Posts Tagged ‘Recap’

Episode 15 Recap

Saturday, February 6th, 2010

The Shark Tank was full of blood last night as the Sharks ripped apart, would be entrepreneurs who were looking for the sharks to fund their businesses.

Send A Ball Shark TankFirst into the tank was Michele Kapustka and Melisa Moroko two sisters who teamed up to start their business, Send a Ball. The sisters were looking for $86,000 for 20% of their business. Send a Ball, creates custom made inflatable play balls with fun messages that can be sent in the mail, like greeting cards. They can be personalized for the recipient, and are a fun and unique greeting card. Currently they have sales of $100,000 a year, and can’t fill orders fast enough, they’re shipping between 50 and 70 balls a day and only expected that to increase.

postal girl yesThe sisters are running the business out of their garage, with the help of their kids, they hope to use the sharks money to move to a permanent location and buy equipment that will give them, greater control over their product. They predicted they could break even by selling 100 balls a day. The sharks pointed out that anyone can copy their business, they have nothing proprietary, which makes it hard for them to invest. In the end the sharks said to go get a bank loan, they didn’t need the sharks investment.

QubetsNext into the tank was Mark Burginger with his construction toy Qubits. Qubits is a toy that can curve into many different shapes, like no other toy out on the market. Mark has patented the toy, and has spent $60,000 to bring it to market, but is only sold $8000 worth of product since 2007. Mark is looking for $90,000 for 51% of the business, he wanted the sharks experience, and felt he could get it if he give up control of his company.

The sharks wanted to know why he hadn’t just gone to a large toy company and try to license the product to them. They pointed out that all he would’ve had to do is develop a prototype and patented, shopped it around to the major toy companies, and saved himself a lot of money in manufacturing. Daymon excepted Marks offer with the contingency that they get a deal with a big toy company. Mark accepted the deal.

GD_logospillarsThird into the tank was Nicole Jones with her business the Pillars of Slippers. Nicole is incredibly confident and a energetic presenter, her business definitely benefits from her. Pillars of Slippers is similar to Tupperware parties but instead of Tupperware she sells shoes. Nicole was looking for $150,000 for 15% of her business.

Although she operates a retail store, she realized there was more money to be made from online sales, and these parties. Her goal was to franchise her business, for $100,000 each which would include a Hummer and all the equipment and inventory they would need. Her average party generated $725 in sales, with costs around $300. Without paying for new inventory, wages or any other costs a franchise would have to host 236 parties in order to break even just on the franchising cost. The sharks suggested that she try to bootstrap (lower cost) the franchise, eliminate the Hummer and make it more reasonable for franchising. She walked away without a deal.

20Phil and Aida Lough were next to test their skills against the hungry Sharks. Llama Brew is a liquid fertilizer made from liquidized llama droppings, it’s a natural fertilizer where most fertilizers use chemicals. The business is relatively new, but they had generated $4000 worth of sales. Phil and Aida were asking for $125,000 for 10% equity in the business. The couple had a provisional patent on the process of converting the excrement to fertilizer.

The biggest stumbling point for Phil and Adia is a large cost of educating the public that llama fertilizer is superior to other forms of fertilizer. Their evaluation of their business was crazy, a single llama costs about $1000, the sharks could buy 125  llamas and open up their own fertilizer business for that investment. All sharks were out.

NubrellaLast into the Shark Tank was Alan Kaufman and his business Nubrella. Nubrella is a new type of umbrella that won’t invert, will keep the user warmer, can be used hands-free, and can even be used while riding a bike. He was looking for $200,000 for 25% of his business. It is currently selling for $49 at a cost of $14 apiece. He had sold 3000 already and had invested $900,000 into the business. It goes without saying with such a large investment he had the product patented.

Kevin Harrington offered $200,000 for 65% of the business, Alan rejected the offer. Daymon and Kevin H. joined together to make an offer of 200,000 for 60% of the business. Daymon said as long as there was orders he would fund production for the lifetime of the business. After some more negotiations they settled on $200,000 for 51% of the business, giving control to the sharks. Alan took the deal.

Shark Tank Episode 14 Recap

Saturday, January 30th, 2010

Tonight’s episode of Shark Tank featured for different entrepreneurs, each competing for the Sharks money. These entrepreneurs must convince the Sharks to invest at least the amount they asked for or they walk away with nothing.

LipStix RemixJill Quillin came up with an innovative way for women to save money on their lipstick. LipStix Remix is a system that allows you to melt down your old lipstick and poured into a mold to create a brand-new lipstick. Jill was looking for $105,000 for 30% of her business. Jill needed the sharks help in order to get her product to market, she had currently been selling her product at a mall kiosk, she managed to sell 800 units herself.

