Fourth Guest: Shane Pannell, Sweep Easy
Heads-up – this was the best session ever!
Shane is a stay at home dad, and finds it to be very challenging taking care of a 9 year old, a 4 year old, and a 2 year old. Truer words were never spoken.
He is looking for $40,000 for 25% stake, a pre-money valuation of $120,000.
He invented a better broom – his Sweep and Go Broom is patented and has a built in scraper. He has no sales, and is still working with prototypes.
He has received good responses from janitorial supply companys and distributors.
Robert asked if he was open to a licensing strategy. Kevin H thought it would work very well as an online sale.
Kevin O was in immediately. He wants to license the product and sit back and collect checks.
Then the fun began! Kevin H said he was interested, and Kevin O upped the offer to $50,000. O said he was a better partner, but H disagreed. He licenses too, but after the product has sold a gazillion via infomercials in the US.
Daymond said he branded a stinking pair of jeans globally, and offered $75,000 for 33%.
Barbara said she didn’t think Shane was a finisher, and was out (which was really strange – probably the editing of the show).
Kevin H said he was the better partner because they would make $millions more over time. Barbara advised him to slow down and think. Robert wanted to partner with Kevin O, and then Daymond wanted to partner with Kevin H. What fun!
Except for Shane, of course, who was shaking in his boots under the pressure, especially when Kevin O wanted / demanded to speak to his wife!
Shane eventually took the deal of $80,000 for 40% with Daymond and Kevin H. We think it was a good choice!
- Presentation: Shane was charming and innocent. He was out of his league negotiating with the sharks, and looked like he was going to pass out.
- Business Strengths: It was a great idea, and patented. The sharks loved it, and that was good enough for me.
- Business Weaknesses: There is some risk because of no market traction, but they sharks loved it anyway.
- The Deal: Shane wanted $50,000 for 25%. He got a bundle of counter-offers (watch the show!), and ended up taking $80,000 for 40%.
- Sharks: They were very sharky to each other, (a feeding frenzy!) but not necessarily to Shane. This was a great episode!
Next Step Suggestions:
- Do the infomercial thing with Kevin H.
- Be careful when you step in Shark Tank. They have very strong personalities and are not averse to personal attacks.
- Marketing talent (Kevin H and Daymond) can provide a better partnership than just money and connections.
- You can get more at www.SweepEasy.com. Frankly, it doesn’t look like he ever got financed, and he promises the be in production soon. You can’t order one yet.
(If you are interested in raising capital for your business, visit us at www.AngelNetwork.com)