カテゴリ
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テレビトランスクリプション
00:01Tonight on Shark Tank.
00:03I bootstrapped this whole thing.
00:05I pulled my 401k.
00:06I maxed out all my credit cards, like, twice.
00:08You are the perfect entrepreneur
00:10that just needs a little bit of help.
00:11Oh!
00:12Excuse me, I have an opinion.
00:13You don't have to like it.
00:14I took that invention behind the barn and shot it.
00:16What?
00:17No!
00:18Sharks!
00:19I'm Steve Skillings from New England.
00:22Total dog mom right here.
00:25Go on!
00:27Go on!
00:28Who wants to get busy?
00:41First in the Tank is a new take
00:43on an old tool for artists.
00:53Hello, Sharks.
00:54I am here pitching a business
00:56with millions in sales.
00:58Better yet, my business is built around my invention.
01:02But...
01:05The most amazing thing of all...
01:09Oh, I'm sorry. Hold on.
01:10Are you okay?
01:11Oh, excuse me.
01:12Oh, this is embarrassing.
01:13Oh, thank you.
01:17Remember a guy passed out here once?
01:19The most amazing thing of all...
01:21Is this isn't even the first time I've been on Shark Tank!
01:25Oh!
01:27That's right, Sharks.
01:28It's Les Cookson, the carsick bib guy from season two.
01:31Oh, yeah.
01:32Back again.
01:33Here's a little reminder.
01:34The carsick bib is the smart, hands-free barf bag for kids.
01:38It's a bib.
01:39It's a bib.
01:40It's a carsick bib.
01:41It's a feedback, too.
01:42Then, you know, when it happens...
01:47Oh!
01:51Don't worry, because this time, I'm not pitching a vomit necklace.
01:55I took that invention behind the barn and shot it.
01:58Yeah.
01:59You're welcome, Mr. Wonderful.
02:01But I took what I learned from watching Shark Tank
02:03to grow one of my other inventions to massive sales.
02:06So, Sharks, I am here asking 300,000 for 10% of my business, Lucid Art.
02:14At Lucid Art, we sell the Lucie drawing tool
02:16that can make anyone an artist and any artist a master.
02:20Set whatever you want to draw in front of the Lucie,
02:22look down to the viewing window,
02:24and draw over the reflected image
02:26to start your masterpiece in minutes.
02:28The Lucie is my reinvention of a classic art tool
02:31that has been used by artists for centuries.
02:34That's right.
02:35The old masters had help,
02:36and now that I've breathed a new life into this old device,
02:39all of today's artists and would-be artists can have help, too.
02:43So, Sharks, who wants to take a ride with an old friend
02:46and crush the modern art world
02:48with this reinvented historical drawing tool?
02:51Each of you have a Lucie in front of you,
02:53but I have one over here set up ready to draw,
02:55and I would love to invite Kevin to come up
02:57and try it out.
02:58Absolutely.
02:59What are you going to draw, Kevin?
03:02So, you look through there.
03:04Yeah.
03:05And you see how you see the shark there.
03:07I do.
03:08Now put your hand down here and grab the paper,
03:10and then go ahead and basically you see your reflected,
03:14you see like your ghost hand here.
03:15Oh, I see, I see.
03:16And so it doesn't do the drawing for you.
03:17That's kind of cool.
03:18It still requires practice and patience,
03:20but it helps you get results quickly
03:22and actually helps you learn over time.
03:23Very interesting.
03:25Who knew?
03:26And you're saying this has been around for centuries?
03:28The historical tool that it's based on
03:30is the Camera Lucida,
03:31which was first patented in like 1807.
03:34I mean, it's been centuries that artists have used
03:37these sorts of devices to help reflect the image.
03:40Really?
03:41Well, what is he?
03:42I can't see what he's doing.
03:43I'm just tracing around the shark.
03:45Observe, Laurie, how easy that was.
03:47Isn't that amazing?
03:51That is absolutely spectacular.
03:53So what do you attach it to?
03:55Oh, yeah.
03:56Like what are the steps?
03:57Yes, so you clamp it to the table,
03:58you set whatever's in front of you,
03:59then you look through it and you see basically
04:01it looks like a three-dimensional hologram
04:02of whatever's in front of you.
04:04Then you can draw over that,
04:05and it's not as simple as just tracing paper.
04:07It actually involves a little more skill,
04:09it involves more practice.
04:10Well, obviously.
04:11Well, right, obviously.
04:12The first time you do it,
04:13you work with it for 30 minutes,
04:14you're going to be drawing things
04:15like you've never imagined you can draw.
04:17Do you have a patent?
04:18I have a provisional patent on this.
04:20But you said it's been around for a long time.
04:22Yeah, I'm sorry, on the improvements.
04:24And so the historical device,
04:26it had a lot of issues.
04:28It's a reason people stopped using it.
04:29The image was small.
04:30It was unsteady.
04:31And I spent four years tinkering in my garage,
04:34making it working and making it new again.
04:36So it's something that artists want to use again today.
04:37So this is for either artists who already are,
04:40you know, serious about it
04:41or someone who really wants to take it serious.
04:43So 20% of our sales are the people learning to draw.
04:4620% are professional artists who,
04:48they can actually draw just as good without it,
04:50but it speeds up their process.
04:51And in the middle there,
04:52that 60% in the middle are people who are amateur artists
04:55who just want to learn how to draw better.
04:57So you were here before with that device.
04:58Yes.
04:59You took it out behind the barn and shot it.
05:01Yes.
05:02Why did you get into this?
05:04Yeah.
05:05What has happened since then?
05:06I've been an artist and inventor
05:08since I was a little kid, always drawing designs.
05:11In my early twenties I was going to school
05:13and my teacher had brought in the historical device into class
05:16and I was so mesmerized that something so simple
05:18could create that image.
