ooakshell Headbands
DEAL
EPISODE SUMMARY
🕓 Air Date: May 6, 2022
Asking For:
$150,000 for 10%
Investor:
Emma Grede
Deal:
$150,000 for 20%
PRODUCT SUMMARY
ooakshell is a hand-made, fully adjustable headband with a patent-pending design that can be styled in various ways.
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Background Story
Mika Bertholdo, the founder of ooakshell, hails from Dallas, Texas, and is a first-generation American with a background in Biology. Raised with the expectation of pursuing a medical career, Mika found herself at a crossroads when she realized her true passion lay in the fashion industry. Juggling the responsibilities of motherhood and financial constraints as a former bartender, Mika drew on her creativity and problem-solving skills to create a unique solution to her own postpartum hair loss and the discomfort of regular headbands that didn’t accommodate her larger forehead.
Frequenting fabric stores and experimenting with different designs, she eventually conceived the innovative, fully adjustable headband with the signature rings that would become the hallmark of ooakshell. Drawing from her artistic talents, Mika began hand-painting each headband, creating one-of-a-kind pieces that resonated with her customers. Despite initial challenges and the demands of being a sole proprietor, Mika’s unwavering dedication and entrepreneurial spirit drove the company’s early success.
As the business gained traction and achieved impressive sales growth, Mika’s determination to provide high-quality, personalized products to her customers remained at the forefront. Her journey reflects a transformation from an aspiring medical professional to a successful entrepreneur, driven by a passion for creativity and a commitment to providing innovative solutions in the fashion industry.
The Product
The ooakshell headband is a pioneering fashion accessory that revolutionizes comfort and style. With its patent-pending design and unique features, the headband offers a customizable and versatile experience for users. The adjustable nature of the headband, facilitated by the signature rings, allows individuals to tailor the tightness according to their preference, ensuring a comfortable fit without causing unwanted pressure or headaches. Its flexibility enables various styling options, including braiding, twisting, knotting, and even doubling as a fashionable facemask.
Each headband is meticulously hand-painted, making it a one-of-a-kind piece that resonates with customers seeking personalized fashion statements. Its functionality extends beyond a mere accessory, catering to individuals looking for both comfort and aesthetic appeal. Priced at $35 per unit, the headbands provide a cost-effective yet stylish solution for fashion enthusiasts.
Purchases can be made directly from the company’s website, offering a seamless and convenient shopping experience for consumers. With its emphasis on unique design, comfort, and artistic expression, the ooakshell headband caters to individuals seeking a fashion accessory that combines practicality with a touch of individuality.
How It Went
The company’s position before Shark Tank
ooakshell has exhibited robust performance and substantial growth since its inception, positioning itself as a thriving direct-to-consumer fashion brand. With its headquarters based in Dallas, Texas, the company has established a strong online presence, primarily engaging with customers through its e-commerce platform. Despite operating independently without any official partners or wholesalers, the company has forged a close relationship with its loyal customer base, maintaining an exceptional 81% customer return rate, indicative of the brand’s strong appeal and customer satisfaction.
The company’s funding is currently self-sustained, with all operational expenses and investments being covered by the founder, Mika Bertholdo. While the company has achieved impressive sales figures, including a remarkable increase from $12,000 in 2019 to $386,000 in 2021 year-to-date, it operates with high margins of over 90%, resulting from the prudent cost management strategies implemented by the founder. The company’s profitability has enabled it to build a strong financial foundation, though its sole reliance on self-funding has led to limitations in scaling operations and expanding the business.
Presently, the company operates in a lean structure, with Mika handling all aspects of the business, from sourcing materials and production to marketing and customer engagement. While this approach has been instrumental in maintaining the company’s distinct identity and personalized customer experience, it has also posed challenges related to the founder’s workload and the company’s ability to meet growing demand. With a strong emphasis on direct-to-consumer marketing through social media platforms, the company has effectively leveraged digital channels to reach its target audience, contributing to its rapid sales growth and sustained customer engagement.
The Negotiations:
During the intense negotiations on “Shark Tank,” Mika Bertholdo presented her successful business, ooakshell, to the panel of investors. Impressed by the company’s remarkable sales growth and high-profit margins, all the Sharks showed keen interest in striking a deal with Mika. Emma Grede, in particular, expressed her admiration for the product and its direct-to-consumer potential, making an initial offer of $150,000 for a 20% stake in the business. Despite Mika’s attempt to counter at 13%, citing her fondness for the number 13, Emma remained resolute in her offer.
With emotions running high, Mika accepted Emma’s offer of $150,000 for a 20% stake, acknowledging the need for support and guidance to alleviate the strenuous workload and facilitate the company’s growth. Emma’s expertise in the apparel industry and direct-to-consumer market, along with her commitment to assist in scaling operations and building a robust infrastructure, played a crucial role in Mika’s decision.
The negotiations highlighted the challenging circumstances Mika faced as a sole proprietor handling all aspects of the business, underscoring the necessity of external support and investment to drive the company’s expansion and alleviate the operational strain on the founder. The successful deal marked a significant milestone for ooakshell, paving the way for future growth and development with the strategic guidance and support of Emma Grede.
