How wrong decisions lead to the downfall of Eco Flower business

The idea of Eco Flowers was pitched first in the year 2016. Megan Bowman pitched her business’s idea to the investors of her long-time favorite show shark tank. Eco flower was a brilliant idea. The idea was simple, yet its effects would have been enormous. They aimed at manufacturing and producing fake flowers from materials like wood, plastic, etc. These flowers were used for decorations or were used on various occasions when presented differently. This idea was an example of how something beautiful and useful can be created from waste.

The idea of Eco Flower Shark Tank was revolutionary, but not everything gets a happy ending. The business could’ve been phenomenal if the management was a bit better. 

Megan had high hopes when she planned on signing a deal with the investors of the Shark Tank. She offered them 10% of the company’s equity in exchange for $400,000. At that time she had only 25% of the company’s shares, which raised a cloud of concern on the minds of a few of the investors. But Megan was confident that the Eco Flower Shark Tank would be a great idea.

The investors had some other doubts too in their minds, as they thought that real flowers have a more emotional value than the fake ones, but once they heard that the company had made a $2.8M within a year and a half, and a $100,000 before the episode even aired. 

For Megan, it was a great opportunity to take her business to the next level, as with a mere investment of $4000, the company drove $100,000 in sales, and now they had a deal of $400,000. Megan even got a better offer from the producers, the same amount of money for only 20% of the business. Eventually, she penned down the deal. Great things were ahead of her and her dream of EcoFlower Shark Tank. The episode aired on the scheduled date and everyone was quite happy with the outcome. Little did they know what a devastating storm was coming for them. 

Then the storm appeared in the name of John Allard, who was appointed as the CEO of the company by one of the investors of the show. At first, even Megan thought that it would be great for the business if John joins the firm, but that was the beginning of the end. Even in an interview, Megan revealed that this decision led to the demise of a prosperous company and she would gladly take back that decision if only she could. 

Upon his arrival, John convinced the investors that he was the future of the company. He convinced them that he alone was the key if they want to take the business to a new level, and Megan was cordoned off and was considered as a deadweight who was also emotionally unstable. Things started to worsen when her original business partner Alex Ledoux left the business due to personal reasons. After Alex’s departure, the shares under Megan increased from 20% to 33%, but the investors had a whopping 64% making them the majority shareholders. Eco Flower Shark Tank was almost dead by then. The last nail in the coffin was the departure of Megan herself.

After this downfall, the company faced various problems. They started to fall behind on orders, receive negative comments and reviews and eventually started to misbehave with the employees. It was not long before the gates were closed and the company was forced to shut down. The most important lesson that could be learned from Eco Flower is that as starters, one should never sell out most of the company’s shares, and should always try to keep the company under their control.