072009LipStixReMixphotoshoot001It was obvious that Jill knew her stuff, she knew the best way to sell her product was on TV. This meant she needed to get a deal with Kevin Harrington a pioneer in the infomercial business. She was convinced that after a series of infomercials she would be able to get her product in stores. For every kitshe sold on the infomercial she expected to sell ten in stores.

Barbara was first to act offering half the money, but she required another shark to come into the deal.  Daymond offered $105,000 for 40% of the business. And Kevin Harrington joined Barbara but required 40%.  Daymond was convinced the Barbara was not needed in the deal and tried to convince Kevin to drop her, but after some jostling Barbara, Daymond and Kevin made an offer for the full amount for 50% of the business. Jill saw the value in all three sharks, in on the deal, so she accepted.

Captian Ice CreamTim Gavern was hoping to make a deal with the sharks for a piece of his business, Captain Ice Cream.  Tim planned to sell and franchise is novelty moped ice cream business. He was willing to give up 25% of his business for an investment of $48,000 from the sharks.  Tim would wholesale the ice cream to his franchisees, and sell them a moped for $7000 each. In a good day a franchisee can expect to sell $200 worth of ice cream in four hours, which according to Tim would translate into about $25-$50,000 a year in income. Even with a markup of 400% on ice cream, this business is not going make anyone into a millionaire overnight. None of the sharks invested.

Next into the tank was Michael Schiavone and his business Caffeindicator.  Michael had developed a method for testing whether coffee was decaf or regular. He’d been able to combine this with sugar packets, when a regular coffee was poured on the packet it would turn pink. The obvious advantage of this would be that you don’t inadvertently drink decaf and hour before you go to bed. Michael was looking for $200,000 in exchange for 25% equity in the business.

Michael, a mechanical engineer, had patented the product and was planning to license the product to one of five major sweetener companies. Michael recognized it would be more profitable to make a small fraction of a penny off of each order, versus the risk of producing your own packets and the costs involved with that. He expected that the sweetener companies might use his product to gain market share, he was predicting a bidding war. Michael even suggested that he might sell the patent to the highest bidder, and it would be up to them whether they use it or bury it.

Robert was first to jump at it, offering $200,000 for 60% of the business. This was contingent on him getting a deal with the sweetener companies. Kevin H. followed Roberts lead and offered $200,000 for 50% of the company with the same contingency as Robert. Michael wisely accepted Kevin H’s deal.

Legal GrindLast into the shark tank was Jeff and Annie Hughes and their business Legal Grind.  Legal grind is a coffee house where middle-class people can get access to legal resources, such as lawyers and other basic legal services.  They were looking for $200,000 for 15% of their business.  Jeff and Annie tried to do a funny pitch, but the sharks were not impressed, and their pitch fell flat on its face.

Their goal with their business was to franchise, bringing legal services to middle-class America. Jeff is a lawyer, he been operating the business since 1996, bringing in about $200,000 in gross sales a year.

Legal Grind LogoThe sharks questioned the legality of the business (waitress giving legal advice), and the scalability, it would be hard to find another set of Jeff and Annie’s out there. The couple then surprised the sharks by saying that they had over 100 franchising requests. Daymon recommended that they take a down payment from a certain amount of the franchisors and they would have all the money they need it, in order to build a business into a franchise.

In the end the sharks were not able to invest in the business, and Jeff and Annie walked away without an investment.

If you are enjoying this season of Shark Tank please take a second to send ABC a message here, and ask for a second season of Shark Tank.

Shark Tank Episode 13 Recap

Saturday, January 16th, 2010

301First into the Shark Tank was Nate Berkopec and his company The Factionist. Nate is a 19 year old NYU business student who started his business in High School. The Factionist is an environmentally friendly and ethically responsible T-Shirt company. In the last year Nate has sold $3,000 worth of T-Shirts, he was looking for $30,000 for 20% of his company.

Fashion guru Daymond wanted to know what was unique about his business? And how he intended to compete with everyone else with a screen printer? Nate said he planed to get people from developing nations to design the T-Shirts and to pay them a decent wage, along with making the shirts out of bamboo. The Sharks argued that there is nothing preparatory that would keep someone form copying him, and that he didn’t have a strong brand. The Sharks were all out and Nate walked away with out a deal… or so we thought, it was revealed that Barbara contacted him after the show and offered Nate a job, Nate accepted the offer.

PodillowNext up was Anthony Calvert and Tina Calvert pitch their business PODillow. PODillow is a tanning pillow with a secret compartment for your valuables. They were looking for $250,000 for 33% of their business. Anthony a veteran San Diego SWAT team was injured, and while he was off work recuperating from his injury he came up with the idea for the PODillow. In their spare time it sold 6000 units in the last two years, at a price of $29.95 and the manufacturing cost around seven dollars. Most of their sales was through mail-order catalogs, they currently have orders from the catalogs that they are not able to fill, their looking for help from the sharks in order to fill those orders and also get the business knowledge from the sharks to grow their business.

