By: Elizabeth Francois,
Writer and Clothing Designer
Twitter: @elizfrancois
Sarah Schulz’ pitch was painful to watch. She’s the founder, baker, and mastermind behind Schulzies Bread Pudding. Despite her enthusiasm and passion for her product, her lack of preparedness and lack of knowledge of the facts and figures of her business was her downfall. She was seeking an investment of $160,000 for a 20% equity stake. She had invested $300,000 of an inheritance from her father to grow her company to its present state.
Writer and Clothing Designer
Twitter: @elizfrancois
Facebook: Elizabeth's Note Book
Sarah Schulz’ pitch was painful to watch. She’s the founder, baker, and mastermind behind Schulzies Bread Pudding. Despite her enthusiasm and passion for her product, her lack of preparedness and lack of knowledge of the facts and figures of her business was her downfall. She was seeking an investment of $160,000 for a 20% equity stake. She had invested $300,000 of an inheritance from her father to grow her company to its present state.
Walking confidently down the hall she stood before the panel members and rallied them with an enthusiastic “Are you guys ready for something good? Are you guys ready for something new?” Her introduction was catchy and from there she should have gone into further details about Schulzies Bread Pudding. An assistant to pass out the bread pudding samples would have left her free to focus her attention on her pitch.
The Sharks were clearly impressed with the samples they received and complemented her on the delicious desert. When Kevin asked how many calories were in a cup, Sarah countered with a joke about her baby bump and “you won’t look like this if you keep eating bread pudding”. In a climate where consumers are very health conscious, a good selling point for her product would have been if she knew how many calories per ounce were in a cup of bread pudding.
Sarah did manage to tell about her first location, a “little window” on Venice beach, which did well for one and a half years. She recently did an asset purchase agreement to let someone else run the business, so she could pursue her vision of a bread pudding parlor in San Francisco; to which Barbara responded with “you ran away from your business!” As she continued on about her dream of a bread pudding parlor, Kevin interrupted to inquire about the “little window” in Venice. Kevin did the math and was actually impressed with the figures. The previous year, the 140 square-foot space made $190,000 in sales, which is $1,300 per square-foot. However, he was not impressed with the new 800 square-foot space in San Francisco that only generated $450 per square-foot in sales. At that rate, the company would make no money when overhead and fixed expenses are taken into consideration.
When asked how she ended up in San Francisco, her answer did not clarify why she moved from a financially lucrative location to one that was not doing so well. It was evident that not much thought was put into this decision. Sarah then admitted that she didn't do any marketing, so potential customers really didn't know the store existed. A simple cost comparison of the old location and the new location would have clearly shown that opening up the store in San Francisco would not be a financially lucrative decision. When asked how much she spent and where she got the money from, the Shark Tank gasped in disbelief – she’d received a $300,000 inheritance from her father’s estate and spent every last dime of it. Something tells me the poor man is rolling over in his grave now.
Continuing on passionately about the bread pudding parlor in San Francisco, Sarah Schulz held up a mock-up of the store, to which Mark quipped in “so you’re a yogurt store for bread pudding”, basically deflating the whole presentation.
Despite Sarah’s enthusiasm as “an entrepreneur that has ideas”, the Shark Tank was “out” for the count on Schulzies Bread Pudding. Her poor presentation and lack of a business plan all contributed the Sharks passing on this venture.

Lori quoted Ralph Waldo Emerson “Don’t go where the path may lead, go instead where there is no path and leave a trail.” Sarah had a great idea however she didn't see her as “being there” yet.
Finally, the book “Write It Down, Make It Happen” by Henriette Anne Klauser would also benefit Sarah. When you have a goal you must also have a clear-cut plan on how to achieve it. If she had marched into the Shark Tank and passed out copies of her business plan or even just a cost sheet, I am sure that all of the Sharks would have been very impressed. Going forward, do your homework. Because, as Benjamin Franklin so famously phrased it, “by failing to prepare, you’re preparing to fail”.
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