When you're the owner of a small business looking for investors, you probably have the mindset that you'll take anything you can get. It's rough out there, especially if you're going on a show as cutthroat as Shark Tank. When the sharks make an offer, many business owners would accept the opportunity. In fact, people would probably look at you differently if you reject them. But it's important to know your and your company's worth, even if it means turning down a huge opportunity.
That's exactly what Jamie Siminoff, the founder of the Ring, did. Shark Kevin O'Leary offered an oddly structured deal for what was back then called Doorbot, and Siminoff declined. This TikTok by @alexpesos explains it all.
That was a huge risk on Siminoff's part, but it ended up working out for him in the long run. His appearance on Shark Tank led to some popularity and sales that kept his company from going under for a while. Some time later, the company caught the interest of billionaire Richard Branson who then supplied it was $28 million. Not long after its success, the company was bought out by Amazon for $1 billion.
Other TikTok users were thoroughly impressed. "Smart move," @maxwell_maher said. "Go in with a cool presentation, cause a little drama and use the internet fame to leverage a better deal."
Many users also pointed out that Siminoff came back on the show, this time as a guest Shark. Talk about boss moves. This just goes to show that it really pays to know your worth.