Michael Schiavone is the founder of Caffeindicator. This is a coffee testing system that lets users know whether their order is a decade. In short, it is a litmus-like (water-soluble) tester Incorporated into sweetener or sugar packets. The sweetener turns its color in the presence of caffeine.
I am a native of Mount Joy, Pennsylvania. I stopped for a late-night cup of coffee while on a work trip with my wife. That is when the Caffeindicator idea came into my mind. I ordered a cup of coffee, but I requested the decaf to have asleep. But, the barista offered me a cup of ordinary coffee, which kept me up all night. I reasoned that this had to happen all the time, people ordering decaf but receiving normal coffee instead.
I needed an investor to assist my product in becoming a proprietary element of its packaging. This is by allowing one or more sweetener firms to dominate the market on sales to caffeine-averse customers.
I went to the Shark Tank show seeking a $200,000 investment in exchange for a 25% equity in my business. That was worth $800,000. I noted that people do not desire coffee owing to medical issues. Even customers who do not use sweeteners will try the packets. This is because they are “dynamic, intriguing and pleasant to share.” I intend to take a $500,000 market share and grow it to $1 billion. I told the shark market share on a global scale is what we are leveraging.
The Sharks wanted to know if I had contacted sweetener firms with my proposal before, which I haven’t. This assured them a chance to “open the door” to the discussion. I told them about the manufacturing cost. When the packets are produced in bulk, the manufacturing costs reduce drastically. Also, the testing strip will increase the cost of making the packets by “fractions of cents.”
Kevin O’Leary thinks that selling the product is contingent on the “big five” in the sweetener sector. This got him into the concept that the product would greatly improve its sales. I agreed but added that it is also possible that one of the corporations may acquire it to “bury it.” This will help to prevent competitors from acquiring the technology.
Robert Herjavec expresses an interest in the business. He makes an offer of $200,000 in exchange for 60% equity and a deal with a sweetener firm. Kevin offers $200,000 for 50% stock shares with the same condition. I accepted Kevin’s offer though the deal was never finalized.
To a young Michael Schiavone, creating a business starts with an idea. This is followed by hours of research and reaching out to individuals that can help. Constant innovation is always the key. Of course, you may have created the business with a very different vision in mind. You should keep up with the market needs and demand. This is for making sure that you achieve the much sought-after product-market fit.
Also, you should always have funds in place. This will help to manage unexpected expenses and manage day-to-day operations. Unfortunately, most entrepreneurs fall into starting a business without a real understanding of the financial aspect involved. But, you should also know if you don’t keep track of your finances, you may struggle and make rash decisions.
The Caffeindicator is based in Mount Joy, Pennsylvania. The Caffeindicator packets are innocuous to humans and animals and safe for consumption. The product is like a litmus test that is in the home to test for alkalinity or acidity (pH) of water or other liquids.
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