Tippi Toes from Shark Tank

Tippi Toes shark tank

Tippi Toes Dance Company is run by two sisters, Sarah Nuse and Megan Reilly. The company provides unique programs of creative dance activities and a fun and positive environment to the children that is beneficial for their mental well-being and health.

What Do They Make?

One in 5 children in America are dealing with obesity, and 80% of schools in the USA have a limited recess time. Tippi Toes’s fun and highly energetic dancing activities and music get the kids active and makes them feel better about their bodies.

What Makes Them Unique?

Tippi Toes provide their original music and choreography for their customers. It is a unique dance class system that doesn’t sell its business model to anyone but the franchise owners.

Are They Still an Active Company?

The company is still active and has a thriving business. The website has a unique and attractive design that provides complete information about the business and how it works.

How Did the Shark Tank Pitch Go?

Sarah Nuse Megan Reilly came to Shark Tank seeking $30,000 for 5% stake in their children’s dance company, Tippi Toes. The sisters then went on to perform a happy dance with two children they brought with them, in front of all Sharks.

Sarah explained that she is a former professional dancer and Megan is a registered dietician. Their main focus is targeting the physical activity and healthy habits of children and they always make sure that the kids are having fun. They started running their business by franchising it since 2009 so that they can get to as many children as possible.

Barbara asked them to confirm if they sell  franchises. Sarah said that was true and explained that they charge $30,000 for the franchise owners to get in, having sold 7 so far.

They feel that the best thing about their business is that they franchise it to pre-schools and daycares, therefore  they don’t have facility expenses and it makes a low entry cost possible for them. The franchise then pays a royalty fee to them every month.

Robert remarked that $30,000 isn’t a rtivial amount and asked what services they provide in exchange for that fee. Sarah explained that they have created their own music, and their first CD Tippi Tunes was out, which is a lesson plan. They also do business, sales, as well as marketing.

Kevin interrupted and said that if he gave them $30,000, will they give him pictures of insects on a CD in exchange for it?

Mark clarified that instead of two dance classes, the kids will be sent to dance classes in their own pre-school because Tippi Toes has a license. The school will charge the parents independently and let Tippi Toes use their facility for the classes.

Robert inquired about their profits and the money they have made to date. Sarah explained that they made $268,000 last year and the profit they were making was $29,000. He further asked that if $30,000 has to be paid for the franchise and where do people get that money from.

Sarah mentioned that a lot of their business within the organization is based upon financing the dance classes for the institutes. They make money from the interest they receive, because now the schools owe them $30,000, which they haven’t yet funded. Kevin was really impressed with their Shark-like techniques of making money and invited them to leave their dance company and come and work with him at O‘Leary.

Kevin asked what was so proprietary about their business. He was blown away because they already had a quarter of a million dollars in sales. Mark pointed out that hard work and passion can make anyone have a real business.

He asked them about the ongoing royalty gained from the franchisee. Sarah told him that the minimum limit to the royalty payment each month is approximately $1000.

The Sharks wanted to know why they wanted the $30,000 investment for only 5% equity. Megan said that if they want to negotiate then they should go for it. They already had CDs for Tippi Tunes but now they wanted to make DVDs as well. Mark did not understand why they would spend money on making DVDs when they are not even necessary. The sisters replied that it was because they wanted to build a brand. Their big dream was to be the next big vison like Barney.

Kevin thought they were amazing because they were selling nothing except smiley faces for such a high price. Mark chimed in and said if they will keep on going with that pace, one day they can give Kevin a job.

Daymond said that the company doesn’t need him but said that they were great extortionists. Then he went out.

Robert observed that they don’t need to take a leap ahead of time with the DVD business. Businesses take time to grow. He went out.

Kevin offered them $50,000 for 51% equity in their business. Mark agreed that 5% is indeed a small portion of share even in a business that is growing.

Barbara thought that what the women could do was limitless, but still, 5% was not an exciting offer. She asked for 20% of their business.

Mark advised them that before they come back to him with an offer, they must know if he says yes to their offer, they will have a locked deal. Otherwise, they would have to go with Barbara’s offer since he was not going to have negotiations. Sarah asked for $100,000 for 30% equity. Mark immediately agrees to that and the two women leave the show giddy with excitement.

Our Review of Tippi Toes

Tippi Toes Dance Company lets the schools or daycares provide them their facility where they can give fun and kid-friendly activities to their students. The dance classes make a lasting impact on children as they provide individual growth for every kid with a creative and nurturing environment, which develops a sense of confidence and increases the self-esteem of every child.

Pros of Tippi Toes

  • The Tippi Toes dance classes allow the children to stay at their familiar school location but also allow them to receive extra dance classes
  • The healthy and positive dances promote self-confidence, critical and creative skills, and body awareness among children.

Cons of Tippi Toes

  • The cost for the program along with the monthly royalty is a particularly big amount to pay.

Who Is Tippi Toes For?

Tippi Toes is a perfect dance company for those parents who want their kids to stay at the same facility where they have been receiving education, to make sure that the location is convenient and safe for them. It also makes sure that they don’t have to pay for 2 different locations and outsource dance classes for their kids

Are There Any Alternatives?

A lot of other people have tried to copy their business by making up random company names, but they don’t have the passion and drive that the sisters have to deal with kids and do well for them.

Our Final Thoughts

Sarah and Megan came to the show with a genius concept and a passion to support it. It took the Sharks a bit of time to properly understand how their system works, but when they did, they were immensely impressed with their business etiquette and techniques. No wonder Mark Cuban was so eager to make a deal with them and accepted their counter-offer without even blinking an eye.