Tippi Toes Before Shark Tank
According to Sarah Nuse and Megan Reilly, not only do the children have fun while they learn to dance, they also get their daily exercise. Obesity is a serious issue in the United States of America, and all over the world for that matter. By teaching young children to dance, they keep them motivated, fit, exercised and healthy. Megan Reilly and Sarah Nuse have a successful business; however, they need the investment from the Sharks, in order to be able to grow larger as a company and offer dance lessons to more children
Tippi Toes On Shark Tank
“Megan Reilly, Sarah Nuse and three children walk confidently towards the Sharks and stand in front of them”
Sarah Nuse and Megan Reilly start their presentation by introducing themselves to the Sharks, after which Sarah Nuse states that they are seeking an investment of thirty thousand dollars, in exchange for a five percent stake of their children’s dance company Tippi Toes.
Megan Reilly continues the presentation by stating that one in five children in the United States of America are obese, while eighty percent of elementary schools have cut recess. Megan Reilly states that their fun, kid-friendly, high-energy dance music gets the kids moving and feeling good about themselves.
“Megan Reilly turns towards the kids and asks them if they are ready to do some dancing”
“The kids look at Megan Reilly and tell her that they are ready”
“Megan Reilly, Sarah Nuse and the children start dancing on a special soundtrack”
“At the end of the dance, the Sharks clap their hands for the children”
“Megan Reilly tells the children to say goodbye to the Sharks and dance their way out of the studio, before one of the Sharks takes a bite out of them”
Sarah Nuse continues the presentation by stating that she used to be a professional dancer herself, and her sister Megan Reilly being a registered dietitian, they focus their business on physical activity, healthy habits and most importantly, the kids having fun.
Megan Reilly states that in 2009, they began franchising their business, in order to be able to reach as many kids as possible. Megan Reilly continues by stating that as long as people keep having babies, they are always going to have customers for their children’s dance company.
“Sarah Nuse asks which one of the Sharks is ready to invest in Tippi Toes”
“Barbara Corcoran asks Sarah Nuse to tell the Sharks more about franchising Tippi Toes”
Sarah Nuse answers the question by saying that it costs thirty thousand dollars to become a Tippi Toes franchisee. She continues by stating that their vision is the stay-at-home mom.
The great thing about Tippi Toes is that they go into pre-schools, after school activities and day cares, so they do not have an overhead on facilities, which keeps the entry costs low as well. Next to paying thirty thousand dollars, the franchisees also need to pay a monthly royalty fee.
“Robert Herjavec states that thirty thousand dollars isn’t a low amount of money, and asks Sarah Nuse what he would get by becoming a franchisee”
Sarah Nuse answers the question by saying that the franchisee receives their very own Tippi Toes music CD, which is cleverly called Tippi’s Tunes. Sarah Nuse continues by stating that both she and Megan Reilly handle all the sales and marketing for their franchisees.
“Kevin O’Leary asks Sarah Nuse if he would only get a CD and some pictures, if he would pay them thirty thousand dollars and become a franchisee”
Mark Cuban states that rather than to take the children to dance classes somewhere else, Sarah Nuse and Megan Reilly license their products and music to pre-schools and day cares, allow the kids to stay inside and in a similar location, while the parents get charged independently. It is a win-win because the kids stay at the location that they are at already.
Sarah Nuse answers the question by saying that last year, they made two hundred and sixty eight thousand dollars, and their profit was twenty nine thousand dollars.
“Robert Herjavec asks Sarah Nuse where people get the thirty thousand dollars to become a franchisee of Tippi Toes”
Sarah Nuse answers the question by saying that they have done it in-house where they would finance the franchisees, which means that they can make money off of their interest.
Kevin O’Leary states that Sarah Nuse and Megan Reilly are unbelievable, because they go to people and they charge them thirty thousand dollars with a liability, on which those people need to start paying an interest on, because they have not been able to fund it yet.
Kevin O’Leary tells Sarah Nuse and Megan Reilly to forget Tippi Toes and come work for him at O’Leary Funds, because that way, they would be able to make some real money.
“Kevin O’Leary asks Megan Reilly what is proprietary about Tippi Toes”
Megan Reilly answers the question by saying that other people have tried what they are doing by setting up a dance school with a very similar name. Megan Reilly continues by stating that those people do not have the passion and the drive, nor are they as good with kids as she and Sarah Nuse are. Megan Reilly states that they are the whole package.
Mark Cuban states that it proves that with a little bit of hard work, a little bit of passion and a little bit of vision, you can set up and run your own successful business.
Megan Reilly states that they have had so many parents come to them to say that they have done dance someplace else, but that Tippi Toes is something that they have never seen.
“Mark Cuban asks Sarah Nuse what their ongoing royalty payments are that they are earning back from a single franchisee”
Sarah Nuse answers the question by saying that there is a minimum royalty payment of a thousand dollars each month, which the franchisee must pay in order to keep participating.
Kevin O’Leary states that he simply cannot believe that people would pay a thousand dollars a month to purchase a CD and some posters of insect drawings.
Robert Herjavec states Sarah Nuse and Megan Reilly are asking for thirty thousand dollars as an investment, in exchange for a five percent stake in Tippi Toes. This means that they are valuating Tippi Toes at six hundred thousand dollars.
“Robert Herjavec asks Megan Reilly why Tippi Toes is worth six hundred thousand dollars”
Megan Reilly answers the question by saying that they walked into the studio a few minutes ago, and since then, they already have more children signed up for Tippi Toes. This means that Tippi Toes is growing very fast, which is the reason why it is valued as it is.
