Entrepreneur Meets the Sharks To Deal or Not To Deal
In the second part of this week’s “Shark Tank” on ABC, entrepreneur Tom Callahan makes a pitch to the Sharks for his Cab20 product. Tom is seeking a $200,000 investment for a 20% stake in his business. Will there be any takers?
As Tom begins his pitch, he says that Cab20 is what he calls the brainchild of the highly talented 18-year old music phenomenon, Ben Hoover. He tells the investors Cab20 is a band and it performs a song right in the tank. The group has a fabulous sound and is very good, but the deal Tom is looking for does not include any publishing rights. According to Mark, the music business is the worst one on the planet so he is immediately out.
Following Mark’s lead, Daymond had a previous bad experience in the music business so he is also out. While Barbara likes the group very much, she doesn’t care for Tom as the owner. Interestingly enough, Kevin loves the band so he has an offer for Tom.
Kevin offers to give Tom $200,000 for fifty percent of everything. Tom pushes his luck with a counter of $300,000 for forty percent. Robert offers to go in on the deal with Kevin. Tom and the band want $250,000. The sharks reject that offer, Kevin is not going to budge from his original offer and Robert is standing strong as well. Obviously, Tom is not a good business man as he refuses to take the offer. The band will have to rock on without any deals from the tank
Up next to make a pitch to the Sharks is Billy Blanks Jr. Billy is pitching his “Billy Blanks Jr’s Dance With Me” exercise video. Billy’s dad is the producer of Tae Bo but Billy wanted to create a more appealing workout and one that would be more fun than the high impact workout that his dad created.
To explain his workout, Billy provides a sample of how his dance routine actually works. Billy is pleased to see the sharks dancing in their seats as he is even able to get Mark out on the floor. Billy currently has two DVD’s for sale that are on the market and four more ready to go. What Billy needs is an investor for an instructor certification program as he wants to train teachers for live classes.
Since the Sharks are in the business of making money, they want to cash into the retail business. They ask Billy if he is willing to combine businesses, and he tells them he is. Barbara is curious why his dad is not an investor. In answer to that, Billy keeps it very professional as he let’s her know that his dad is making him learn to earn his own money. This kind of business is not Barbara’s cup of tea so she is out. She is followed by Robert. It is not something Kevin has interest in so he’s out as well. Daymond asks Mark if he would like to partner on a deal. They offer $100k for a 50% stake in the business with a contingency for a deal with the established dance music company “Zumba”.
Billy is reluctant to take the contingency deal as he isn’t in favor of changing the uniqueness of his product by merging it with “Zumba”. He discusses it with his wife, asking about the possible extension of their branding through another company. Billy is simply opposed to bundling his product with another brand. Mark and Daymond explain to him that this is not what is happening. Billy just does not understand their way of thinking and declines the tank. To make history on “Shark Tank,” Daymond follows the couple out and convinces a tearful Billy and his wife that he will do whatever he can to help them be a success. Billy takes Daymond at his word and they strike a deal. Learn more about ABC’s Shark Tank here!