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Shark Tank is a reality show about entrepreneurs pitching their business ideas to investors. It offers viewers a crash course on what works and what doesn’t when making your pitch. This series has been successful with 11 seasons in the US and numerous international spin-offs. Why are we learning about the shark tank here? As it is an entrepreneur’s reality show, we get to understand the real-life problems that entrepreneurs face and some real solution to deal with it. We can understand and note down some important lesson to apply in our very own journey.
The Sharks or angel investors are well known and successful business leaders who offer capital and priceless guidance to startups. A sought-after swim in the shark tank is a great opportunity for owners to enhance their business model. Viewers get direct insights into what to do and more importantly, what not to do while pitching your ideas to investors. Sharks have included sports entrepreneur Mark Cuban property mogul Barbara Corcoran and Kevin O’Leary and Daymond John Plus guest appearances by Richard Branson of virgin and Sara Blakely from spanks
Let’s head into the depths and learn some Real business lessons from the Sharks,
Number 1 – Know How low will you go in a Negotiation
The Sharks didn’t get to the top of the business game by being generous. They are ruthless and will take opportunities at the lowest possible price. Several episodes have shown just how fast they start circling when they see blood in the water. One entrepreneur was presented with the choice of several offers from multiple sharks, she couldn’t make an immediate decision; during this time the Sharks did some of their own thinking and chatted amongst themselves. When she came back from the break, the Sharks offered her lower deals than the original. Had the entrepreneur done her math beforehand, she would have known exactly what she could and couldn’t accept without hesitation.
So what do we understand here? before heading into any negotiation be certain to know your best and worst-case figures. Have your head around the different ways, figures and percentages could be presented so you are not caught out of your depth.
Number 2 – Learn Whom you are meeting, do your Home Work!
You should learn everything about a potential investor, then you will know when to hold and when to fold. Yes, do the Right research, understand the person and analyze, what is least he can offer you. Meeting investor or anybody without your homework is waste of time.
Number 3 – Get In And Out With Your Pitch
With bloodthirsty impatient sharks circling you, you’ll not have a lot of time to get your message across in the tank. Entrepreneurs who aren’t able to get their product or service offering across in ten seconds would rarely catch the attention of the Sharks. Reduce what your business does to ten seconds or less. If you can’t sum it up then perhaps you aren’t clear on exactly what you want to do. If this sounds gibberish to you, Investors have bigger fishes to fry and aren’t interested in hearing you waffle about until you finally make a point. Grab their attention; make an impact and get your message across. If they are interested they will ask for details; if not, you haven’t given away your idea or wasted too much time.
Isn’t it what has happened with you too? You just wasted the time without conveying the actual point! Hence know what you have to speak. Keep it Short enough to catch the attention.
Number 4 – Know Your Own Story
If the idea of summarizing what your business does in ten seconds seems impossible. Then you might be looking at your product or service in the wrong way. From Elon Musk to Jeff Bezos, the world is full of business leaders who will give you the same advice. Be sure if your product solves a real problem, do people really want a vacuum cleaner that whistles? does the world really need a dedicated kitchen appliance for how to butter your toast?
My Friend, when you see a real-life problem and are able to solve it, then you have a great business in your hands. Sharks or any investors you meet are interested in how big the problem is! This shows the market size. How many people are struggling to butter their toast with a knife or is this a completely new market that will create a new buttery toast consumer? these are the figures they will be considering and using to value your business potential. Now that you understand this it is time to put your story together in simple terms that show the need and how you fulfil it.
Number 5 Know Your Numbers
On top of knowing how low you can go, you need to show that you understand! how you came to those amounts. how is your company valued what is the return for an investor and how soon all of these are regular questions any business owners should be able to answer about their venture. if you are going to quote a number be sure you can unpack it and back it up with a hard fact.
Many entrepreneurs fail when asked about the most fundamental questions about their business and when this happens with an investor here is good as a shark attack. losing an investor isn’t only about letting the money swim away there’s another way an investor can add to your bottom line stick around to find out
Number 6 An Advisor Is Far More Valuable Than An Investor
Many people enter the shark tank or we might be one of them? at times we are just looking for financing. we don’t think beyond the benefit of having some of the leading Investors and business advisors. this is far more valuable than the money they bring to the table. You need to be smart enough to onboard the investors who are a good adviser that can help you to leverage his own network of contacts.
Well-connected investor on your advisory board is an invaluable advantage to new businesses even if you have to settle for less cash upfront the long-term payoff could be worth it
Number 7 Make A Good Presentation
Don’t underestimate your presentation. entrepreneurs Should never undervalue the Power Of Presentation. After you left the meeting it’s going to be your presentation Talking about you.
Number 8 Listening Is The Best Way To Learn
Here in the show, the Sharks don’t hold back on their commentary and advice even if they aren’t biting they will circle back around with some great wisdom for entrepreneurs. This we face too when we go for the meeting we should listen to feedback or criticism! That’s the best way to find out what you lack at or what you need to improve. This applies to future success. Often entrepreneurs stopped listening when they hear rejection but the pearls of wisdom that follow after an investor turns you down are often the most valuable feedback notes to ensure your next pitch is a success if you wanted their investment you must have considered them noteworthy, to begin with, so hear their advice as well.
Number 9 Be The Type Of Person An Investor Wants
Investors are looking at the people behind the ideas. they are always more excited about people who have likeable personalities and are passionate about their business. be sure that despite the nerves you get this across in a business presentation. If you can’t master the gusto yourself then perhaps it’s time to consider a business partner who can fulfil this role for you. Ah huh! Think about it.
Number 10 Be Prepared To Put Your Money
Investors want to know you’ve sunk some of your finances into your venture and are hungry to get a return showing you have vested financial interest gives an investor a sense of security that you won’t give up at the first sign of disaster it shows commitment and just imagine someone asking you to invest in their business if they aren’t willing to put any money on the line themselves it wouldn’t seem like a very sound investment would it the bottom line is…don’t ask for money if you haven’t invested yours first
Number 11 Become Your Own And Number One Salesperson
If you can’t sell your product then it will never see the light of day even if you aren’t selling to your customer directly you will have to sell your ideas and yourself to everyone else your investor’s bankers and your own team
Number 12 Protect Your Idea With Legal Measures
Entrepreneur are often quizzed about how they have protected their idea and how they’ll prevent competitor knock-offs many people are scared of entering the patent game but before you start announcing your ideas to investors with their own money it’s best to protect your idea a patent is a valuable asset in the company and if done correctly can be a great investment
Number 13 Stroke The Ego Don’t Knock It
many shark tank conversations have sunk fast when the entrepreneur became defensive at the slightest hint of criticism at that moment when your business is challenged it’s easy to get your back up and give a snappy retort instead take a pause perhaps it’s some sound advice if the investor has totally missed the mark try not to prove them totally wrong but bring them around to your point of view with phrases like what about looking at it from this perspective investors often have big egos so make sure to stroke them just a little.
With this we came to an end, I hope you like these lessons which is Inspired from Tv show Shark Tank. Let us know what you think!