5, 2016
Asking For:
$150,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Major Mom offers professional organizing services for homes, applying military values and tactics to combat clutter.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Angela Cody Rouget, a former Major in the United States Air Force, founded Major Mom with a mission to bring military precision to home organization. Leaving the military 10 years ago, she initially planned to be a stay-at-home mom. However, her husband’s real estate business struggled, leading her to the idea of using her organizational skills to combat clutter and disorganization in homes.
With a background as a Missile Combat Crew Commander, Angela had valuable organizing skills that formed the foundation of Major Mom. Despite facing challenges, including financial setbacks, Angela and her business partner built a model with 16 employees across two states, Colorado and Phoenix, over a six-year period.
The Product
Major Mom provides professional organizing services through a team of “Liberators” who follow the Major Mom method. Customers can choose packages, such as a Jump Start Package for $288 or the top-selling Liberty Package, offering 46 hours of hands-on organizing for $2,088, covering the entire house.
The company’s approach involves a free phone estimate, and teams of Liberators work simultaneously to efficiently organize homes. Major Mom aims to distinguish itself not just by offering products but by emphasizing a unique approach to organizing.
How It Went
The company’s position before Shark Tank
Major Mom currently operates in Colorado and Phoenix, Arizona, with 16 employees. In the last year, they closed with $407,000 in sales, and this year, they are on track to reach $550,000. While profits have been invested in preparation for franchising, personal income for Angela and her partner ranged between $20,000 and $40,000 annually. The company’s target market for franchising is veterans, and the initial fee is $20,000, with a 50% discount for veterans.
The royalty is set at 8%, and additional expenses for opening a franchise include $5,000 in marketing. Angela’s vision involves selling 150 franchises at $20,000 each and ensuring the success of 90% of those franchises. The ultimate goal is for the sharks to receive returns when the company sells or through ongoing royalties.
The Negotiations:
The negotiation process involved questions about Angela’s military background and her decision to start Major Mom after leaving the service. Sharks inquired about the company’s financials, with Angela revealing a profit of $25,000 after reinvesting in preparation for franchising. The sharks expressed concerns about the challenges of franchising and the potential difficulty in convincing people to invest $25,000.
Despite Angela’s certainty in the business model, all sharks opted out, citing concerns about the feasibility and challenges of franchising. Lori suggested keeping the business smaller and localized, while Mark and Robert questioned the difficulty of the franchising model. Despite not securing a deal, Angela remained determined to continue franchising Major Mom to help veterans and organize homes on a national scale.
