Shark Tank is an American reality show produced by Mark Burnett. The show is about aspiring entrepreneurs bringing their business plan up in front of a panel of potential investors to see if they can sell their product to them and get the total investment amount needed. Today the first entrepreneur was Sarah Schulz the founder of Schulzies bread pudding. She was seeking an investment of $160,000 for a twenty percent equity stake in Shulzies. All the investors were able to try a variety of bread pudding which turned out to be a delicious surprise.
The only thing lacking in Sarah's business was a stable yet sturdy business plan. The investors definitely wanted to help her, but the risk was far too high. As we all know, to have a successful business you have to have a successful business plan or you will crumble. The second entrepreneur was James Ambler who is the owner of Paparazzi Proposals. They go around capturing the perfect moment of a marriage proposal. He was seeking a $250,000 investment for twenty percent equity in his company. He explained to the panel that he wants to expand his business to cities other than Just New York.
The investors gave him helpful advice on how to go about the expansion nd all recommended to first saturate his current market, New York City, and then go on to other destinations. Three of the "sharks" simply told him they dont see the need for that amount of money because the company isn't worth that much. Laurie was very interested but was wanting a bigger piece of the pie, because she felt like she could show him how to move the business into extreme success. Out of the last three investors, they all decided to give him a portion of what he was asking with thirty three percent of the business.
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Lori and Kevin decided to partner giving him 50,000 for thirty three percent and loaning the rest when he needed it. Robert started off on the fence and gave him the offer of $100,000 with thirty three percent and also loaning the rest when he needed it. He made an offer asking Robert to let Lori partner and Robert immediately was out. So he was left with the only offer standing and that was with Kevin and Lori. He told them if they would go down to thirty percent they would have a deal. The partners agreed and James left the room with investors for his company.
The next entrepreneurs who entered in front of the panel had a new way to communicate with a child before it is even born. Curtis and Matt are the founders of Belly Buds who are seeking an investment of $500,000 in exchange for twelve and a half percent of their company. Basically their product makes playing music to the baby much easier by using a baby bump sound system that adheres to the woman's stomach. This allows her to play music and/or voices through her stomach to the baby in the womb anytime, anywhere. The investors first wanted to know if the product was patented.
The partners said they have had a patent pending for three years, and Lori went on to say that they were probably not going to get it then. Mark aid that he had a similar product when his children were in the womb it Just didn't adhere to the stomach, which is probably why the patent is pending. Most of the investors described how the price they are asking, based on their sales, was Just too high of an amount for them to risk investing. The other two said that the product Just wasnt unique enough an they didn't see the potential to make money.
The final entrepreneur that entered was a man from California with an innovative new cosmetic line. Abe Geary the founder of Pet Paint, colored hairspray for your dog, was seeking a $200,000 investment for twenty percent of his company. The product is veterinary tested, easy to use, easy to wash off, and will make your dog one ofa kind. One investor commented that the product doesn't have a good price, ten dollars a can isn't something most households are willing to spend to spray paint their dog.
Kevin said that if he was able to make a paint that no one else could make he would consider the offer but this product is one that anyone can come up with and distribute, so he was out. Lori was concerned with the amount of inventory and also said she was out. Mark was more concerned with the fact that Abe didn't ecognize the opportunity that online sales could bring him, so because of his lack of seeing potential ways to increase his business Mark also didn't invest.
With four sharks now out, Robert was Abe's last chance to cut a deal and luckily he was on the fence. While trying to decide Barb comes swooping in offering him $200,000 for sixty percent of his business. His response shocked many when he said that he didn't want to work with someone who was Just interested in equity and declined the offer. It closed with Abe stating that he will be taking the advice of the sharks and Pet Paint will soon be online.
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