05:19Then he started talking about the problems with it,
05:21that it doesn't work very well.
05:23So I spent four years tinkering in my garage
05:25to make a design that was something that was way better
05:27than one has ever been before.
05:29Then I went from the inventor in my garage
05:31to the entrepreneur trying to sell this thing.
05:33And I hit a roadblock in like 2010.
05:35And so I got sidetracked with a few things,
05:37including a bib that you barf in
05:39that I actually ended up on Shark Tank with.
05:41So Les.
05:42Yes.
05:43What do you sell it for?
05:44What's it cost you to make?
05:46What are your sales in the last 12 months?
05:48Okay.
05:49So the Lucy Flex, that's going to cost them about $128.
05:53It costs us $25.50 to make it.
05:56The past 12 months we did $2.3 million.
05:58What?
05:59What?
06:00I told you millions right at the beginning.
06:01Did you think I was lying?
06:02Come on.
06:03Would I lie to an old friend?
06:04That's impressive.
06:05That's amazing.
06:06Did you make any money on that?
06:07Last year we did $3.7 total
06:09and we made $1.6 million profits.
06:11This is incredible.
06:12And what have been your lifetime sales?
06:13$10 million.
06:14What?
06:15$10 million?
06:16$10 million.
06:17No.
06:18So let's break down who you're selling to.
06:20Yeah.
06:21So you're selling direct-to-consumer.
06:2395% is direct-to-consumer.
06:2495%?
06:25Direct-to-consumer from our website.
06:27And how are you getting people?
06:29Are you doing Facebook ads?
06:30Yeah.
06:31Instagram ads?
06:32What works best for you, Les?
06:33Well, YouTube is really good.
06:34Because people who are going on YouTube and they're going to watch a drawing tutorial.
06:37Right.
06:38So they're typing in how to learn to draw.
06:40Exactly.
06:41How much are you spending on advertising?
06:43Last year was a big year.
06:44We did about $70,000 a month in advertising.
06:46Wow!
06:47From watching Shark Tank, every time I saw an entrepreneur come in with these awesome numbers,
06:50they said social media was what was driving it.
06:52And so I sat down and actually spent hours watching videos.
06:55Learned how to do it.
06:56So then the advertising started taking off in 2018 when I did that.
06:59A million.
07:002019.
07:011.9.
07:02Then, of course, 3.7 in 2020.
07:04Wow.
07:05But Les, why do you need the money?
07:07You made $1.6 million.
07:08Oh yes.
07:09I'm here for a shark.
07:11Our biggest pain point right now that I think a shark can help us with is cost per acquisition.
07:15Look, it's a challenge because the customer acquisition, you have to find a subset of people that would use a tool that want to draw.
07:22Right?
07:23So whatever your customer acquisition costs are now, and what are they?
07:27It's about $48 on average for the year.
07:29Okay.
07:30And your margin when you sell one unit is what?
07:32Cost is $25.
07:33We're selling it for like $130.
07:34So you're basically over $100 worth of profit.
07:38So you're giving up half your profit to acquire the customer.
07:41So now I understand your problem.
07:42You want to get that every dollar you can reduce in your customer acquisition goes straight to your pocket.
07:47So this is really about driving sales through customer acquisition.
07:50Yes.
07:51That's it.
07:52So let me step in.
07:53Congratulations on what you've been able to accomplish.
07:55But this is not a product that gets me excited at all.
07:58So for those reasons, I'm out.
08:00Okay.
08:01I'm sorry to hear that, but I got into a little bit about what I want a partnership with a shark about.
08:05You know, cost per acquisition and those sorts of things.
08:07One thing too is we don't have recurring income.
08:10This would be a perfect product to marry with online courses to be able to teach people how to draw with it.
08:15Look, I'm in awe of your journey.
08:17No kidding.
08:18One day, you're the barf bag guy.
08:21And then you sell $10 million of something.
08:24And guess what you are?
08:25A success.
08:26Everybody in this country gets a second chance.
08:29You've done an amazing job.
08:31But it's just not a product I'm passionate about.
08:34Sincerely, congratulations.
08:36Very proud of you.
08:37I'm out.
08:40I appreciate that.
08:41You know, it's a very cool device.
08:42What I find most amazing is that you are making boatloads of money.
08:47Yeah.
08:48And you came in asking, you know, very fair ask of a shark.
08:51I think you're doing phenomenally by yourself.
08:55And I feel like it's the right product for you.
08:58Not for me.
08:59But I wish you good luck.
09:01I'm out.
09:02Thank you very much for your kind words and for your time.
09:04I appreciate it.
09:05No, Les, I just can't believe how advanced I've become.
09:07For me, it's just not something I want to go down the pike on.
09:11Because it's too niche-y a market for me.
09:13I like to do scale, like big.
09:16I'm just, I gotta tell you, I didn't even believe you.
09:20And you know, you are the barf bag guy.
09:23That's how I remember you.
09:24No, he's not.
09:25He's the $10 million man now.
09:27Yeah.
09:28Listen, I'm really impressed.
09:29But it's just not for me.
09:30Thank you, Les.
09:31I think everybody's out except for me.
09:42Four sharks are out.
09:44Damon is Les' last chance for a deal for his drawing tool, Lucid Art.
09:49I think everybody's out except for me.
09:52I'm absolutely blown away with these numbers, man.
09:55Um, why do you believe that we can change your customer acquisition costs so lower?
10:02Because anybody in the world who can walk up to you and tell you and look at your business from an acquisition cost and say,
10:08you've done that 100% when you have done so well?
10:11They're lying to you.
10:12I'm not under the delusion that somehow bringing in a shark is going to be able to run my business magically better than I can.