PodillowPODillow is a cute little product, perfect for the mail-order market, the only issue with their pitch is a common mistake that many entrepreneurs on shark tank make. They value their business way too high, basing their value on future profits and not current profits. Damon Navin said he wanted to invest in would’ve been able to make them a lot of money but because they asked for way too much money in the business of almost $750,000 he was not able to invest. Anthony and Tina walked away with no deal.

Third to try to swim with the Sharks is brother and sister team Kimberly and Matthew Foley and their business Wee Can Shop. Wee Can Shop is a were gift shop designed for children so they can shop for their loved ones. They been in business for 3 ½ years and their sales have grown by 100% each year, to $13,000 in income last year. 100% can be a misnomer, as sales going from $1-$2 is 100% growth.

Their goal for the business was to franchise and open up a second location in a more high profile location.  Although the sharks believed the business had failed, Kimberly and Matthew believe that there is still opportunity for their business to grow. They do not get a deal.

Grease Monkey Wipes LogoLast to pitch to the sharks was Tim Stansbury and Erin Whalen of Grease Monkey Wipes.  They were looking for $14,000 for 40% equity in the business. Grease Monkey Wipes is a portable, individually packaged wet wipe, made with non-chemical all natural cleaning ingredients. The weights will easily clean your hands and removed most grease and grime quickly. They did not have a patent because when you file a patent you have to give away your formula, which allows their competitors to copy their formula.  The wipes are sold for one dollar apiece and they sold 7400 this year, and shops had already started to reorder.

Robert is a huge gearhead, so this business was right up his alley.  Erin pleaded with Robert saying repeatedly “I promise we will make this work”. Both Robert and Barbara were impressed with Tim and Erin’s as entrepreneurs, Robert and Barbara accepted the deal.

From Hell to Ink, Shark Tank Episode 12 Recap

Thursday, January 14th, 2010

Romp n RollFirst the tank was Michael and Babz Barnett and their business, Romp n’ Roll . Romp n’ Roll is a children’s entertainment center franchise, offering gym, art, music  classes and camps for children under five. They were looking for $300,000 for 10% of their business. They have 10 locations already, 8 of which are franchised, and brought in $1.2 million, with a 30% profit margin before salaries.

You could definitely tell that Babz dealt with children a lot, because her pitch was very animated. After Barbara went out, Michael tried to convince her to come back in the deal while Robert was trying to ask a question. This could have cost them their deal, but Robert and Kevin offered $300,000 for 51% of the business. The couple countered with 20%, but the sharks would not budge. Michael and Babz walked away without a deal.Sh

Charlie-Extreme--novRS-3.75Marix Stone and Dr. Nancy Tanchel and their business Hells Bells, was seeking

$500,000 for 20% equity in the business. Hells Bells produces helmets with 3-D elements on them, they also own the patent to add these unique designs to other helmets. They have sales of $300,000, and sell a helmet for around $175 with a 50% profit margin.

With the hundred $175,000 profit last year Hells Bells, seems a solid investment, but not at the $2.5 million evaluation. The sharks are more interested in licensing the patent, then producing the helmets. Daymond offered $500,000 for 50%, but he would be licensing the patent and not focusing on selling the helmets. They accepted the deal.

TwisteronBagNext was Alfonzo Down and his business The Twister a golf ball cleaner that attaches to your golf bag. Alfonzo was looking for $85,000 in exchange for 40% of his business. Alfonzo’s had very low sales only selling in flea markets and online, and was mostly a seasonal business. Now the Sharks were interested and he walked away without a deal.

ChefinBlackLabelThe Chef in Black was next into the Shark Tank, owned by Dorene Humason, they produce their own line of dried salad dressing called Jaden Chinese Salad Dressing and Seasoning Mix. Dorene was seeking $50,000 in exchange for 10% of her business.

Dorene business have a rough start, after getting into 1300 stores she had to pull her product after learning her packaging was offensive. She had mistakenly put a cartoon image of a Japanese prostitute, which is obviously offensive and caused her to redesign her packaging. Dorene was smart, she saw an available market (the dried salad dressing) and produced a product to fill that niche. She expressed interest in expanding into wet salad dressing, but the sharks felt the bigger guys would crush her.

Barbara offered $50,000 for 40% of her business, with the stipulation that they stay with dried salad dressing and expand nationwide. Dorene countered with 35% and the offer was accepted.

Last into the Shark Tank was Andy Sperry and his business Inkflip. Inkflip offers a mail-order ink cartridge service (Like Netflix for your printers). He was looking for $150,000 for 20% of his business. Unfortunately the last six months he only generated $10,000 in sales, and was unaware of the cost of acquiring a new customer. He simply was asking for way too much money, and all the Sharks were out.

Shark Tank Season 1 Recap

Saturday, October 24th, 2009

The Shark invested $4,410,000 this season!

