Many families have secret recipes that are passed down from generation to generation. When Kim Nelson’s great-aunt taught her how to bake delicious cakes, she turned it into a business called Daisy Cakes. Kim managed to strike a deal with Barabara Corcoran, who is very picky about investments. As of 2024, Daisy Cakes is valued at $3 million.
Kim Nelson’s Background
Kim Nelson grew up in Pauling, South Carolina, in a family with a long culinary history. In 1980, she attended Wofford College in Spartanburg, graduating in 1984 with a bachelor’s degree in history.
Her family’s long tradition began with the “Southern Misses,” a group of talented bakers who served as the primary cooks for the family, using only farm-fresh ingredients for all of their dishes.
Although the ladies knew the recipes by heart, they wrote them down so that future generations could use them. Their unique techniques were often passed down from grandmother to grandmother.
Founded Daisy Cake
When it was Kim’s turn to learn the family secrets, she didn’t waste the opportunity. Her great aunt Daisy taught her the tricks of the trade, and in 2009 she opened her own bakery, Daisy Cakes.
She reportedly started the business with $93,000 borrowed from her parents. Kim makes all of her cakes herself. The South Carolina native is responsible for the ingredients, cooking, packaging, and marketing.
She sells cakes online through her website, ILoveDaisyCakes.com. Although Kim only cooks in her own kitchen, she ships her cakes across the country with the help of dry ice packaging. The baking entrepreneur sold 2,000 cakes per year in her first two years.
Shark Tank Appearance
In 2012, Kim Nelson appeared on the second season of Shark Tank, asking for $50,000 in exchange for 25% of her startup. Her business wasn’t revolutionary by any means, but the founder thought her cake tasted good enough to seal the deal.
The sharks ate up the last bit, willing to be customers but not willing to invest, pointing out that it takes a lot of work to turn a small business into a big brand. So, they all quit.
The final shark was Barbara Corcoran, the only one who saw the potential in Daisy Cakes. Barbara offered $50,000 in exchange for 25% equity and $1 in royalties per cake. Nelson accepted the offer, even though he had to pay royalties.
After Shark Tank
The day after her show aired on national television, Kim sold 2,000 cupcakes in a single weekend! That was good for her business, but not for her health. So the businesswoman made a change.
To expand her operations, Kim opened larger bakeries in New York, Tennessee, and Georgia. This helped her earn $100,000 in revenue per month. However, due to contract issues, the company suffered a loss of $165,000.
As a result, production was moved back to South Carolina. In 2019, the cake business regained its footing and opened another factory in California. As of November 2021, Daisy Cakes has an annual revenue of $4 million and a valuation of $3 million.
Categories: Shark Tank
Source: svlsf.edu.vn