The Smart Baker on Shark Tank
in the Christmas Edition of 2009. Sales started to come in via their website for their only product they had and the Rensing's knew they might be on to something Big. They went back to the drawing board (the kitchen) and began brain storming other useful inventions that would help you become a Smart Baker.
Smart Baker Goes on the "Shark Tank Show"
Daniel and Stephanie Rensing was asking for $75k for a 25% stake in the company.
Daymond John offers them $75k but for 40% of the business. Barbara Corcoran really likes this business and makes the same offer as Daymond but with a 5% royalty until she gets her investment back. It's obvious that the Rensing's had no intentions of giving up so much equity but would prefer to work with Barbara if given the chance. Daniel tries to counter Corcorn with $100k for the 40% of the business she is seeking. She stands firm on her offer because she knows she can add tremendous value to the Brand in a very short amount of time. Sensing they may be losing Barbara as a business partner, Stephanie wisely asks if Barbara's offer still stands. It Does! They complete the deal during the show on Corcoran's terms.
The Smart Baker Update
The best part about going on the Shark Tank Show is you get a chance to make a deal with a well known Angel Investor in front of millions of people. The bad news is it doesn't mean it's a done deal and you will actually see the money. This was the case with the deal that the Rensing's made with Barbara Corcoran. Unfortunately they were not able to come to terms in the direction that The Smart Baker would pursue in the future and a deal was never completed. Corcoran has however, been very helpful in helping the business grow. They have also been in contact with Daymond John on Marketing and Branding for another new invention in the Smart Baker line, the pre cut parchment paper which Daniel has secured a patent for.
The best part about doing updates is you can now learn a lot from the contestants on their personal experience's dealing with the Sharks. What was it "really like" going face to face with the most recognized angel investors in the country. Below is a pod cast done with Daniel from just a few months ago. It's a little long but it is one of the Best post Shark Tank interviews I have heard from a past contestant on the show. Lot's of good information on how the whole process works. The average time contestant's are in front of the Sharks is 40 minutes to an hour. The Rensing's were standing there for an hour and 40 minutes which was edited down to only 10 minutes.
Hows business after the Shark Tank? FANTASTIC! After the taping for the show they ended 2011 with around $140k in sales. The 2012 sales are right around the million dollar mark. Maybe Barbara should of come up on her offer after all? As stated during the show, the cup cake holder's were, and continue to be their best seller. What also started out as a need for a cup cake holder for their own wedding, is now sold in the hundreds of units a month. Orders pour in from Baker's, wedding planners, rental stores and anyone looking for a sold built and reusable cup cake holder.
The entire line of The Smart Baker products thus far is the Cheat Sheet Apron, the BBQ Master Apron, the Cup Cake Towers, the Cake Stands, the Cake Pop Stands, Kitchen Towels also with cheat sheets and probably the one new invention that will launch the Smart Baker into the stratosphere, the pre-cut parchment sheets. The pre-cut parchment sheet's, which they do hold the patent on, is also the product that they have been in contact with Daymond John on. If anyone can help make a deal with a large company and bring this to your local grocery store, it would be John. In solving one of the biggest problems of baking in a cake pan, why would you ever want to ever bake without them?
The Smart Baker is a Success Story that is just getting started and I can't wait to do a follow up in the future and see if they can continue this remarkable growth on their own. Was it a wise business decision to walk away from a deal with the Sharks? In this case, according to Daniel, yes it was the right decision as they still control 100% of The Smart Baker Business. It looks like any future negotiations will be much more pricier then just a year ago.
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