10:17Okay.
10:18I just know that you will bring more value than equity that I give you in terms of not just the acquisition, but also the courses.
10:26Well, you don't know that to hear his offer.
10:28I know the courses.
10:29Yes.
10:30Listen, um...
10:31I've never done that before.
10:32I don't have expertise in that area.
10:33Yeah, I...
10:34And that's a...
10:35We have 70,000 emails, 70,000 customers of people who have bought them before that we don't have anything to sell them.
10:39Oh.
10:40And...
10:41That's 70,000 emails?
10:42Yeah.
10:43Oh, that's like talking dirty.
10:44We can...
10:45At the very...
10:46Here's what I want to do.
10:48Um, I will offer you the 300,000 for 20%.
10:52So...
10:53I mean, I think I came in with a pretty reasonable evaluation, valueing at, uh, 3 million, which is five times cash flow after tax.
11:02You absolutely did, but you in the tank, baby.
11:04Come on.
11:05I understand.
11:06This is what we do.
11:07Sometimes people come in here and they evaluate it based on sales they're projecting with both of the math into the future.
11:12You're right.
11:13And I came with real hard sales.
11:14Yeah, 100%.
11:15Would you for 12%?
11:18Let me paint the picture for you.
11:21Oh!
11:22Aw.
11:2317.5.
11:24Okay, so the highest I can go is 15.
11:35That's exactly where I wanted to land.
11:37Gotcha.
11:39Appreciate it.
11:40Give it to me.
11:41Come on, baby.
11:42There you go.
11:43All right.
11:44I didn't guess that now.
11:45I love you, man.
11:46Thank you, man.
11:47Great job.
11:48Congratulations, Les.
11:50Last time I left the tank, I was determined not to give up.
11:53So if you have an idea that doesn't work out, take it behind the barn and shoot it, because you are more than the ideas you have.
11:58You can create something bigger, something better, and start over, and that's what America's about, and that's what this pitch was about.
12:05And making a deal with Damon is just amazing.
12:12Earlier this season, Hans Dose made a deal with Damon John for his octopus-inspired phone mount, Tentacle.
12:18My mentor believed in me.
12:19I had nothing.
12:20Zero.
12:21Yeah.
12:22I believe in you.
12:23Let's see what he's up to now.
12:25When I went to pitch for the Sharks, Tentacle was struggling.
12:27I had about $270,000 in debt.
12:30I was living in an RV with my wife, and I only had $39 in the bank.
12:34So many other entrepreneurs never tell the hard stuff of what they're going through.
12:38Because I was vulnerable, I really connected with Damon, who had been in a very similar situation before.
12:43Before Shark Tank, Tentacle was averaging $800 a week in sales.
12:47Within five minutes of airing, we sold out on Amazon, and that shot us up to the number one spot in the phone mount category.
12:55It's been just over a month and a half since we aired, and I did $375,000 in sales.
13:01I'm so excited about this thing because it's moving at lightning speeds.
13:04When I did the deal with Hans, I decided to call an expert that I know, Cody Grandam.
13:08The man knows how to manufacture.
13:09He knows how to sell in this category, and we decided to make him our strategic partner.
13:14I was on the call with one of our best customers.
13:16They saw the Tentacle on the desk.
13:17They immediately asked, what is that?
13:19Sent them some samples, and we have a commitment for over a million dollars at retail.
13:24Are you kidding me?
13:25I decided to take a chance on Hans because people took a chance on me, and it paid off.
13:30The future is bright for Tentacle, and more importantly, for Hans.
13:34We never would have made it this far if it weren't for my wife and her decision to say,
13:38yes, let's go live in an RV, and let's follow this dream.
13:41And I love her so much for believing in me.
13:44Because of Shark Tank, we got a great partner, a profitable business, and money in the bank
13:48so that we can go look for a house and get out of that RV.
13:51If I could give any advice to other entrepreneurs, be real about how hard things are.
13:56That success is right around the corner.
13:58Be okay with being uncomfortable.
14:00Be okay with being vulnerable.
14:01Make it happen.
14:02Make it happen.
14:03Next up is an exciting way to keep your best friend active.
14:20Hi, Sharks.
14:21I'm Megan.
14:22This is Piper, and we're from Malabar, Florida.
14:23I'm seeking $240,000 for 6% equity in my company, Swiftpaws.
14:27If you're anything like me, your pets are family.
14:28Total dog mom right here.
14:32But we feel guilty when we don't have enough time to give them all the attention and exercise
14:33that they need every day.
14:34Introducing Swiftpaws home.
14:35We're from Malabar, Florida.
14:36I'm seeking $240,000 for 6% equity in my company, Swiftpaws.
14:41If you're anything like me, your pets are family.
14:48Total dog mom right here.
14:51But we feel guilty when we don't have enough time to give them all the attention and exercise
14:57that they need every day.
15:00Introducing Swiftpaws home.
15:03The pet enrichment toy that lets you create the best game of chase ever in your backyard.
15:10You just set the course wherever you want, run the string around, and when you pull this
15:16trigger, it goes zipping around.
15:18Oh, my God.
15:19That's pretty cool.
15:20That is pretty cool.
15:21That is pretty cool.
15:22That is cool.
15:23Go, Piper!
15:24Go, Piper!
15:25That's brilliant, actually.
15:26That's so cool.
15:27That is so cool.
15:28Oh, I got her.
15:29Yeah.
15:30How does it work?
15:31Does it just change direction on its own?
15:32No, it doesn't.
15:33You control it.
15:34Dammit, would you like to give it a try?
15:35Sure.
15:36So you press the on-off button right on the side of it.
15:37It should vibrate when you do that.
15:38One at a time, guys.
15:39We don't want to drive her nuts.
15:40Okay.
