TV show helps budding businesses like eco-friendly carwash attract investors; Fortune Hunters showcases top trends and how they fit global economy
Vancouver   Sun  
January 16, 2008  
Brian Morton

Geoff Baker, who owns an eco-friendly carwash in   North Vancouver , is looking for a few good investors.

The 31-year-old Baker, who restarted his company Easywash NV Inc. after the original Easywash Inc. went into receivership in November, recently appeared on the first episode of CBC-TV's new show called Fortune Hunters, which explores the latest money-making trends in the business world.

"For savvy investors who see an opportunity, we'd love to talk to them," Baker said in an interview. "We need to raise about $500,000 to shore up our cash-flow position."

He's hoping his appearance on the show will attract some interest in his company.

Fortune Hunters is created by Dianne Buckner, long-time host of CBC's Venture and current host of Dragon's Den. It not only showcases top business trends and how those trends fit into the global economy, but also how Canadians could cash in on potential business opportunities in their own homes.

A news release says the show is divided into three segments: in the first, Buckner will introduce a trend for the week and profile Canadian companies attempting to cash in on that trend. The second segment features interviews with business trend experts, who will analyse the trend of the week and the business idea to assess its viability. The final segment profiles celebrities of the business world and their secrets to success.

In the first episode -- Green Business -- viewers heard about two made-in B.C. ventures: the eco-friendly carwash Baker launched with his wife and business partner Laura-Lee Normandeau; and WA-2! Water Co. founded by   Glenn Bailey , who is providing purified water without plastic bottles.

Kevin O'Leary of Dragon's Den and eco-investor Vickie Sharp weigh in on their chances for success.

Baker said he came up with the idea for an eco-friendly carwash in 2003 and raised $2.3 million.

Although the company opened in September 2006, cash overruns forced it into receivership two months ago.

"Business was very, very good," said Baker. "But we had all this debt from construction. We opened our doors $700,000 over budget and went [into receivership] in November. But we haven't ceased operations. We worked out a deal [with creditors] to form a new company after a lot of negotiations.

"Unfortunately, the shareholders lost their money. I'm happy we're continuing, but it's too bad the investors were losing money. We had revenues in the first year of $760,000."

Baker said Easywash is environmentally sound because it uses its own well water on site and its own purification system.

"We don't need city water. And once the water is purified, we can store three days worth of water supply. We also recycle the water we use [and] capture all the rainwater."

Other eco-friendly factors in the carwash's design include: building the facility to LEED standards: 97 per cent of construction waste was recycled; it incorporates a hydrogen fuel cell that produces power for the facility; and excess power is sold back to BC Hydro.

Baker sees the Fortune Hunters segment as an opportunity to both showcase Easywash and explain how his business ran into trouble and restructured.

He also hopes to begin franchising the carwash in about a year's time.

"It was balanced [and] I was very happy with it," Baker said of the Fortune Hunters segment, which aired on the weekend. However, he said it hasn't prompted any new investors to come on board so far.

Vancouver-based WA-2! Water's founder says he had about $2 million in revenues in 2007, up from about $800,000 in 2005.

"We have roughly 4,000 accounts," Bailey said in an interview. "Our goal is to get it up to 30,000 accounts in the next few years."

Bailey, who previously co-owned Canadian Springs Water before selling it in 1996, has 27 employees at WA-2!

Bailey has also overcome dyslexia, which he says has made him more determined. "I had trouble reading fast enough. But it's given me an incredible desire to succeed, because when I was young I was deemed to be unsuccessful."

He said his reason for appearing on Fortune Hunters is mainly to give the product more exposure. "It's not only a great product, but it eliminates bottles and trucks on the road that distribute bottled water. It makes so much sense."

Bailey said WA-2! is a system that involves placing a purifier on site, usually under a counter.

He said the company can install the purifier in homes -- and run a line to a water cooler or a spigot atop the sink -- but is increasingly involved in setting up systems in office buildings. "One building in Yaletown has 15 businesses. We went in and set up one purification system and strung water lines to all the different coolers in the building."

Buckner said in an interview that unlike Dragon's Den, Fortune Hunters is about information. "Dragon's Den is a reality show geared towards entertainment. Fortune Hunters is part of the news and current affairs department and is more of a journalistic effort."

Buckner also said that while entrepreneurs need all the help they can get, Fortune Hunters isn't about investment.

"The purpose is not to help businesses attract investors. Our mandate is to inspire and inform entrepreneurs."

Despite that, she said, shows like Dragon's Den and Fortune Hunters do attract investors for entrepreneurs who appear.

"Absolutely. It's the attention. When you appear on a TV show, you get your name out to a lot more people than by sitting in your office."

The Dragon's Den show, which pits wannabe entrepreneurs against those who have gone before them, made big bucks and are now ready to invest, proved to be good opportunity for several B.C. entrepreneurs.

Trent Kitsch and his Saxx Performance underwear was looking for $250,000 for 10 per cent of his Kelowna-based company, which designs men's underwear with a patented system that keeps men -- especially athletes -- more comfortable. One dragon offered $100,000 for 25 per cent of the company which Kitsch turned down.

However, since Kitsch and his underwear appeared on the show in early November, the product has sold very well.

Mission 's Bobby O'Neal also pitched his board game about relationships, Syncrohearts, in a Dragon's Den episode in late November.

While the dragons rejected his offer of 25 per cent of the company for $200,000, the exposure tripled online sales and led to a $100,000 loan from the Business Development Bank of   Canada .

And earlier in 2007,   University   of   B.C.   students Robert Dunlop and Florence Leung got $200,000 for a 51-per-cent stake in their Peer FX online foreign exchange system.