Saturday, May 7, 2011

Watch Shark Tank - Week 5 /Episode 6 - Sweepeasy

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: Shane Pannel
THE COMPANY: Sweepeasy
WEBSITE: sweepeasy.com
SYNOPSIS: A broom that scrapes and sweeps dry, sticky waste from the floor.
SEEKING: $40K for 25% stake




PRODUCT/SERVICE: A house broom with a built in scraper tool at the push of a handle button. 

WHAT'S THE SKINNY?: He has a patent pending, he is working with prototypes but he's he's shown it to retailers and talked to one of the nations largest janitorial supply and they all want it. He wants to get it licensed and distributed all over the world.


STATS: Kevin O'Leary is the first to jump in quickly, he wants to license the product all over the world with an offer the $40K for 25%. But just as soon as he makes his offer Kevin Harrington wants him to explore not only licensing, but direct to the consumer through television. But Kevin O'Leary quickly ups his offer to $50K for a 20% stake. Kevin Harrington wants to do a TV commercial first, then license that all over the world to make things easier. Daymond wants to let Shane run his own company and he makes an offer of $75K for 33%. Barbara doesn't see Shane as a person who can finish things so she's out. Kevin Harrington' not gonna raise his offer to match Daymond but he say's he has to put the product on television. Kevin O'Leary wants Shane to license the product all over the world. Kevin O'Leary tries to partner up with Kevin Harrington but Kevin Harrington wants to be able to have control over the product and doesn't need him. Robert decides to jump in with Kevin O'Leary and raise Kevin's offer to $80K for a 25% stake. This has turned into a feeding frenzy! Now Daymond teams up with Kevin Harrington and raises Kevin' offer to $80K for a 25% stake. It looks like a direct to consumer vs. licensing shootout! It's tit for tat, as 4 sharks team up with matching offers. Decisions decisions. Shane decides to step out in the hall and call his wife but Kevin O'Leary tells Shane he would like to talk to his wife when he does. As Kevin O'Leary makes his way towards the hall Daymond then decides to retract his offer and reduce it by $10K, and manages to pull Shane back in. Shane finally accepts Kevin Harrington and Daymond's offer and walks away with the investment.

CAME IN SEEKING: $40k for a 25% stake
WALKED WITH: $80K for a 25% stake
GRADE: (Guppy): A+
GRADE: (Sharks): A
COMMENTARY: Amazing. Shane has managed to get twice the amount he wanted without giving away more equity! This was a full course meal for the sharks. 







"Success is getting what you want. Happiness is wanting what you get."
- Dale Carnegie

CHECK OUT THE SHARK FINS SECTION FOR ARTICLES AND INTERVIEWS. ALSO CHECK OUT THE SHARK TEETH SECTION FOR HELPFUL TOOLS OF THE TRADE.

WHAT DO YOU THINK? COULD HE 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...........

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