EPISODE 11

WE BOBBLE
Custom made Bobble Head Dolls sold in mall
http://www.webobble.com
Looking For: $75,000 for 15%
Deal: No Deal

MR. PONCHO

MP3 Player sleeve with headphone wrapping device to prevent tangles
http://www.mrponcho.com
Looking For:  $50,000 for 25%
Deal: No Deal

UROclub
Urine reservoir disguised as a golf club
http://www.uroclub.com
Looking For: $25,000 for 51%
Deal: Kevin H, $25,000 for 70%

JUMPFORWARD
Website connecting High School athletics with College Coaches.
http://www.jumpforward.com
Looking For: $150,000 for 10%
Deal: Robert and Kevin O, $600,000 for 50%

EPISODE 9

CHILL SODA
Soda that is low calorie and organic.
http://www.chillsoda.com
Looking For: $50,000 for 10%
Deal: Barbara $50,000 for 20%

CORNUCOPIA
Cancer preventing pet food.
http://www.cornucopiaexpress.com
Looking For: $300,000 for 15%
Deal: No Deal

VIRTUSPHERE
A virtual reality experience.
http://www.virtusphere.com
Looking For: $1,500,000 for 10%
Deal: No Deal

GAYLA BENTLEY DESIGNS
Fashion for women of all sizes and shapes
http://www.gaylabentley.com
Looking For: $250,000 for 20%
Deal: Daymond and Barbara, $250,000 for 50%

EPISODE 8

NOTE HALL
Online marketplace of college class notes.
http://www.NoteHall.com
Looking For: $90,000 for 10%
Deal: Barbara $90,000 for 25%

TREASURE CHEST PETS
Plush animals with storage drawers.
http://www.MyTCpets.com
Looking For: $150,000 for 25%
Deal: Daymond and Barbara, $150,000 for 60%

THROX
socks sold in threes
http://www.throx.com
Looking For: $50,000 for 25%
Deal: No Deal

WASHED UP HOLLYWOOD
Buckle and Belt fashion
http://www.WashedUpHollywood.com
Looking For: $500,000 for 25%
Deal: No Deal

EPISODE 7

GRILL CHARMS
Stainless steel markers for rare, med and well + novelitys
http://www.grillcharms.com
Looking For: $50,000 for 25%
Deal: Robert, $50,000 for 25%

THE FUN HOUSE PROJECT
New York Time Square magic tourist attraction
Looking For: $300,000 for 20%
Deal: No Deal

BOOGIE BOX FITNESS
Work out routine DVD that mixes of Martial Arts and Dance
http://www.boogieboxfitness.com
Looking For: $700,000 for 70%
Deal: No Deal

SOY-YER DOUGH
Wheat free molding dough
http://www.Soy-Yer.com
Looking For: $125,000 for 25%
Deal: Robert and Kevin O, $300,000 for 51%

EPISODE 6

ELEMENT BARS
Custom energy bars
http://www.elementbars.com
Looking For: $150,000 for 15%
Deal: Kevin H. $150,000 for 30% and 4% royaltry

THE FIZZ CUP
A cup that attaches to pop bottles to make float
http://www.icecreamfizz.com
Looking For: $150,000 for 25%
Deal: No Deal

UNDER-EASE
Underwear that trap in odors.
http://www.under-tec.com
Looking For: $55,000 for 25%
Deal: No Deal

KALYX Sports bras.
Engineered sports bra
http://www.goKALYX.com
Looking For: $125,000 for 20$
Deal: No Deal

PORK BARREL BBQ
Gourmet BBQ sauce
http://www.PorkBarrelBBQ.com
Looking For: $50,000 for 10%
Deal: Barbara, $50,000 for 50%

EPISODE 5

BODY JAC
Exercise machine that makes pushups easier
http://www.bodyjac.com
Looking For: $180,000 for 20%
Deal: Kevin H and Barbara $180,000 for 50%

CREATIVE BLOK
Surgical masks imprinted with fun faces.
http://www.creativeblok.com
Looking For: $50,000 for 30%
Deal: No Deal

GRANOLA GOURMET
Granola energy bars for Diabetics
http://www.granolagourmet.com
Looking For: $175,000 for 25%
Deal: No Deal

GOOD GRIEF CELEBRATIONS
Funeral concierge
http://www.goodgriefcelebrations.com
Looking For: $50,000 for 25%
Deal: No Deal

MY THERAPY JOURNAL
Therapy-oriented online journaling tool
http://www.MyTherapyJournal.com
Looking For: $80,000 for 20%
Deal: Robert and Kevin O, $120,000 for 50%

EPISODE 4

GIFT CARD RESCUE
Reselling unused gift cards for cash.
http://www.giftcardrescue.com
Looking For: $150,000 for 30%
Deal: Kevin O. and Kevin H., $200,000 for 50%

