The ABC show Shark Tank should be required viewing for all leaders. For those unfamiliar with the show, Shark Tank features successful entrepreneurs Mark Cuban, Kevin O’Leary, Barbara Corcoran, Daymond John, and Robert Herjavec, aspiring entrepreneurs make pitches in hopes of gaining partnerships and funding that will allow them to make their dreams come true. Last evening’s episode was brutal.
The following were the presenters:
Susie and Steve Taylor – Bibbitec. This was an emotionally draining segment as Susie became emotionally frustrated during the presentation. O’Leary in particular was very tough on her. People get involved with churches and organizations because they believe in the pastor or leader. The sharks did not believe in Susie Taylor from a leadership, competency, or emotional standpoint. The following were some of the key insights during the Taylor’s presentation.
- “You can’t make money selling bibs at a really high price to Americans.” – O’Leary
- “The majority of bibs are not sold online.” – O’Leary
- “Susie, it’s a hobby. It’s not a business.” – O’Leary
- “I actually think it’s a great product. Have you tried licensing it to someone who already makes bibs?” – Herjavec
- “Are you making any money doing this?…Steve, how long are you going to lose money every month doing this?” – O’Leary
- “Susie, is it time to take the bib behind the barn and shoot it?” – O’Leary
- “I’m not selling more because my kids come first.” – Susie. Robert responds, “So you’re not selling more because you’re a mom?” – Herjavec
- “Susie, why are you getting emotional about this?” – John
- “I’m heartbroken (sarcastic). Do you think we’re not astute investors? We’re looking at it from a side that matters? The money. You’re not making any. You’re losing your family’s money every month. Do you think any investor up here wants to join you in that madness? Money’s binary. Either you make it or you lose it.” – O’Leary
- “What I do have a problem with is you’re not the right person to run it. You’re the exact wrong person to run it. Find a college kid who knows internet marketing.” – Cuban
- “You have a ready-made sales force in moms out there.” – Corcoran
- “In most businesses, the problem is education.” – John
- “You got to follow the money. I don’t hear a clear plan on to make this successful.” – Herjavec
Rabbi Moshe Weiss – Soundbender. Do you want others to believe in you and your leadership? The following 10 quotes give great insight into the type of leader people are willing to invest in and follow:
- “Tell me about the succulent margins you mentioned.” – O’Leary
- “How did you come up with the idea?” – Herjavec
- “Are you the kind of guy who wants to tinker and not sell.” – O’Leary
- “I’ve got to make the determination of my time which is very valuable.” – Cuban
- “How do I get my money back if I gave you the money for this product?” – Corcoran
- “I can’t negotiate lower money so what do you think we need to negotiate here?” – John. “I think you could possibly negotiate the percentage of the company.” – Weiss to which Daymond responds “Aha!”
- “The only thing out there that is making me want to invest in this company is the Walgreen’s sale.” – John
- “If he (Herjavec) steps out (as the only other potential investor), my offer starts to change because I become more valuable.” – John
- “Beyond the presentation, you didn’t tell us how you’re going to sell it. You didn’t tell us about the distribution channel. I don’t want to tell you how to do this business. I want to support you.” – Herjavec
- “I chose Damon because he is a marketing genius.” – Rabbi Weiss
Mike Robinson, Cuddletunes – Robinson’s segment is unique in that it is one of the few times I have seen the sharks get visibly angry with an entrepreneur. The following eight quotes demonstrate how leaders feel about those who aren’t willing to pay a personal price for their success as well as someone they do not trust.
- “How much money have you actually put into the business.” – Corcoran
- “What do you value your time at?” – Corcoran
- “My only pet peeve is I hate when people value their time when they’re starting a start-up. That’s your cost. That’s an opportunity cost. That’s not my cost.” – Herjavec
- “You’ve put a $2 million evaluation on this business. Are you saying you have sales to support that or just your time?” – O’Leary. Robinson responds, “If you don’t mind I’d like to come back to that.” Corcoran then states, “Always a bad answer.”
- “When somebody doesn’t answer the sales question all of us get really uncomfortable.” – Herjavec
- “I don’t see anything unique here.” – Cuban
- “If I invested my money in this I’d sleep like a baby. I’d wake up every two hours crying and asking my mommy ‘Where’s my money’. I’m out.” – John
- “I wouldn’t trust him as far as I could throw him.” – Cuban
Lena Phoenix and Steve Sashen, Xero Shoes – No one wants to be involved in a losing proposition. Leaders wish to be involved in something that is viable and sustainable. The following five comments give wonderful insights into organizations that may or may not be in it for the long run.
- “I don’t want to state the obvious but you come up here with rubber and a string and say we’re $5 million. Why do you feel that?” – John
- “If this category is growing as fast as you say it’s going to attract some very big competitors. They’ll say, ‘A piece of rubber. A piece string. I’ll put my distribution behind it and crush these cockroaches.'” – O’Leary
- “You’re in the shark tank for the money. You’re here for the money. I’m a rationale investor. You people are probably delusional entrepreneurs. Somewhere in the middle is reality.” – O’Leary
- “You’re giving me a headache. You remind me of my ex-husband.” – Corcoran
- “Because one or your competitors put money in at a ridiculous valuation, doesn’t make that a comp for you. It just means you’ve got a competitor with stupid money behind them. Do you know what they call a bunch of investors rushing into a hot area with a bunch of other investors. They call that a bubble. And no one knows more about getting out of a bubble than I do.” – Cuban
What do you think of the comments above?
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