Mark Cuban states that he loves Megan Reilly’s and Sarah Nuse’ attitude.
“Daymond John asks Sarah Nuse why they are only offering five percent of Tippi Toes”
Sarah Nuse answers the question by saying that if the Sharks want more, they can start negotiating with them, because they are open to that.
“Mark Cuban starts laughing out loud”
“Daymond John asks Megan Reilly if they have Tippi Toes CDs or DVDs”
Megan Reilly answers the question by saying that they currently only have CDs, but they are hoping to upgrade soon and start offering DVDs.
“Mark Cuban asks Sarah Nuse if they have already started producing the DVDs”
Sarah Nuse answers the question by saying that they haven’t yet started producing DVDs, and that it is one of the reasons why they are on Shark Tank.
Mark Cuban states that there is really no reason to start producing DVDs, because they would only make five to ten dollars per DVD, which is not a huge profit.
Megan Reilly states that they are building a brand, which is why they also want to start producing DVDs. Megan Reilly continues by stating that they want to become the next Barney, who is very popular among a lot of children worldwide.
Kevin O’Leary stats that Megan Reilly and Sarah Nuse are amazing with what they are doing, because in his opinion, they are not selling anything except for their smiley faces.
Daymond John states that Megan Reilly and Sarah Nuse definitely do not need him as a partner, because he believes that Megan Reilly and Sarah Nuse are both great extortionists. Daymond John states that he knows that Megan Reilly and Sarah Nuse are going to do very well with their company, but that he doesn’t want to invest in it and states that he is out.
“Barbara Corcoran asks Sarah Nuse if any of the franchisees decided to quit Tippi Toes”
Sarah Nuse answers the question by saying that none of the franchisees wanted to quit after becoming a franchisee for Tippi Toes, because their business become very profitable.
“Barbara Corcoran asks Sarah Nuse how long a commitment contract is”
Sarah Nuse answers the question by saying that a franchise commitment lasts ten years.
Kevin O’Leary starts laughing and states that he doesn’t believe what he is hearing.
Mark Cuban states that Sarah Nuse and Megan Reilly are doing the hardest thing for a small business, and all of it is executed on their idea.
Robert Herjavec states that Tippi Toes is fantastic, but that Sarah Nuse and Megan Reilly need to think about growing one step at a time. Robert Herjavec continues by stating that he believes that Sarah Nuse and Megan Reilly are trying to take a too big of a leap, which is why it is risky for him to invest in Tippi Toes. Robert Herjavec is out as well.
Kevin O’Leary states that he can’t get near the valuation of Tippi Toes, because it just doesn’t make any sense to him, yet he is so stunned by what Sarah Nuse and Megan Reilly have done, that he is willing to make an offer. Kevin O’Leary makes an offer of fifty thousand dollars, in exchange for a fifty one percent stake in Tippi Toes.
On top of that, Kevin O’Leary wants Sarah Nuse and Megan Reilly to wear ankle bracelets, and whenever they say the word DVD, they will get a twenty four volt shock.
“Sarah Nuse and Megan Reilly start laughing because of Kevin O’Leary’s joke”
Mark Cuban states that five percent is a very small equity, even for a growing business. He states that Megan Reilly and Sarah Nuse are going to have to come back to him, and if they come back with the right number, he will instantly invest in them.
Barbara Corcoran states that she thinks the genius behind Tippi Toes is the fact that Sarah Nuse and Megan Reilly have found a way to tap into the working-mom situation, while her kids are at school. Barbara Corcoran continues by stating that she believes there is no limit to what Sarah Nuse and Megan Reilly can do with Tippi Toes; however, the five percent equity does not excite her very much, which is why she makes an offer of sixty thousand dollars, in exchange for a twenty percent stake in Tippi Toes.
Mark Cuban states that before Sarah Nuse and Megan Reilly come back with a counter offer, he wants them to accept the fact that if he accepts their counter offer, they can no longer walk out, they will have to accept it as well. Sarah Nuse agrees and makes a counter offer of a hundred thousand dollars, in exchange for a thirty percent stake in Tippi Toes.
Mark Cuban accepts the offer and shakes hands with Sarah Nuse and Megan Reilly
Tippi Toes Now in 2018- The After Shark Tank Update
Fortunately for Megan Reilly and Sarah Nuse, several of the Sharks were interested in partnering up with them. They ended up accepting a deal from Mark Cuban of a hundred thousand dollars, in exchange for a thirty percent stake in Tippi Toes. There is no mention of Tippi Toes being the best or worst on Shark Tank; however, several of the Sharks were very excited to see that Sarah Nuse and Megan Reilly had such passion and worked very hard.
After doing some research on the internet, I found out that the deal between Sarah Nuse, Megan Reilly and Mark Cuban fell through, after negotiating back and forth for a while. However, because of the exposure of appearing on the Shark Tank, Tippi Toes really took off, allowing Sarah Nuse and Megan Reilly to open up shop at twenty six different locations in the United States of America. Of course, these locations are ran by franchisees.
You can find the official website for Tippi Toes at www.tippitoesdance.com. On this website, you can find more information about becoming a franchisee, dance classes, camps, parties, recitals and the locations of each of the Tippi Toes dance schools. The website is very up-to-date and modern, which tells me that Tippi Toes is doing just fine.
