College Foxes Packing Boxes before Shark Tank
College Foxes Packing Boxes was a business idea by Nick Friedman and Omar Soliman as an alternative to the boring person who comes into ones home to pack boxes. Nick and Omar got this idea from another successful business they had called College Hunks Hauling Junk which is a junk removal company. Nick and Omar started their first business after Omar won $10,000 in a contest. Nick and Omar were able to drastically grow College Hunks Hauling Junk with their entrepreneurial skill set and started franchising the businesses in a little over two years. Their success led them to high rankings in numerous magazines which only increased their exposure and sales. They applied to be on Shark Tank hoping to expand with their new business idea and were invited for Season One.
College Foxes Packing Boxes on Shark Tank
Omar and Nick entered the Tank and dove straight into their pitch by asking the question “who would you rather have packing your boxes?” with the choices being an unprofessional, unlicensed mover or a professionally trained “college fox.” They then stated they were seeking $250,000 for 25% of the business. Omar and Nick then went into the background of their already successful business, College Hunks Hauling Junk, and how this entrepreneurial background and experience is what the Sharks would be investing in. Daymond and Robert immediately brought up the issue of them not offering an equity stake of their successful business. Kevin O’Leary also added his complaint of why he would invest in a new business without getting a piece of the existing one as there is no assurance that the new one will succeed. Omar and Nick tried to defend their ask, stating they would hire a CFO for the new business, but this upset the Sharks even more as that indicated Omar and Nick would be spending a lot of their time on the old business.
Kevin O’Leary wanted the numbers of the successful business. Nick mentioned they made $500,000 last year with a profit margin of 20%. Impressed, Kevin made an offer of $250,000 for 51% of both businesses, a common equity ask in Season One which led to a laugh from Omar. Robert suggested Omar and Nick go out and come up with a new ask for both businesses. After some discussion about how they grew the original business from nothing and not wanting to sell themselves short, Omar and Nick came back in with a new ask of $1,000,000 for 10% which led to laughter from everyone. Kevin O’Leary brought up more arguments, this time on valuation, along his common insults, but Omar and Nick stuck with their valuation. Extremely upset, Kevin O’Leary went out.
Daymond didn’t even question the valuation or the businesses being separate, but rather the business model of College Foxes Packing Boxes. Because of this, Daymond went out. Kevin Harrington actually complimented Omar and Nick on how they grew College Hunks Hauling Junk, but stated they were valuing the business on where it would be in the future rather than the present and because of that, he also went out. Barbara agreed with Kevin Harrington’s compliments and logic and also went out.
Robert was on the fence, but was impressed with Nick and Omar as they defended their business by being confident rather than arrogant. Because he had faith in Nick and Omar, Robert made an offer of $250,000 for 50% of the College Foxes Packing Boxes and 10% of College Hunks Hauling Junk. He stated the 10% of Hauling Junks as “collateral” in-case College Foxes didn’t work out. All of the other Sharks thought that Robert’s offer was very generous. However, Omar and Nick didn’t agree and they passed on the offer because of where they saw the business going.
College Foxes Packing Boxes after Shark Tank
College Foxes Packing Boxes never took off after Shark Tank. They originally put “the business on hold”, but likely decided to focus all their attention on College Hunks Hauling Junk. Omar and Nick’s original business, however, has become very successful, as their franchise has more than tripled in size since airing on the show with sixty-eight locations. Nick and Omar have written a book called “Effortless Entrepreneur” and are still frequently seen in other common media outlets such as Fox Business News.
Omar and Nick’s pitch has taught future entrepreneurs many mistakes that should be avoided when going into the Tank. The first thing is if an entrepreneur is operating a successful business, but asks the Sharks to invest in a new idea, they will likely will not get a deal because there is a conflict of interest on where their attention will be. Nick and Omar also tried to value their company on where it would be in the future compared to what it was currently worth which the Sharks also never agree too. The Sharks were much greedier for equity in the first season likely because of the high risks and wanting to have control of anything they put their money in as there was no proven record of how successful an investment from the show could be. In later seasons, however, you rarely see the Sharks ask for such high equity for numerous reasons including smarter entrepreneurs, well-established businesses coming on the show, Mark and Lori joining the set, and seeing the potential in the business because of what they bring to the table and the Shark Tank effect.