The popular TV series, Shark Tank, where entrepreneurs present their companies before a panel of wealthy investors, has stopped being entertainment and has become a game-changer in terms of small-town businesses. The mark of a local business securing a deal (or even just being featured on the show) can be felt even in entire communities.
This effect was termed the so-called Shark Tank Effect, and in turn, it has given struggling startups household names, as well as rejuvenated certain local economies.
In this article, we’ll explore how a cameo on this TV show can transform small towns, why even rejected businesses sometimes thrive, and what this means for future entrepreneurs, who might want to start saving from their casino online earnings and pitch a big marketing idea of their own one day!
What Is the Shark Tank Effect?
The Shark Tank Effect refers to the sudden boost in sales, brand recognition, and economic activity that follows a business’s appearance on the show. Whether a company secures a deal or not, the national exposure often leads to:
- Skyrocketing Sales – Many companies have reported a 500% or higher increase in revenue after airing.
- Job Creation – Rapid growth means hiring more employees. Usually, this is from the local residents.
- Tourism and Media Attention – Some towns become mini-destinations as fans visit the places they saw on TV.
Success Stories
1. The “Scrub Daddy” Boom (Chester County, PA)
One of the most famous Shark Tank success stories is Scrub Daddy, the smiley-faced sponge that changes texture based on water temperature. After Lori Greiner invested, sales exploded… surpassing $200 million.
- Local Impact: The company expanded its factory in Chester County, creating hundreds of jobs.
- Spin-Off Benefits: Nearby businesses, like packaging suppliers, also saw increased demand.
2. Cousins Maine Lobster (Portland, ME → National Franchise)
This food truck business landed a deal with Barbara Corcoran and grew into a franchise with locations across the U.S.
- Local Impact: Their success brought attention to Maine’s lobster industry. It boosted demand for local fishermen.
- Community Growth: Each new truck location created jobs and supported regional seafood suppliers.
3. The “Bombas” Sock Phenomenon (New York, NY → Nationwide)
Bombas, a sock company with a “buy one, give one” model, secured a deal with Daymond John.
- Local Impact: Their expansion led to warehouse openings in multiple states, providing steady jobs.
- Charitable Ripple Effect: Their donation program also supported homeless shelters nationwide.
Why Even “Rejected” Ideas Could Win Big
Although not every pitch ends with a deal, many rejected firms still thrive, and here’s why:
1. Free Advertising
A few minutes on national TV can equal millions in free marketing, so even if the Sharks say no, customers often seek out the product out of curiosity.
Example: The Bouqs Company (flower delivery) was rejected but saw a 3,000% sales increase after airing.
2. Community Support
When a hometown business appears on the show, locals often rally behind them, leading to:
- Crowdfunding surges
- Local media coverage
- Increased foot traffic
Example: Grace & Lace (a clothing brand) didn’t get a deal, but later expanded into major retailers like Nordstrom.
How Small Towns Can Prepare for this Effect
If a local business lands on Shark Tank, towns should be ready to capitalise on the momentum by:
1. Boosting Infrastructure
- Manufacturing: Can local factories handle a sudden surge in orders?
- Workforce: Are there enough skilled workers to fill new jobs?
2. Leveraging Opportunities
- Create “Shark Tank Trail” Maps – Highlight local enterprises that appeared on the show.
- Host Events – Meet-and-greets or product launches can draw visitors.
3. Supporting Other Local Businesses
A rising tide lifts all boats, like nearby suppliers, retailers, and even service providers can benefit if they align with a growing brand.
