Scott Jordan, The 6t Shark on Shark Tank Episode 401
Overall, I think the episode was very good. It made great TV. I’ve changed my format slightly from last week to address specific issues on each segment. Let me know what you think.
I’m excited to watch the Emmy’s on Sunday night and keeping my fingers crossed that they will show a clip of my segment. I will be in Europe for the next 2 weeks so I will not be providing timely commentary. I will try my best to make it up, but may just pick up with the following episode.
Scott Jordan on Surfset Fitness
The first into the Shark Tank is Sarah Ponn and Mike Hartwick with Surfset Fitness Ripsurfer X.
Ask: $150,000 for 10% of the Company
Sales: $150,000 in 4 months running classes.
Business Idea: Surf inspired exercise equipment.
Presentation: I think they did a great job. The presentation was compelling. I like the way they demonstrated the surfboard. They appeared slightly nervous but having been there I fully understand. They had a great opportunity to demonstrate their product, which is key. I was surprised that there was no mention of business plans other than a brief mention of intention to franchise.
Intellectual Property: No discussion whatsoever of IP/Patents. This surprised me. The idea appeared to be novel, and would be capable of getting patent protection. It concerns me that they don’t have a patent application. Without it, they just have an idea that anyone can copy at anytime. No mention was made if they have registered their Trade name, Surfset Fitness, although I see that there is a ™ on their website, which is not that meaningful.
Professionalism of Entrepreneurs: I was very impressed with the entrepreneurs. After all, you invest in the people just as much if not more than the idea.
When would I have gone out/or made my offer? Based upon the information presented in the show, which as you know is not everything was said in the Tank due to the edit, I would not have made an offer on this idea. There was not enough information on sales or forward business plan to make an offer.
What questions would I have asked? I would have delved deep into their marketing and franchise plans. I would have asked why they didn’t apply for a patent. I was really surprised that this was not included but suspect this was edited out.
Critique of Sharks: It was a feeding frenzy with offers made by all sharks. I think they all bit way too quickly in this case, unless as I suspect the edit was significant and omitted key portions relating to sales and plans, etc. I I was shocked that Cuban made an offer so early without more information. Cuban made a solid offer ($333k for 33%) for a company with little sales. I personally think it was too rich and set the tone for the remainder of the offers. Robert’s offer of $150k for 20% was solid. Damon’s offer $150 for 25% but required that they manufacture the boards through him. This part was very unclear to me. Seems like Damon wanted to make money on the manufacturing but this was not explained. Barbara tries to ride Mark’s coat tails. I thought that was a good play for Barbara but don’t blame Cuban for saying no. I agree with Kevin that this is a brand play, not just a fitness idea. Good idea for Kevin to join Damon. Cuban played the 24 second shot clock. I think this is offensive. He didn’t enforce the time. which I think will affect his credibility. Barbara’s comment, “you just made yourself millionaires" is misleading. Getting an offer on the show is no assurance of becoming millionaires, by any means.
The Edit? I think the edit was significant in this case. They must have left out a lot. But it did make for good TV.
Critique of the Entrepreneur (what would I have done differently)? I’m not sure that I would have done much differently in this case. I think they did a great job. Again, I believe the edit was significant. They must have provided a great deal of information that was not shown that justified the offers.
Did deal close (based solely upon my review of their website)? No. I see no evidence on the website that Cuban’s offer ever closed. This is by no means determinative as Cuban may have prohibited them from mentioning his involvement on their website, but I doubt that is the case since other deals Cuban invested in are mentioned on their website. I suspect that this deal fell apart in the due diligence phase.
So, all in all, for Surfset Fitness, I give:
● Sharks: B+ I give the Sharks high marks. They made great TV and didn’t do anything stupid, although it was hard to tell based upon the edit.
● Entrepreneurs: A- I think the Entrepreneurs did an amazing job. I thought they could have negotiated a bit harder given all the offers.
● Producers: A I think they did a great job at selecting and made sure they were well prepared.
● Editors: C I give the editors a C. I think the story was missing key information that would have justified the offers presented.
