Overview
Sunflow is a premium beach brand that offers an all-in-one beach gear solution. The product was founded by Leslie Hsu and Greg Besner, a couple from Short Hills, New Jersey.
The beach chair features various necessary gear, including a sunglass carrier, a cup holder, and a canopy. The startup made $2.9 million in revenue in its first year and is currently worth $16 million.
Shark Tank Appearance
In 2019, Sunflow appeared on season 13 of Shark Tank, asking for $1 million for 6% equity. The Sharks were impressed with how the business was performing despite being just a year old.
However, they expressed concerns about the price point, $198 for a beach chair is out of reach for the average consumer. Kevin O’Leary invested $1 million for 5% with a royalty of $5 per unit.
After Shark Tank
Sunflow got a huge spike in orders after their Shark Tank episode aired.
The deal with Mr. Wonderful didn’t close, but the company raised $3.5 million in an investment round led by Great Oaks Venture Capital and FOD Capital.
Sunflow makes around $3-4 million in annual revenue and is worth an estimated $16 million. The beach chairs have a 4.9-star rating from 195 reviews on their website.
Sunflow plans to release more products and build a stronger beach brand.
The Founders
Leslie Hsu and Greg Besner are both experienced entrepreneurs.
Greg earned his MBA at The Wharton School and worked at Goldman Sachs and Merrill Lynch before founding two companies: CultureIQ and Restricted Stock Systems.
Leslie started her career as a fabric professional at Elie Tahari and Calvin Klein, then went on to found fashion brands like Leslie Hsu New York, PUNCHCASE, and LesliesFinds.
Establishing Sunflow
As a busy married couple, Greg and Leslie love to regularly relax at the beach.
However, they found that going to their favorite seaside spots demanded a lot of preparation and Leslie didn’t like the quality of their beach chairs.
After brainstorming, they came up with Sunflow, which took them three years to make the final product. The beach chair was launched in 2018 and made $2.9 million in revenue in its first year.
Lessons From Sunflow’s Success
Based on the Shark Tank episode about Sunflow, here are three practical tips for aspiring young entrepreneurs:
1. Innovate traditional products
Sunflow successfully revamped the traditional beach chair by adding modern features and thoughtful accessories, making it more appealing and functional.
Entrepreneurs should look for opportunities to innovate and improve existing products, providing added value to customers.
2. Know your numbers and market potential
Sunflow’s founders provided detailed financial data, sales figures, and future projections, demonstrating their understanding of the market and business potential.
Entrepreneurs should be well-versed in their financials and be able to articulate their growth strategy and market opportunities clearly.
3. Be prepared to negotiate and counter offers
During the pitch, the Sunflow team was prepared to negotiate and counter the Sharks’ offers to reach a mutually beneficial agreement.
Aspiring entrepreneurs should be ready to negotiate terms confidently and have a clear understanding of their business’s value to secure the best possible deal.
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