Will Mini Materials' Product Be Too SMALL For The Sharks? | Shark Tank US | Shark Tank Global

Summary

Jared Waters presents his business, Mini Materials, on *Shark Tank*, seeking $100,000 for 20% equity. His company creates miniature building supplies like concrete, wood, and metal for dollhouses, dioramas, and hobbyists. While the product is unique and appeals to enthusiasts, the Sharks are skeptical about its scalability. Despite impressive margins and viral success on Reddit, Jared struggles with marketing and lacks clarity on his target demographic. Although none of the Sharks invest, they acknowledge the product's charm and encourage Jared to continue his entrepreneurial journey, emphasizing the importance of persistence and strategic planning for future growth.

Takeaways

• 😀 Jared Waters is seeking $100,000 for 20% equity in his company, Mini Materials, which specializes in miniature building supplies for hobbies such as dollhouses and dioramas.
• 😀 Mini Materials creates authentic, high-quality, modern miniature supplies made with real materials like concrete, wood, and metal, offering a unique alternative to traditional dollhouse products.
• 😀 The company caters to a new generation of creatives involved in hobbies like fingerboarding, action figures, and RC crawlers, distinguishing itself from older, traditional dollhouse companies.
• 😀 The products are intended for hobbyists and enthusiasts, particularly those aged 8-12, and are designed to deliver joy through small-scale, realistic materials.
• 😀 Jared purchased the business one year ago for $200,000 by taking a home equity loan and has grown it to $200,000 in sales during his first year of ownership.
• 😀 Mini Materials' profit margins are strong, ranging from 50% to 93%, with an average blended rate of 75%. The products are priced at $20, with a production cost of around $4 each.
• 😀 Despite the niche appeal, the company has strong potential for growth, but marketing is identified as the biggest weakness, with Jared seeking investment to improve this area.
• 😀 Jared's background includes growing up in rural Idaho, working various professional jobs, and eventually pursuing his dream of starting a business despite the challenges of family and financial responsibilities.
• 😀 The company has a loyal fanbase, largely built through social media, especially Reddit, where the initial post about the miniature concrete blocks gained traction and helped the business grow.
• 😀 Some investors see a limited market and difficulty scaling beyond a certain point, with concerns that the business may not be able to grow much larger due to its niche focus and small market size.

Q & A

What is the main product offered by Jared's company, Mini Materials?

Mini Materials offers high-quality miniature building supplies for dollhouse construction, dioramas, and two-scale recreations, such as miniature cinder blocks, concrete, wood, and metal materials.

What makes Mini Materials different from traditional dollhouse companies?

Unlike traditional dollhouse companies that focus on Victorian molding and frills, Mini Materials caters to a new generation of creatives by providing more industrial-themed products like jersey barriers, moving dollies, and pallet jackets.

What is Jared’s target market for Mini Materials?

The target market for Mini Materials includes hobbyists and creatives who are involved in small-scale projects, such as fingerboard enthusiasts, action figure collectors, and RC crawler fans. The company is not focused on children, but rather on a more mature, niche audience.

How did Jared come to own Mini Materials?

Jared purchased the business from one of its original co-founders after coming across a post on Reddit about handmade concrete blocks. He bought the business for $200,000 and financed it through a home equity line of credit.

How successful has Mini Materials been since Jared took over?

Since Jared took over, Mini Materials has generated $200,000 in sales over the course of a year, and Jared has made a profit, paying himself $55,000 during this period.

What are the production costs and margins for Mini Materials?

The cost to produce individual items ranges from $4 to $20 per product, with profit margins averaging 75%, ranging from 50% to 93% depending on the product.

What is the challenge Jared faces in terms of marketing?

Jared admits that marketing is his biggest weakness as a business owner. He is aware that he needs to improve his marketing efforts, especially to effectively target potential customers on platforms like social media.

What is the demographic target for Mini Materials' products?

While the products could appeal to a wide range of ages, the packaging guidelines recommend targeting children aged 8 to 12. However, the actual audience may skew more toward hobbyists and collectors in a more mature age group.

Why did the Sharks seem hesitant to invest in Mini Materials?

The Sharks were concerned about the small scale of the business and its limited market. They felt that while the product was cute and had a niche appeal, it was difficult to envision how the business could scale to a larger, more profitable size.

What do the Sharks think about the potential of Mini Materials?

While the Sharks acknowledged that Mini Materials had a unique and creative product, they expressed doubts about its scalability and long-term potential. They recognized the potential for success in a small niche but felt it was too small to be a significant investment opportunity.