Kevin O’Leary: A model of brutal business honesty
Posted on | June 18, 2012 | No Comments
I don’t want to sound like I’m in love with Kevin O’Leary, but his honesty can be infectious. He says that wealth is freedom and he is largely correct. I would certainly like to be wealthy because I also realize it would lead to a huge amount of freedom. Having grown up with the idea that the love of money can resut in various evils (e.g., “money is the root of all evil”), it’s refreshing to hear someone talk unabashedly about the love and virtues of having money. It’s the honesty that is truly appealing, and one of the best and somewhat humorous example of this is shown at about the 20:00 minute mark in the video below.
Unikey
Posted on | May 24, 2012 | No Comments
I really liked this guy’s presentation and his intelligence. He was not only well prepared with the right answers to the sharks’ questions, but was also fantastic in thinking on his feet. I loved the way he clearly articulated his funding needs including beyond the immediate $500K he was asking for and his future business plans. I also liked how he offered seats on the board to Mark Cuban and Kevin O’Leary when negotiating the equity offer. He clearly showed that you not only need passion but you also need to be smart as well. It’s just so refreshing to see someone with any kind of intelligence walk into the shark tank – and by intelligence, I mean not just technical intelligence, but a good head for business.
Nitro Power
Posted on | May 24, 2012 | No Comments
What a joke! Do I need to say more? If they think they’ve got a hit on their hands, they truly must be from another planet. Give me a break. They walk into the tank with an exercise machine that is the size of the bed I used to have when I was in college. This thing is huge! What were they thinking?! Do they actually believe people will place an exercise machine of this size in their living rooms? If aliens came down to the earth, they would think we not only worship the machine, but also have sex with it as well (i.e., by all the different positions we place ourselves on it to make believe that it is actually a flexible, one-stop gym). Don’t all these fools realize by now that all it takes is a little brain power to understand that with a bag of dirt, a rope, and a chair, we could simulate countless exercises positions – and for free! This is another device that should be put into the crap hall of fame.
Wealth is Freedom
Posted on | May 11, 2012 | No Comments
One of the things that I’ve come to appreciate about Kevin O’Leary is his refreshingly candid views about money and what it can do. He unabashedly says that he loves money and that it rules his life. Along those lines, he has also frequently said that wealth will set you free. While I do not believe money is everything, I do agree that money can set one “free.” I have so many interests and hobbies that I would like to further explore, but I either do not have the time or I don’t have the money to do so. For example, I would love to go fishing all the time, but because of my full-time job, I can’t. I would also love to travel to different countries, but my current salary won’t allow me (at least not without dipping into my retirement savings). I long for the day when I can retire and look forward to experiencing at least some of these interests. Some people will say that being free is just a state of mind. That may be true, but it sure helps if you have a few million dollars you can throw around.
How to be Prepared for the Shark Tank
Posted on | May 11, 2012 | 1 Comment
Before you go on the shark Tank, do your homework and know which sharks are best for your product. Find out about their backgrounds, personalities, and track records (how successful are they with helping businesses become successful). If you’re fortunate enough to get a deal with a shark(s), you will also be scrutinized as part of the shark’s due diligence effort which can last many months. So, you should do the same to them before you go on.
In addition to the homework, make sure you practice, practice, practice, and more practice. Make absolute sure you have rehearsed your business presentation speech so that you are flawless. Remember: first impressions go a long way in whether the sharks will have confidence to invest in you. When they invest in your business, they invest in you. If you saw someone who had difficulty telling you exactly how your product works or your business plan, would like want to invest in that business? I doubt it.
Conduct an honest review of your product or service. Ask others for their opinions on whether they think your product is appealing enough for a large segment of the population. If it isn’t, then it’s likely that the sharks will not be interested. Remember: they generally do not like to invest in niche-type businesses even if you have sales. Speaking of sales, make sure you have some. Although it’s possible that an idea alone can be sold to the sharks, they would be much more inclined to invest in an active business with a sales history rather than take a bigger chance on an unproven product.
Don’t be one of the losers who go on the show with little or no idea about their numbers associated with their companies. Don’t be like the three fools who went on the show trying to sell their beer-flavored ice cream. They weren’t able to articulate the total dollar amount of the orders they currently had. They argued that they were not accountants and were looking for the sharks to provide that type of support. Robert Herjavec clearly explained to these fools that there are some numbers that every business owners needs to know – there is no excuse for it. It’s kind of like saying I don’t know my social security number or my birth date because I’m not a numbers kind of guy. Yes, that would be stupidity factor 6.
When asking for money from the sharks, make sure you are reasonable and not too greedy. The valuation of your company should be about 1.5 times the net income. Based on other factors, you could push argue it should be about 2X, but not much more than that. Otherwise, you’ll just have the sharks telling you that your valuation is ridiculous and will only pay you what it is actually worth. The evidence from watching the show indicates that the sharks will be more receptive to those who value their companies reasonably.
If you get an offer and there are other sharks that have not yet gone “out,” then you may want to politely ask if there are any other offers. This is fair and completely allowable unless you get a rude shark (e.g., Mark Cuban) who requires that you give him a response immediately. In that case, you will need to decide if his offer is reasonable and you feel he is the right shark for you.
Never walk into the shark tank feeling like you have to make a deal. If you do, they will notice and can take advantage of you. If you get a lousy offer (e.g., from Kevin O’Leary), immediately let him know that you can’t do the deal (but also be polite about it). That will send a message that you too are serious and do not have anything to lose. It will make you more appealing to the other sharks.
When you do get a deal that you think is a good one from a shark that you would like to work with, then you should just go for it. While it’s possible to get a better deal from the other sharks, it could also be dangerous to try to wait for them to provide bids. So, just go for it if you get a good deal.
