Credit: Shark Tank ABC
Guest Shark Kendra Scott On Shark Tank Season 16.
Highlights
- The third episode of the sixteenth season will air on November 1.
- Kendra Scott will make her comeback, promising new exciting additions to the show.
- Kendra previously invested in BootayBag and Create A Castle.
With landmark deals, clashes between investors, and insights shared by Guest Sharks, Shark Tank Season 16 has been going strong. Keeping up with the phenomena created by the first two episodes, the third episode is set to amaze audiences on November 1. Kendra Scott will return as a Guest Shark, adding to its appeal factor.
Having previously appeared in seasons 12 and 14, Kendra made a splash with her vibrant aura and eye for creative business ideas. Before getting into details of the deals she made, here is a quick look back into her entrepreneurial beginnings.
The Inspiration For Jewelry Business
Kendra grew up in a small town in Wisconsin, which was not very fashion-oriented. But her aunt was a fashion director for a department store in Milwaukee, Wisconsin. Visiting her apartment and seeing her gorgeous clothes and accessories were nothing less than magic for Kendra.
The Executive Chairwoman of Kendra Scott LLC started her venture because she struggled to find jewelry of her choice. She was looking for semi-precious stones and unique shapes and cuts. Failing to find good picks, she thought of creating her own creations.
Career Beginnings With ‘The Hatbox’
Without any formal background in the field, she started her first venture, ‘The Hatbox,’ with $500 from her savings, which continued for five years since 2002. However, soon she realized that she could not sustain herself for long by just making hats. That is how the idea of jewelry making popped up in her mind.
But even after she closed the business, the demand for jewelry did not end. Three months after the birth of her son in November 2001, Kendra started selling her jewelry collection in boxes door-to-door.
Seeing the good response, Kendra sought a line of credit and got it based on her previous work and her father-in-law’s good words. The credit helped her get more materials to produce the orders she kept on getting. It also helped her ramp up marketing.
The Big Break By Oscar De Le Ranta
Focused on building the best business through her innovative jewelry designs, Kendra kept hustling. One day she got a call from luxury fashion brand Oscar De Le Renta’s office. An intern in his office was wearing Kendra’s jewelry. Impressed by it, Oscar inquired and got to know about Kendra. He said that was what he wanted for his Spring 2005 show.
He told Kendra that he had many other designers working for him. Kendra had 72 hours to come up with the pieces. He was unsure if even one piece could make it to the runway, but he had faith that she could do it. After this experience, Kendra kept growing.
Battling The Recession Period
During the 2008 financial crisis, Kendra’s company was valued at about $1.5-2 million in terms of revenue. They sold primarily to speciality accounts and some department stores in the US. Her team had 10 people at that time. When the recession hit, her company saw $500K come immediately off of the revenue in one year.
She knew the pressure, plus she had to pay back the line of credit. She kept her salary minimal at that time. She talked to her team and asked if they were in to try something different. It could either be a hit or a flop idea. Everyone said, “Let’s go for retail,” which actually worked in their favor.
They then launched their e-commerce website and Color Bar, a customization tool, using which customers could custom design their pieces. They were opening a store when everyone else was closing theirs. With a sales revenue of $1 million by 2010, the number went to $12 million in just two years.
Becoming A Billion Dollar Empire
The turning point for Kendra Scott LLC came in 2017 when it joined hands with Berkshire Partners. Three years after selling a minority stake in it, her company was valued at over $1 million. Things worked in her favor because of her partners’ incredible retail experience, who helped them think for the next 10 years.
Kendra Scott’s Shark Tank Deals
After emerging as a prominent businesswoman, Kendra was named one of the show’s guest Sharks. Based on previous successes and favorable feedback from the audiences, she is geared up for her return with the third episode of Shark Tank Season 16. Have a look at her successful Shark Tank deals as given below.
1. BootayBag
Aspiring entrepreneur Elly Gheno approached the Shark investors with her company BootayBag. Hailing from San Francisco, Elly stated that the company offered a monthly underwear subscription for women. She entered the show seeking $500K for 5% equity.
Going ahead in the pitch, she described it to be an affordable, convenient, and comfortable way for women to shop for underwear. Regarding the financial aspect, Elly revealed that the sales made in the year to date (2020) were $3 million. Additionally, the lifetime sales were $15 million. The Sharks were hugely impressed when they heard this and started making offers one by one.
Guest Shark Kendra Scott offered $500K for 10% equity, Barbara Corcoran offered $500K for 20% of the company, and Kevin O’Leary followed with his offer of $500K for a 15% equity stake. Hearing this, Kendra and Barbara joined hands and modified the previous offer to $500K for 20% equity.
Seeing the body language of Elly, Kendra felt that she was not satisfied with her new offer. So she opted out of the joint deal, went solo, and went back to her previous offer, $500K for 10% equity. Elly happily agreed.
BootayBag’s lifetime revenue went over $12 million by 2023.
2. Create A Castle
The husband-wife duo of Kevin and Laurie Lane hoped to raise an investment worth $350K at 10% equity in their company ‘Create A Castle in Shark Tank season 14.’ As the name suggests, the product is a castle-making kit, which helps one make elaborate sand structures within minutes.
The couple stressed the pain point of the traditional fill and flip buckets, which produce ‘boring castles’ and, at times, the mud gets stuck in their pocket. But with the split-mode ‘Create A Castle’ kit, kids could enjoy better using its hinges that open sideways.
They had about 12 international patents. Further, they were eyeing launching an indoor product as well. Sales made in 2021 were $600K. The entrepreneur couple were projecting a $3 million sales in 2022.
The only Sharks who were interested in investing were Kendra Scott and Daymond John, who offered $350K for 20% equity and $350K for 25%, respectively. Kevin and Laurie finalized the deal with Kendra.
The sales revenue of Create A Castle reached $4 million in 2024.
Conclusion
Kendra Scott’s comeback as a guest judge on Shark Tank Season 16 is set to bring fresh new changes in terms of negotiations, deals, and tuning amongst the Sharks. Hailing from a small town, she herself exemplifies entrepreneurship by turning her small venture into a billion dollar empire.
With her stint on the newest season, audiences can brace themselves for unforgettable moments.
Reference
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
Speak Your Mind