The TV show "Shark Tank" has attracted a large following, from seasoned business owners, to hopeful entrepreneurs, to plain-old reality show lovers and kids. The show features well-known business men and women who invest in certain startup businesses if the entrepreneurs pitch their service, brand and themselves well.
All kinds of businesses appear on the show. Some are bigger and have more to show in terms of sales and numbers; others are really young, small startups that are yet to prove their need and demand within the market. Next month, a Minnesota business will reportedly be featured on the show.
It is a business out of Hastings that presents a pretty unusual, messy form of entertainment. It is called Extreme Sandbox and provides people the opportunity to play with big construction equipment with the supervision of instructors who are experienced handling the machines.
While the local business and any other business is surely thrilled to be on the hit show, excitement shouldn't cloud a business person's judgment when it comes to fair negotiation and proper, legal business formation matters. The men and women behind the startups that make it on the show should be sure to work with business lawyers who have their best interests in mind -- no matter how famous or rich a shark might be who wants in on their company.
In almost all business deals, there are separate parties. Those separate parties have their own interests, priorities and goals. Matters that come up on "Shark Tank" such as equity and royalties, for example, should be agreed upon and negotiated between parties who have their own trusted legal representation. That sort of setup could prevent startups like this Extreme Sandbox company from getting bulldozed by a bad deal.