The Shark Tank has a simple set of rules; entrepreneurs pitch their businesses to the Sharks that are looking to invest. The entrepreneurs must get all the money that they ask for in order to close a deal, this means that if an entrepreneur asks for $100,000 for 25% of their company they can only alter the percentage of the company they are willing to give up in order to close a deal.
[ad#Horozontal Banner]
First into the Shark Tank was Jonathan Boos and his business, Wurkin Stiffs. Wurkin Stiffs makes several products that help keep your shirt collar from curling, giving you that button down look. His flagship product, Power Stays, uses a metal insert that goes into your shirt collar pocket, and then a powerful magnet is placed underneath your shirt to hold it in place. Jonathan also makes a full line of other men’s accessories, including fun cufflinks. His products are for sale in major retailers including Norstrom, and he did over $500,000 in sales last year. He is predicting to do $1.8 million in sales this year. Jonathan was hoping use the money to help develop other products to enhance his line.

The Sharks really liked his products, but Kevin was the first one to make an offer. Kevin offered $100,000 for 30% of the business and 14% royalties (The percentage paid off the gross sales of the product). Jonathan wasn’t keen on the idea of a royalty, he said he wanted more than money; he wanted someone who could help him grow his business. It is obvious that Jonathan really wanted a deal with Daymond. Daymond is a self-made millionaire, who started the successful FUBU clothing brand. With Daymond contacts Jonathan could surely grow his business. The problem was Jonathan wouldn’t listen, and before he knew it Daymond was out. Robert offered $100,000 for 30%, but Jonathan quickly asked for $200,000 for the same percentage. Kevin again countered with $100,000 for 20% but still kept his 14% royalty. Not to be outdone Robert came in again for $100,000 for 25%. Barbara began trying to put together a deal with Daymond for $100,000 for 20%, but Daymond wouldn’t come back for anything less than 40%. The reason why Daymond was asking for a higher percentage was because of his knowledge and contacts. After a little more negotiation the deal was done, and Jonathan walked away with $100,000 for 40% of his business in a deal with Daymond and Barbara.

In the end it came down to Daymond’d contacts, which I’m sure would help Jonathan get Wurkin Stuffs into the stores quicker. The lesson to be learned from this pitch is to know when to talk and when to listen.

Tippi Toes is a children’s dance company, run by sisters Sarah Nuse and Megan Reilly. They came into the Shark Tank asking for $30,000 for 5% of their business. What makes Tippi Toes unique is that they go directly into preschools and day care centers to teach children dance. Most dance companies have studio space that they rent, which creates high overhead. The day care centers and preschools pay a monthly fee, and they can advertise it to their families as an extra service. The sisters run their business as a franchise, and so far they have 7 franchises around the country. Sarah and Megan are real sharks, they offer financing for their franchisees, require a 10-year contract, and charge a minimum of $1000 each month in royalty fees.

The sister’s next goal is to grow their brand by developing a DVD, featuring the fun characters that they created.

Kevin again was the first Shark to offer $50,000 for 51% of the business, but the girls wisely turned down the deal. Barbara then offered $60,000 for 20% of the business, but Mark wanted in as well. He told the girls to make him an offer, they countered with $100,000 for 30% of business, and before Barbara knew what hit her Mark closed the deal!

These girls have a solid business, but it may be expensive developing a brand, and a DVD series to sell. They should concentrate on their core business and use the exposure from the Shark Tank to sign new franchises. I’m sure with Mark Cuban’s guidance these girls will be millionaires before you know it.

Shawn Davis, otherwise known as Chef Big Shake entered the Shark Tank with his business CBS Foods. CBS foods manufactures and distributes the original shrimp burger, which features four different flavors, including Original, Jalapeno, Cajun and Teriyaki. He also sells other products including a lobster slider. This year CBS Foods sold $30,000 worth of product, and had commitments from two major supermarkets for an order worth $87,000. Shawn was looking for $200,000 for 25% of his business.

Seafood is an expensive commodity, and due to price fluctuations and the cost of refrigeration most similar companies have margins of around 70%, while CBS Foods only had margins of 53%. Unfortunately the Sharks felt that Shawn over evaluated his business. With only $30,000 in sales they could not justify an $800,000 evaluation, the Sharks were out.

Over evaluating your business is a trap that a lot of entrepreneurs fall into. You need to separate yourself from your business, and look at it from an outside perspective. Unless you’re some crazy popular tech startup, you will most likely have base your value on your current sales and assets. The Sharks, or any investor is going to evaluate your business based on what it is worth, and not what you believe the potential value is in a year from now.

Last into the Shark Tank was James Martin with his business Copa De Vino, which is Italian for “wine by the glass”. James developed a method to individually package premium wine in glasses. James has patented his packaging, which keeps wine fresh for up to a year.

Copa De Vino sold $500,000 of product last year. He is currently working with two large wine companies hoping to close a deal that could be worth between $3 and $5 million. Although there is a potential to license the product (allowing another company to use his patent, and paying a royalty fee) James believes that by keeping the businesses together he was proving the concept worked, which could lead to more money in the future. In reality, if he separated the packaging from his wine brand, his wine would blend in with all the rest of the thousands of wines out there, and have nothing to make it stand out amongst the crowd.

Kevin offered $600,000 for 51% of the patent company, but not the wine company. James countered with $3 million for 51%, Kevin was not impressed and was out.

Remember that Shark Tank moves to its regular time slot, Friday nights at 8PM on ABC, this week.

First 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.

The 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.

Next 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.
[ad#Horozontal Banner]
Third 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.

Phil 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.

Last 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.

Jill 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.

It 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.

Tim 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.
[ad#Horozontal Banner]
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.

Last 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.

The 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.
[ad#Under Artical Ad Line]

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.

Next 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.

PODillow 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.

Last 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.

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

Marix 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.

Next 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.

The 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.
[ad#Under Artical Ad Line]

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
[ad#Under Artical Ad Line]

Jeff 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.

Second 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.

Next 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.

The 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.

First 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.

Dr 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.

[ad#Horozontal Banner]

Ray 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.

Last 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.

Barbara 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.

First 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.

A 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 spaces 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.

Last 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.
[ad#Under Artical Ad Line]