Zoom Interiors
DEAL
EPISODE SUMMARY
🕓 Air Date: May 8, 2015
Asking For:
$100,000 for 20%
Investor:
Barbara Corcoran
Deal:
$100,000 for 33%
PRODUCT SUMMARY
Zoom Interiors is an online interior design service aiming to revolutionize the industry by providing accessible and affordable design services. Their mission is to make stylish living spaces available to everyone.
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Background Story
Zoom Interiors, founded by Beatrice, Madeline, and Lizzie, originated from the creative minds of three young entrepreneurs with a passion for interior design. Their venture, Zoom Interiors, was born out of a shared vision to democratize the interior design world, making it accessible and affordable for everyone. The founders recognized a gap in the market, where traditional interior design services were often expensive and exclusive. They believed that everyone deserved a stylish living space that could enhance their lives.
The background story reveals that Zoom Interiors began testing the waters while still in college, and to their pleasant surprise, the concept proved successful. Within the first 14 months of business, the company grossed $186,000, showcasing the viability of their approach. The entrepreneurs demonstrated their commitment to learning and growing in the competitive industry. Having just graduated three weeks prior to their appearance on Shark Tank, they emphasized their youthfulness, acknowledging that they were still figuring things out.
Seeking mentorship and guidance, the founders expressed a desire to learn from the seasoned investors on Shark Tank. The trio’s journey reflects the spirit of youthful entrepreneurship, with a focus on adapting to the evolving market trends in interior design. Despite facing challenges and uncertainties, Beatrice, Madeline, and Lizzie showcased determination and enthusiasm, making their mark on the Shark Tank platform.
The Product
Zoom Interiors offers a revolutionary online interior design service that aims to simplify and democratize the process of creating stylish living spaces. The product is a comprehensive interior design package that guides clients through a seamless and affordable design experience.
The process begins with clients filling out the “Get Zoomed” survey, providing essential information about their preferences and style. Subsequently, they schedule a free 15-minute Zoom consultation, either over the phone or through video chat. The consultation allows clients to discuss their vision with the Zoom Interiors team, ensuring a personalized and tailored approach.
Once the initial consultation is complete, clients receive a mood board, referred to as a “Zoom Board,” offering a visual representation of the proposed design. The collaboration then continues as clients work with their personal designers to perfect the design of their space. The final stages include receiving a Zoom Cart, representing the final inventory, and obtaining easy-to-read floor plans for self-installation.
Zoom Interiors caters to a diverse range of clients with different budgets and styles. The showcased before-and-after transformations exemplify the company’s ability to meet various design needs, from urban-industrial looks to glamorous, shabby-chic bedrooms.
How It Went
The company’s position before Shark Tank
Zoom Interiors has been in business for 14 months and has experienced a notable level of success, grossing $186,000. The founders, Beatrice, Madeline, and Lizzie, started the company during their junior year in college, showcasing their entrepreneurial spirit and ability to adapt to market demands. They revealed plans to work directly with manufacturers, increasing their commission from 18% to 55%.
This strategic move indicates a focus on optimizing profit margins and potentially establishing partnerships with furniture manufacturers. Zoom Interiors’ customers are individuals seeking affordable and accessible interior design services. The service caters to a diverse clientele, as evidenced by the showcased before-and-after projects with different budgets and styles. Regarding funding the founders are seeking $100,000 for 20% of their company on “Shark Tank.” The negotiation with Barbara Corcoran results in an offer of $100,000 for 33% of the business, which the founders accept.
The founders express a need for mentorship and guidance, emphasizing their eagerness to learn from the experienced investors on Shark Tank. This suggests a willingness to leverage external expertise to enhance their business’s health and structure. In summary, while the specific financial details and partnerships remain undisclosed, Zoom Interiors appears to be in a growth phase, with a successful track record, plans for strategic shifts, and a commitment to learning and adapting in the competitive interior design market.
The Negotiations:
The negotiations for Zoom Interiors on Shark Tank were a rollercoaster of considerations, challenges, and strategic decisions. The founders, Beatrice, Madeline, and Lizzie, entered the tank seeking $100,000 for a 20% equity stake in their online interior design company. The Sharks were quick to probe into the company’s business model, revenue streams, and scalability. Mark Cuban and Kevin O’Leary expressed concerns about the entrepreneurs’ plan to invest in application development, advising against it due to potential challenges in scalability.
Both Cuban and O’Leary decided not to invest, citing doubts about the company’s ability to scale effectively. Barbara Corcoran, however, saw potential in Zoom Interiors and recognized the founders’ energy and hustle. She made a counteroffer, proposing $100,000 for a larger equity share of 33% of the business. The negotiation highlighted the importance of the application development aspect, with Corcoran forbidding the founders from allocating funds in that direction. The founders accepted Corcoran’s offer, expressing their eagerness to have her as a mentor and work with her to grow their business.
The negotiation underscored the challenges and skepticism faced by the founders, with Cuban and O’Leary opting out due to scalability concerns. Corcoran’s offer, while requiring a higher equity stake than initially sought, provided the founders with a seasoned mentor and the financial support needed to navigate the competitive landscape of online interior design. Overall, the negotiation showcased the strategic decision-making process inherent in securing a deal on Shark Tank and the founders’ willingness to adapt their plans for the sake of mentorship and growth.
