I must admit, I love husband and wife owned businesses……especially when the partners have complimentary skills. There were two such businesses tonight and they are both winners of tonite’s Sharky Award for entrepreneurial excellence.
Platinum Sharky Award…….Mark and Amber from Ruffle Butts and Rugged Butts
These two design and sell clothing and bloomers for young boys and girls. Amber was the creative force and also had lots of business acumen. These two had a great track record with last year’s sales of $3.7 million. They projected sales of $4.5 -$5 million this year.
Kevin O’Leary (Mr. Wonderful) thought they had far too many SKU’s (2,700) but Amber pointed out that this was a fashion oriented business and they had to continually introduce hip new products to know how they would sell. Mr. W. thought this would add additional cost and reduce profitability.
Mark and Amber did a great job of negotiating and ended up getting $600K for 9% equity from Lori Greiner. Lori is a great partner for them and will help get them on QVC. This was a very good deal and a job well done.
Gold Sharky Award…….Theresa and Robert from Veggie Mama
These two made healthy frozen snacks called Garden Pops. Theresa and Robert were all-in…..they had invested $140K in their business and had only generated $30K in sales. Robert had also quit his job as a lawyer. Talk about total commitment!
Mark Cuban thought Robert quitting was a good idea if, for no other reason, the world was better off “having one less lawyer” (note the irony: Cuban was just found not guilty of insider trading in a recent trial vs. the SEC).
Mark and Barbara Corcoran ended up making a deal for $75K for 20% even though both weren’t interested at the outset. This shows the power of getting multiple bids for a business and generating a “bidding war”.
Shark Chum Awards…..Dr. Edna Ma from Bare Ease was incredibly accomplished having two jobs, a family, and starting a new business. The Sharks were afraid she couldn’t focus full time on the new venture. Her product was numbing cream with panties to ease the pain prior to a “grooming” session. I loved the fact that she had created a version for men. She named it “Numb Nuts”.
Matt and Mike from Rent A Goat did not do a very good job of explaining how their business worked. Believe it or not, goats really are used for landscaping hilly properties in California. The goats they brought on stage consumed all the vegetation available to them in a matter of minutes. That’s about how long Mike and Matt lasted before the sharks ate them up and spit them out. The sharks thought their business had a low barrier to entry and they would end up having lots of competition if their concept worked.