Shark Tank Effect

After appearing on season 14 episode 9 of Shark Tank in late 2022, our business saw an astronomical boost in both sales and exposure. As many founders will attest, the "Shark Tank Effect" is real—and we lived it.

To Close a Deal

We walked out of the Tank with a deal from Mark Cuban for 30% of our company. However, by the time our episode aired, the deal had not been formally finalized. Although discussions had begun, Cuban's team raised concerns. My father had loaned us $80k from his 401(k) to purchase our initial inventory, and they considered this "self-loan" an undisclosed form of debt—ultimately disqualifying the deal.

While disappointing we, were in a unique position. Typically, founders don't learn whether their episode will air until 4-6 months after filming. This uncertainty pressures entrepreneurs to accept deals without knowing if they'll ever appear in front of millions of viewers. Fortunately, we found out just 25 days after filming that we would air!

The Day After Airing

(If you haven't yet, check out our blog post Being on Shark Tank. for more context.)

Once our producer confirmed we would air on December 9th 2022, we decided to pause negotiations with Cuban's team and take a wait-and-see approach. On the night of the show, our website saw thousands of visits and sales exploded—we were on cloud nine...until reality hit.

Before our episode aired, I had spoken with other founders who had been on the show. Their universal advice: "Always be selling". Running out of inventory is the cardinal sin when trying to capitalize on the Shark Tank Effect.

Victims of Our Own Success

We knew going into airing that our inventory was nowhere near where it needed to be. Our website, support systems, and operations were all-equipped to handle the surge in demand. To bridge the gap, we relied on backorders.

While well-intentioned—and disclosed to customers—selling products you dont't yet have is inherently risky. Three days after our episode aired, we had oversold our stock by 1.5x and accumulated a massive backlog of garage door covers in a wide array of sizes. Hundreds of SKUs needed prepping, printing, sewing, and packaging. Meanwhile, thousands of new fans were eagerly awaiting the next batch of inventory. Our challenge: limited capital.

My Wife to the Rescue

In January 2023, my wife and I were gathering quotes for new pavers around our backyard firepit. One contractor spent about 45 minutes measuring, sketching, and chatting with us. Eventually, he asked, "So what do you do for a living?" My wife, Katie, nudged me and said, "Tell him".

"I run a company that makes garage door covers," I said.

"SHARK TANK!" he shouted. "My father-in-law loves your covers and wants to invest!"

Investment

It's funny how random moments can lead to major milestones. That simple introduction led my father and me to secure a significant investment from two wonderful angel investors here in Los Angeles. Even better—they were customers first and investors second. They loved the product and shared our passion.

With their support, we were able to fulfill our sales commitments and expand our licensed product line heading into the 2023 season.