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.
"If you want to see what God thinks of money, just look at all the people he gave it to." - Dorothy Parker
THE GUPPY: Kim Preis
THE COMPANY: Samson Martin
WEBSITE: samsonmartin.com
SYNOPSIS: A t-shirt that announces when a pregnant women is due.
SEEKING: $50K for a 15% equity stake
PRODUCT/SERVICE: A brand of t-shirts for maternity with the due in date written on the front.
WHAT'S THE SKINNY?: She did $90K in sales last year, she's been in business for 6 years, she's done a total of $1.4 Million in her basement. The sales were $400K at their peak and they dropped to $90K due to a slow economy. The prices range from tank tops between $38-$42, and long sleeves between $55-$60. She has a trademark on the words Due In on t-shirts.
STATS: She wants to re-position the t-shirt and take it to a cheaper price brand. She wants to market, produce and manufacture a new product line but the economy just doesn't seem right for it to Daymond and he's out. Kevin Harrington doesn't like all the different versions of inventory and he's out. Barbara just doesn't seem to be sold on the value of the Due In part of the name and she's out. Robert doesn't want to start uphill again with her and he's out. Kevin O'Leary ask her to give him 1 reason why he should give her $50K and doesn't like the fact that it's such a niche market. He calls it the t-shirt deal from hell and says there is nothing but death and destruction in her story and he's out. Kim thanks the sharks for their time as Kevin O'Leary starts to chew her out even further for thanking them. Kim walks out like a lady of dignity, with no investment.
CAME IN SEEKING: $50K for a 15% equity stake
WALKED WITH: Free Publicity for her brand
GRADE: (Guppy): C-
GRADE: (Sharks): D- (manners)
COMMENTARY: "Good manners sometimes means simply putting up with other peoples bad manners." - H. Jackson Brown Jr.
"If you want to see what God thinks of money, just look at all the people he gave it to." - Dorothy Parker
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 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...........
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