15:41So you press the on-off button right on the side of it.
15:44It should vibrate when you do that.
15:45Yep.
15:46One at a time, guys.
15:47We don't want to drive her nuts.
15:48Ooh.
15:49And then you pull that trigger, and she is just going to go mad.
15:51Go, Damon!
15:52See if you can keep it away from her.
15:53Go get it, Piper!
15:54Go!
15:55Go!
15:56Go!
15:57That's very cool.
15:58All right, I'm going to try it.
15:59Oh, that is so cool.
16:00Oh!
16:01Wow!
16:02Go on!
16:03Go on!
16:04Oh, my God!
16:05Oh, my God!
16:06Oh, my God!
16:07Wait, it said Kevin's doing it!
16:08I got it.
16:09I got it.
16:10He's doing it!
16:11Stop it!
16:12All right, all right.
16:13I'm going to stop it now.
16:14All right.
16:15I can say Mr. Wonderful ran circles around my dog.
16:18Yeah, I love it.
16:19He did.
16:20He hijacked it.
16:21Good job, Piper.
16:22Good job.
16:23Oh, my God.
16:24I think Piper deserves some water.
16:25Yeah.
16:26So I am going to bring her out, and I'll be right back.
16:29Bye, Piper.
16:30Bye.
16:31Wow, what a workout that dog just got.
16:32Kevin, why didn't you go there and try it?
16:34Well, you've got to put a $10 bill there.
16:36Then I'll do it.
16:37It's amazing what you'll do for $10.
16:40So, Megan, how did you come up with this?
16:43I learned about this as a sport.
16:44It's a competitive sport, just like dog agility.
16:46What?
16:47Really?
16:48Yes.
16:4950,000 entrants in the sports of chasing last year.
16:53So these sports are growing, and people love competing with their dogs for points titled
16:58Invitational.
16:59What are they chasing?
17:00Basically, a plastic bag.
17:02This is our pro-grade equipment, and this is the straight-line competitive sport of
17:07Fast Cat.
17:08Wow.
17:09This is our professional-grade equipment, which is what we got our start with.
17:11You have professional-grade equipment?
17:12Yes.
17:13So we started as the American manufacturer of professional-grade lure-coursing equipment,
17:19and that is what this sport is called.
17:21Wow.
17:22And this is some of our home equipment on a larger field.
17:23That's great.
17:24Wow.
17:25So, how did you get into this?
17:27Tell us that...
17:28So, I was a recent college grad.
17:29I got a degree in economics, and I took the summer off just to do dog sports.
17:32I was doing dog agility.
17:33I discovered the sport of lure-coursing.
17:35What's it called?
17:36It's called lure-coursing.
17:38Lure-coursing.
17:39With Piper.
17:40Actually, this got started with a little dog named Pretzel, and I lost Pretzel in May.
17:46What happened?
17:47Sorry.
17:48He was 14 and a half.
17:49I lost him to kidney disease.
17:50Oh, so cute.
17:51He looks like a pretzel.
17:53It's still hard for me, because that dog, he was my sidekick.
17:57He had a great long life.
17:59He didn't really like to play with toys, but he loved chasing stuff.
18:03Is Piper your dog, too?
18:04So, Piper's my dog.
18:05I got Piper a couple of years ago.
18:07Megan, take us through the progression.
18:09Absolutely.
18:10So, we got to start making pro-grade equipment.
18:11The equipment out there that people would build...
18:13And when did you start doing this?
18:14In 2012.
18:15I built my first one with the help of my dad.
18:17My dog loved it.
18:18I invited my agility friends.
18:19They loved it.
18:20I actually...
18:21How big is the agility sport?
18:22Hundreds of thousands of entries in thousands of competitions.
18:26Come on.
18:27Every year, I built professional-grade equipment.
18:30We filed for our patent, and then in about 2017, we were going around the country,
18:35selling this to zoos, dog trainers, doggy daycares,
18:38and then everybody who would come to these events.
18:40Average dog owners would say, I need this in my backyard.
18:43So, I couldn't let it go.
18:45I said, I have to make one because the pro-grade equipment costs over $2,500.
18:51And that's just not affordable.
18:52So, then we launched this with a Kickstarter in 2018.
18:56We shipped our first units in 2019.
18:59So, what are sales now?
19:00So, I want to get to sales.
19:02I don't want to leave you guys hanging.
19:04So, I ended up doing a seed round in 2020.
19:07Ah.
19:08And I did that on a convertible note, $2.5 million cap.
19:11I raised $670,000.
19:13Wow.
19:14Good for you.
19:15So, what percentage do you own now?
19:17If those notes all converted today, I would be at 63%.
19:21What are the prices of the units?
19:23So, Swiftpaw's home retails for $449 for the kit.
19:27Our cost, everything into the box, is $135.
19:30Okay, Megan, now's the moment.
19:32Are we ever going to hear the sales?
19:33Now's the moment.
19:34You can tell us sales.
19:35Sales.
19:36Sales.
19:37Years to date, we've done $750,000.
19:39Wow.
19:40We're on target to do $1.5 million, and we've done $1.5 million lifetime.
19:43What do you think you'll make on the $1.5 million?
19:46$140.
19:47Why so little?
19:48How much did you lose last year, Megan?
19:51So, last year, we did $425,000 in sales, and we lost $380,000.
19:56Oh.
19:57Whoa.
19:58Let me tell you why.
19:59Wait a minute.
20:00We actually didn't get back in stock until June, and that was because of materials delays
20:04early in the year.
20:05And then, we did $425,000 from June to December of last year.
20:10But you lost $385,000.
20:11That means you kept the staff on.
20:12But where did you lose?
20:13I kept everybody on.
20:14In fact, I actually increased.
