Another week, another five entrepreneurs,
looking to the Sharks to make their dream come true.
OWNER: Cactus Jack & Kelly Barringer;
PRODUCT: Body Jac
OFFER: $180K for a 20% stake
Cactus Jack has lived 65 years... no
job... just creating stuff to bring to market. He made fishing lures,
arm wrestling machines, and cleaning products. He's made millions and
lost millions. He's taken his risks and he doesn't want to go bankrupt
Jack's idea... it's like an ab machine
for push-ups. He's patented all of his creations, It'll come out $89 to
$129, but nothing's really special about this.
Kevin O says you have to have skin in the
game. Jack has all the upside, and Kevin has all the risks. He's out.
Robert says it doesn't add up, due to the fact that he supposedly has
millions of them. Kevin H is wrestling with this deals. He can give up
$90,000, but he's going to have to convince another Shark to join him.
Barbara joins up, but with a caveat... Barbara wants Cactus Jack to lose
30 pounds on this machine.
Wait... Daymond wants in. He's interested
in the company. He'll give up the money, but he wants half of
everything. The difference: he doesn't have to lose anything....
End result... "Cactus Jack, he's your
man, if he can't do it... no one can!"
ACCEPTED: Kevin H & Barbara's offer of
$180,000 for 50% AND he has to lose 30 lbs.
OWNER: Irina Blok
PRODUCT: Face Blok
OFFER: $50K for a 30% stake
Face-Blok is a collection of fashionable
surgical masks.. We have a beard, a pig, and a skull.
Irina says that the American Pediatric
Board thinks that it's genius. It's been on Fox News, Sydney Morning
Herald, and it's given her close to a million hits on her site. Probably
because of swine flu.
Daymond can't make this happen on the
street, because it's not normally done in the US. Kevin H says that it's
a novelty item. Robert tells her not to quit her day job. It's not an
investable object, so Kevin O rounds it out.
OWNER: Jeff Cohen; Stevenson Ranch, CA
PRODUCT: Granola Gourmet
OFFER: $175K for a 25% stake
Jeff's been a diabetic for 15 years, and
he finds it impossible to find a snack food that tastes good and won't
spike his sugar. He and his family have come up with a snack that can be
enjoyed by anyone.
His slogan: "Energy bars for athletes,
diabetics & YOU!"
The Sharks like the bars. Their success
has been from Whole Foods in the Southern California markets. Robert
likes the approach. Step three... roll it out nationally. That requires
cash. He had a personal bankruptcy because of his own business.
Kevin O says that his business is not
worth $700,000. It's worth at most $200,000. Kevin H says that it's a
"me-too" business. Everyone else is doing it, so he sees no reason why
he should. Daymond.... didn't like the taste, so he's out. Barbara
doesn't think she'll see a return on her investment. Kevin O says that
no bank is going to loan him any money, and he'll have to ask for more
and more. "To me, you're radioactive. I'm out." Only because he hasn't
been able to focus on his primary right now, Whole Foods, Robert decides
that he's out.
OWNER: Rikki Farrar
PRODUCT: Good Grief Celebrations
OFFER: $50K for a 25% stake
As a funeral concierge service, they
write the eulogy, officiate the service, and handle post-funeral
gathering details. They offer... "celebration of life party planning."
So far, they made $11,000 last year. She got the idea from her mother,
who passed on last year.
Kevin O says there is never a better time
to sell than when the family is dealing with grief. Her sales are so low
are because a) she has no funeral homes, and b) no exposure. She gets
business from her therapy dog at hospice. Robert says, in no uncertain
terms, that she's taking advantage of her grief. He doesn't want to be
in business with her because she's slick. Barbara says that it's a bit
too creepy. If her mother was alive, she wouldn't be in business.
Daymond says that the bottom line is money. He doesn't see money or
profit. He's out. Kevin H looks at it like an ambulance chasing
Kevin O likes death, but he doesn't see
her making any money in it. So for that reason... and that reason
ONLY... he's out
Time for the big deal of the night.
OWNER: Rodolfo & Alexis Saccoman;
Brazil by way of San Francisco
PRODUCT: My Therapy Journal
OFFER: $80K for a 20% stake
One is a therapist, and one is an online
marketer. They started their business to help people. Their father
wanted them to learn English so that they could eventually find their
way to the US and to the American Dream. They are offering an
online-therapy tool, subscription based. Last year, they made $4000 off
of 1120 members who signed up for a free trial, and ten percent of those
folks became paying customers.
The first part of the product is a blog
essentially. The second is a progress analysis. It allows the user to
track progress of anything.
Barbara likes the two, but she doesn't
like the business idea. So she's out. Kevin H also bows out.
The brothers are connected with insurance
companies like Aetna. Better scenario sees that insurance pay for that.
Kevin O offers $80,000 for 50%. The company has no value unless the
Aetna deal goes through, says Robert. Daymond wants in on this. Robert
also wants in on this... for 51%. Along with the money, they also need
guidance. The brothers decide to take a moment (trying to be realistic
with 49%), and while they do that, Kevin asks Robert... "What do we need
Brothers come back with a counter,
$80,000 for 49%. Daymond decides to break off and form a separate
deal... $120,000 for 50/50. Robert says that only he and Kevin O have
had the internet savvy for hundreds of millions.
Bottom line... The brothers need
expertise more than money. Robert thinks that the offer is pretty
ACCEPTED: Robert & Kevin O's offer of
$80,000 for 51%.
Fate intervened, and the American Dream
is now a reality. Five more will try their hand next time.
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