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: April Morris
THE COMPANY: Thin Gloss
SYNOPSIS: A way to lose weight with lip gloss
SEEKING: $80K for a 20% stake
PRODUCT/SERVICE: A lip gloss with herbs and aromas that curbs your appetite and enhances your mood.
WHAT'S THE SKINNY?: She had $26K in sales at the end of last year and $18K so far for the following year. She has spoken to an FDA attorney, but had no clinical study that it can help lose weight at the time. She has a distributer in India interested, and has other distributer's lined up. It sales for $28 and costs between $4 and $5 per tube to make it.
STATS: Kevin Harrington is the first to drop out due to the legal aspects of the weight loss claim. Daymond is out next for the same reason. Kevin O'Leary likes it but will not endorse it due to the weight loss claims and the FDA. Barbara drops out next. Robert is comfortable with the grey area of weight loss claims, but is out due to the fact that he just can't see the company going from $35K to $1 Million in sales in 12 months. April walks out with no investment in total confidence without being discouraged at all.
CAME IN SEEKING: $80K for a 20% stake
WALKED WITH: Nothing but confidence in reaching her goal
GRADE: (Guppy): C
GRADE: (Sharks): Not Applicable
COMMENTARY: She is very confident in her ability to succeed and reach her goals even though she did not secure the investment. I hope she makes it. Her profit margin is stupendous! Good luck April......
WHAT DO YOU THINK? COULD SHE HAVE GOTTEN THE SAME CAPITAL (OR HIGHER) WITH A LOWER STAKE? WHERE THE SHARKS FAIR IN THEIR NEGOTIATIONS? DID BOTH PARTIES COME OUT ON TOP? POST YOUR COMMENTS AND TEST YOUR NOODLE AT THINKING LIKE A BILLIONAIRE...........