A college dropout turned his $200 investment into a potential $4 million business.

In 2019, Kobe Harris launched his lip balm company from his bedroom floor, but he didn't necessarily plan to abandon his college studies.

On Friday's episode of ABC's "Shark Tank," Harris revealed that he sold $15,000 worth of lip balm in one day and decided to take a risk.

Kobee's, a Las Vegas-based company founded by Harris, offers a range of lip balms, lotion, lip scrub, cuticle butter, and hand salve made with four natural ingredients: beeswax, coconut oil, sunflower oil, and mango butter. These products are packaged in compostable materials and are priced between $5 and $42, as stated on the company's website.

Harris experimented with lip balm formulas on his bedroom floor at home while working a summer lifeguarding job. He purchased the ingredients with $200 he asked his mom for, while conducting research on sustainability and bees for one of his professors at Loyola University Chicago.

DON'T MISS: The ultimate guide to earning passive income online

"I was making lip balms in the basement instead of attending classes online, and when the school year started again, I decided to drop out and focus on my business full-time," Harris said.

At the time of the show's taping, Kobee's was a profitable startup, with sales of nearly $4 million and profit of roughly $750,000. The company primarily sells its products on Amazon and its direct-to-consumer website.

CNBC Make It did not receive an immediate response from Harris when they requested updated financials. During "Shark Tank," he requested a $300,000 investment in exchange for 6% of his company, stating that he needed mentorship and assistance with product distribution.

Lori Grenier, Daymond John, and Mark Cuban all said the investment wasn't right for them, while guest panelist Kendra Scott admitted she didn't know how to help the company.

Kevin O'Leary proposed a $300,000 investment and connections with retailers for a 20% equity stake in Kobee. Harris countered with 10%, and O'Leary countered with 15%.

The negotiation fell through after Harris responded, "I won't do that."

Harris' mom, a successful business owner, advised him to trust his gut when he wanted to drop out of college to make lip balm, a common lesson from CEOs and career experts.

"I know my business better than anybody," said Harris.

To earn extra money online, sign up for CNBC's course on passive income streams, starting tips, and real-life success stories.

Sign up for CNBC Make It's newsletter to receive expert advice on work, money, and life.