Taylor, Ron and Kobe Johnson proved to the Sharks that they have the perseverance and ingenuity that is needed to be successful in the Shark Tank. They brought their signature product line, Tailgate N’ Go, to the Shark Tank in hopes of securing a $250,000 investment and a strategic business partner to assist them during a critical point in their business’ growth. In exchange, they would give up 10% equity of their company to the Shark willing to take a chance on them.
Tailgate N’ Go is a patented outdoor modular kitchen that allows consumers to have all the conveniences of home, including running water, at their camp or tailgate sites. The product sports a 360-degree design, ensuring that each part of the kitchen provides functional space while maintaining a compact design.
Although there is nothing like their product on the market, the Sharks are concerned that the valuation of the company is too high based upon their past sales. They have had the Tailgate N’ Go on the market for a year and a half and have sold 100 units. While this doesn’t seem like a large number, the Sharks are encouraged that the sales have significantly grown over the last 6 months. The Johnsons share that they need to invest in inventory to be able to adequately fulfill orders.
To properly grow their business, they are also hoping to partner with an investor that will help them learn how to scale their product and manufacture it more efficiently to lower the costs of the products and potentially increase their profit margins. To do this, Matt Higgins thinks they need to source their product to maximize their profits and get the most out of their manufacturing process.
They ask Matt to reconsider their business pitch. Like Kevin, Matt is concerned that he will not get his investment back. After much discussion, Matt Higgins and Tailgate N’ Go come to a partnership agreement. Matt will invest $250,000 in the company in exchange for 20% of the company. He will also receive a $50 per unit royalty until $250,000 has been repaid and then the royalty will cease. The Johnsons were very happy with their deal with Matt Higgins.
Read more at https://www.business2community.com/entertainment/shark-tank-tailgate-n-go-accepts-250000-from-matt-higgins-02257630