Hi,
The Shark Tank episode was very edited and chopped together. She was
actually in front of the sharks for over 90 minutes... they cut it down
to 8. Here is the basic summary:
She started the company with her brother after he gave her about $2,000
to buy inventory. They tried out for Shark Tank (4 years ago) and didn't
make it past the first stage. Another person saw a local news episode
about her and the company, and contacted her. He gave her $3,000 in
cash, and paid her rent for a year in exchange for 50% of the company
(basically buying out her brother).
Those two were involved for about 2 months before they realized they
needed more money and expertise to make anything happen. They contacted
me via email, and we had a meeting. We told them in the meeting we would
do an investment, and asked how much and what they would give up. They
told us $30,000 for 50% of the company. We gave them exactly what they
asked for. Also, at this point, her total sales for all of 2014 was
$7,000. That's TOTAL SALES... not profit. So there are four of us, each
at 25% ownership right now.
We then took the company from $9,000 total sales in 2014 to $1 million
in sales in 2015. We provided business experience, obtained a line of
credit at the bank, helped setup the e-commerce website, helped finance
inventory (doing a personal loan to the company), etc.
We then put a CEO in late 2015 that has helped take the company from $1
million in 2015 to now we will do over $4 million in 2016.
There is not a single person I know of that would have invested $30k to
a business that had only done $7k in total sales for the year. No shark,
no other investor I have ever talked to about this deal. Everyone just
laughs when I tell them.
This episode was actually filmed about three months ago. We only
received paperwork from Daymond's group about two weeks ago, and we are
still in negotiation with him. The deal paperwork is SUBSTANTIALLY
different than the episode shows ($400k for 20%). He has had no
involvement with the company thus far, and does not have any ownership
or equity yet.
Reality TV is not very real. LOL
Travis
On 11/7/2016 8:56 AM, Chuck Hogg wrote:
So Travis, are you a 1/5th partner now instead of a 1/4th? Not bad
that you got in that cheap and Daymond paid some major change.
Regards,
Chuck
On Sat, Nov 5, 2016 at 12:09 AM, Chuck McCown <ch...@wbmfg.com
<mailto:ch...@wbmfg.com>> wrote:
Odd, I was expecting Kevin but you got Daymond and nothing was
mentioned about royalties.
Did she say she had $100K revenue in one day?
What e commerce platform?
Where was that ad buy she mentioned?
On 11/7/2016 8:56 AM, Chuck Hogg wrote:
So Travis, are you a 1/5th partner now instead of a 1/4th? Not bad
that you got in that cheap and Daymond paid some major change.
Regards,
Chuck
On Sat, Nov 5, 2016 at 12:09 AM, Chuck McCown <ch...@wbmfg.com
<mailto:ch...@wbmfg.com>> wrote:
Odd, I was expecting Kevin but you got Daymond and nothing was
mentioned about royalties.
Did she say she had $100K revenue in one day?
What e commerce platform?
Where was that ad buy she mentioned?
