DD: Profile of a Potential Pitcher #5 - Borrow Me

Sean Young (no not that Sean Young) wants the world to stop buying more crap and start borrowing it.....through his Calgary startup BORROW ME. But this is more than just another web 2.0 start-up, it is a revolution against mass consumerism and buying more than we need. Or as the site says:

Borrow Me offers up a new formula for the good life: more value, choice & flexibility, all with less cost, consumption, pollution & clutter

And the revolution is already underway, more than 10,000 users are currently participating in beta trials. Here's what Sean has to say about his latest adventure:

Why do you want to be on the Den…? It’s about the chance to tell the story…to the people and to the investment community.  And what a great story it is!  Everyone can relate!  Everyone has bought something, used it once and put it in a box or on a shelf.  Why not borrow or rent it from a neighbor next time?

If only people could find people they could trust to rent to, or find items they need from people willing to share them.  Truth is – now they can, but most don’t know it yet.

Why would you be a good bet for the Dragons to invest in? Could there really be a chance for another eBay out there?  I believe there is.

The Entrepreneur: 

A proven ability to take a whacky idea and make it a moneymaker:  took the last business to over 10 million dollars.

The Product:

Consumers are looking for a way of out of the earn/buy trap and BorrowMe is in the perfect place at the perfect time.  Consider:

1. Consumer Backlash - Clutter, cost and environmental concerns have created a mainstream backlash against old style consumerism.
2. Debt – Consumers are under financial pressure – consumer debt has hit all-time highs even as incomes have grown. 
3. Mini-preneurs – From e-Bay stores to MLM’s everyone is looking for an opportunity for a second income.
4. Alternative Trade – New ways to give and get are poised to hit the mainstream; so says Popular Science Magazine’s 3 top emerging trends to watch in 2006.

The Business:

BorrowMe is the first, and the clear leader in this social lending market concept.  Our two-month-old private beta has strong member attraction. 11,543 people in 50 countries have already found us, and believed in the idea enough, while we were still building, to participate.  Those numbers represent the first of potentially millions of paid transactions on which BorrowMe earns transaction fees and could sell rental insurance.

Why do you want to bring your product to market? For us:  It’s time to crack wide open the ‘old consumerism’ model of buy and hide.  People are changing and they need a way to stop mad, un-necessary consumption; give the environment a break; and use their money for something more meaningful than a chainsaw and another specialized kitchen appliance.For me:  I’m ready for another big success.  One ‘A’ grade and a few ‘B’s doesn’t make a glowing report card, and frankly fall below my personal standard.  Besides, my wife deserves a break.  She’s been floating this ship too much lately.

How do you describe your product…? BorrowMe is a rental marketplace.  Somebody recently called it a kind of person-to-person ‘rent-a-center’.  Think:  eBay meets Friendster, where you borrow instead of buy – allowing friends to share and strangers to rent.  We call this aspect ‘social pricing’, and it helps set borrow prices based both on demand, and on relationship.  Example: My karaoke machine is free for friends, cheap for their friends, and a bit more for others that I trust. Folks can use BorrowMe to make money, save money or simply share things amongst a group of people (like the quilting bee, the car club or the neighbors).  Maybe it’s a meeting room, an RV, a wheelbarrow or a tent.  Pretty much anything goes.  My wife even has me listed on her ‘stuff’ as ‘one slightly used husband’.  Sometimes I test her patience.

How did you come up with the idea…? I sat in my home office above the garage and watched the cars emerge from garages and return there at the end of the day.  I witnessed first hand the ‘buy and hide’ phenomenon.  I looked in my own basement and garage at the idle clutter.  I told myself, ‘something is wrong here; something needs to change’.  I found out I wasn’t alone.  The Spiderman DVD was the first of many borrows to come; the most recent for us was a banquet table.  Our Wishlist now includes a power washer and a vacation villa in Spain so we can visit our ex-pat friend.

In closing what message would you like to send to the Dragons? BorrowMe matters.  BorrowMe is a compelling business model that can make its early supporters prosperous, but also has the potential to become a social movement.  The world is changing.  People are waking up to the social, economic and environmental costs of how we live and consume.  An effective vehicle for wide spread social sharing and a streamlined alternative to unsustainable consumerism is not only inevitable, it is BorrowMe. No, it is not an easy journey.  Yes, it is an uphill climb.  The Den is a place to tell the story and share the vision with those who can jump on this train and help fuel the fire.

