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Shark Tank is one of the favourites for many of us who watch entrepreneurs pitch their business ideas to “sharks” – millionaires willing to invest. This season, one of the businesses to be pitched is a keto product. In this article, we cover the pitch from a recent Shark Tank episode, analyse the feedback from the sharks, and discuss how far the deal into the sea went.
The Pitch
The group pitching a keto product in one recent episode of Shark Tank on ABC began their pitch by explaining the scientific benefits of the ketogenic diet, which involves eating high-fat, low-carb so that the body breaks down its own fat cells into ketones, which are then used by the body organs and muscles for fuel. The entrepreneurs then introduced their keto product and stated that it would help customers reach and maintain a state of ketosis more effectively and easily. They explained the product’s features, and demonstrated how it could be used to follow a ketogenic diet on a daily basis.
The sharks react positively to the pitch and start by asking the entrepreneurs a barrage of questions in an attempt to get a better feel on the product, its ingredients, and potential target market. The questions include: What is it made of? How do you know it works? What is your price point? and others. The entrepreneurs are well-prepared and respond confidently to each question, saying that they are all-natural, marketing research shows their effectiveness, and the pricing is set accordingly at – you guessed it – $5,000. The sharks seem intrigued and ask several follow-up questions.
Feedback from the Sharks
In the aftermath of the pitch, the sharks then discuss the pros and cons of the keto product among each other, pointing out various challenges and identifying opportunities. Each shark draws on different sources of knowledge to inform her assessment and comes up with distinctive considerations regarding the viability of the business idea. Some sharks are concerned about the potential for saturation in the keto market and doubt the viability of scaling the product. Others are more optimistic and name some potential factors for business success, pointing to a growing popularity of the keto lifestyle and a strong opportunity for a shrewd marketer.
The feedback was mixed. Some of the sharks were interested in making a deal, others wanted to pass. The entrepreneurs paid close attention to the sharks’ feedback and addressed some of the questions being raised by the sharks. Then they responded to the sharks’ comments. They still seemed fairly confident about the value of their product and the growing keto market.
Outcome of the Deal
After a long discussion and negotiations, the entrepreneurs agreed to a deal with one of the sharks: they would receive an investment in their business in exchange for a percentage equity in the company. Pleased with their excellent deal, the entrepreneurs were able to partner up with an experienced investor who would be able to provide them with expertise and strategic resources to grow their keto product.
To sum up, the demonstration of keto product on Shank Tank was a phenomenal success. The entrepreneurs in the deal demonstrated sales with their keto product, demonstrating the potentials of the product and likewise, entrepreneurs’ ingenuity. The deal signed with the shark was a breakthrough for the duo, as it transported their business to another level, and opens the door of more possibility of doing better. Indeed, the deal with the shark propelled them to the next level and even further.
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