The Costco Connection - February 2017

BUSINESSCONNECTION

NAMES: Katie Sanchez and Melissa Elms

COMPANY: Bee Free Honee

WEBSITE: beefreehonee.com

LOCATION: Minneapolis, Minnesota, and Nolanville, Texas

INITIAL ASK: ;;;;,;;; for ;; percent

DEAL MADE: Mark Cuban, Barbara Corcoran and guest Shark Chris Sacca

TOP BUSINESS TIP: There are no mistakes, only opportunities.

IN ;;;;, pastry chef Katie Sanchez, frazzled, with a newborn, misread a recipe for apple jelly and instead created something that looked like honey. It was a serendipitous outcome. She knew that, with the decline of the honeybee, honey prices were going through the roof. Also, she made vegan pastries at her job, so she knew there could be a huge market among vegans for a honey alternative.

Fast-forward to ;;;;. Sanchez was attending a natural products expo trade show and met Melissa Elms. “After I tasted [Bee Free Honee], I was absolutely blown away,” says Elms. The two became business partners in May ;;;;, working virtually from their homes in Minnesota and Texas.

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Katie Sanchez

While preparing for their Shark Tank taping—broadcast in February ;;;;—the Costco members did their homework on some of the guest Sharks who sometimes appear on the show, like Chris Sacca, owner of Veggie Grill, a chain of West Coast vegan restaurants. Their homework paid off: Sacca was in their episode. He was one of three Sharks to invest in Bee Free Honee, and it’s now used in Veggie Grill restaurants. That’s helped bump up revenue: Though the company closed out ;;;; with ;;;;,;;; in revenue, it finished ;;;; at around ;;;;,;;;. C

Costco members go swimming in the Shark Tank STORIES BY LEAH INGRAM

SINCE DEBUTING IN ;;;;, the ABC TV
show Shark Tank has become a Friday-
night phenomenon. It’s estimated that
nearly ; million Americans tune in each
week for the hourlong show, which
involves entrepreneurs pitching their
business to the “Sharks”—Barbara
Corcoran, Mark Cuban, Lori Greiner,
Robert Herjavec, Daymond John and
Kevin O’Leary—in hopes that one of
them will invest in their startup.

According to Inc. magazine, more than ;;,;;; companies apply to be on Shark Tank, but only ;.; percent—yes, a half percent—actually make it on. Even fewer walk away with a Shark investor. Talk about slim odds.

The Costco Connection found several Costco-member-owned companies that not only got on the show but also got a deal. All agreed that Shark Tank was a life-changing experience.

While it’s exciting to think about starting a business and going on Shark Tank, doing so requires stamina, perseverance and deep pockets. Entrepreneurs have to invest time and money in audition videos, rehearsing, stocking up on product and working with the show’s legal team. There is a due diligence period after the show when entrepreneurs must produce documentation, financials and more. Then there is the “quiet” period between taping and the show’s broadcast—typically six months, but sometimes longer—when you can start working with your Shark but you can’t talk about it.