The Upside of Swimming with the Sharks
My friend and client, Romy Taormina, appeared on Shark Tank on March 1. If you did not see Romy on the show, you can watch her in action here: Shark Tank Season 4 Episode March 1. Romy’s business is Psi Bands, drug free wrist bands for the relief of nausea due to morning sickness, motion sickness, anesthesia and chemotherapy. When we prepare the corporate minutes for Romy’s company each year, she fills the position of Nausea Relief Chief. After Romy’s appearance on the show, I asked her if I could share her behind scenes experience with our eMinutes community. Although Romy was limited by a confidentiality agreement she signed as a condition to appear on the show, she shared some interesting insights.
Jeff: How did you get to appear on Shark Tank?
Romy: Last fall I was flown to Los Angeles to tape ABC’s national hit TV show “Shark Tank.” More than 10,000 online applications were submitted to Shark Tank for consideration and thousands of more people applied in person in various cities to appear on the show. There were multiple qualifying rounds and to make a long story short, I aired on March 1, 2013.
Jeff: What did you do to prepare for your experience in the Tank?
Romy: I wrote and refined my opening pitch about a dozen times and then practiced it in front of a video camera over and over to make sure I was as poised as possible when actually taping; watched re-runs to learn as much as I could about the Sharks and their expectations and personalities; researched online each of the Sharks so I would be prepared to say or not say certain things; and, of course, reviewed my financials “ad nauseum” for the purpose of being able to speak intelligently, but also to really know what I was willing to accept or not accept if I was given an offer.
Jeff: You did not accept an offer from Mr. Wonderful (Kevin O’Leary). Was it still a beneficial experience for you and Psi Bands?
Romy: Many doors are opening and sales are “swimming” along nicely.
Jeff: My son, Adam, is a business school student at Ithaca College. As Adam put it, you got unfairly “ripped” on the show. How did you remain so poised?
Romy: It was difficult to stay so poised. I am so truly passionate about my business that my disposition manifested itself in that manner. When goodness resonates from within, it comes across naturally and genuinely. I felt I stayed true to myself and my business.
Jeff: One of the things that the Sharks gave you a hard time about was deferred salary carried on the books as debt. What are your thoughts on carrying deferred salaries as debt?
Romy: We carry deferred salaries on the books, because we feel it is more transparent to investors and lending institutions. When a P&L does not include salaries (or artificially reflects a non-market value salary), the financial statements don’t reflect the true cost to run a business. What is later done with that deferred salary can be a point of negotiation. In other words, the entrepreneur can forgive that debt or discount the valuation of the company to offset some or all of the debt on the books. We chose to lower our valuation by taking out all debt to land at our asking price.
Jeff: Adam also told me that you were one of the few entrepreneurs on the show who he has ever seen who had a profitable, revenue generating business. The Ithaca business school students were really impressed. Did you know you had a little bit of hero status for standing your ground with the sharks?
Romy: No, I did not know that (laughing). I am so touched by their support.
Jeff: Is there anything at all you can talk about in terms of how much interaction you had with the Sharks like in the green room or anything? Or how it was on a personal level?
Romy: I had no interaction with the Sharks before or after my time in the Tank.
Jeff: What is happening post air?
Romy: The national exposure has increased brand awareness, consumer education, and is driving online and foot traffic to our stores. Psi Bands has received an overwhelming amount of support, which has manifested itself in more than a 1000x increase in unique visitors to our web site, countless inquiries both nationally and internationally from consumers, investors, retailers, media, etc., and a substantial increase in sales.
Jeff: What advice would you offer to an entrepreneur who is going to appear on Shark Tank?
Romy: Don’t let fear or doubt get the best of you. Stay true to yourself and your business. The only way to score is to take a shot.
A bit about Romy/Psi Bands
Romy experienced a year of debilitating nausea and many of her loved ones are cancer survivors, including her mother-in-law, grandma, aunt, and dear friend. She is incredibly passionate about helping those who suffer from nausea. To learn more about Romy and Psi Bands, visit Client Profile: Romy Taormina