The deal with Isak fragrances

bhshre95 thumbnail
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Posted: 2 years ago
#1

What do you all think about it? Peyush straight away asked for 50% of the company and even demanded that the girl has to remove Aunt from the business🤔 Really felt it was quite unfair deal. Agree her business wasn't too great but the idea did have potential. He was adamant on 50% and she badly seem to need some investment so had to accept it. She almost seemed to be in tears later saying she didn't want to remove her chachi as she had helped her start the company.

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Raina101 thumbnail
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Posted: 2 years ago
#2

If the deal was too harsh, she could’ve refused.

The sharks are here to make money, whatever it takes.

priya185 thumbnail
Posted: 2 years ago
#3

The branding could be better

But the fragrances seemed good as she had expert knowledge

Yes he did take advantage but he was the only one who offered her. She could have refused if it was a bad deal.

I think he should have agreed to mentor her instead of taking 50%

1195620 thumbnail
Posted: 2 years ago
#4

Regarding the deal, I found loopholes in it because fragrances are retailed much cheaper as opposed to hand-crafted itars/atars from what I've seen myself. Not everyone has much interest/intent, as one of the sharks mentioned (probably Anupam mentioned) it's declining market (it could become a profitable one in future as nobody knows the actual future but for now just saying this). Depending on the finances/practicality, only smaller samples are going to become like, "flagship products" vs the customizable ones. Hence, shelf live is at stake here, especially for customized products. As a consumer, I'd rather purchase the travel size ones over the large packet ones because she didn't disclose the longevity of the product in the first go.

Second question was the amount of revenue generated, I felt loopholes in it. Directly reflects the marketing & scalability conflicts. It definitely seemed that she felt in need of funding hence begging Peyush as the last resort. There were emotional attachments to the business but she might've thought from a practical perspective too.


Perhaps, because of this, Peyush requested for equal partnership to give it an economical direction. Ultimately, she could've turned him down but the sales generated seemed a lot more from the 650 INR small sized perfume, compared to the costly large-sized products.

No doubt, her aunt helped her out in the initial stages but, looking from a financial side, she may have taken such a decision to save her business to become part of the "declining market." Perhaps her chachi may have given the consent to exit the business. We didn't get to hear the full conversation, so we don't know the entire context.

It was a flunking business with potential therefore some proper financial expertise is required.

Edited by Myrah_2020 - 2 years ago
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