Scott Jordan on Alpha M Style System
Next into the Shark Tank was Aaron Marino, Alpha M Style System.
Ask: $50,000 for 10%
Sales: Sold only 75 DVD sets in 4 weeks. Consulting services.
Business Idea: DVD series that helps men build wardrobe. $297 per DVD set.
Presentation: I think he did a great job. He had lots of energy. I don’t think however that he was able to explain his idea that well in terms of DVD sales and consulting.
Intellectual Property: NONE, other than his materials were copyrightable I imagine. No mention of this.
Professionalism of Entrepreneur: I think for an otherwise silly idea, he was very professional.
When would I have gone out/or made my offer? I would have gone out immediately. This was not a scalable business in my opinion.
What questions would I have asked? None. I would have been the Clarence Thomas of Sharks in this case. There were no questions worth asking.
Critique of Sharks: Damon’s question about how much help he needed was great. I completely agree when Damon went out. I disagree that Kevin thinks it was an interesting business. Barbara was right about the DVD price – ridiculous.
The Edit? Not much to say here. I suspect the presentation was not much more than you saw on TV.
Critique of the Entrepreneur (what would I have done differently)? I would have pitched this as a website for broader appeal with a subscription service and partner with other companies, e.g. https://www.trunkclub.com/
So, all in all, for , I give:
● Sharks: A They were all correct going out.
● Entrepreneurs: C He did a great job, but his idea was not that great though.
● Producers: C I think they should focus on selecting good business ideas and not ideas that would just make good TV
● Editors: B+ I’m guessing there was not much to cut but they did a good job.
Scott Jordan on eCreamery
Next into the Shark Tank Becky App and Abby Jordan with eCreamery Ice Cream and Gelato.
Presentation: The presentation was great. It was compelling and interesting. They didn’t appear to be nervous. It appeared a bit scripted however, because it is, although there are no teleprompters. However, the business idea was not that clear from the presentation, were they selling a share in a brick and mortar store or a eCommerce platform.
Intellectual Property: None.
Professionalism of Entrepreneurs: Awesome. I think they did a great job.
When would I have gone out/or made my offer? I was not impressed with the branding/packing. I think they could have made the branding much more compelling and allowed people to personalize the packaging with pictures, etc. I think it was way too expensive $80 for 4 pints of ice cream. I would have likely gone out very soon.
What questions would I have asked? I think that the Sharks had it all wrong. Rather than insisting on them closing down the retail store to focus on the website, I think they should have shut the website down to focus on the store instead. Cold Stone Creamery has done an amazing job in this space. I would have asked more questions along these lines. I also would have asked if the $60,000 in profits went to pay their salaries. I would have wanted to know what salary they took and intended to take. I would have been interested to know more about the investor too.
Critique of Sharks: All in all, I think the Sharks did a great job. They showed good judgment and made good TV.
The Edit? The edit was solid as far as I could tell. Told a complete story, unlike the edit for my episode which left out so much as to tell an incomplete story.
Critique of the Entrepreneur (what would I have done differently)? Like I said above, I would have focused instead on the store, especially when Cuban said that’s what he thought the competition would come.
So, all in all, for , I give:
● Sharks: A- Solid performance but failed to ask some key questions.
● Entrepreneurs: B+ Good job but didn’t think through the idea
● Producers: A I think they selected a good idea for the show.
● Editors: A -Great job.
Scott Jordan on CateAPP
Last into the Shark Tank was Neil with CateAPP Call and Text Erase. To watch my commentary on this, watch the video below.
About Scott Jordan
Scott Jordan is the lawyer-turned-entrepreneur who founded SCOTTEVEST over a decade ago with his wife, but you know him as Scott of TEC-Technology Enabled Clothing from Season 3 of Shark Tank! Sharp teeth and a sharp business sense make Scott more than a match for the Sharks. Check out his (thriving) business here at www.SCOTTEVEST.com, read and watch all about his Shark Tank experience at www.SCOTTEVEST.com/sharktank or email him at firstname.lastname@example.org.