Week 4

Introduction

• Entrepreneur: Wen from St. Paul, Minnesota.

• Business: Jack Sheets.

• Seeking: $212,000 for 10% equity.

Problem Statement

• Single men's behavior: Wash bedsheets every three months; pillowcases are significantly dirtier than toilet seats.

Product Overview

• Jack Sheets: Designed for men to stay fresher longer with a unique blend of bamboo and copper, reducing odor and bacteria.

• Offer: Two-for-one special on laundry-free clothing for travel and camping.

Product Details

• The first bed sheets specifically for men.

• Beauty edition includes materials like silk, bamboo, and copper, praised for feel and functionality.

Technology and Market Research

• Patent application submitted for materials.

• Inspired by personal experiences with different fabrics during travels.

• Extended product line after customer demand from successful shirts.

Sales and Financials

• Kickstarter: Raised $350,000 against $110,000 goal.

• Customer acquisition cost: $33; average sale: $148 with $70 profit margin.

• Don’t know the customer acquisition costs currently, and their customer acquisition costs is based off an environment that does not reflect reality.

• Limited future prospects due to inventory shortages.

Business Structure

• Operates as a one-man business from Wen’s garage.

Investor Insights

• Skepticism from investors about sustaining sales post-crowdfunding.

• Concerns about business model diversifying too much.

• Kevin O'Leary: Need for precise customer acquisition cost predictions.

• Lori Greiner: Commended enthusiasm but cautioned about viability.

• Mark Cuban: Noted risks of product line expansion diluting focus.

Conclusion

• Wen remains optimistic and committed to improving despite mixed feedback.