By Elizabeth Purpich
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06 Jan, 2021
Almost everyone I encounter while working a trunk show, traveling or casually having lunch, whether they are friends, family, customers or most of the time, perfect strangers, will at some point say something like this. "You should go on Shark Tank. That'll make all of your dreams come true." In their minds ABC's Shark Tank is the 'end all be all' and any entrepreneur worth a damn should try to apply and hopefully pitch their product/brand/business in the hopes a shark will bless them with the golden touch of sales, fame and fortune. After all, these are the goals of every entrepreneur, right? It is the American Dream to be famous and rich. So, what better way to prove you are something than to land a deal on Shark Tank with any one of the amazing investors, like: Mark Cuban , Lori Greiner , Kevin O’Leary aka Mr. Wonderful , Robert Herjavec , Barbara Corcoran or Daymond John . (Disclaimer: My husband and I love watching this show and are obsessed. So this article is not throwing shade on anyone involved in ABC’s Shark Tank.) Lots of articles have been written about the pros and cons of doing deals with the sharks and all in all I think they are pretty accurate. However, there are a few cons that IMO are very important to consider such as loss of control and company values dissonance. (We will explore these topics in a later article. Be sure to leave comments and join the conversation.) Here are my TOP 3 reasons why we won't be on Shark Tank. 1. I care too much. It matters to me that the artisans and manufacturers I employ at Elizabeth Purpich Collection to make my luxury leather handbags receive a fair and responsible living wage and have safe and comfortable work conditions. How many times do we hear the shark ask the presenting entrepreneur, "What is the cost landed"? Landed. Think about it. Where is it landing from? Most likely a third world or underdeveloped country with cheap labor and low overhead. Who are the workers making your tangible product? Do you know who they are and how they live? Is this "landed" price a fair and moral price to pay a manufacturer for labor, materials, shipping and so on? Once the worker leaves the factory do you know where they go? What their house, apartment, shack, hut, makeshift dwelling looks like? Do you care? I appreciate stimulating an economy that brings more wealth and opportunity to its citizens and this is not to say that can't be done while also making a buck. However I can sleep better at night knowing I have directly impacted those in my supply chain by paying fair wages and ensuring labor standards. 2. I pay too much for my supply chain. These sharks want the best bottom line. Sure, the feel-good stories and missions of businesses are intriguing and help to sell the product or service, but let's be honest, it's still a for-profit business and if you could get a cheaper price on the same widget it makes business sense to do so. I pay more for my labor and materials because the value I place on an artisan's time and expertise is greater than most other entrepreneurs in my same position. The materials to make the luxury leather handbags may be available at a cheaper price but is it a fair price to the workers involved in the supply chain? We pay more for our luxury leathers and to our artisans in order to achieve quality products. Our customers know this and are willing to pay a higher price for the goods they receive. 3. I don’t want to be too BIG. They say: “What? You don’t want to be the biggest and therefore the best? That’s crazy. How can you have no ambition to succeed? Isn’t the whole point to make money?” My response: “There are more currencies in life than money.” Business as an Agent of World Benefit is a movement and philosophy I became to know while studying with David Cooperider at the Weatherhead School of Management at Case Western Reserve University . The objective of this is to perpetuate the idea that affecting positive change in this world can be both financially and socially fulfilling. These are not mutually exclusive ideas, and I don't like to evaluate my self-worth or business health solely on the money. Success has many different forms and being scalable and big is not the only form of success. Shark Tank and other vehicles for connecting entrepreneurs with investors is such a wonderful service and we, as entrepreneurs are grateful for the different ways to launch and grow our businesses. While some avenues for success are good for some, it’s not a one size fits all solution and is not for Elizabeth Purpich Collection at this time. Feel free to leave comments and answer the question of what entrepreneurial success looks like to you. Is it to be on Shark Tank or be a household name? What is your idea of success?