This blog will review each episode from the Entrepreneur’s point of view. Each Entrepreneur is eligible to win a “Sharky Award” based on their performance.
Platinum Sharky……April Morris with Thin Gloss
Despite not receiving funding from the Sharks, April is this week’s winner. Why? She had a great story, tremendous passion (“I’m not givin up”), gave a great presentation,and had an innovative product that was unique….lip gloss that helped you lose weight by making you feel full. Being risk averse as all investors are, the sharks passed on this opportunity because she didn’t have any clinical trials to prove the product helped you lose weight.
With some messaging changes and by continuing to work with the FDA, April will return some day to show the investors they were “Hammerheads” for not investing in her business.
Gold Sharky……George and Rolf with Light Film LLC
These Light-up decals were very cool. One problem….no actual sales. Because they had spent about $750K on R&D and patents, they had no money to produce the product. They were lucky to get a deal where they can recoup their investment if they sell enough. I can see leveraging Daymond’s brands to sell a bunch of these. They had to give up 70% of the company to get the deal. Considering their situation (spent way too much on patents) , they made out just fine.
Silver Sharky……Jan with Fridge Fronts
Jan had a nice product that allows people to easily change the look of their refrigerators by applying magnetized sheets. Jan had run into real-world problems like vendor price increases, server crashes, etc. and this was her “last hope” to salvage her business and pay her brother back ($250K invested). She managed to get $100K for 50% of the company. One word of advice for Jan and other Entrepreneurs……don’t admit your having problems and this is your last hope…..customers and investors get scared easily. Jan was fortunate that Kevin H. and Barb invested.
Shark Chum Award…….Bob Kroupa from New Era Brands
Bob had invented a chewing gum carry case that had actually generated $817K in Sales. Bob hired two “executives” who he paid $60K PER MONTH to help him grow the company. The presentation was so bad that Daymond said “I’m out again” when he heard about high his overhead was. Moral: Keep your expenses down until you hit the break-even point and are confident the business will succeed.