This transcript was generated from the episode audio and may contain minor errors.
[Music]
In today's listener call, we're gonna hear from two business partners. We're gonna hear from one of the two business partners, I believe, but these partners together have the chance to go on Shark Tank, which is really cool, but they're also having second thoughts. Interesting, right? Should they refuse Mark Cuban's money? Now, welcome to Side Hustle School.
My name is Chris Guillebeau. I'm not Shark Tank, I'm not Mark Cuban, but in my answer, I'm gonna tell you a bit about the behind the scenes of shows like Shark Tank, and just right up front here, fun fact, most deals are never actually closed. So what you see on the show, well, I'll tell you a bit more about it in my answer, but really it's all about providing entertainment. Not to say you can't learn something, but it is mostly about entertainment. So for our callers who are growing a real business, what should they do?
They're thinking about turning down this opportunity because they want to self-fund, which I really respect. So we'll look at multiple angles of that in their question and my answer, it's coming right up. [Music]
Hi Chris, this is Vanessa from Riverside and I've been following your projects for a while. My business partner and I have invented a tool that cools your mattress overnight so you sleep better. There are other options like this on the market, but most of them cost like $1,000 or more.
Our goal is to get the retail price down to $300 or less. We don't have a patent yet, but we're in the process of applying. Meanwhile, we applied to Shark Tank on a whim and got in, or at least we got a call from a producer who asked a lot of questions and then she called back to check on potential taping dates. It sounds like it's happening, just one problem. Both my partner and I aren't sure we're ready.
At this stage, our business doesn't need outside investment and it may never need that. For now, the main thing we need is time and maybe some advice on how to grow. Are we crazy for thinking about the possibility of turning down Shark Tank? My partner suggested we try deferring for a year, but I got the sense in talking with the producer that it's now or never. Looking forward to what you have to say about this.
[Music]
Well, what an interesting problem to have, right? Like should you go on Shark Tank or not because they want you, but you're not sure you want them. So much respect for you guys, Julie and your business partner. Also, I feel like I need that mattress cooling tool. I've seen those, but as you said, they're very expensive.
So curious to know more about this one whenever you're ready to go public. So so much respect. Here's the thing about Shark Tank though. It is as much about publicity as it is about funding, if not more, because lots of deals are never closed. Sometimes even if on camera there is a deal, they have a cool down period where both sides can think about it a bit more to make sure they're happy.
There's also a due diligence period, the investor can back out. So I don't think you have to worry so much about the funding. You don't necessarily have to go on a show like that, or it could be Dragon's Den or something else strictly to recruit investors. I think it is mostly to publicize your product and potentially get an endorsement or at least some kind of interest, a verbal endorsement from someone like Mark Cuban or one of the other sharks. So I wouldn't necessarily turn down the opportunity to appear.
You can even appear and say like, we would really need an amazing offer that favors our position to take it and that's okay. Then you're negotiating from a position of strength. You are set up well no matter what happens. So, overall I respect the DIY ethos very much. I've been saying for years, most small businesses, at least many, many let's say, don't need outside investors.
In fact, the negatives often outweigh the positives. So, good for you on living out that value. Just maybe think about whether you really want to turn down the free PR. And if you think about it and you decide you still want to turn it down, well, good for you as well because you're making your own choices and that really is the most important thing. So, I'm cheering you on.
Listeners as well, cheering you on too. If you've got a question or something you're working on, sidehustleschool.com/questions, let me know what you're up to. We'll continue to feature them. We're almost at episode 1900, which is amazing. And I'm so grateful.
I hope you'll subscribe or follow, keep listening. New episode every day. My name is Chris Guillebeau. This is "Side Hustle School." [Music]
- From the Onward Project.