SOUL’S CALLING
Umbrellas and sandals imprinted with inspirational messages.
http://www.soulscalling.com
Looking For: $150,000 for 25%
Deal: No Deal

COFFEE BRAND GIFTS
Coffee Branded Gifts
http://www.coffeebrandgifts.com
Looking For: $300,000 for 40%
Deal: No Deal

GRAFFITI REMOVAL SERVICES
Graffiti removal service, looking to franchise.
http://www.removegraffiti.net
Looking For: $350,000 for 15%
Deal: No Deal

COVERPLAY
Slipcover for portable play yards
http://www.coverplayard.com
Looking For: $350,000 for 15%
Deal: Barbara $350,000 for 40%

EPISODE 3

TURBOBASTER
Baster that will siphon, baste, and marinade your favorite foods.
http://www.turbobaster.com
Looking for: $35,000 for 30%
Deal: Kevin H, $35,000 for 100% and 2% royalties

KWYZTA CHOPSTICK ART
Recycled bamboo chopsticks hand crafted into functional products.
http://www.chopstickart.com
Looking For: $100,000 for 10%
Deal: No Deal

STRESS FREE KIDS
Line of books that helps Children deal with Streets and go to bed.
http://www.StressFreeKids.com
Looking for: $250,000 for 20%
Deal: Barbara, $250,000 for 50%

50 STATE CAPITALS IN 50 MINUTES
Flash cards to learn the 50 states.
http://www.sharpestkidontheblock.com/
Looking for: $155,000 for 10%
Deal: No Deal

VOYAGE AIR GUITAR
Guitar that folds in half
http://www.voyageairguitar.com
Looking For: $500,000 for 5%
Deal: No Deal

EPISODE 2

CROOKED JAW
Extreme sports and MMA clothing brand.
http://www.crookedjaw.net
Looking For: $200,000 for 20%
Deal: No Deal

LIFEBELT
Safety device that keeps cars from starting if seat belt is not buckled up.
http://www.nobucklenostart.com
Looking For: $500,000 for 10%
Deal: No Deal

A PERFECT PEAR
Pear flavored jellies and jams.
http://www.aperfectpear.com
Looking For: $500,000 for 15%
Deal: Robert and Kevin H $500,000 for 50%

ATTACH NOTED
Fold out holder for sticky notes
http://www.attachnoted.com/
Looking for: $100,000 for 20%
Deal: No Deal

CLASSROOM JAMS
Educational records using popular music that relates to classical literature.
http://www.classroomjams.com
Looking for: $250,000 for 10%
Deal: All the Sharks $250,000 100% with 8.5% royalties sent to the creator

EPISODE 1

MR. TOD’S PIE FACTORY
Produces very popular pies, large wholesale business.
http://whybake.com/
Looking for: $460,000 for 10%
Deal: Daymond & Barbara $460,000 for 50%

IONIC EAR
Bluetooth device surgically implanted in your ear.
Looking for: $1m for 15%
Deal: No Deal

WISPOTS, INC.
Custom internet connection point at doctor waiting rooms.
www.wispots.com
Looking for: $1.2m for 15%
Deal: No Deal

AVA THE ELEPHANT
Medicine dropper disguised as an elephant head
http://www.avatheelephant.com
Looking for: $50,000 for 15%
Deal: Barbara $50,000 55%

COLLEGE FOXES PACKING BOXES
College girls come into your home and pack your moving boxes, looking to franchise.
http://www.collegefoxes.com/
Looking For: $1million for 10%
Deal: No Deal

Shark Tank Season Finale Recap

Thursday, October 22nd, 2009

Well that’s it folks, this week was the last episode Shark Tank, for this season (hopefully). Good news is ratings were up by 19% from last week, this is the fifth consecutive week for a ratings gain. This weeks episode was filled with some great businesses, all looking for investment from the Sharks. These entrepreneurs needed the wealthy Sharks to take their businesses to the next level.

thumbnail.aspJeff Wolsky was first to test his skills against The Sharks. His business The Bobble Place is a kiosk system, to sell his successful line of custom-made bobbleheads dolls. Customers will provide a picture of themselves and pick out of body for their bobblehead. Then the bobble head will be custom-made by Jeff’s already existing business, The Bobble Place is a separate business from his wildly successful online business. Jeff was looking for $75,000 for a 15% equity in his business.

The sharks were not really interested in his concept. But they were really interested in his already existing business, the problem was Jeff was not willing to include that in the deal. With over $1 million in sales and has other business and profits in the range of $500,000-$600,000 the sharks really wanted a piece of this deal.

Kevin first offered $75,000 for 18% of his online business, and then offered $100,000 for 20% of his online business. He also forbid Jeff to ever talk about moving into a mall again. Jeff said he didn’t need the money, but then Robert offered 125,000 for 20% of his online business. Jeff then countered saying it except both offers were combined total of $225,000 for 20%. After a brief discussion Robert and Kevin O offered 100,000 for 20%, Jeff countered with $100,000 for 7% both sharks were out.

