Shark Tank Episode Analysis Essay Examples

In this episode of Shark Tank the first idea put forward is “The Bobble Place” a business idea pitched by Mr. Jeff Wolsky. Jeff has an already existing online business where he sells the dolls through the web to willing buyers. However, he seeks to open up another business but in a physical location either in shopping malls or amusement parks. The main reason of this is to promote publicity for his bobble head doll business. Jeff approaches the sharks while hunting for $75,000 for an 18% stake on the business equity. To back up this he asserts that the business has been running for 5 years now and has a made a sales revenue of over $1 million. Conversely, the sharks think that this is not a real business to venture in. Jeff offers to give the online business to the sharks while he would run the business in a physical location. As a result, the sharks describe Jeff as a greedy person who only wants to enjoy their benefits as they take on the risks of his business.
According to Jeff, a single doll can go for a price of $100 and earn about $500,000 to $600,000 annually in profits. Shark Robert is concerned about the monthly sales of the business considering that the physical kiosks for the venture can cost up to $1500 on rent. However, all sharks agree that business is lucrative but asks Jeff to drop the physical location of the venture and stick to the online business. To this effect shark Kevin O offers Jeff $75,000 equity and 18% stake on the online business. Jeff declines this offer. Kevin O goes further to offer the same amount at 15% which he also declines. The same shark decides to give $100,000 equity for 20% stake without having a physical location for the business but Jeff does not agree on this. Consequently, shark Robert proposes to give Jeff $125,000 equity for 25% stake which he also refuses. Jeff wants to have the $225,000 from both sharks for a 20% stake on equity. However the two sharks agree to give him $100,000 equity for 20% stake holding but Jeff insists for a 7% stake on equity. At the end Jeff does not make a deal with the sharks.
In this episode, we also see “Pork Barrel BBQ Company” which was adopted by shark Barbara. The pork spice barbeque company has opened over 130 barbeque store since its inception. The company has also opened its own restaurant and also bought a bus for creating publicity. Barbara had invested $50,000 equity for 50% stake on this business. She is thrilled by the level of growth of this business. In another case, Roman Pietrs and Sandy Hyn from New York have a business idea which they have named “Mr. Poncho”. They seek to get $50,000 equity for 25% stake on the equity. Their product is a designed MP3 player which is specifically made to ensure the safety of the headphones. The two have been in this business for two years where they made sales revenue of $11,000 in the first year and $35,000 in the second year. A single player goes for a price of $18 and the cost of production is $3. They have sold over 5000 units since the start of the business. However, all the sharks do not make any deal for this venture. Daymond feels that this business is premature whereas shark Kevin H thinks that this is just a home business.
In yet another case a Florida urologist, Dr Floyd Seskin presents a business idea by the name of “The URO Club”. He has developed which can be used by golf players to urinate while in the golf court. He thinks that his product would make this outdoor activity more enjoyable but he does not have the required expertise to run the company. He is looking for $25,000 equity from the sharks for a 51% stake. This product sells at a price of $24.95 plus a shipment fee of $9.95 and the cost of producing a single unit is $8.43. Dr. Floyd has sold over 3000 units through the internet earning over $70,000 in sales revenue. He has invested over $300,000 on this business which the sharks think is a lot of money for this kind of venture. Kevin H thinks that the business has some potential and he decides to offer $25,000 equity for the business and a 70% stake together with the current business inventory of 12,000 units. The other sharks suppose that they don’t fit into this business portfolio.
Finally, Brian and Adam present an innovative business which is set to change the face of college and high school sports recruitments. The venture is named “Jumpforward”. These two guys believe that most of the successful athletes and players were overlooked during their college sports recruitments by the college coaches. Their business idea will provide profiles for many college and high school students where coaches can choose the players of their choice given the information provided by the respective student’s profile. The colleges will be paying an annual subscription fee depending on their levels. Brian and Adam are seeking for $150,000 equity for a 10% stake to invest in the business. Currently, they have registered over 30 different schools and over 300 college coaches in the system. According to them, registering 60,000 students in three months has generated $150,000 in contracts. The business has a potential of $15 million to $20 million and with the help of the sharks the business can record revenue of up to $35 million. They assert that their business competitiveness lies in three vital things which include; the fact that they are first entrants in the market, they have a patent of their mobile application and they are experts in that field of business. Three of the sharks, that is; Barbara, Daymond and Kevin H decline to invest in this business. However, Kevin O and Robert think that it is a worthwhile venture and they negotiate for a good deal with Brian and Adam. The two guys had wanted $750,000 equity from the sharks for a 50% stake or $300,000 equity for 25% stake on equity. However, the two sharks resolved to invest $600,000 in the business for a 50% stake on equity, a deal that both investors agreed for progress.