Watch Shark Tank - Week 4 /Episode 5 - Light Film

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'Leary, Kevin Harrington, Robert Herjavec

THE GUPPY: Rolf Shwartz and George Podd

THE COMPANY: Light Film

WEBSITE: lightfilmdecals.com

SYNOPSIS: A decal for cars that displays team logo's and lights up at night

SEEKING: $100K for a 5% stake

PRODUCT/SERVICE: A wireless peel and stick battery/solar powered decal that lights up in your car window that will display your favorite team or logo.

WHAT'S THE SKINNY?: They have a patent application currently filed. They want to go after niche sectors like college kids who support their sports team. They have no sales, but have invested $750K that went into R&D (research and development). It costs around $5 to $10 to produce and they can retail it for $19.99. They don't have any licensing deals but they have the green light with Harley Davidson. 

STATS: Kevin Harrington likes the product but thinks his money would go into a black hole because they would need another $1 Million to take it to the next level. Kevin O'Leary is out because cash isn't the only answer to this one, it needs a strategic partner with distribution. Robert likes the product also but drops out for the same reasons. Barbara is out next. Daymond is interested, but he is only interested in the wireless phase of the product (generation 2) and  he wants a whopping 75% of the company! But, his offer is $100K for a 75% stake with unlimited financing on orders, with his brands licensed immediately with no money down and guaranteed manufacturing! They would never have to look for another investor again. Rolf and George would like to recoup their investment, so they counter with $750K for 51%. Kevin Harrington suggests that Daymond have 51% of the equity and give them an accelerated share of the profit until the investment is recouped. Robert hops back online wanting to know the amount of cash it would cost to buy 75% of the company. Rolf and George lean back towards 51% and Robert wants to know how much cash would it cost to get 51% equity. Rolf and George would like to keep it at $750K but then Robert asks them to step out in the hall for a second........... He then turns to Daymond and say's he sinces that they will sell 75% of their business for $100K. They want to offer them $100K for 75% equity and give them 75 cents out of every dollar until Rolf and George gets their money back. Daymond and Robert offer $100K for a 70% stake. Rolf and George wants a little more cash up front and wants to partner with them, so they ask for $200K upfront just to breath a little but the greedy sharks stand firm on their offer like the Statue of Liberty on Ellis Island! They won't budge not one square inch. Sensing that, Rolf and George agree to the terms and walk out with the investment. 

CAME IN SEEKING: $100K for a 5% stake

WALKED WITH: $100K for a 70% stake

GRADE: (Guppy): C

GRADE: (Sharks): A+

COMMENTARY: They walked out with the investment they came for, but at what cost? I think once Daymond realized he was their last chance he decided to push it to the limit and gain 75% of the company, and so did Robert. this was a tough negotiation for the guppies. From offering 5% of their company to giving up 70%. Ouch! I know it hurts, but look on the bright side, they now have unlimited resources at their disposal while buying into established brands with no down payment. 

WATCH SHARK TANK WEEK 4/EPISODE 5 - LIGHT FILM

"What difference does it make how much you have? What you do not have amounts to much more." - Seneca

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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...........

Watch Shark Tank - Week 4 /Episode 5 - Thin Gloss

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'Leary, Kevin Harrington, Robert Herjavec

THE GUPPY: April Morris

THE COMPANY: Thin Gloss

WEBSITE: thingloss.com

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......

WATCH SHARK TANK WEEK 4/EPISODE 5 - THIN GLOSS

"Belief in oneself is one of the most important bricks in building any successful venture."
- Lydia M. Child

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...........

Watch Shark Tank - Week 4 /Episode 5 - New Era Brands

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'Leary, Kevin Harrington, Robert Herjavec

THE GUPPY: Bob Kroupa

THE COMPANY: New Era Brands (Now defunct)

WEBSITE: clipngo.com

SYNOPSIS: Clip N Go products are an easy way to carry your mint and gum with you when you need it.

SEEKING: $500K for a 30% stake

PRODUCT/SERVICE: A mint and gum line, a container and dual sided contact lens container all streamlined into 1 investment

WHAT'S THE SKINNY?: He's in the container, mint, gum, and contact lens business. He had $817K in sales last year, he was in Walgreen's and ran out of product, all the profit got re-invested back into the business, the stores didn't re-order because it couldn't meet the gross margin to stay on the shelves. He already invested $2 Million that went into overhead and he was paying a firm $60K a month which got him further into debt. 

STATS: Daymond is out first. Kevin Harrington is out. Robert is out. Kevin O'Leary is out. Barbara is out. 1, 2, 3, 4, 5. The sharks operated on this guppy like brain surgery. Not much to say behind this one. 

CAME IN SEEKING: $500K for a 30% stake

WALKED WITH: New insight.

GRADE: (Guppy): D-

GRADE: (Sharks): Not Applicable 

COMMENTARY: He obviously made a few mistakes manging the company but had the perseverance to stick it out until the end. Good luck!

WATCH SHARK TANK WEEK 4/EPISODE 5 - NEW ERA BRANDS

"I've missed more than 9,000 shots in my career. I've lost almost 300 games. Twenty-six times I've been trusted to take the game-winning shot ... and missed. I have failed over and over and over again in my life. And that is why I succeed." - Michael Jordan (Arguably the greatest basketball player ever)

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? POST YOUR COMMENTS AND TEST YOUR NOODLE AT THINKING LIKE A BILLIONAIRE...........

Watch Shark Tank - Week 4 /Episode 5 - Fridge Fronts

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'leary, Kevin Harrington, Robert Herjavec

THE GUPPY: Jan Augenstein

THE COMPANY: Fridge Fronts

WEBSITE: fridgefronts.com

SYNOPSIS: A magnetic skin with a decorative finish that you can apply to any appliance

SEEKING: $100K for a 30% stake

PRODUCT/SERVICE: Stainless, decorative, and other designs that can change the look of your kitchen appliances for under $100.

WHAT'S THE SKINNY?: She purchased a spot in Skymall for $18K and generated $40K in sales, she's done a few trade shows, Rachel Ray found them online and the server crashed, and the print company went bankrupt, they have a utility patent, she's the only one who can put a magnetic sticker on a fridge, she has $250K invested into the company already.

STATS: A makeover for a fridge. Very clever. Kevin O'Leary thinks that it a useful product, but it's just not a company and he's out. Robert thinks it's just to small and he's out. Daymond doesn't seem to have a clear direction on where he can take the business and he's out also. Barbara wants Jan to limit the product to 3 best selling designs and say's she'll give Jan half the money if she can convince another shark to give her the other half. Jan wants to focus on new designs but Kevin Harrington is interested in her selling the product that she already has as opposed to working on new product. He thinks her Skymall sales venture was a big success. Kevin and Barbara offer $100K for a 50% stake. Jan agrees and does the deal walking out with the investment.

CAME IN SEEKING: $100K for a 30% stake

WALKED WITH: $100K for a 50% stake

GRADE: (Guppy): A-

GRADE: (Sharks): A

COMMENTARY: She managed to secure the investment she needed and keep their ownership within 20% of what she was willing to give them. Nice. I think I would have asked them to bring their ownership down to 40% just to see if they'd go for it and carefully watch their body language, then do it for 50% if, and only if they would have began to hesitate and retract their offer. Walking on the edge in the world of negotiations is an art and a science. What do you think?

WATCH SHARK TANK WEEK 4/EPISODE 5 - FRIDGE FRONTS

"Always bear in mind that your own resolution to succeed is more important than any other."
- Abraham Lincoln

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...........