Prep Expert: How Shaan Patel Scored a Deal with Mark Cuban on Shark Tank
Shaan Patel, a driven student who grew up in his family’s low-budget hotel in Las Vegas, turned his perfect SAT score into a thriving business. He pitched his SAT test prep course, initially named 2400 Expert, on Shark Tank episode 716, demonstrating his intelligence and business acumen to the Sharks. This article delves into Patel's journey, his appearance on Shark Tank, the deal he secured, and the subsequent success of his company, now known as Prep Expert.
From Imperfect Schools to Perfect Scores
Patel didn’t have the advantage of attending elite schools. He attended public schools in Las Vegas, a city known for its poorly rated school system, characterized by high dropout rates, teacher turnover, poor student performance, and even gang activity in some schools. Determined to overcome these obstacles, Patel developed his own methodology to boost his SAT scores. His hard work paid off when he achieved a perfect score of 2400.
His perfect score garnered media attention and even led to a meeting with President Bush in 2007. It also opened the door for him to create and grow an SAT test prep course, which eventually led him to the Shark Tank.
Entering the Shark Tank
Shaan entered the Shark Tank, seeking $250,000 for 10% of his business. He emphasized his unique achievement, stating that he was one of only 3,000 students out of 1.4 million who achieved a perfect SAT score. He explained that his initial six-week course was taught in person in Las Vegas and that he was transitioning to online teaching. His company had generated $1.2 million in sales over four years, with $600,000 in the last year. The in-person course was priced at $199, and students saw an average score improvement of 350 points after taking the course.
Navigating the Sharks' Questions
The Sharks, known for their sharp questioning, grilled Shaan on various aspects of his business. Mr. Wonderful, Kevin O'Leary, inquired about customer acquisition costs, but Shaan's answer was not convincing. Shaan explained that he needed the money to open new markets, identifying parents as the primary customers.
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Daymond John, already involved in the online education space, decided to opt out. Lori Greiner questioned Shaan's career aspirations, asking if he wanted to be a doctor or an entrepreneur, to which Shaan replied that he had always wanted to be a doctor.
Kevin O'Leary expressed concern that Shaan could not be a part-time entrepreneur. Shaan clarified that he was taking an extended summer break from school to focus on the business and was open to licensing opportunities. Lori liked the electronic classes but ultimately decided not to invest. Robert Herjavec felt that Shaan was not fully committed to the business and also went out.
Mark Cuban's Investment
Mark Cuban inquired about Shaan's long-term vision, asking where he saw himself in ten years. Impressed by Shaan's work ethic and the potential of his business, Mark offered $250,000 for 20% of the company. Shaan countered with $250,000 for 15%, but Mark stood firm, and Shaan ultimately accepted the deal.
Mark Cuban's investment in Shaan's business stemmed from his belief in education. This decision proved to be a lucrative one, further enriching Cuban's portfolio.
The Impact of Shark Tank and the Evolution of Prep Expert
Since appearing on Shark Tank, 2400 Expert has rebranded to Prep Expert and experienced significant growth. The company's revenue quadrupled to over $4 million. In 2016, Shaan launched a Kickstarter campaign for a book he co-authored with Mark Cuban and a 16-year-old entrepreneur, Ian McCue.
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Shaan has also benefited from his partnership with Mark Cuban, who emphasized the importance of effort. Prep Expert received an update segment in season 8, episode 1, revealing an expanded business model. Shaan made a second update appearance in season 11, episode 1104, alongside Mark Cuban and the founders of ChangEd, discussing student debt with students in Las Vegas.
Since his appearance on the show, Shaan completed his MBA and earned a medical degree from the University of Southern California.
Prep Expert's Offerings
Prep Expert offers a variety of resources to help students prepare for the SAT, including books, online courses, and in-person classes in major cities. The company also provides private tutoring and weekend review camps. Shaan certifies his instructors, who must achieve high scores on the SAT or ACT to be considered for employment.
The Enduring Relevance of SAT Prep
Despite criticisms of standardized testing, the SAT test prep industry remains relevant. Many parents are willing to invest in resources that give their children a competitive advantage. Shaan Patel's perfect score serves as a powerful testament to the effectiveness of his company's methods, giving Prep Expert a significant edge over competitors.
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tags: #SAT #test #prep #Shark #Tank