20:17So, January 2020, I hired my first employee.
20:19Good for you.
20:20That's business karma right there.
20:21That's admirable.
20:22You raised $670,000.
20:23You have some sales coming in.
20:25Yes.
20:26Where did the cash go?
20:27So, the rest of the cash was materials.
20:29So, we buy all of our materials.
20:31We bring them into my hometown.
20:33We do all of our assembly in my hometown.
20:35I really think that there are ways to reduce my manufacturing costs.
20:38For sure.
20:39$1,000 is, unfortunately, minimum order quantity on some of my parts.
20:43I don't understand why you're assembling them here.
20:46Here.
20:47When you should be doing it all offshore.
20:48Right.
20:49I would be open to exploring that.
20:50Here's what I'm here for.
20:51I want to improve the lives of as many dogs as I can.
20:54Look, I'm very impressed with what you've built here.
20:56I think your costs are way out of whack.
20:58I would be taking this to a factory and completely redesigning the process of manufacturing it.
21:03I think it's too expensive.
21:04$4.49 is a lot for a family, even that loves dogs.
21:08I think you're terrific, but this is not for me.
21:10I'm out.
21:12So, I was going to beat you up on the price, but I've got to tell you, you know,
21:15with your history raising capital, keeping your employees, you're really the real deal.
21:20But I don't think that I can help you as much as I would love to for this price, so I'm out.
21:28Hey, Megan, I just have one question.
21:29Yes.
21:30I'm trying to figure out, am I interested enough to make an offer?
21:33I love my dog, but $449 is a lot of money.
21:38Do you think if it was $199, is it a $5 million company?
21:44I think that Swift Paws is a $100 million company in the next two to three years because
21:51this is a $100 billion industry.
21:54Pets.
21:55And I love that you said $199.
21:57That's my target price.
21:59Look, I think it's a great product.
22:00What you've been able to accomplish is just, you are the American dream.
22:04You are doing it the exact right way.
22:06And you love the product so much, you just want to spend all day selling it.
22:09I do.
22:10You are the perfect entrepreneur that just needs a little bit of help.
22:13I just don't know that I'm the right person to help you, so for those reasons, I'm out.
22:18You still have two sharks left, Megan.
22:21Megan, everything that you have done, you made it yourself.
22:26You did everything you could to make this work, and you understand business.
22:31Really, you're so impressive.
22:33And then the product, I think, is really phenomenal.
22:36And I think you can sell millions and millions of these.
22:40Yeah.
22:41One time a year, I do something.
22:44I give away my golden ticket.
22:46Oh, Lord.
22:47I do.
22:48I do.
22:49I do it once a year to somebody I feel really deserves it.
22:52I hope a dog eats that thing.
22:53No.
22:54You know what?
22:55You really deserve it.
22:56And so I am offering you my golden ticket, which means that I give you what you came in
23:01asking for, which is the $240,000 for 6%.
23:05Oh, I was not going to offer you that.
23:10Lori, pretzels paw prints are on the bottom of every unit.
23:16And I want to continue this journey with you.
23:19Oh, yay.
23:20You got a deal.
23:21I'm so glad.
23:22I love it.
23:23You deserve it.
23:24Great job, Lori.
23:25I've been up so many nights.
23:29There's going to be so many happy dogs.
23:31So many happy dogs.
23:32Congrats, guys.
23:33You're all a part of my journey now.
23:36Thank you, Megan.
23:37Congratulations.
23:40I can't believe it.
23:41Lori and the golden ticket.
23:43And I'm so glad that she saw everything that I fought for.
23:48I know, baby.
23:50All right.
23:51Kevin.
23:52Chase.
23:53Okay.
23:54Go, Kevin.
23:55Wait, wait, wait.
23:56Okay.
23:57I got it.
23:58Make it go faster, Robert.
24:16Next in the tank is a productivity tool when working from home.
24:19Sharks, I'm Steve Skillings from New England.
24:30I'm the CEO of BusyBox, and we're here seeking $200,000 for 15% of the company.
24:37Sharks, are you tired of accidental interruptions ruining your meetings and your focus?
24:42Hey, Steve, you busy?
24:43Oh, yeah.
24:44I'm in a meeting.
24:45Sorry.
24:46Now go.
24:47Oh, what was I saying?
24:48Meeting focus.
24:49Oh, meeting focus.
24:50Sharks.
24:51At the beginning of the pandemic, my house turned into a four-person work-from-home space,
24:55and accidental interruptions were a constant problem.
24:58Being an inventor type, I set out to fix it.
25:01At first, I tried to train my dog to guard the door, but she couldn't tell the difference
25:06between a good visitor and a bad one.
25:08Who's my good little coach?
25:10I'm like, who's not good?
25:11Oh.
25:15After a while, I tried a lot of stuff.
25:17And nothing worked.
25:18So I tried a simple solution, right?
25:20Lock the door.
25:21Steve, it's Connor.
25:22Are you ready?
25:23I'm in a meeting.
25:24Shh.
25:25What?
25:26I can't hear you.
25:27I'm in a meeting.
25:28Don't come in.
25:29What?
25:30I can't come in.
25:31The door's locked.
25:32It's unlocked.
25:35Hi.
25:36I'm Steve's teammate, Connor.
25:37Sharks, this is why we invented BusyBox, the first data sign made for work-from-home professionals.
25:44To use it, you simply mount it on your door, you connect it to our app, and you can change
25:50the lighting and brightness, and even connect it to your calendar, so it automatically lets
25:55people know when you're off that five-hour marathon call.
25:59And with the BusyBox digital, you can create any message you want using our HD screen, so
26:04the options are unlimited.
26:06That's right, Sharks.
26:07Who wants to be more productive at home and help us build a brand for work-from-home professionals?
