A 15-Year-Old Entrepreneur Impresses the Sharks - Shark Tank

Summary

In this engaging script, a young entrepreneur and his father discuss their thriving private label partnership in painter's tape, which has expanded to numerous retail locations. The teenager, who is about to start high school, impresses with his business acumen and knowledge of industry terms, revealing a strategic partnership in Nashville for logistics. The company has seen significant sales growth, with projections for even greater success. The script showcases a dynamic father-son duo navigating business meetings and trade shows, highlighting the young entrepreneur's leadership and innovative patents for fresh food packaging.

Takeaways

• 👋 The speakers are currently running a business together while maintaining day jobs and attending school.
• 🏢 The business has a private label partnership with a well-known brand in painter's tape, aiming to expand to 55,000 locations worldwide.
• 📈 They have already secured placements in 250 Meijer stores and are in all distribution centers of a major hardware co-op.
• 🔑 The partnership is not exclusive, meaning the private label partner can work with other manufacturers as well.
• 🛍️ The company operates with a strategic partnership in Nashville for order fulfillment and EDI order entry.
• 💻 Sales are predominantly online, accounting for 70%, with the remaining 30% in retail.
• 💰 Over the last two years, they have achieved $220,000 in sales, with a significant increase in the last year and a half.
• 📦 The cost of the three-pack, including packaging and shipping, is $1.99, while the individual cup costs 90 cents.
• 💼 The wholesale price for the individual cup is $1.89, with a retail price ranging from $3.99 to $4.99.
• 📈 The business is projected to reach $400,000 in sales for the current year, based on another shipment received.
• 🎓 The young entrepreneur has four patents, including a utility patent for the TouchUp Cup and design patents for new products.
• 🤝 The script includes a negotiation scenario from a business pitch show, with offers made for equity in the company.

Q & A

What is the current status of the business mentioned in the script?

The business is currently being run by both the speaker and his father, who both have day jobs. The speaker is also in school, about to start high school.

What is the nature of their partnership with a recognizable brand in painter's tape?

They have a private label partnership, which involves them manufacturing products for the brand, which is then presented in various locations worldwide.

How many Meijer locations are they currently in, and what does this represent in terms of their distribution?

They are in 250 Meijer locations across the Midwest, which is part of their broader distribution in various hardware co-op locations and worldwide.

What is the business's current sales performance over the last two years?

The business has sold $220,000 in sales over the last two years, with $150,000 of that being in the last year and a half, and $70,000 in the current year.

What is the projected sales target for the current year, and what is the basis for this projection?

They are on track to do $400,000 in sales for the year, based on another shipment they received and their current sales trajectory.

What is the cost structure for the individual cup and the three-pack?

The individual cup costs them 90 cents landed, including packaging and shipping. The three-pack costs $1.99 landed.

What are the wholesale and retail prices for the individual cup and the three-pack?

The individual cup is wholesaled for $1.89 and retailed for $3.99 to $4.99. The three-pack is wholesaled for $4.25 and retailed from $9.99 to $12.99.

What is the speaker's role in the business, and how did he handle a situation where he was underestimated by a buyer?

The speaker is actively involved in the business, running it 50/50 with his father. When a buyer underestimated him, he led the meeting and proved his competence.

How many patents does the speaker have, and what do they relate to?

The speaker has four patents, including a utility patent for the TouchUp Cup and three design patents for the Muffin, Bagel, and Doughnut Fresh products.

What is the purpose of the Muffin, Bagel, and Doughnut Fresh products, and how do they contribute to the business?

These products are ergonomically designed to keep baked goods fresh for three to four days longer than conventional packaging, contributing about 5% of the business's sales.

What offers were made by the investors in the script, and how did they compare?

One investor offered $200,000 for 25% of the business, while another initially offered $150,000 for 25% but then adjusted to $200,000 for 17.5% to compete.

What was the final decision made by the speaker, and what factors influenced this decision?

The script does not provide the final decision made by the speaker, but it suggests that the offers and the investors' interest in the business influenced his consideration.