- Entrepreneurs with military backgrounds appear on this episode airing during Veterans Small Business Week 2014. Sharks Kevin O'Leary, Robert Herjavec and Daymond John, along with the successful entrepreneurs behind jewelry line Stella Valle and energy drink Ruckpack, were invited speakers at a "Champions of Change" event, offering advice to veteran and active duty entrepreneurs.
- In this episode of Shark Tank, several entrepreneurs presented their business ideas to the sharks: Mark, Daymond, Kevin, Lori, and Robert.
The first pitch was for "The Natural Grip," a hand grip designed by Ashley Drake, a US Army veteran, to enhance the handling of fitness equipment. Ashley sought $100,000 for a 20% stake in her company. The product had generated sales of $178,000 within the past year and featured a patented cotton adhesive material. Ashley explained that existing alternatives like leather grips were bulky, sweaty, and ineffective. The wholesale price of The Natural Grip was $10, while the retail price was set at $17. The cost of production was $4.43, with $4 allocated to labor expenses. Lori opted out due to her disinterest in physical exercise, while Kevin believed the product catered to a highly specific market and chose not to invest. Ashley projected sales of $400,000 for the following year and $1 million thereafter. Mark, however, saw potential in expanding the product line for the existing CrossFit customer base rather than entering new markets, and he decided to back out. Robert offered $100,000 for a 30% stake, while Daymond proposed $100,000 for a 40% stake, highlighting his experience in manufacturing and branding. Robert then revised his offer to $125,000 for 25%, and Daymond countered with $100,000 for 33%. Ultimately, Ashley accepted Robert's offer, securing $100,000 for a 25% stake in her business.
The second pitch featured "Priority One Canine," a business run by Lori and Wade Morrell. They offered professionally trained canine bodyguards tailored to meet the specific needs of clients. The couple sought a $75,000 investment for a 15% stake in their company. They specialized in training three to four species of dogs and provided three levels of training, priced at $20,000, $30,000, and $40,000, respectively. In the last 18 months, they had placed 11 dogs, generating $150,000 in sales with $70,000 in revenues. Both Robert and Kevin believed that scaling the business would pose challenges due to its highly specialized nature. Consequently, Robert and Kevin opted out. Mark decided not to invest due to the limited return on investment. Lori expressed her desire to maintain the business as a family endeavor and declined the offer of an investor, while Daymond recognized his inability to assist with scaling and also decided to pass.
The third pitch introduced "Man-Pack," a multipurpose messenger bag for men presented by Aaron Tweedie. He sought $200,000 for a 29% stake in his company. Man-Pack had achieved sales of $76,000 the previous year, with projected sales of $145,000 for the current year. The product, priced at $60, incurred a cost of $22.05 per unit. Aaron emphasized the need for a demonstration to showcase the product's features. Robert mentioned the popularity of a similar product in Europe but expressed concerns about its reception in the US market. Aaron included the value of his patents and YouTube videos in his valuation. Kevin believed the company's worth was around $200,000 and decided to opt out. Mark also declined to invest, and Daymond felt that Aaron's attempt to inflate the valuation hindered his interest. Ultimately, Lori withdrew due to the high level of competition in the market, and Robert decided against investing, believing that Aaron would not move quickly enough to meet the demands of the market.
The last pitch featured "Bottle Breacher," a company founded by Jen Crane. The business produced beer bottle openers made from 50 caliber bullets. Jen sought $150,000 for a 10% stake in her company. The product sold for $23.50 and incurred a cost of $9.00 per unit. Wholesale prices were set at $16.00, and the company offered add-on such as engravings and specialized metal fittings. Bottle Breacher had achieved sales of $500,000 year-to-date, with projected sales of $840,000 for the current year. Jen explained that 90% of their orders were customized, necessitating the hiring of additional engravers to meet the demand. Kevin offered $150,000 for a 20% stake, while Lori chose not to invest, considering the market to be too niche. Daymond proposed a $200,000 investment for a 25% stake, contingent on licensing. Robert opted out, acknowledging that the other offers were more favorable. Mark decided to join Kevin in investing.
In an update, it was revealed that Daymond, Kevin, and Robert, along with Stella Valle (from Episode 425), Paige Dellavalle, Ashley Jung, and Ruckpack (from Episode 410), were invited to a special "Champions of Change" event at the White House. The event celebrated veteran entrepreneurs, and First Lady Michelle Obama appeared in a segment promoting Veteran's Small Business Week and JoiningForces government website Additionally, athlete Danielle Sidell made a cameo appearance to demonstrate The Natural Grip.
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