26:14Sharks!
26:15Who wants to get busy?
26:17Sharks!
26:18Sharks!
26:19I love that.
26:20Sharks!
26:21So we put some BusyBoxes there in front of you and phones, and we'd love to have you dive
26:26in and play.
26:27There are two models there, the standard and the digital.
26:30Ta-da!
26:31Ta-da!
26:32We made everyone a special assortment of presets, so you could have some fun there.
26:37Oh!
26:38Oh!
26:39There we go!
26:40I got it!
26:41So the digital is our more expensive model.
26:44So this, you have to go with whatever is there.
26:46Yeah, exactly.
26:47So with that model, to keep the cost down, we have slide in and out signs, so you can see
26:51everyone has a few different signs.
26:53Got it.
26:54How much does it cost?
26:55That model there is $299.
26:57Wait, I'm sorry, $299?
26:59Yes, sir.
27:00Wow.
27:01Why are you charging $299 for it?
27:03I'm curious.
27:04We want to grow slow and methodical, and we want to have margin to make sure that we
27:09have great features that we can build and connect with customers.
27:13So what are your sales?
27:14So we have lifetime sales of $429.
27:19We did $299,000 in 2020.
27:21We did $129,000 so far.
27:23Not bad, though.
27:24Hey, you know what?
27:25I'm surprised.
27:26So you're not full of crap.
27:27You guys have gotten a lot of press for this, haven't you?
27:28No, not at all.
27:29No, because I've seen something very similar.
27:31There are people making similar devices, but they're made for sitting on your desk.
27:36They're made to look at.
27:38We're going after the work from home market, where we want to put this on the outside of
27:42the door.
27:43Now, are you two related?
27:44No.
27:45Well, why don't you tell us about you, what each of you do, and how you two got together?
27:50I came up with the idea at the start of the pandemic.
27:52I'm sitting there on a video call.
27:53My wife comes in and says, hey, and she walks in, and she's like, oh, I feel bad.
27:58Sorry, I'm bad.
27:59Turns, walks out.
28:00A little while later, my daughter does the same thing.
28:02And I'm like, ah, this is crazy.
28:05So I was like, oh, you know what?
28:07I wanted those old on-air signs.
28:09And what I'll do is I'll just mount that on my door, and away I go.
28:14Guess what?
28:15What?
28:16None exists.
28:17Nothing.
28:18Really?
28:19Yeah.
28:20I was about to say to you, can't you just go get a light or something?
28:23Yeah, I would think they're everywhere.
28:24So the hardwired lights, no problem.
28:27If you want to cut a hole in the wall, run electrical wire, add a switch, absolutely.
28:34So I come up with this product idea, and I go, I'm going to build a nice little business
28:39here.
28:40But then along the way, I started to realize that there's a big market opportunity beyond
28:45just status signs.
28:47What's the opportunity?
28:48We're looking for building productivity products, like the BusyBox, that helps you
28:53to be more productive in that space that you call your busy space.
28:56Things that help you communicate.
28:58So your microphone, your video camera, the lights in your room could know what you're
29:05doing and adjust.
29:06We want to bring wellness into it as well.
29:09Okay, let me get things started.
29:10Look, guys, you've certainly put in the effort, so I give you credit there.
29:14But you're going off on all these tangents, and whenever something evolves to the wellness
29:21space, I'm out.
29:23Okay.
29:24I understand.
29:25My feeling is it's cute, it's novel, I see the need.
29:29But $2.99 for it, I think it's just way too high a price point.
29:33I just think that it's never going to really become something in a lot of households.
29:40So for those reasons, I'm out.
29:44Look, I think you guys hit a trend.
29:47Your next idea, wellness, it's a little reaching for me.
29:53Sure.
29:54I admire the fact you started something, and you should be proud of that.
29:57But as an investor, I'm...
30:00Sorry to hear that.
30:01Thank you for supporting entrepreneurship as well.
30:04The weird thing about all this is there's probably a market for this thing.
30:08I wish both of you the best.
30:10Congratulations.
30:11Hey, good luck to you.
30:12I'm out.
30:13Okay.
30:14So guys, you showed us where it's going at a price that is just not comprehensible to
30:20the everyday person for you to scale.
30:22It's not investable for me at the moment, so I'm out.
30:26Thank you, guys.
30:28Thank you so much, guys.
30:29All the best.
30:30Bye-bye.
30:31Well, I got too excited.
30:34Oh, dang it.
30:36We're looking forward to just keep grinding and keep doing good things.
30:39And, you know, we'll make it happen, and we'll just grow a lot slower than if we had
30:44the sharks being able to rocket our sails.
30:46Next up is an innovation in sweet treats.
31:07Hi.
31:08My name is Shahira Marai.
31:09I'm from Orange County, California.
31:11I'm seeking $500,000 in exchange for 5% equity in my company.
31:15Whoa.
31:16Whoa, whoa.
31:17Sharks, aren't you tired of sending the same fruit baskets, cookies, and cupcakes to all
31:21your friends and family?
31:22The edible gifting space is impersonal and hasn't had much change since 1960 with the addition
31:27of chocolate-covered strawberries.
31:29That's why we created Dirty Cookie, a unique, delicious, and memorable gift, the cookie shot
31:34glass.
31:35Yup, we've taken shot glasses and turned them into cookies.
31:38And they may look like hard cookies to you, but they're actually super soft and chewy, turned
31:42into edible shot glasses that you can fill with any beverage, from milk, coffee, sweet
31:47liqueur, or my personal favorite, chocolate ice cream.
31:50We have DIY decorating kits and gift boxes for any occasion, from birthdays, graduations,
31:56showers.
31:57We even have vegan gluten-free options for you, too.
