This blog will review each episode from the Entrepreneur’s point view and announce the winners of this week’s “Sharky Awards”. At the end of the season, a season ending award ceremony will be conducted.
Platinum Sharky…… Kiersten of Mod Mom
She had a great story to tell and she delivered it well (husband laid off, taught herself how to be a carpenter, etc.). She started the business out of necessity and had sold $34,000 worth of her toy boxes. Robert asked the popular investor question, “How do we scale this?” Kiersten had a great answer…..she had spoken to the Amish in Ohio and they wanted to manufacture these (hope you can run a jigsaw without electricity!). Robert made a nice offer and she accepted. Good TV….a little unrealistic, but as a Self Funded Entrepreneur, I felt her emotion.
Gold Sharky……..The Johnson Family with Flipoutz
The Johnson kids have the best parents on the planet! So far they’ve spent $250K to bankroll this venture. When Mom said they were about to get a P.O. for 25 million units, the investors became very interested (in the real world potential investors would have said “come back when you get the order, let’s stay in touch”). When the 11 year old boy turned down the investors led by the self-proclaimed Mr. Wonderful/Mr. Toy (by day this superhero is known as Kevin O’Leary) I thought I would split a gut laughing. Eventually Dad sent him to his room and they accepted the offer of $100K for 33% of the company.
Shark Chum Award (a two-way tie)-Stacy Erwin of Fitness Stride gave great double-takes but had little credibility (didn’t know the valuation of his own company was $900K) and had no case studies or testimonials to show how good his product was. James from Pure Ayre started well but came off the tracks quickly when he had to call his wife in the middle of the show for some advice. For a guy who got thrown out of Walgreens, had decreasing sales (year over year), and hired a terrible CEO with no prior experience, James had some nerve turning down $225K plus a 7% royalty for life.