In the second episode of Friday’s two-hour period six opened of “Shark Tank” on ABC, a young business owner steps even the coldest Sharks– including Kevin O’Leary, a.k.a. “Mr. Wonderful” — to tears with his story of why he quit a comfortable way of living to pursue his enthusiasm.
Of course, splits will not guarantee you a handle the tank, however Phillip Lapuz, designer of the high-end golf putter company Kronos, showed that a huge investor is just willing to go the distance with a founder who will certainly do whatever it takes to prosper.
During the pitch, the Sharks understand that Lapuz and his business partner and creative director Eric Williams have a quality product, but they watch out for investing in a business that would not see an immediate return. It was only after a display of Lapuz’s effective business drive that investor Robert Herjavec consents to make a deal with Lapuz and Williams.
The Kronos guys appear in conventional golf outfit to ask the investors for $150,000 for 15 % equity in their business. Two years ago, they explain, they got an offer at the PGA Merchandise Show for circulation of their putters, the cheapest at $500, in Japan and Scotland.
They explain that they have actually sold $260,000 worth of merchandise up until now in 2014, with 95 % of sales in Japan. Lapuz and Williams tell the Sharks that the reason they have not yet made it in the United States is since of the American business design of selling sports equipment by way of celeb athlete endorsements, which they did not have the capital to spend on.
O’Leary tells the Kronos partners that there are circumstances where a tool ignite in the golf industry, and there’s an opportunity lightning might strike for Kronos. But it would be a big risk that required a considerable time investment.
By this point in the pitch, investors Mark Cuban and Barbara Corcoran have bailed due to the fact that they dislike golf, and Lori Greiner drops out since she believes Kronos would just be a huge success in Japan.
Playing with one of the putters in his hands, Herjavec asks Lapuz and Williams why they started a company in the very first location. Lapuz suddenly becomes choked up, with splits running down his face.
Lapuz discusses that he’s engaged, and his fiancée lives in Japan. Soon after his engagement proposition, he left a high-paying job as a consultant and invested $100,000 of his own money to begin Kronos, something he had long dreamed of doing. His fiancée’s traditionally minded parents couldn’t fathom why he would leave a great task to start a business and no longer authorize of their little girl marrying Lapuz. He is working for Kronos to take off so that he can get wed in the States.
‘It’s like, do I have to select between my business of my dreams and my fiancée?’ Lapuz asks.
O’Leary, usually the most blunt and negative investor on the panel, wipes splits from his eyes.
Corcoran is also moved. ‘I think you should sit tonight and compose her parents a thank-you note,’ she tells Lapuz. ‘And you should start like this: ‘Thank you for the insults. For not thinking I’m worthwhile enough for your child. Watch me now, and enjoy exactly what I do.’
‘There’s no better motivation in the world than somebody who insults you,’ Corcoran states. ‘Those moms and dads are guaranteeing your success.’
O’Leary takes out due to the fact that he cannot figure out a strategy to make it work, even though he wishes to.
Herjavec informs Lapuz he relates to him, because his main motivation to prosper has always been to validate the numerous sacrifices his moms and dads, who ran away communist Yugolsavia, produced him.
In regards to business plan itself, he sees a tipping point where Kronos can take control of the customer market. However it’s far from instant. That said, he trusts Lapuz’s spirit and wants to be patient. He offers $150,000 for a whopping 35 % stake in the company, which Lapuz and Williams are able to work out down to 30 %. They concern a deal.
It’s difficult to say whether Lapuz and Williams would have had the ability to make a deal had Lapuz not become emotional, however there’s no refuting that Herjavec was willing to take a larger threat than he ‘d usually have actually liked to since he felt Lapuz’s psychological investment in the business and understood it.
You can have a wonderful item, but your pitch will fall flat if you can not show an investor that you’re willing to do whatever it requires to make their financial investment worth it.
You can see the complete episode on Hulu Plus.