Video Proof Eyewear shark tank
1. Do the math for the first year. $433,000 in total revenues brought $150,000 in profits. They have great gross profit margins (300% for wholesalers, 600% for retailers). The boys "don't take any salary." What's going on with operating expenses? (Hint: Think about how they have made the majority of their sales so far) Explain.
2. The brothers think the company is worth $1.5 million. The Sharks think the company is worth $600,000. Who is right and why? (consult the revenue numbers and growth projections for your answer) explain
3. Here's an even deeper question: Is this really a COMPANY that the brothers are offering? In other words, is this really an opportunity for a COMPANY or for a PRODUCT?
4. How much does Kevin's demand for an up-front royalty payment affect Proof's ability to grow organically through revenues?
5. How much inventory does the $150,000 investment give them? How does that impact prospective sales? How does this investment work in the bigger picture of the company's growth projections? (HInt: Determine if they will need to secure more financing and, even more importantly, if they will need to secure additional financing in the middle of a growth spurt).
6. Did the brothers make the right decision? Explain.