World Actress

After over a year off the air, the Shark Tank is back! The First episode, episode 205 which aired on March 20, featured returning Sharks, real estate mogul Barbara Corcoran, technology innovator Robert Herjavec, fashion icon Daymond John and financial expert Kevin O’Leary. Entrepreneur and Dallas Mavericks owner Mark Cuban also joined the panel of Sharks for his first time.

The Shark Tank has a simple set of rules; entrepreneurs pitch their businesses to the Sharks that are looking to invest. The entrepreneurs must get all the money that they ask for in order to close a deal, this means that if an entrepreneur asks for $100,000 for 25% of their company they can only alter the percentage of the company they are willing to give up in order to close a deal.

First into the Shark Tank was Jonathan Boos and his business, Wurkin Stiffs. Wurkin Stiffs makes several products that help keep your shirt collar from curling, giving you that button down look. His flagship product, Power Stays uses a metal insert that goes into your shirt collar pocket, and then a powerful magnet is placed underneath your shirt to hold it in place. Jonathan also makes a full line of other men’s accessories, including fun cufflinks. His products are for sale in major retailers including Norstrom, and he did over $500,000 in sales last year. He is predicting to do $1.8 million in sales this year. Jonathan was hoping use the money to help develop other products to enhance his line.

The Sharks really liked his products, but Kevin was the first one to make an offer. Kevin offered $100,000 for 30% of the business and 14% royalties (The percentage paid off the gross sales of the product). Jonathan wasn’t keen on the idea of a royalty, he said he wanted more than money; he wanted someone who could help him grow his business. It is obvious that Jonathan really wanted a deal with Daymond, Daymond is a self-made millionaire, who started the successful FUBU clothing brand. With Daymond contacts Jonathan could surely grow his business. The problem was Jonathan wouldn’t listen, and before he knew it Daymond was out. Robert offered $100,000 for 30%, but Jonathan quickly asked for $200,000 for the same percentage. Kevin again countered with $100,000 for 20% but still kept his 14% royalty. Not to be outdone Robert came in again for $100,000 for 25%. Barbara began trying to put together a deal with Daymond for $100,000 for 20%, but Daymond wouldn’t come back for anything less than 40%. The reason Daymond was asking for a higher percentage was because of his knowledge and contacts. After a little more negotiation the deal was done, and Jonathan walked away with $100,000 for 40% of his business in a deal with Daymond and Barbara.

In the end it came down to Daymond contacts, which I’m sure would help Jonathan get working stiffs into the stores quicker. The lesson to be learned from this pitch is to know when to talk and when to listen.

Tippi Toes is a children’s dance company, run by sisters Sarah Nuse and Megan Reilly. They came into the Shark Tank asking for $30,000 for 5% of their business. What makes Tippi Toes unique is that they go directly into preschools and day care centers to teach children dance. Most dance companies have studio space that they rent, which creates high overhead. The day care centers and preschools pay a monthly fee, and they can advertise it to their families as an extra service. The sisters run their business as a franchise, and so far they have 7 franchises around the country. Sarah and Megan are real sharks, they offer financing for their franchisees, require a 10-year contract, and charge a minimum of $1000 each month in royalty fees.