This pole, wile quite enlightening, is not binding on the CBC, nor the producers of Dragons' Den.

Comments

[Bruce Smith]

I could see this working. Check out www.recycle.com for another comparible business model. Local partisipation, word of mouth advertising among users, low investment,take a little off the top on each deal. If I understand correctly, what's not to like. To whom do I make out the cheque?

[Mick]

I've seen this Sean guy in action and I'd reconnect my cable to watch him ... and I'd only reconnect for World Cup and the Apocalypse. Great concept.

[Nicole Zwiren]

Thanx for doin this. It's soooo incredible.

[Doug McNabb]

This idea is long overdue. How many SPIDERMAN DVD's or rototillers need to exist in one city block.

[Bob Gardiner]

The business model is well thought out and very achieveable. Better yet is the concept of bringing together social responsibility and business responsibility is on the cutting edge. This business can lead the way.

[Jeannie Stringer]

I have seen Sean work, and this guy is for real. Borrow Me and Sean so need to be televised. CBC's ratings would go up! The concept is amazing! I need a United States station to pick this up so I can watch! Go Sean!

[Rob Goodwin]

Buying less stuff sounds like a great idea to me!! I often wonder how many lawn mowers and wheel barrels there are on my block that maybe see an hour or less of use by each person every week. The potential of the borrowing economy is so far pretty untapped and feels like it could be huge. I'm signing up right now!

[Jason "FaceForm" Carruthers]

BorrowMe.com is a newsworthy concept that offers a unique and unexpected benefit. I could think of a hundred ways to get national publicity for this website.

Sean Young is a smart marketer and if I wasn't busy with FaceForm I'd borrow a bandwagon from my neighbour and jump onto it!!

[allison hughes]

This is my favourite idea so far. I'd like to know more about how this works. I'm all for the corporate world guru that promotes concepts that lead to less consumerism. You're a genius, Mr. Wise.

[Robert Ouellette]

First off, Sean's enthusiasm is so persuasive he could sell almost anything. Environmental sustainability is one of the fastest growing new markets and this idea blends Web 2.0 with an environmental twist - two big ideas. Logistical issues might be the damper to Sean's idea. Distance to market issues probably make this a very localized offering. I'm wondering how far I'd go to save a few dollars. Maybe the focus has to be larger ticket items. Sean, what's your experience to date?

[Carson Wynne]

Sean's touched a nerve that has tremendous potential. Multiple ownership of seldom used consumer merchandise - tools, toys, party gear, sound equipment, who knows what else - is now made to be an outdated concept through Sean's clever use of web-based communications strategies and the basic instinct in people to share stuff they have with those who need it under the right conditions. Hope to hear this is a $100 mm market cap IPO soon.

[Geraldine Young]

Robert, you have just high lighted one of the aspects that makes BorrowMe so valuable! For some stuff you'd go to your neighbour, for some your city, and others (like the villa) world-wide. The platform will allow for local borrowing and renting circles and gets us past that awkwardness of asking about your neighbour's DVD library!

[Wendy Airey]

Good on you Sean!!!! The time has come to go out and capture the world of over-spending.

[Darcy McNabb]

Great idea !!! I am always lending out stuff and would be nice to have a larger forum to do it in where you would have more opportunity to lend and borrow back as well. I am all for emptying out the garage so I can fit the car in when it is minus 35. Go Borrow Me Go!!!!!!

[Janice Iverson]

Perfect timing for this Sean! I am one of many who would like to trade my materialistic and quite independent attitude, and get back to the grass-roots of neighbourhood connections community sharing. I've just returned from a nightmare experience at WalMart...I'm willing to try any new approach that keeps me from spending my hard-earned dollars in such super-sized department stores! JI

[Ryan Gendron]

This is a fantastic example of the entrepreneurial spirit working with Web 2.0 technologies to create something for a better world. Only a few years ago, BorrowMe would not have been possible, given the state of the Web at that time, but now the market is pretty much demanding it. I'm very much looking forward to seeing Sean and BorrowMe on DD - looks like it will be an exciting show!

[Andi Morony]

BorrowMe is a concept long overdue. I think it is amazing that a new generation can use technology to "borrow a cup of sugar" from a neighbor they never knew before...and probably wouldn't if it weren't for BorrowMe.

