What did the show to to sales in the past few days?
*From:* Travis Johnson
*Sent:* Monday, November 07, 2016 10:05 AM
*To:* af@afmug.com
*Subject:* Re: [AFMUG] OT Travis and Shark Tank
Hi,
The Shark Tank episode was very edited and chopped together. She
was actually in front of the sharks for over 90 minutes... they
cut it down to 8. Here is the basic summary:
She started the company with her brother after he gave her about
$2,000 to buy inventory. They tried out for Shark Tank (4 years
ago) and didn't make it past the first stage. Another person saw
a local news episode about her and the company, and contacted
her. He gave her $3,000 in cash, and paid her rent for a year in
exchange for 50% of the company (basically buying out her brother).
Those two were involved for about 2 months before they realized
they needed more money and expertise to make anything happen.
They contacted me via email, and we had a meeting. We told them
in the meeting we would do an investment, and asked how much and
what they would give up. They told us $30,000 for 50% of the
company. We gave them exactly what they asked for. Also, at this
point, her total sales for all of 2014 was $7,000. That's TOTAL
SALES... not profit. So there are four of us, each at 25%
ownership right now.
We then took the company from $9,000 total sales in 2014 to $1
million in sales in 2015. We provided business experience,
obtained a line of credit at the bank, helped setup the
e-commerce website, helped finance inventory (doing a personal
loan to the company), etc.
We then put a CEO in late 2015 that has helped take the company
from $1 million in 2015 to now we will do over $4 million in 2016.
There is not a single person I know of that would have invested
$30k to a business that had only done $7k in total sales for the
year. No shark, no other investor I have ever talked to about
this deal. Everyone just laughs when I tell them.
This episode was actually filmed about three months ago. We only
received paperwork from Daymond's group about two weeks ago, and
we are still in negotiation with him. The deal paperwork is
SUBSTANTIALLY different than the episode shows ($400k for 20%).
He has had no involvement with the company thus far, and does
not have any ownership or equity yet.
Reality TV is not very real. LOL
Travis
On 11/7/2016 8:56 AM, Chuck Hogg wrote:
So Travis, are you a 1/5th partner now instead of a 1/4th? Not
bad that you got in that cheap and Daymond paid some major change.
Regards,
Chuck
On Sat, Nov 5, 2016 at 12:09 AM, Chuck McCown <ch...@wbmfg.com>
wrote:
Odd, I was expecting Kevin but you got Daymond and nothing
was mentioned about royalties.
Did she say she had $100K revenue in one day?
What e commerce platform?
Where was that ad buy she mentioned?
On 11/7/2016 8:56 AM, Chuck Hogg wrote:
So Travis, are you a 1/5th partner now instead of a 1/4th? Not
bad that you got in that cheap and Daymond paid some major change.
Regards,
Chuck
On Sat, Nov 5, 2016 at 12:09 AM, Chuck McCown <ch...@wbmfg.com>
wrote:
Odd, I was expecting Kevin but you got Daymond and nothing
was mentioned about royalties.
Did she say she had $100K revenue in one day?
What e commerce platform?
Where was that ad buy she mentioned?
