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Shark Tank Review: Episode 5 of Season 1

By Edited Nov 15, 2013 0 0

In the fifth episode of the first season of Shark Tank five business ideas were presented. Out of the five businesses presented only two were able to walk away with an investment from the Sharks.

The businesses featured in this episode are: 

  • Body Jac

  • Face Blok

  • Granola Gourmet

  • Good Grief Celebrations

  • My Therapy Journal

The investors or the "Sharks" featured in this episode are:

  • Robert Herjavec

  • Kevin O'Leary

  • Barbara Corcoran

  • Daymond John

  • Kevin Harrington

Shark Tank Review
Credit: ABC Shark Tank

Body Jac

Jack Barringer better known as "Cactus Jack" has created a device that makes it easier to do push ups called the Body Jac. He is asking for $180,000 in exchange for a 20% ownership interest.

Jack came up with the Body Jac idea after a doctors visit. The help with his blood pressure issues Jack's doctor recommended that he start doing push ups. However, when Jack tried to do a push up he could not do one. This is when he decided to invent the Body Jac. The Body Jac uses resistance bands to assist people when doing push ups or what he calls "Lift Assist Technology".

 Some interesting things that you should know about Cactus Jack:

  • Cactus Jack has invented and marketed several different products.

  • He was a millionaire at the age of 32.

  • He has never had a real job.

  • He has just faced a bankruptcy.

After pitching the Body Jac to the investors, O'Leary immediately pounces on Jack about his product. Kevin O'Leary challenges the uniqueness of the product and contends that it is just one of many exercise products on the market. O'Leary adds that in order for this to work he has to have a talent attached to the brand and it will take a huge amount of money for marketing.

After the initial all out assault, O'Leary questions Jack's experience with marketing different products. Cactus lays out that he has invented and sold several different types of products. He mentions that he has a product that he brought to market that sold over 10 million units. He adds that he has made millions of dollars from his other products.

Once Jack reveals that he has made millions of dollars, Robert Herjavec wants to know why he needs an investment from the Sharks. Cactus Jack says that he has just gone through a bankruptcy and that he does not want to take on all the risk of another project.

O'Leary decides that he is not interested in investing in the business because he feels like Jack does not have enough "skin in the game". Jack contends that he has invested $27,000 of his own money into the business. Nevertheless, O'Leary does not feel that that is enough and that he is taking most of the risk.

Herjevec bows out because he can't really understand why Jack cannot fund this project himself. Ultimately, Herjevec just feels like something is not right.

Kevin Haggerty recognizes that there is a huge market for exercise equipment and his willing to invest $90,000, which is half of what Jack is asking for, but he has to convince another Shark to put up the remaining $90,000. Haggerty also wants 50% of the company. Barbara decides to join Haggerty and put up the additional $90,000 but she has a contingency. The deal is contingent on Jack losing 30 pounds with the Body Jac.

Daymond makes an offer of $180,000 but he wants 50% of the Cactus Jack company which includes all of the products and inventions that Jack has created. Obviously, Daymond's offer is ridiculous and Barbara lets him know about it. Daymond mentions that his offer does not require Jack to lose weight.

Ultimately, Jack accepts Haggerty and Barbara's offer of $180,000 for 50%. He also gladly accepts the weight loss challenge. As Jack is leaving the stage, Kevin O'Leary says that Jack will never lose 30 pounds and that the deal will never get done.  

Body Jac Pitch

Face Blok

Irina Blok has created a fashionable surgical mask called Face Blok. She is seeking an investment of $50,000 in return for 30% equity in her company.

She has several different styles of masks including one with a pig snout. She contends that her masks are for people who like to express themselves.

After Irina's presentation of her line of masks, the investors want to know about the material of the masks. They want to know if her surgical masks can actually be used for medical purposes. Irina reveals that the masks that she is presenting today are simply prototypes. She adds that the investment would be for developing masks that would be able to function like traditional surgical masks.

Kevin O'Leary wants to know if she has had any sales for the product. Irina mentions that at one point she received 700,000 to her Face Blok website. However, she was only able to secure only a couple 100 sales from that traffic. In addition to that, the reason for her huge spike in website traffic was due to a flu scare. O'Leary says that she would need another flu scare to get that type of response again which does not happen that often.

The investors then defer to Daymond, who is the fashion expert, for his thoughts on the product. He says that the product would not work because people do not normally wear things over their face. Barbara adds that the concept is freaky and, consequently, is out for that very reason.

Kevin Haggerty and Daymond do not want to invest in the business because they do not believe that there is a market for product. Robert thinks that she should continue the business as a side project but he is not going to invest. O'Leary thinks that it is definitely a unique idea but the business is just not investable.  

Granola Gourmet

Jeff Cohen has created a granola bar that can be eaten by diabetics. His company is called Granola Gournet. Cohen is looking for an investment of $175,000 in exchange for 25% of the company.

Cohen, who has been diabetic for over 15 years, got the idea to create a diabetic granola bar after getting tired of all of the diabetic snacks on the market that did not taste good. Cohen and his son began to research potential ingredients, which are low on the glycemic scale, that could be used to formulate a new snack. Cohen knew that he was on to something when his wife of 20 years said that the granola bar that he and his son had created was okay.

During the presentation, Cohen lets the investors try out the bars. All of the investors, with the exception of Daymond, like how the bars taste. The investors then proceed to ask Cohen about his sales. Cohen explains that currently his bars are in about 24 Whole Foods stores in the Southern California market. From those locations he is doing about $10,000 in sales monthly and he is receiving weekly re-orders for the product.