Give them a shot. They are worth your time!

[Kempton]

First of all, I don't know Sean Young personally (yet) and haven't used BorrowMe.com But I feel I have gained some further insights by browsing, in some details, the BorrowMe.com website and reading some of Sean's blog entries. It is such a refreshing change to see the openness of BorrowMe.com (BM).

Reading the many many BM blog entries really helped me understand how the business has been developed and the key person behind it -- Sean.

In particular, I was blown away by the openness and insights expressed in the April 05, 2006 blog entry
"Through darkness to light: The path to commercial activism"
http://blog.borrowme.com/beta/2006/04/commercial_acti.html

And I admired the noble intention expressed in the July 07, 2006 blog entry although I am not sure if the all the practical implications have been fully considered
"Ramblings on the Social Purpose Enterprise"
http://blog.borrowme.com/beta/2006/07/rampings_on_the.html

Having said the above positive points, I do have a few key concerns. The main one is that I am still not sure how will BM make money for the investors when many of the services are provided for free? How many of the members actually use the paid services? Will there be positive cash flow in the first or second year of business (how soon)?

How fast will the adoption speed be from the first 15,000 Charter members to 30,000 then 60,000, etc? And how easily will these new users help increase the revenue? Lastly, but may be most importantly, BM is changing the world in some sense. But will the profitability of BM be dependable on BM successfully changing the world?

Overall, even I have a few concerns and questions for BorrowMe,com, I would love to see Sean appear on DD to pitch his business to the Dragons. As I want to see the Dragons ask some more insightful and probing questions on BorrowMe.com as a business and I would love to see how Sean will reply.

[Susan]

An intriguing concept. Makes a lot more sense than saving for ages to purchase something that I need but only infrequently. Not to mention the reduction in clutter around the house!

[Leanne Heuven]

It's a brilliant idea. As a single mom, I can't afford to buy things that I won't use everyday and am new to the neighborhood, so asking my neighbours doesn't feel like an option. Thats why this idea is so great. I have had much success with borrow me in the past and will continue to in the future.

[Shaun Bruce]

What a fabulous idea! We've all borrowed something from a neighbor or friend at some point, right? However, with the changes in lifestyle and communities over the years it is becoming increasingly difficult to develop and maintain relationships with the people who live down the street, or even right next door. BorrowMe can change all that! It will give like-minded people the opportunity to meet, borrow, lend, and get to know one another.

Also, I know Sean, and am certain he would be an audience favorite. His enthusiasm is very real, and very contagious. Sharp, witty, and very engaging - people would definitely tune in just to get to know him better, and to hear more about BorrowMe!

[Kista Lewis]

Sean has done an awesome job with BorrowMe.com. I speak from the view of not only as a member but also from the stand point of someone he has advertised with. It has been a pleasure working with Sean. He has not only stayed on top of things on the business end but also has truly been a stand-up guy when it comes to our readers. We have never had a complaint about BorrowMe.com even with all the changes that the site has gone through. Sean has not just cared about his business and getting it up and running, but he has truly cared about the members, their points of view, & their satisfaction.

Sean - You deserve this!

[Lyle Fee]

What an ingenious idea! I would expect nothing less from Sean. This man knows how to build a plan and work a plan into a multi million dollar company. This is the next great thing. How many times have we all gone to Home Depot or Blockbuster and bought the latest gadget or movie to use it once or watch it once....an impulse purchase = a waste of money. Now here is a way to still use that product or watch that movie and save money. The viewers at CBC will be glued to their TVs wanting more!

Giddy up Sean!

[Craig]

This is a great concept! Sean appears to have 'hit the ball out of the park' on this idea! Sean is the ultimate creative entrepreneur!!

[Randy Brookes]

What a great idea! I have a friend to has to try everything and buy the latest equipment to do it. He has cross-country skis, a surfboard, tennis racquets, curling shoes, baseball gloves, camping gear, hiking gear, climbing gear, you name it...most of which he has used once or twice. Had BorrowMe.com been around the last five years he would have saved himself 000s of dollars and an endless barrage of sarcastic comments from me. At last, a solution for chronic trend-following! Trust Sean to come up with yet another brilliant idea.

I can't wait to see Sean talk about this on DD. That's an interview worth watching...Sean's passion is very contagious!