'Shark Tank' contestant rejects Barbara Corcoran's offer making her slump on her chair in disbelief

Corcoran was confident that the entrepreneur would take her deal but that was not the case.

PUBLISHED 2 HOURS AGO

Screenshots showing Barbara Corcoran and the entrepreneur on "Shark Tank" (Cover Image Source: YouTube | Shark Tank Global)

Barbara Corcoran is known for her business acumen, and it has landed her a seat on "Shark Tank" history. Usually, people wouldn't expect entrepreneurs to reject deals from an investor like her. However, that is exactly what one founder did, and Corcoran just sank into her chair out of pure disbelief that her deal was not accepted. The entrepreneur instead chose to make a deal with Lori Greiner, which some believed was not the right decision.

The entrepreneur was Sam Stephens, and she sought $500,000 for a 20% stake in her company, Oatmeals. Stephens’s business is a cafe in New York that specializes in various types of oatmeal dishes, breaking the notion that it is a food item only meant for breakfast.

Screenshot showing the various ingredients used. (Image credit: YouTube | Shark Tank Global) — Screenshot showing the various ingredients used. (Image source: YouTube | Shark Tank Global)

Stephens had numerous oatmeal preparations, including ones that come with eggs, bacon, berries, yogurt, truffles, and several other ingredients. The sharks had never seen oatmeal being made this way and were highly impressed. The company had been in business for six years at the time of taping and had recorded sales of $2.5 million.

The reason she wanted a shark on board was to expand her business, first to different parts of New York and then to the entire country over time. However, such an ambitious goal comes with a lot of hurdles, the biggest one being money. Kevin O’Leary was the first to ask about her profits, and he was left disappointed. The company had made a gross profit of $470,000 in the year prior.

Screenshot showing Kevin O'Leary. (Image credit: YouTube | Shark Tank Global) — Screenshot showing Kevin O'Leary. (Image source: YouTube | Shark Tank Global)

However, net profit was only $45,000, after the entrepreneur paid herself a nominal wage of $40,000. For a 380 square foot store in New York, these were not the best margins. Mr. Wonderful did not believe that Stephens's business was worth the valuation that she had asked for. Daymond John also followed suit and backed out.

But all was not lost as Greiner seemed interested in working with Stephens. However, she wanted to take it from a cafe business to a retail business, selling packaged food in the big stores. She said that she’d give her the $500,000, but wanted to be a third partner, contingent on a packaged food deal. Barbara Corcoran had a different idea.

Screenshot showing the sharks. (Image credit: YouTube | Shark Tank Global)

She believed that food carts were the way to go for this business, selling outside workplaces and events, rather than going retail. She offered $500,000 for 50% of just the cart business, not the cafe. These were both decent offers, and the entrepreneur might have been a bit overwhelmed. Ultimately, she chose Greiner's offer.

Corcoran could not believe what had just happened, and she slumped onto her chair with her hands in the air. “I am shocked,” she said, before adding, “Worst news of all, she wasn’t smart.”