Investor: Kevin O’Leary
Shark Tank Appearance: March 11, 2016
Bid: $100,000 for 25% stake
Results: Total sales soared from $100,000 to $14 million
'Wee responsibly' might not be the phrase you'd associate with Kevin O'Leary, the no-nonsense investor from Shark Tank. Yet there he was, projecting his image inside a toilet bowl in a video for IllumiBowl's latest Kickstarter campaign—six months after he invested in founders Matt Alexander and Mike Cannell.
O'Leary's endorsement underscores his belief in their motion-activated toilet night light. 'One of the most important parts of running a successful business is to get involved,' O'Leary said. 'It's a full-time job, especially when starting out. Matt and Mike have poured every ounce of energy and time into making IllumiBowl a success.'
Alexander shares key lessons learned since launching the product that helps with those midnight bathroom trips 'in a whole new light.'
Related: 9 Lessons Successful Entrepreneurs Wish They Heard Sooner
Relationships are everything.
Post-Shark Tank, Alexander and Cannell secured an exclusive deal with Bed Bath & Beyond. They then developed an upgraded IllumiBowl with custom dimming, stronger motion sensors, and more colors, landing deals with Walmart and others. 'We were in over our heads,' Alexander admits. 'We risked violating our exclusivity by making side deals.'
O'Leary intervened, negotiating a solution that let them pursue new partnerships while giving Bed Bath & Beyond first dibs on innovations. 'We learned not to rush decisions and that strong buyer relationships are crucial,' Alexander says.
Crowdfunding isn't just about fundraising.
IllumiBowl kicked off with a 2014 Kickstarter aiming for $20,000; it raised nearly $100,000 in 40 days. 'We were broke—me in college, Mike at Walmart,' Alexander recalls. 'It validated our idea and built an excited community.' The upgraded version's second campaign raised over $225,000 from nearly 8,000 backers.
Recognize what's important vs. urgent.
Constant pings demand attention, but prioritize impact. 'Richard Koch's The 80/20 Principle taught me 80% of results come from 20% of efforts,' Alexander notes. Focus energy on high-value tasks over inbox zero.
Don't wait to dot every 'i' and cross every 't'.
In product development, speed matters. Patent backlogs take years, but a $130 provisional application grants 'patent pending' status fast. Skip perfecting business plans; produce a minimum viable product for real feedback. Use crowdfunders as your focus group before retailers like Walmart—and always update early supporters.
Related: 5 Lessons I've Learned From Over 200 Successful Entrepreneurs
This article originally appeared in the June 2017 issue of SUCCESS magazine.