I honestly think that Jeff was not looking for a deal, he only came on the show for publicity. I’m sure his sales went through the roof, good for him.

Mr PonchoSecond into the tank was Sandy Hyun and Roman Pietrs and their business Mr. Poncho. Mr. Poncho is a protective cover for MP3 players, with the way to keep your headphones from getting tangled. They were looking for $50,000 for 25% stake in the business.

The business is two years old and last year had sales of $35,000, the protective case is patent pending, but the innovative cop is just a re-purpose patent. This means that somebody else owns the only innovative or interesting part of this business. No sharks would bite, and Sandy and Roman left empty-handed.

golfNext to take a dip in the tank, was Dr. Floyd Seskin. Dr. Seskin is a urologist and an avid golfer, he came up with this idea after some of his patients complained about having to slice the ball into the woods in order to relieve themselves. His business UROClub is a product that allows men to urinate into a hollow club that looks like a seven iron.

The doctor had sold 3000 units last year and had sales of $70,000. This was not enough to convince most of The Sharks and one by one The Sharks dropped out. All except for Kevin H who offered $25,000 for 70%, Dr Seskin was looking for business experience and not money so he accepted the offer.

Logo_JumpForwardThe last pitch of the season was from Brian Duggan and Adam McCombs and their business Jump Forward. Jump forward is an online system that allows high school athletes and their parents to create detailed profiles and market themselves to college coaches. They also created a Blackberry application, that allows coaches to negotiate the difficult rules on contacting high school athletes. If these rules are broken it could lead to large fines for the universities. The colleges pay a subscription fee and so far 30 different schools assigned up, and they have 60,000 students who’ve created profiles, for free.

Kevin O was the first to bite, with an offer of $200,000 for 20% of the business. Robert quickly offered $300,000 for 35%. After asking entrepreneurs to step out of the tank Robert and Kevin came to an agreement, and offered $400,000 for 50% of the business. Brian and Adam rejected the deal. Robert then offered $500,000 for 50%, when it looked like they wouldn’t accept that he offered $600,000 for 50%. Brian countered with $750,000 for 50% or 300,000 for 25%. Robert and Kevin were unwilling to budge from the $600,000 offer, just what I look like the deal was going to fall apart Brian said Done.

One of the best negotiations of the season, I am glad they left one of the best for last.

If you want to see shark tank next season, click this link to send an e-mail to ABC and tell them that you want to see more Shark Tank.

Episode 9 Recap

Thursday, October 15th, 2009

Four very different businesses appeared on Shark Tank this week.

Chill SodaFirst into the tank was Dan Mackey with his business Chill Soda. Chill Soda is a low-calorie, organic, apparently healthy soda. Dan was looking for $50,000 for 10% of his company. Dan’s first slip up was when he said that he is only sold 250 cans last year, this turned off most of the sharks and it looked like his deal would quickly evaporate. But when he said he had sales of $175,000 this really confuse the Sharks, how could he have $175,000 from sales of selling 250 cans. It turned out he had sold 250,000 cans, this mistake could have cost him his deal.

The beverage business is one of the most cutthroat businesses out there. Coca-Cola and Pepsi control most of the market making it almost impossible for a new business to break into this market. Dan made his biggest mistake when he admitted he “doesn’t know much about the beverage business, I’m a marketing guy.” Immediately after this, almost all the Sharks were out… except for Barbara, who offered $50,000 for 20%. The other Sharks were trying to convince her that this was a bad deal, but despite the best efforts Dan and Barbara made the deal.

Not exactly the easiest business to invest in, I’m surprised that Dan got an investment. The beverage business is not an easy business to be in, I wish them all the luck, but I think Dan got the deal because he was asking for so little.

cornucopia expressDr Geoffrey Broderick and his daughter Kristine Broderick were next to pitch their business Cornucopia Express. Cornucopia Express is a pet food supplement, but apparently can extend life for pets by up to 50%. Geoffrey a veterinarian develops his blend using herbs and antioxidants that he discovered on his travels around the world. Product is not patented, in order to patent a product such as this you must disclose all the ingredients. A competitor could follow this ingredient list change one item and produce a similar product. They were looking for $300,000 for 15% equity in their business. Robert believed that Geoffrey was nothing more than a con man, selling snake oil. When Geoffrey went on to say that his product prevented dog cancer and other major diseases the Sharks were skeptical.

All the Sharks were out, although Kevin O believe that there may be a chance that the product was legitimate, he was definitely not willing to invest.