32:00All right, Sharks, who's ready to talk cookie to me and take a shot with Dirty Cookie?
32:04What do we have here, Shira?
32:06So you have our chocolate chip, red velvet, double chocolate churro, and our vegan gluten-free
32:12double chocolate.
32:13Ooh!
32:14It tastes great.
32:16Oh, I love the double chocolate.
32:17So the idea is I sip and then I bite into it?
32:20Yes.
32:21It tastes like dunking your cookies in milk.
32:22You drink your milk out of your cookie.
32:24And we customize them.
32:25Oh.
32:26You can see some of them have logos.
32:28Wow.
32:29Okay, what's the story here?
32:31Well, my family moved here from Egypt when I was five years old.
32:34I got a job at Boeing.
32:35I was the youngest female project manager managing $20 million worth of projects.
32:39Wow.
32:40And then three years later, I had my daughter.
32:42And that was also a pivotal moment in my life because I realized, okay, I have an amazing
32:46corporate job, but I don't have my dream business.
32:49I've always wanted a business since I was, like, 10 years old.
32:51How did you create the idea to do it?
32:53So I was inspired a lot by Pinterest, to be honest.
32:56So I saw a lady molding cookie dough on a bowl.
33:00And I love milk and cookies.
33:02So when I saw her doing that, I called my engineer at Boeing.
33:04Me and him got together.
33:05We designed and manufactured our own molds.
33:07We actually have a patent on the molds.
33:09What do you charge for them, Sharon?
33:10We never heard what they cost.
33:12The dozen is $49.99.
33:13It costs us $12.92 per dozen.
33:16And you were saying that they are customizable.
33:18How does that work?
33:19So these are our DIY kits.
33:21For any occasion, for, like, Christmas or Hanukkah, kids or parents put them on.
33:26We send them chocolate sprinkles, and they decorate them themselves.
33:29And when did you start the business?
33:30Yeah.
33:31So I started in brick and mortar for three years in 2015.
33:34It was a terrible location.
33:36I realized really quickly within a year I wanted to get out, but I didn't close it till 2018.
33:40What was the 2018 sales?
33:42So 2018 was about $300,000.
33:44Okay.
33:452019 was about $345,000.
33:47And 2020 was $1.27 million.
33:49What?
33:50Boom!
33:51What?
33:52What happened?
33:53When COVID hit, that's where the DIY kits came to me.
33:56It was right before Easter.
33:57We sold 400 units in 48 hours, and we didn't have enough, so I just stopped because it was just me and my CO.
34:03Congratulations.
34:04Yeah.
34:05I love that you pivoted.
34:06So what about 2021?
34:07$2.6 million.
34:08And what are you going to make off the $2.6 million?
34:10Okay.
34:11$250,000.
34:12Wait.
34:13Why so low?
34:14Because...
34:15So this is why I need funding, because our cost to make these cookies is pretty high.
34:20We don't have the right equipment, so every cookie shot is handmade.
34:23Oh!
34:24But there is a machine out there.
34:25I went to Italy, and I tested it out, and it's amazing.
34:28How much does it cost?
34:29$400,000.
34:30Oh, is that all?
34:31Yeah.
34:32Get two!
34:33I know, right?
34:34But with 10 people right now, I make 15,000 cookie shots a week.
34:37With that machine, I can do 4,000 an hour.
34:39An hour?
34:40An hour.
34:41An hour.
34:42And what would that take your cost down to?
34:44It would help us to more, like, capacity.
34:46So last year, we had to turn off advertising three weeks early, because we couldn't keep up with demand.
34:51How much money did you make last year?
34:53Profit?
34:54Yeah.
34:55$50,000.
34:56Uh, were you hoping to give us the sweet liqueur so we wouldn't catch the $10 million valuation?
35:04Good one.
35:05Talk to us about that.
35:06$2.6 million is what we're projected to hit this year.
35:09Three to 5X times the revenue is the industry standard, so I picked four.
35:14And we have a bunch of partnerships coming up next year, licensing deals.
35:18We just got into FTD, which is a flower gifting company, and we're working for next year with 1-800 flowers.
35:25Have you raised money?
35:26No.
35:27I've bootstrapped this whole thing.
35:28Do you have debt?
35:29I have about half a million in debt right now.
35:31Whoa.
35:32Did you put money into it?
35:33So I sold my house in 2019 to fund us after I closed the store.
35:36You did?
35:37I pulled my 401k from Boeing.
35:38I maxed out all my credit cards like twice.
35:41Man.
35:42And paid them off.
35:43Wow.
35:44Don't worry, I have no credit card debt.
35:45Your cookie got dirty, Sahira.
35:47Yeah, yeah.
35:48I don't know if you're committed enough.
35:49Do you have a partner?
35:50No, I'm 100% equity owner right now.
35:52Good for you.
35:53But I would like to eventually, my CEO, she's been working as hard as me for three years,
35:58and I'd like to give her equity.
35:59What do you think growth is for 2022?
36:01I'd like to get to $6 million in 2020.
36:03How are you going to do that?
36:04Well, these partnerships that we're bringing, that we're...
36:07Yeah, but you don't know the conversion on those partnerships yet.
36:10I've been down this road.
36:11This idea that you're going to $6 million, that's extremely aggressive.
36:14I am very ambitious, yes.
36:16Yes, you are.
36:17But, Sahira, one of the challenges you have is you compete with all gifts, right?
36:22You compete with all things fun and all things tasty.
36:24Yes.
36:25Right?
36:26So you kind of are capped on how much you can charge.
36:27Yes.
36:28You're kind of in that really, really stressful, durable cage.
36:30Just running and running and running and running, just trying to keep up.
36:33Yeah.
36:34Because the bigger you get, the harder you work until you get these other devices.
36:37Yeah.
