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: Darryl & Randy Lenz
THE COMPANY: Ride-On Carry-On
WEBSITE: rideoncarryon.com
SYNOPSIS: Ride-On Carry-On instantly converts any wheeled carry-on luggage into a travel stroller.
SEEKING: $50K for a 25% stake
PRODUCT/SERVICE: The ride on carry on will carry any child 8 months to 5 years safely. It folds against the top of the luggage and easily stows away with your luggage.
WHAT'S THE SKINNY?: They've sold thousands on the internet, 2,000 chairs last year for $39.95, and it costs $7 to make one. It's been safety tested in th U.S. and Europe and passed all the safety tests. They mortgaged the house for $150K and made the money back with the chairs. They want to take the $50K and optimize the website and put it into product awareness. they have no inventory, but 2,000 orders pending.
BUSINESS MODEL/HOW DOES IT MAKE MONEY?:
STATS: Jeff Foxworthy is the first shark to drop out. It just isn't for him. Robert thinks they should license the product instead of asking for money and backs out. Barbara wants to offer $50K for a 25% stake. She thinks it's a catalog/retail item that shouldn't be sold to a luggage company. Kevin wants to offer $50K for a 20% stake, but he wants them to use the money to find two different manufacturer's that own 80% of the market and bring them to him when their ready to negotiate a license deal. Barbara isn't turned off to the option of licensing the product, but wants to focus on marketing the product and informs the couple that any decent attorney can negotiate the deal he offers. Kevin notifies the couple that it's time to make a decision and Darryl and Randy agrees to do the deal with Barbara and walk away with the investment.
CAME IN SEEKING: $50K for a 25% stake.
WALKED WITH: $50K for a 25% stake
GRADE: (Guppy): A
GRADE: (Sharks): A
COMMENTARY: Wow! They came. They saw. They conquered. They actually swam out of the tank with the exact agreement they asked for when they swam in! Great job. looks like everybody won with that one. Now that's good business!
"Money is usually attracted, not pursued." - Jim Rohn
CHECK OUT THE SHARK FINS SECTION FOR ARTICLES AND INTERVIEWS. ALSO CHECK OUT THE SHARK TEETH SECTION FOR HELPFUL TOOLS OF THE TRADE.
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 THEY 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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