Second Guest: Bob Kroupa, New Era Brands

Bob needed money from the sharks to save his once successful company. His “Clip ‘n’ Go” products are designed to make it easy to find “essentials” such as mints and gum and contact lens cases.

Barbara summed it up: with every question, the business appeared weaker. All of the sharks were out.

•  Presentation: Bob was surprisingly nervous. He knew the answers to the questions, but the answers weren’t good.
•  Business Strengths: A lot of market research has been completed.
• Business Weaknesses:. The research showed that the products were not viable!
• The Deal: He asked for $500,000 for 30%, He got no takers.
• Sharks: Kevin O was his usual toothy self, firing Bob on the spot.  Generally, they were courteous.

• Go back into real estate development.

• Market traction is very important. Not running out of cash to continue the business is even more important.  
• Getting on the shelves with large distributors is tough. Staying there is even tougher!
• Watch the overhead. A low burn rate is critical to success.
• Sophisticated retailers only care about one thing: profit per linear inch of shelf space.
•  Facing the truth about your business is really tough to do!

• We found him a www.clipngo.com. He is still at it.

(If you are interested in raising capital for your business, visit us at www.AngelNetwork.com) 

She works in real estate and rehabs homes. She came up with the idea for the magnetic refrigerator skins when she lived in military base housing. They can also be used on many other appliances. They are instant decorations at $100 or so. Sounded like a great idea!

Barbara liked that it was a “cheap ass way to doll up a fridge”. She would put in half, but only if another shark would partner with her. Kevin H said to focus on selling what she had and said he would put up $50,000 with Barbara, for a combination of 50% of the company.

•  Presentation: She was a little nervous, but seemed to readily have the answers.
• Business Strengths: The patent is about the biggest strength I see. Market response was pretty good, but not outstanding.
• Business Weaknesses:. She has faced challenge after challenge, many because of her inexperience in bringing a product to market. She needs a stronger team.
• The Deal: She asked for $100,000 for 30%. She got $100,000 for 50%. Good deal!
• Sharks: They weren’t very “sharky” for this lady. They were actually very courteous and respectful. That was cool.

• Focus of limiting the designs and selling what you have. Let the “design your own skin” concept be a follow-on, Phase II idea.  

• Get the right people on your team to start. Big mistakes early on can quickly destroy a company.
• Focus on selling what you have. Getting to breakeven is huge!

• You can find out more at www.fridgefronts.com. The website says that “new designs are being added daily!”   We think the site could use a facelift. 

(If you are interested in raising capital for your business, visit us at www.AngelNetwork.com) 

Fourth Guest: James Mitchell, Pure Ayre

Pure Ayre is a product that eliminates foul odors at the molecular level – it doesn’t just cover them up, it changes the chemical structure. James demonstrated the effect with great success and claimed that it was the only 100% food-grade odor eliminator on the market today.

Daymond offered $150,000 for 50% of the company. Kevin O thought that was a lousy idea, and offered to buy the whole company for $150,000 and fire him – but give him a 7% royalty.

•  Presentation: James was much too full of himself and very stiff. He thought he had star power, and couldn’t see his own lack of salesmanship. He also never seemed able to answer a question directly, preferring to tell a story instead. Too bad. He appeared very weak and unsure of himself as a result. 
• Business Strengths: The product works, and has a significant competitive advantage in being food grade – that means you can use it safely in the kitchen and around kids and pets.
• Business Weaknesses:. He is in a very tough market, one that takes a lot of money to penetrate. And sadly, James leadership was a huge weakness.
• The Deal: James wanted $150,000 for 10% of the company. Many offers were offered and consider, but in the end, he rejected an offer to buy the company for $150,000 and a 7% royalty. Interestingly we think he made the right decision! 
• Sharks: The sharks, although direct, were actually quite kind to James and collaborative with each other. He could have received a lot harsher treatment than he got.

• Work with a licensing agent to license the product, someone who won’t demand 93% of the proceeds. James may have to shut down current operations while pursuing the deal.

• Get your money in big chunks if possible, so you can invest most of it in expanding the company instead of just keeping the doors open.
• Answer questions directly and confidently.  
• Don’t be you own worst enemy. Find experienced and tough people to tell you the truth.

• You can find out more about Pure Aye at www.pureayre.com. James is still running the company, and is looking for distribution outlets. He is on the shelves nationwide, including Whole Foods and Petco. 

(If you are interested in raising capital for your business, visit us at www.AngelNetwork.com) 

Third Guest: The Johnson Family, Flipoutz

This was a team presentation, with mom, dad and three kids representing a company started by the kids.

Daymond offered $100,000 for 33%, contingent on the patent. Kevin O suggested that Daymond’s distribution expertise didn’t fit the product, and Daymond was a little snippy in his reply. Result: Kevin O offered to team with Robert and cut out Daymond. Daymond raised his offer to 25%.

•  Presentation: The kids were amazingly poised and even professional. They obviously spent a great deal of time preparing and rehearsing. They were cute, charming, and as it turned out, pretty good business people!
•  Business Strengths: The market traction and the patent were great assets.
•  Business Weaknesses:. The kids market is fickle and faddish. Who knows whether the idea will take off large enough to build a business?
•  The Deal: They started by asking for $100,000 for 20%, and ended up with
• Sharks: They started by biting at each other, but came together in the end to be partners. Even the little kid became a shark by asking for more money.

• Find ways to partner with other kids product companies to increase distribution at minimal marketing dollars.
• Seriously brainstorm other applications of the tracking and trading patent.

•  Prepare like crazy for your presentation.
• There may be greater value in your IP than in the original application of the IP.
• Even cute little kids can be sharks.

• You can learn more about Flipoutz at www.flipoutz.com. 

(If you are interested in raising capital for your business, visit us at www.AngelNetwork.com)