Kudo Banz Before Shark Tank
Motivating children has always been a challenge for parents. Children either don’t like the tasks from the start or grow bored halfway. For this reason, parents are consistently finding new ways to motivate children. The sticker chart has been one way to do this. Every time a child does a task it is recorded with a sticker on a chart. Once the child has got a certain number of stickers they get a reward.
The problem with the sticker chart is that it stays at home so whenever children are outdoors their rewards can’t be tracked. Amanda Naqvi and her husband, Hamza Naqvi saw this. Their firstborn Mika’il also once complained about being a good listener and they were motivated to help him and other parents across the globe to get their children to become better listeners.
Amanda and Hamza developed Kudo Banz which was an improvement of the sticker chart reward chart system that was stationary. Kudo Banz provides wristbands that come with reward stickers that can be stuck on them when children earn rewards. Kudo Banz has an app where the stickers can be shared and children can choose their own customizable rewards. The system can be used for many things including teaching children to pay attention and potty training.
Amanda and Hamza ran the business with their three children Mika’il, Ayaan, and Sofia. They needed more capital and experience in business growth to take their business to the next level. This is why they wanted to be on Shark Tank and when they applied they were called to be on the 16th episode of the 10th season. All 5 members of the Naqvi family went to make the pitch.
Kudo Banz On Shark Tank
Amanda, Hamza, and their children went onto Shark Tank seeking 150,000 for 10% of the company giving it a valuation of $1,500,000. Amanda and Hamza Naqvi started giving their pitch but were brief after which their children joined in. Kevin said that he hoped he didn’t make them cry. Hamza told him he hoped they didn’t make him cry either, and Kevin said that he was ready.
Mika’il who was the oldest went first. He was followed by his brother, Ayaan, and then the youngest, Sofia. They showed the sharks how the Kudo Banz system worked and even gave them some sample stickers to try. Each shark was given a sticker that reflected their personality. The children then told the sharks their age. Mika’il was 11, his brother, Ayaan, was 9, and Sofia was 6.
Although the sharks liked the product at first glance, they still had some questions about how it operated and Hamza had to give further explanation about how the Kudo Banz worked. Matt Higgins then asked Hamza what inspired him to develop the system.
Hamza told them how he created the device. He was motivated to create the device to make his children listen better. Mika’il then told them that the business had its soft launch in 2017 to learn about the market. Their official debut was in 2018 at the New York Toy Fair. At the fair, they met with several retailers and they had made sales of $80,000 since that time.
Kevin told them the $80,000 that they had made in sales did not make them a fully operating business. He then asked them about their distribution strategy. Hamza said that they were selling online and their sales points were Amazon and their website. Kevin then asked them what their manufacturing cost was. Hamza said that the sales price for the starter kit was $29.95.
Hamza said that they were also in talks with the children’s retail company Buy Buy Baby who they met at the New York Toy Fair. Hamza also gave the sharks his and his wife’s background. Hamza had been a hedge fund manager but he had resigned to be an entrepreneur. His wife was already a successful entrepreneur.
They had one of the most successful companies on Etsy. Matt Higgins commended them for raising a successful family. However, he knew that there were many reward and token systems outside and he didn’t think that Kudo Banz differentiated itself enough to become a big business. For that reason, he left.
Lori Greiner then followed suit. She said that she was working on a book that might be a conflict of interest and so she left.
Matt Daymond said that he had, in season 2, invested in a company called Flip Out. The company made bands for children. He said that from his experience it was very difficult to make a profit in the children’s sector. For that reason, he left.
Kevin said that many would be tempted to invest in them because of all the awards that they had. Kudo Banz had won the Tillywig award for Parents’ Favorite Product, The Mom’s Choice Award, Creative Child Magazine’s Product of the year award, and more. However, he thought that the company was overvalued. Mika’il said that they had very high profit margins. The cost of making the starter kit and potty kit was $4.98 and retailed at $29.95.
Kevin said that no investor would invest in that company with that valuation given their low sales unless they got a proof of concept. He said that they would have to give a larger portion of the company just to get the $150,000. Mika’il told Kevin that their assets were very good and they had many IP patents.
Kevin said that it was too early and he couldn’t do it with them. With that remark, he left. Mark Cuban said that he didn’t doubt that they would make a profit but the path ahead would be difficult. He thought that they had some adjustments to make and so he left.
With no deal, the Naqvi family had to leave. Amanda said that they would take their negative into a positive and that the sharks’ rejection was a gift because they were now out to prove themselves.
Kudo Banz Now in 2023 – The After Shark Tank Update
Kudo Banz has continued to be in business even though it did not get a deal from the sharks. The product is still sold on its website and on Amazon but it is now located in other retail outlets including Fishpond, Dealspotr, and Kids Happy House.
The company has not had much success with social media. Its Facebook page has around 1,200 followers and its Instagram page has 1,300 followers. The Naqvi family made a record of being the only group to be invited to Shark Tank for a second time. They were on the 13th season with their new company Ornament Anchor which, unfortunately, did not get a deal from the sharks.
The company’s revenue has yet to cross the $1,000,000 mark and most of its products have less than 100 reviews on Amazon. Although public interest has not been as much, the launch of the Naqvi family’s second company should be taken as a sign that their entrepreneurial spirit is still going strong.