36:38That means you're not very capital efficient.
36:39That makes it really hard to invest in.
36:41So for those reasons, I'm out.
36:44Look, I give you three years to start making money.
36:47And if you can't, it's just a hobby.
36:49And the reason is...
36:50250 grand is nothing to sneeze at.
36:51No, no, no.
36:52Excuse me, I have an opinion.
36:53You don't have to like it.
36:54I'm just telling you what I think.
36:55The reason the model's broken is the $12 cost of goods.
36:59It has to be four.
37:01That's the only thing you should be focusing on.
37:03You know, and still, with your vision, your cogs aren't going to go down that much.
37:07I'm sorry, I hate your business model.
37:09I'm out.
37:10Um, I think we all agree that you're a wonderful, uh, person.
37:15But the profit is not being brought in.
37:17And we're all struggling with your business model.
37:20It's such a dangerous opportunity for me with all those variables.
37:25So I'm out.
37:26Look, there is no doubt about you, but there's a flaw in this business.
37:32And it scares me that somebody as smart as you, after six years, hasn't figured it out.
37:40There's too many unknowns.
37:42I'm out.
37:44You're great.
37:46I love the concept of it.
37:48I love the DIY.
37:50Actually, I'll tell you what I love the most.
37:52You pivoted.
37:53Yes.
37:54When COVID hit and your sales shut down.
37:56Good for you.
37:57That's a true entrepreneur.
37:58I'll never give up because I made a promise to myself when I was younger.
38:02So my father, he also felt like I wasn't good enough.
38:06He wanted a boy really bad and he got me as a girl.
38:09Oh, that sucks.
38:10So I always struggled with that.
38:11I wanted to prove to him that I can be successful.
38:14So that's why I'll never give up.
38:16I have to prove to him that I'll make it.
38:18And I think a lot of women understand that because a lot of women are challenged with that.
38:24Um, here's my problem.
38:26You're on track to do 2.6, but you're not profitable yet.
38:31You have to buy this machinery.
38:33There's a lot of mountains to climb.
38:35I'm going to make you an offer, but you might not like it.
38:42Four sharks are out.
38:52Lori is Shahira's last chance for an offer for her cookie shot glass company, The Dirty Cookie.
38:58I will give you $250,000 as a loan at 8% interest, and I'll give you the other $250,000 for equity.
39:07And because it is so risky, I'm going to ask for 25%.
39:14I know it's a lot.
39:17That's nothing because you own 100% of the company, and now you get help.
39:20I want to be able to give 15% to my COO.
39:23Did you say 25%?
39:25I did, because I know what it's going to take.
39:29Would you do it at 15% on the equity part, and then 10% on the loan?
39:36You'll pay more interest on the loan.
39:37Yeah.
39:38Not 8, you'll pay 10.
39:39Yeah.
39:40How long is the term of the note?
39:42Three years.
39:43I have another cut at it, if you don't mind, Lori.
39:46First of all, you know, I relate to everything.
39:49Like, my entire life people told me I'm not good enough, I'm not going to amount to anything.
39:53And it took years to let that go until I realized it's not them.
39:58It's me.
39:59You're the one that thinks that.
40:01You've got to let that father...
40:02I did.
40:03I've been doing a lot of healing.
40:04You started a business.
40:05You're a successful mom.
40:06I've been doing a lot of healing the last few years, and I have let that go.
40:09But that's why I know I will not give up.
40:11So, let me...
40:12I understand it.
40:13I have an offer to me.
40:14I'll give you the $500,000 for 30%, but let me finish.
40:22But if you hit your projection next year, I'll go down to 15%.
40:27Ooh.
40:28Next year?
40:29Not this year?
40:30Yeah.
40:31You told me you're going to do $6 million next year.
40:32Oh, wow.
40:33Oh.
40:34No, but she did.
40:35You're right.
40:36Am I right or wrong on that?
40:37You're right.
40:38Yeah.
40:39All right.
40:40I'm going to put my money where your mouth is.
40:42Because at that point, the valuation makes sense.
40:45I will match that.
40:48If you hit it, I would go to 15% too.
40:51Always copying my offer.
40:54So, $250,000 loan at 8% three year, then $250,000 for 25%.
41:02Which goes down to 15.
41:04If you hit your projection, I'll go down to 15.
41:06I'll be real happy.
41:07You don't need a loan.
41:08Bye.
41:09You need a partner.
41:10Shahira, this is a bet on you.
41:13Robert, is there any way you'd go down to 20%?
41:16I'll give you the $500,000.
41:19I'll start at 25%.
41:21I'll take your projection for next year.
41:24We'll discount some of it, which we always do in forecasts.
41:27If you're telling me $6 million, maybe we shave it down $6 million minus 15%.
41:32So, roughly $5 million.
41:34And if you hit it, my money goes in your confidence.
41:38I'll go down to the 15%.
41:44You got to make a decision.
41:45I know.
41:46Um...
41:50I'll take it.
41:51I'll take it.
41:52Done!
41:53Congratulations.
41:54Congratulations.
41:55Congratulations.
41:56Oh, my God.
41:57Thank you so much, Robert.
41:58Oh, thank you, Shahira.
41:59Oh, my gosh.
42:01You got to figure out this problem, though.
42:02I'll figure it out.
42:03I promise.
42:04Congratulations, Sharon.
42:05Congratulations.
42:06All right.
42:07Congrats.
42:08Thank you guys so much.
42:09Oh, my God.
42:10Thank you so much for this.
42:11It's a really big deal for us, but I do thrive under pressure.
42:12So, I will figure this out.
42:13I'm just really grateful for all of them, because they believed in me,
42:17which I don't get a lot of that from the closest people to me.
42:22So, seeing it from the sharks, all of them, that is priceless.