No matter what happens, always be polite and give off a sense of humbleness. While you shouldn’t call them by their last names (e.g., Mr. O’Leary, Ms. Corcoran, etc.), you should always reply to them by calling them “sir” or “ma’am.” This will help to make the sharks feel better about themselves. Remember: people with a lot of money have big egos. So, stroke them whenever you can.
Don’t be too sensitive, especially at what Kevin O’Leary says. Just stay calm and collected. Even if you don’t get a deal, you’ll still benefit from the publicity. Also, be polite in the exit interview. Remember, there are millions of people watching and it is much more important to be gracious. Otherwise, you’ll feel like a jackass later when you watch yourself on TV.
Finally, be prepared to be in the shark tank for more than an hour. While the quickest deals can take only 15-20 minutes, the longer ones could take well over an hour. The 10 minutes we see of each entrepreneur on TV is a carefully edited version that is indicative of the actual time. So, get a good night’s sleep and be well rested before you go on the show. You’ll need both the mental and physical stamina to endure your time in the shark tank.
Potential Problem with the Shark Tank
Posted on | May 10, 2012 | No Comments
There is at least one potential problem with the shark tank. Over time, the goal of doing business with the sharks may not be as appealing or necessary because many entrepreneurs who come on the show seem to do fine afterwards. This is in part due to the publicity they get from the show which can lead to higher sales or to deals with other investors. For example, the guy with the Crooked Jaw T-shirts ended up getting an investment after the show. The guy known as Chef Big Shake (owner of CBS Foods) found out the orders for his shrimp burgers significantly increased after the show, and he thanked Shark Tank just for the opportunity to have been on the show. As such, the drama on the show may decrease if the entrepreneurs start realizing that getting a deal on the show is not as important as just being on it. Time will tell if this becomes true – I hope not, but I fear it may be the case.
Can’t Stand the Punks
Posted on | May 10, 2012 | No Comments
Every now and then a young entrepreneur comes on the show with a load of arrogance. I want to say confidence and pride, but it’s actually arrogance. Take the guy who wanted the sharks to invest in his shoe printing business. While he did a good enough job of presenting his business in front of the sharks, he became really arrogant in the end. He thought that Mark Cuban was going to make him an offer and even impatiently asked, “are you going to make me an offer?” What a punk! He should have shut his lips and calmly waited like most of the adult entrepreneurs. And when Cuban doesn’t give him a deal, the punk starts walking out and cursing like a brat. Another example is the young guy who indicated he worked as a waiter in restaurants – he’s the one who invented the wine aerator. Again, he seemed very likeable when he first pitched his idea, and even at the end when no-one invested in his idea, he seemed like a mature guy even though he started begging with counter-offers at the end. But when he was interviewed after he walked out, he showed his true colors as he showed no respect whatsoever to the sharks in saying that he was going to show them up when he makes his millions. You have to see if for yourself – it’s truly a cry baby, punk moment.
Kevin O’Leary is the Most Talented Shark
Posted on | May 10, 2012 | No Comments
The person I admire the most on the show is definitely Kevin O’Leary. He is definitely the most gifted and smartest. He doesn’t get emotional the way Robert Herjavec does. O’Leary is all about the money. He doesn’t care about morals or ideals – all he cares about is if the investment will make money. His singular focus on money is refreshing to say the least.
At first glance, you may not think much of him. His balding head and mean demeanor may make you think he’s just an old, mean, bald guy. But you couldn’t be more wrong. The man is very talented. He can play the guitar very well and he gives off the impression he’s very sophisticated. He clearly knows his wines and give indications that he is culturally “full.” He is a little quick to pass judgment at times, but he’s also very quick to understand the business ideas that are presented before him.
Kevin O’Leary and Barbara Corcoran Kiss!
Posted on | May 7, 2012 | No Comments
One of the more humorous episodes was the one where the KissSTixx product guys had Kevin O’Leary and Barbara Corcoran demonstrate their fire and ice lip balm product. Before Corcoran knew what was happening, she and O’Leary were kissing each other to test out the new product. I think O’Leary clearly understood the entertainment value of having the two kiss – mainly because of the verbal feuds the two frequently have. To increase the entertainment value, O’Leary stated before the kiss that if he turns to stone, he’s going to be very angry, which drew a ruckus laugh from Mark Cuban. In turn, Corcoran made a choking sound after the kiss, and then indicated that while some kisses can change one’s feelings, this one confirmed her feelings for O’Leary (you know what I mean). This was an overall very entertaining episode which was only possible because we had gotten used to the personalities and the old-couple banter between the two.
The Many Sound Bites of Kevin O’Leary
Posted on | May 7, 2012 | No Comments
Kevin O’Leary is undoubtedly the most outspoken and most consistent shark in how he views his investment opportunities – he only cares about money and does not let emotion get involved in anyway. As a reflection of that line of thinking, he has come up with a list of common phrases that are starting to become legendary – well, at least very well known. Some of these include:
- Stop the madness!
- Nut job factor 6.
- How long are you going to be on this planet?
- Come to daddy!
- The most important thing – what is it? – Money!
- Bunch of bozos!
Some of these phrases are continuances from Canada’s Dragon’s Den which featured O’Leary saying the same or similar things. It’s very entertaining to hear O’Leary use some of these phrases to insult the entrepreneurs – most of them well-deserved. In a way, he is like the Simon Cowell of the investment world. He says what many people fear or would be embarrassed to say.
O’Leary has done a very smart thing with these phrases. He has (I suspect knowingly) started to brand himself. By repeating these types of key phrases during each episode, he has started to market himself much like what Donald Trump did with the Apprentice – if you remember, The Donald wanted to trademark his famous phrase, “you’re fired.”