The following are actually REAL negotiations between entrepreneurs and investors (Guppies & Sharks). The sharks invest their own money at their discretion. The guppies get devoured into a belly of finance, or spit back into the ocean of hard knocks to fend for themselves. The entrepreneurs must convince the sharks to invest the FULL AMOUNT, or walk away with NOTHING.
THE GUPPY: Ken Howell
THE COMPANY: Uncle Zips Beef Jerky
SYNOPSIS: Fresh natural beef jerky made from a family recipe
SEEKING: $25K for a 20% stake
PRODUCT/SERVICE: Beef jerky made with no additives or preservatives that gives it a fresh taste you can't find anywhere else.
WHAT'S THE SKINNY?: It has a 2 month shelf life on it, He's been rebuilding the company for the past few years due to the loss of his father, his highest sales where right at $100K, and his sales last year where about $50K.
BUSINESS MODEL/HOW DOES IT MAKE MONEY?: He wants the investment to upgrade his processing plant to ship fresh beef jerky to stores nationwide.
STATS: Robert doesn't think the shelf life of the beef jerky is long enough and the business is not something he'd like to invest in so he's out. Daymond thinks it's a small business, not an investment. Kevin likes the jerky but the business is just to small for him. Jeff is also out, but thinks Ken can make a living from his beef jerky on his own. Barbara believes in Ken's dream also, but she's out as well. It appears that it's just not big enough for the sharks to invest in. Ken walks away with no investment.
CAME IN SEEKING: 25K for a 20% stake
WALKED WITH: Free Publicity
GRADE: (Guppy): D+
GRADE: (Sharks): Not Applicable
COMMENTARY: Ken may not have gotten the investment he wanted, but the free publicity should do wonders for his orders. If he keeps his faith and business up he'll be able to grow his business and make it. Good luck Ken!
WHAT DO YOU THINK? COULD HE HAVE GOTTEN THE CAPITAL WITH A LOWER STAKE? WAS IT TOO SMALL OF A COMPANY TO INVEST IN? POST YOUR COMMENTS AND TEST YOUR NOODLE AT THINKING LIKE A BILLIONAIRE...........