Kuadey originally believed that he would do well to help individuals start their businesses in America. People who choose to save money by shopping at their favorite stores can also obtain a little more for their money. People who wish to sell gift cards for cash can put them on the internet for a much cheaper price. Kuadey wanted to start a business to help people sell and buy gift cards online. Kwame Kuadey was inspired to start Gift Card Rescue when he talked to a friend about having many gift cards he wanted to sell for cash.Īfter a pleasant telephone conversation, the idea for Gift Card Rescue was born. Kwame Kuadey, a man from Ghana, traveled to the United States to start a company that would help people sell their gift cards to others for cash. The young man spent his early years in a rural village without running water or electricity in West Africa. As of July, 2021, those complaints appear to have been resolved.Shark Tank episode 104 aired Kwame Kuadey’s Gift Card Rescue, founded in 1989. At the time, the Baltimore Better Business Bureau had 3oo complaints. Apparently, a lender won a loan default judgement and froze the company bank account, forcing the shutdown. The next year, in July, 2016, he shuttered the company. My goal is to invest in growing the business, so that measure is not something we are too concerned about.” “Is it profitable? We were last year, and this year we think we still will be, but profitability is not something I sink my teeth into at this point. When asked about the profitability of his company, he responded Kuadey’s confidence, determination, and cool-headed business sense are carrying him forward. In 2012, the company cleared $6 million in sales, and in 2013, that number increased to over $10 million, making Gift Card Rescue one of the most successful businesses ever to appear on Shark Tank. Kuadey’s work ethic and determination carried him forward. With the deal with Amazon on the table, and the publicity he received from being on the show, he felt that giving up a 50% share in his company was just too great a sacrifice. Ultimately, Kuadey decided to turn down the deal from Robert and Kevin. Robert Herjavec speaks up, and offers to join O’Leary, adding an additional $50,000 for 50% of the business. Kuadey responds with a counter-offer of his own, offering 40%. He’ll give Kuadey the $150,000, but he wants 50% of the business. Kevin O’Leary is intrigued, but makes a counter offer. Kuadey responds with strong answers, stating his business’ value rests upon the capital investment, the potential partnership with Amazon, and his own management skills.ĭaymond John, Barbara Corcoran, and Mark Cuban all turn down the deal.
Robert Herjavec asks pointed questions about the value of the business. Without the influx of cash, he will not be able to continue his start-up. For 30% of Gift Card Rescue, he is seeking an $150,000 investment. Kuadey comes into the Shark Tank with a request.
He’s done extensive legwork, discovering which cards would sell, and which would not, and had confirmed interest from in partnering with his business. The premise of his business is simple: Acquire the cards from customers wishing to cash them in for 65-70% of their face value, then resell them for 90% of their face value. While his sales are reaching $120,000 a year, his profits could increase if he had the capital to grow. He’s been operating out of his home, with his wife helping to support his efforts. Gift Card Rescue has grown to the limits of his personal resources. Kuadey is facing a problem common to start-up companies. He came up with a solution to this problem, and with some hard work and investments from personal funds, credit cards, and loans, Gift Card Rescue was born. Over 8 billion dollars worth of gift cards go unclaimed each year. Kuadey realized that his friend’s problem is a common complaint. A friend mentioned that he had several gift cards that he’d never use. While he was studying for his MBA at John Hopkins University, he found inspiration in a most unlikely place. His chance arose when he came to the United States to attend college. He remembers doing homework by kerosene lantern, dreaming of bettering his life. The small West African village where he spent his early childhood had no running water or electricity. Kwame Kuadey came a long way to pitch Gift Card Rescue in Shark Tank episode 104.
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