Shark Tank Violates the C commandment? Or Fastlane speed Boost?

[IntrinsicValue]

Hi, I watch Shark Tank all the time. However I cringe every time I see these people throwing away these huge chunks of their companies. My question is: Do you think that going on Shark Tank and selling a part of your company violates CENTS? More specifically control? I can imagine if @MJ DeMarco went on Shark Tank, early in his start up days, and Kevin asked his famous question "what is stopping me from doing this as well"? Most likely MJ would have made a deal that robbed him of around 30, or even 40% of his company. This would have been devastating to his potential future equity. What do you guys think? Im often wrong in my first opinions. (Lol on the off chance that you are reading this post MJ, you know i love you Oh and finish the damn second book already!! I'm reading all of your posts, and others, right now to hold me off until then)

 

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[BigBrianC]

It's called Venture Capital.

 

[AllenCrawley]

Let's see if @Likwid24 (Sal from Paint Brush Cover on episode 522) can pop in here and share his opinion. [FYI, Sal has a progress thread in the INSIDERS's section of this forum dating back 4+ years]

 

[IntrinsicValue]

Let's see if @Likwid24 (Sal from Paint Brush Cover on episode 522) can pop in here and share his opinion. [FYI, Sal has a progress thread in the INSIDERS's section of this forum dating back 4+ years]

Yes, i've heard of the legendary Sal. This forum seems to be very proud of him. So do you think that giving away X% of your company for a strategic partner does not violate the Control commandment? At the moment it seems to me that most of the people that go on shark tank sell +30% of their companies to sharks and rely on them heavily to bring in revenue. And if anything went wrong and the shark didn't want to put in the time and effort to resolve the problem, their business goes under. I am totally not judging right now; i just like hearing other people's ideas. Its how i learn.

 

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[AllenCrawley]

If you still own the majority share of the company are you not still in control?

 

[IntrinsicValue]

If you still own the majority share of the company are you not still in control?

BAM! Just like that and I learned something Thanks!

 

[GuestUser113]

If you still own the majority share of the company are you not still in control?

Hmm... Is that a trick question?

 

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[IntrinsicValue]

Hmm... Is that a trick question?

But what if one of the sharks completely dumps that business? I doubt if they are in shark tank they possess the viability to operate independently. That would probably lead to them going under in a few months. Isn't that hitchhiking?

 

[BigBrianC]

But what if one of the sharks completely dumps that business? I doubt if they are in shark tank they possess the viability to operate independently. That would probably lead to them going under in a few months. Isn't that hitchhiking?

Then they lose a bunch of their money, but you still own 70% and you're $X amount richer

 

[AllenCrawley]

But what if one of the sharks completely dumps that business? I doubt if they are in shark tank they possess the viability to operate independently. That would probably lead to them going under in a few months. Isn't that hitchhiking?

Mark disagrees with a decision the owners make but he acknowledges that they have the ultimate say/descision (not him). Forward to about 6:15.

 

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[IntrinsicValue]

Then they lose a bunch of their money, but you still own 70% and you're $X amount richer

So as long as they posses 51% of their company, they're still obeying the control law?

 

[BigBrianC]

They could own 51%, but only have 1 seat on the board vs the Shark having two, and they don't have control.

There are too many factors to make it a "this is control, this isn't"

If you can tell everyone to F off and you're doing things your way, you're in control

 

[IntrinsicValue]

Mark disagrees with a decision the owners make but he acknowledges that they have the ultimate say/descision (not him). Forward to about 6:15.

This answers my question perfectly. I really appreciate you digging this out for me ))

 

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[IntrinsicValue]

They could own 51%, but only have 1 seat on the board vs the Shark having two, and they don't have control.

There are too many factors to make it a "this is control, this isn't"

If you can tell everyone to F off and you're doing things your way, you're in control

Oh, I didn't know that there were other ways to owning a company than being a majority share holder. Appreciate the insight!

 

[BigBrianC]

You can own the company and not be the CEO, etc. Then you have ownership, but not control.

 

[obrian]

it's better if you own a very small part of something than a large part of nothing.

 

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[BigBrianC]

You're also looking at Control a bit wrong, I think. Your business needs to have control, you don't need to control your business necessarily.

Control is the ability to survive on your own. For example, if you write eBooks and you only publish on Amazon and aren't creating a brand, etc. If amazon goes down, you go down. No control.

However, if you are writing eBooks and driving traffic to your own site with natural ways, ads, etc. and your growing, you have control.

 

[Likwid24]

Sorry I'm so late to this Allen. I made a deal on Shark Tank and I still have absolute total control of my company. Lori gives advice and makes suggestions but she always says that it's our decision. She may not always agree but she still backs it.

I guess you can lose control based on what kind of deal you do. We went in know that our limit was giving up 25% of our company and we would not go a fraction higher.

Some people don't have a plan and just go in hoping anyone makes an offer and ready to take any deal. If you go in prepared then you'll always have control.

 

[Vigilante]

Sorry I'm so late to this Allen. I made a deal on Shark Tank and I still have absolute total control of my company. Lori gives advice and makes suggestions but she always says that it's our decision. She may not always agree but she still backs it.

I guess you can lose control based on what kind of deal you do. We went in know that our limit was giving up 25% of our company and we would not go a fraction higher.

Some people don't have a plan and just go in hoping anyone makes an offer and ready to take any deal. If you go in prepared then you'll always have control.

Boom.

 

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