VirtuSphereRay Latypov and Jim Dimascio were next into the tank to pitch their idea VirtuSphere. VirtuSphere is like a giant hamster ball, that rotates on a platform allowing the user to move virtually in a 3-D environment. This technology could be used to train military, or for video arcades. Product sells for $35,000 per unit and only cost 14,000 make. The guys were looking for $1.5 million for 10% of the business. They already sold several units to the US military for $50,000 each, Jim suggested that it would make a great military recruiting tool. If they got the investment from a shark’s, they were planning to go “door-to-door” two different military bases around the country selling their product.

Roberts said “I’ve never seen a product in the Shark Tank that I love this much” because the business was so new and unproven he could not bring himself to invest. All the Sharks were out.

Very interesting product, I could see it selling to video arcades before I could see it selling to the military. You just got to get over the idea that you are in giant hamster ball.

611308_1Last but certainly not least, was Gayla Bentley and her business Gayla Bentley Fasion. Gayla was tired of not finding fashionable clothing for women size 12+, so do she developed her own high-end fashion line for large women. She was looking for $250,000 in exchange for 20% equity in her business. 60% of American women are size 12+, but there are very few stores that cater to this market. She sells her products exclusively online, wholesale and last year her sales were $500,000. She wants to use the sharks money to open a flagship retail store in Houston Texas, the banks would not lend her the money so she came to the Sharks.

330909_09Barbara was very interested in the product, she commented about how fashionable the clothing line was. Gayla said that a Home Shopping Network had approached her and wanted her product, but she held off signing a deal until after she pitched a Kevin H. Barbara tried hard to bring Kevin into the deal, but he was just not interested. In the end Barbara and Daymond offered $250,000 for a 50% stake in her business, and Gayla would retain creative control over her fashion line. The deal was done!

Gayla is an amazing saleswoman, I’m not sure that it is the best choice to open her own store. I think she would be best to try to get an exclusive distribution contract with a major retailer. I’m sure this is not the last we’ve heard of her.

There is only one more episode left, so make sure you tune in next week at 8pm on ABC.

Episode 8 Recap

Friday, October 9th, 2009

This weeks episode Shark Tank featured entrepreneurs who badly needed the help of the sharks to bring their company to the next level.

Notehall LogoFirst into the tank was Notehall a company launched by D.J. Stephen and Sean Conway out of the University of Arizona. Their website created a marketplace for university and college students to sell their class notes and study guides. Students would post their class notes and other students would pay $4.90 for the rights to them. Notehall would give 40% of the sale to the author of the notes and keep the rest has a transaction fee. They were seeking $90,000 for 10% of the company, the money would help them expand to 24 universities this year.

Notehall websiteA bidding war broke out between the sharks, Kevin O offered $90,000 for 51% of the company. Barbara quickly offered $90,000 for 50% of the company. The guys countered with 15% for $90,000 but with a unique offer attached, if within 24 months they didn’t hit $1 million worth of revenue they would give up their share of the company. Kevin went first with $90,000 for 35% stake, Barbara offers the same amount for 25% and Robert offers $115,000 for 35%. This infuriates Kevin who matches Roberts offer, Barbara added to her deal within six months they have the opportunity to buy her out if they choose. Kevin and Robert ultimately team up and match Barbara’s deal for $90,000 to 25%. The guys except Barbara deal.

This is an interesting deal, they accepted Barbara’s deal. Although she had some experience in the Internet field she didn’t come close to the amount of experience that both Robert and Kevin O offer. I’m sure this company will be a success it just might take a little longer.

Treasure Chest Pets is a company run by Lisa Lloyd that makes organizers that look like stuffed animals with secret spactreasure-chest-petses in them. They are sold for $19.99 and last year she had sales over $100,000. Lisa was looking for $150,000 for 25% stake in her business. She hasn’t been able to go after large retailers because she doesn’t have the capital to produce more products to meet their orders.

Barber and Daymond were the first sharks to sink their teeth into the deal. They offered $150,000 for 60% of the company. Daymond would also offer the use of his distribution and production channels essentially leaving Lisa responsible for sales and he would take care of everything else. Robert offered a $150,000 line of credit with a reasonable interest rate for no equity. This did not make Daymon happy, but Lisa accepted Barbara and Daymon’s deal.

I am surprised that Lisa did not use Roberts deal as leverage, to lower the percentage that Daymon and Barbara were looking for.

Throx was founded by Edwin Heaven, he was looking for $50,000 in exchange for 25% equity in his company. Throx sells socks in packs of threes, not three pairs, but three socks. Edwin hopes that when you lose when you’re a sock you can just use the other one and still have a pair. None of the sharks were interested in this novelty item, and were all out.

Washed up HollywoodLast to take a dip in the tank was Danon Beres and his business Washed up Hollywood. Danon’s father sold belts to celebrities for several thousand dollars, Danon followed in his footsteps producing more affordable belts and belt buckles. Last year he sold 10,000 belts in 300 stores and made $50,000 profits. He was looking for $500,000 for 25% equity of the company.

