Business and Investing Lessons Learned From Shark Tank
I started watching shark tank and I must say that I fell in love with it and leant a few lessons from it. You could also watch the entrepreneurial reality seasons and I am sure you will find it interesting and worth the time.
What is Shark Tank?
Shark tank is a reality show of prospective entrepreneur, entrepreneurs, and startup business people pitching their businesses and ideas to angel investors. The angel investors in shark tank are well knows business moguls, leaders and investors who offer capitals and guidance for a particular percentage of the business ownership in the private company. Shark tank has done 11 seasons in the United States and in other countries like Australia and many more.
Shark Tank Lessons
Negotiation
The sharks in this reality show are ruthless and can take on any high percentage of ownership in a company. They are ready to tear down a body when they small blood in the ocean (That’s why they are sharks). You must be able to negotiate properly and the sharks in Shark tank are willing to negotiate for bigger part of the business.
Be a Sales Person
One thing you must be able to do with the sharks in shark tank is prove you are a good sales person. You must be able to sell your product to anyone as well as your idea. If you are not a good sales person, then it is possible that the sharks won’t invest in your business. Being able to sell is what the investors are interested in.
Make Sure Your Idea has a patent
The Sharks often ask if the idea has a patent because they do not want to invest in a business where they have immediate competition. More so, it is important to always have legal security for your idea before sharing it with an investor that has the financial capability.
Pitch your Idea in 10 seconds
You are not the only one in the tank, and the sharks are blood thirsty and hungry for more investment offers so you might not have all the time in the world to pitch your idea to them. The ability to do this in 10 seconds is what gets their attention and if you can’t get their attention in 10 seconds, then I can say that you might not get a deal.
Let your Business Solve a Major Problem
In simple terms, if your business does not have a market, then you are not for the sharks. Investors in shark tank are interested in the problem the business is going to solve and not a business with no market.
Know Your Numbers
If you do not know your business valuation, how much you have made, how much you have invested, and how much you expect to make in the nearest future, then the shark tank isn’t your place because the investors are interested in numbers.
You must have invested
You can’t come to shark tank to pitch an idea you have not invested in, it is a NO to the investors. They will not trust that you won’t back off the business at the slightest setback you face.
You do not have to go pitch your idea in shark tank before taking note of these lessons, you might want to pitch your business to any investor or even customers, this lessons are very important.
Anything sharks in investments do not care to own your entire company and leave you with crumbs. Have you noticed that the minimum bidding percentage from a shark is 25%, that shows that they are really sharks and it takes proper negotiation to bring it down.
I have noticed that also it is necessary to go prepared.
I have watched the show once and it looked really interesting, if you are not smart about it, you will lose out on a good deal.
That is the idea of the sharks, they are ready to swallow you up.
I really like that show and I'm a fan, because of the good financial advice that they say on that show.
Many people who think about starting a small business should follow some advice that they say there.
It is indeed a good show to watch, I am getting more consistent with it also.
Those sharks are blood thirty. I would not go to shark tank if i actually make good money in sales and i got a patent. Have you seen the way this sharks ask for equity percentages? They can go as high as 60% which means they will literally own the company and then i ask, how many shares will be available to sell if the company goes public or what happens to the growth of the company when it needs to depend on its shares to survive?.
It is sad but the factual reality is that so many business owners really need funds from people like them to prevent their business from failing.
I haven't heard of this programme but have seen programmes like it. I am sure that it gives a good insight into the minds of some investors and makes you see things from other perspectives. Understanding perspectives is so important in the world of the business. I am sure it is entertaining too.
Yeah, it is entertaining also.
@futurekr we have to learn from every were if related to business, getting knowledge is the best way to keep business running.
Knowledge is never enough, we need to keep gaining knowledge from every angle.
Hello friend, it is a great program whenever I can see it, I find it very interesting.
It is really interesting.
Actually inspiration and learning is everywhere we just need to identify it and start taking it. As You learned from shark tank. By the way nice read.
Thank you @luckyali.
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The lessons listed here needs to be watched out for when dealing with an investor even though it is not in shark tank.
The knowledge should be listed everywhere even if it is not shark tank.