Episode two was full of surprises, a family business, a cure for menopause, reminiscing on past deals, creepy babies and a new way to do retail. This is what I love about Sharktank; you never know what is going to come through those doors and yes Steve did crack it and walk out….
So let’s look at the businesses that were on Sharktank episode two…
The good old family business.
There are lots of positive aspects to a family business, they should be able to get over their differences quickly as they have been doing it most of their lives, they are passionate about making it work for the family and they are more likely to air their differences rather than bottling them.
However there are also some serious challenges with managing egos, emotions and ensuring that by Christmas dinner at the end of each year, everyone is back to loving each other. That is why you need to be very careful getting into a family business when you are the minority shareholder.
So, I was hesitant to becoming their adopted sister, but these three really knew how to work together.. Like many siblings they were all very different however their differences were complimentary in a business sense and their career backgrounds made them a great team.
They have done an extraordinary job to date, so it was no surprise that there was interest from the sharks.
Congrats both Naomi and the guys on a deal
Tip: When investing in a family businesses make sure you make your expectations very clear at the start. Ensure there is a clear shareholders agreement detailing each person’s rights to protect yourselves against being outvoted by the other shareholders. This is normal in most shareholding agreements but particularly important when you are the minority and the rest of the business is owned by family members. If you are getting into business with your family, also treat this like a business and consider what an exit clause may look like if it all goes pear shaped, and trust me – sometimes (ok often) it does, and having considered this at the very start is just smart and will save lots of grief in the future.
THE T LADY
Elissa is a dynamo, but clearly lost Steve when we heard the idea came from a dream.
I am not there yet, but I have friends who have gone through menopause and have told me horror stories about the symptoms and the treatment that they are going through. So when she told me what the tea could possibly do, my ears and interest were piqued. She had great passion, and if the tea does what she says it does, then she will do very well.
This is what I was investing in, the opportunity to be a part of a possible solution to a major problem.
However with any claim you need to back it up with proof and there are strict laws against making claims unless you can provide the evidence. I was thrilled to do the deal and am excited to see if she can prove the effectiveness of this product.
Tip: If your product claims to have medical benefits (no matter how big or small) make sure you have strong evidence that the product is scientifically proven, know the laws on what you can and cannot say about a product.
BE FIT FOOD
People often ask what happens to the deals after the door has closed, and “Is it really your money“?
The answer to the second question is hell yes, it is my money and that is why we take the deal very seriously. The reality in business is that not all businesses pass due diligence for many reasons or the business owner changes their mind, which is completely reasonable as no one would part with equity or their cash after a one hour pitch and would be foolish to do so.
It takes hours on the part of the business owner and also the Investor to decide whether the deal goes ahead, so to say the least I was thrilled when the Be Fit Food deal was completed and I am really enjoying working with Kate (an accredited Practicing Dietitian and Accredited Exercise Physiologist) and Geoff (a surgeon specialising in bariatrics). Seriously smart, passionate people who WILL make a difference to people’s health the old fashion way by eating real food.
This business is a food delivery program involving meals that are a specific balance of carbs and protein that are designed for Rapid weight loss. The evidence they have confirms that this is not only a safe way to lose weight but the preferred method. The home delivery service means the meals and plan come straight to your door, and people on this program lose between 2 – 12 kilos in the first two weeks.
I know, how cool is that?
Obesity is a problem that is not going away, and to see how this business is making a difference in people lives and health is very inspiring. I am thrilled to be a part of Be Fit Food.
Tip: When looking at investing/ buying a business or selling shares in your business; take the time to do all the research you can. People often do not want to be misleading in the information that they give you, but sometimes they just do not know the numbers. So even though accountants are expensive, it is much more expensive to get involved with a business without having all the facts. It is sometimes easier getting rid of a husband or wife than it is to get rid of a business partner, so take the time to get to know them. Part of the research (due diligence) is finding out if you can work together as one. It is not all smooth sailing running a business and you need to be able to work together to find solutions to all the problems that will occur (and they will). If you are the business owner and you have grown your business to something you are proud of and you get a partner that is more of a hindrance than a help then the added stress that you will experience on top of the challenges of running the business, is just not worth the investment. The most important thing is that if for whatever reason it does not feel right (just like getting married) do not move forward.
STAND IN BABY
You may have heard me say as I walked into the talk that this is a creepy looking baby, but once again I was surprised that the product was not what I thought it was. As the constant student that I am, I learnt another lesson: to stop and listen and you may be surprised at what you will find.
P.S Between you and me, I think they should have taken Steve’s deal. He would have been the better partner for this product…Just saying.
Tip: This is an easy one: you learn more from listening that you do from talking.
There are so many products and micro businesses that cannot afford to pay the rents required in retail sites, so I was thrilled to discover MY CUBE. It is a great opportunity for small businesses to get in front of their customers. And Lestari was a dynamite presenter, her passion for this business is without a doubt the main reason for the success of the business. Stanley is a lucky man to have her.
Thrilled they got a deal.
Tip: Think outside the square. Just because retailing is done a certain way does not mean that it has to always be that way. Remember the seven most expensive words in business: We have always done it this way…. Time to think outside the cube.. 😊..
See you next week for another episode of Shark Tank Tuesday at 8.45pm after Master Chef.