Danon made a major mistake, the rules of Shark Tank indicate to you must get the minimum of what you ask for or there is no deal. This means because he was asking for $500,000 he would have to give up nearly his entire company, in order to make the Sharks evaluation work. Although the sharks believed that he had a viable business and really wanted to invest, he asked for way too much and evaluated his company to high so they were unable to invest.

Episode 8 Links

Tuesday, October 6th, 2009

Tonight’s episode Shark Tank featured four entrepreneurs pitching their business, ranging from websites to socks.
Notehall.com is a website that allows students to sell their notes to other classmates.
Treasure Chest Pets (TC Pets) a child friendly organizer in the shape of a stuffed animal.
Throx an… interesting way of dealing with your lost socks.
Washed up Hollywood celebrity base accessory company (belts)
Check back later for a full recap of tonight’s episode, in the meantime follow us on twitter @SharkTankABC

Shark Tank Episode 7 Recap, It Just Keeps Getting Better

Tuesday, September 29th, 2009

Shark Tank moved to Tuesday night at 8, and by the looks of the amount of twitter activity I am seeing the new time has been a big success.

Grill Charms LogoFirst up was Leslie Haywood and her business Grill Charms. Grill Charms are dime-sized stainless steel charms that are placed in your meat right before grilling. This will help to separate different flavors, spices and identify what degree stake is cooked. Leslie was looking for $50,000 in exchange for 25% equity in her business. There are four different collections and opportunity to license the product to sports teams and other groups. Grill Charms are currently available in just over 100 stores and their sales were $60,000 last year.

Grill CharmsThat was enough, the sharks attacked. Kevin O was first to bite with an offer of $50,000 for 50% and 7% royalties. Kevin H was next with an offer of $50,000 for 50% and all his experience behind it. Both Robert and Daymond wanted in on Kevin H’s offer but Kevin H would only partner with Daymond. Robert would not let the offer die so he offered $50,000 for 25%, which is what Leslie, had original asked for. The sharks were jumping at this deal, fighting each other off, one of the best moments of the night.

After talking to her husband Leslie countered Kevin H and Daymond deal with 49% equity. Then came the best line of the night, Kevin O asked why she was not looking at his deal. Leslie said “I do like you, I just don’t think I can work with you.” Kevin O then offered $50,000 for 20% and 7% royalties. Leslie ended up taking Roberts deal.

Not really sure if this is the deal I would have gone for, Kevin H and Daymond offer was sure to make her a fortune. Although I am sure Roberts deal will still work out.

On a side note I would like to pass on my condolence to Leslie and her family over the loss of her father.

The Fun House Project was the brainchild of Todd Robbins and David Adamovich. Their goal was to build a magic themed, 20,000 square feet attraction in Times Square. They would have restaurants, theaters, bars and other attractions. They were looking for $300,000 for 20% equity in the idea. The idea was way too much of a risk for the Sharks and everyone was out.
It’s a little crazy to go from a performance magician to owning a 20,000 square foot entertainment centre in Times Square.

Boggie Box FitnessDedelle Barbarti-Parra developed Boogie Box Fitness after having three children, she used her experience in martial arts and dance to develop her own workout routine. Boogie Box was hoping to take their workouts to the home DVD market by developing a DVD and marketing through infomercials. Dedelle was looking for $700,000 for 70% of her DVD business.

The sharks were not interested and everyone was out.

Soy-Yer DoughLast into the tank was Sawyer Skarks and his business Soy-Yer Dough. Soy-Yer Dough is a wheat free molding dough that is made out of soy. Play Doh and other molding clays are made out of a wheat-based product that children with celiac disease (an allergy to wheat) are not able to play with. Sawyer, a University student was looking for $125,000 for 25% of his business. Sawyer has a provisional patent on Soy-Yer Dough, although he was still making it in his mother’s kitchen he had been able to sell 8,000 units with 10,000 on order.

Play Doh has been knocking on his door, multiple times, their last offer was for $500,000 for his business. He turned down the offer.

Kevin O saw a huge opportunity in this business so offered $125,000 for 51% of the business. He argued that he would not be able to negotiate with Play Doh as effectively he had control of the business. For the first time ever it almost looked like Kevin was beggin an entrepreneur to accept his offer. He said he would bend over backwards to make the deal a success, he would get Sawyer everything he wanted including employment for his home town. But Sawyer was still not convinced and countered with 40%, Kevin added that he would negotiate the deal with Play Doh before the deal was done, and if Sawyer felt bad about it he could chose not to take Kevin’s deal.
Robert offered $125,000 for 40%, and Kevin O was not happy about it. Sawyer then asked for more money, and within a few seconds Daymond, Robert and Kevin O offered $100,000 each for a total of $300,000 in exchange for 51%.
Sawyer accepted their offer!

This episode featured two of the best deals in Shark Tank history, and it was the most entertaining episode I have seen. I am excited to see what next week holds.

Remember to follow on twitter @SharkTankABC