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: Deidra Haysel
THE COMPANY: Hot Mamma Gowns
SYNOPSIS: A gown that allows pregnant mothers to feel beautiful through childbirth
SEEKING: $30K for a 20% stake
PRODUCT/SERVICE: A gown for pregnant mothers giving birth that is made of 100% organic cotton with short sleeves for IV's and blood pressure checks, with a full snap down back and designed for easy breastfeeding
WHAT'S THE SKINNY?: She has $11,500 in sales, they retail for $119 and costs $49 to make. It's basically in the idea stage.
STATS: What does it cost to grow the business seems to be the question that the sharks want to know. Robert says Deidra's not answering questions like how she's gonna grow? How much will it cost? Kevin O'Leary say's Deidra hasn't identified the cost of customer aquisition. What does it cost to grow the business? Kevin O'Leary is out. Barbara wants to make the gown one size fits all but Deidra doesn't want to do it. Daymond is out because he believes she'l never learn from him because she has all the answers to everything. Robert Herjavec is out next. Kevin Harrington can't get over the fact that Deidra has a part time job and can't give full attention to the business and drops out next. Barbara believes she can sell the gown but is worried about Deidra's closed-mindness and gives Deidra a few conditions for an offer of $30K for 40% of her business because it's gonna take a lot of her time. But Deidra surprisingly declines the offer. Barabara is out. Deidra walks away with no investment.
CAME IN SEEKING: $30K for a 20% stake
WALKED WITH: Nothing
GRADE: (Guppy): F
GRADE: (Sharks): Not Applicable
COMMENTARY: She had no real sales, I don't know why she didn't take Barbara's offer. Maybe she'l get new orders with the Shark Tank exposure. Good luck Deidra.
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...........