In this episode of Shark Tank, there were two entrepreneurs who earned Sharky Awards for outstanding performances and two who were fed to the Sharks.
Platinum Sharky Award…….Bev and Charlotte from Ice Chips
Don’t think these two Grandma’s want to sit around and play bingo or do scrap-booking. They started and grew a very nice business making xylitol candy (all natural from birch bark). While other granny’s might be playing with their 37 grandchildren (combined), these two are running a business with a forecast of $1 million in sales this year.
They had a handle on their market, their products, their customers, and their finances and it showed in their presentations to the Sharks. They knew, to the penny, their cost to manufacture their product, the wholesale price they charged, and the retail price. The Sharks were so impressed, they gave them multiple offers. They ended up accepting an offer from Mark and Barbara based on a good match of personalities.
Gold Sharky Award…….Drew from Drive Suits
Despite having no sales, Drew got multiple offers from the Sharks. His product line was so cool (“clothing” that allows the wearer to become a vehicle!) that he ended up accepting a contingent offer for $150K for 30% equity from Mr. Wonderful. The only puzzling thing Drew did was turn down a firm offer from Mark Cuban who suggested they build 20 units and then “see where it goes”. The chemistry between he and Mark would have been much better at this point in the company’s life cycle given Mark’s approach and expertise.
I guess Drew must have fallen prey to Mr. Wonderful’s words of wisdom……”Become ONE with the dollar”.
Shark Chum……David from PC Classes Online met a need (educating people over 50 who need help with technology), but he failed to realize that if people aren’t willing to pay to solve a problem, the business won’t succeed no matter how “valuable” a product may be. Not enough of his potential customers are not willing to pay to solve this problem.
Bill from ReVestor sounded like he was trying to sell snake oil. His “proprietary algorithm” attempts to predict which real estate deal will make the most money in a given area. He couldn’t explain how it worked or what criteria it used in its calculations. It all sounded too good to be true. He took a thrashing from the Sharks.