Robert likes what he is hearing and asks Cohen why isn't he trying to roll out his products to all Whole Foods stores nationwide. Cohen contends that he does not have the capital to make that happen. Daymond wants to know why hasn't he tried to get bank financing. Cohen reveals that he had a personal bankruptcy as a result of a past business where he personally guaranteed business loans.

At this point, O'Leary attacks the valuation which, based on 25% equity for $175,000, puts the value at $700,000. Robert agrees that the business is not worth $700,000. O'Leary says that for $175,000 he would need to own the entire business. 

Kevin Haggerty thinks that there are too many competitors in his market and bows out. Daymond John says that he did not like how the product tasted, personally, and for that reason he could not invest in the business. Barbara feels like Cohen is going to need a lot more capital to make this business work and she is not prepared to put up more cash. For this reason she is out.

Kevin O'Leary basically tears Cohen apart saying that because he has a personal bankruptcy he is radioactive. He contends that if the business was to grow they would never be able to go to a bank and get a loan because of the bankruptcy. For that reason O'Leary is out.

Robert, who is obviously appalled by O'Leary's comments, says that he cannot invest because he does not believe that Cohen is focused on getting is products in all of the Whole Foods stores nationwide.

Part Of The Granola Gourmet Pitch

Granola Gourmet On Amazon

Good Grief Celebrations

Ricki Ferrar has started a funeral concierge service called Good Grief Celebrations. She provides her clients with funeral planning, officiating, invitations, and celebration of life parties. She is seeking an investment of $50,000 in exchange for 25% of her company.

Ferrar got the idea for her business after she held a celebration of life party in honor of her mother. Ferrar mentions that her mother insisted that her funeral be a celebration as opposed to everyone being sad the entire day. At this point she decided to start a funeral concierge service which would plan and provide celebration of parties.

After finishing her presentation, Robert, who is obviously uncomfortable with the concept, asks Ferrar about her sales. Ferrar reveals that her sales for the previous year was about $11,000.

O'Leary jumps in and professes his love for her business. He contends that the business of death is good. However, the problem that he has is Ferrar's company is that funeral homes present an obstacle. Essentially, most funeral homes are a one-stop shop. Funeral homes can do everything that her company does with the exception of the celebration of life parties. O'Leary goes on to say that when a family member loses a loved they send the body to a funeral home. At this point the funeral home can offer their additional services. Ferrar's company is no where in the equation and this, in his opinion, is the reason why her sales are low.

Ferrar contends that her sales are low because she needs more exposure. She reveals that one of the ways that she gets clients is by visiting hospices with a therapy dog. This shocks most of the investors, especially Herjevec. After this revelation, Herjevec believes that Ferrar is simply trying to take advantage of people and bows out.

Barbara decides not to invest in the business because she thinks it is just too creepy. Haggerty thinks that the business is like an "ambulance chasing" business and for that reason he decides not to invest. Daymond decides not to invest because the business is not making any money.

Kevin O'Leary, even though he really likes her business, simply cannot make an investment because the business is not making any money.  

My Therapy Journal

Rodolfo and Alexis Saccoman have created a website that allows people to track their mental states online. They call their creation My Therapy Journal. They are looking for $80,000 in exchange for 20% of the company.

Their secure website, which is data driven, allows customers to enter notes into a journal, answer survey questions, and questions about their mental states. The website is then able to chart the progress of customers utilizing charts and diagrams.

After the Saccoman brothers explained how the site works, the investors want to know how the website makes money. They explain that they make money through monthly membership fees. Eventually, they reveal that they only have 121 paying customers. In addition to that, they only had sales of $4000 for the previous year.

This has the investors reeling at this point. Barbara immediately is out because she does not like the business idea. Kevin Haggerty, shortly thereafter, follows suit.

At this point, the brothers are losing investors quickly. However, when they mention that their company has attracted the attention from a major insurance company, they suddenly have peaked the interest of the investors. The brothers mention that a large insurance company is interested in using their technology.

Herjavec and O'Leary can clearly see how the website can tie into an insurance company. O'leary and Herjavec make an offer of $80,000 for 51%. Daymond, who sees the potential, also wants to be part of the deal. Herjevec and O'Leary decide to allow Daymond to come in on the deal.

However, the Saccoman brothers are a little leary about giving up 51% in their company and take a little time to think about the offer. While the brothers are discussing their counter offer, O'Leary and Herjavec decide that they do not need Daymond in the deal. Daymond is, essentially, cut out from the deal.

When the brothers come back they make a counter offer of 49% in exchange for $80,000 in which O'Leary and Herjevec reject. Daymond, who has been outed from the previous deal, make is own offer of $80,000 for 50%.

While the brothers are pondering Daymond's offer, O'Leary and Herjevec contend that they have more experience than Daymond when it comes to internet businesses.

Ultimately, the brothers end up partnering with O'Leary and Herjevec because they think they bring more experience to the table.

Wrap-Up Of Episode 5

This was another entertaining episode in spite of the fact that there were not really any ideas that stood out.

Best Idea(s)

Body Jac - Good solution for people who cannot do a push ups. The Body Jac, if marketed properly, can become a multi-million dollar business.

Worst Idea

Face Blok - The idea is not proven. In addition to that, it is too niche for any type of investment.

Best Quote 

"You can trade hours for dollars or you can trade ideas for millions" -Cactus Jack's dad

Full Episode Available On Amazon

Week 5
Amazon Price: $1.99 Buy Now
(price as of Jul 15, 2013)

Here are some more Shark Tank articles that you may enjoy:

Shark Tank Review: Episode 1 of Season 1

Shark Tank Review: Episode 2 of Season 1

Shark Tank Review: Episode 3 of Season 1

Shark Tank Review: Episode 4 of Season 1

Shark Tank Terminology That You Should Know

More Shark Tank Terminology That You Should Know



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