Think you’re ready for ‘Shark Tank’? These 7 easy tips can help you secure a deal (or at least survive)
While stepping onto the ‘Shark Tank’ stage, many entrepreneurs seek advice from successful businessmen and those who've had the Sharks swimming in their waters. However, very few manage to come out as winners, with big investments coming their way. If you're planning to take your business to new heights by showcasing it on the reality business show, here are a few tips that will help your Kickstarter gain the trust of the Sharks and even have the upper hand while negotiating their offers.
1. Know the problem
You need to be aware that the product or service you are providing should be positioned as a solution to a problem, per CO. It should be aimed at improving the life of your customer or easing the struggle they have been suffering from. For example, Chris Gronkowski of Ice Shaker pitched the Sharks by telling them about the issues he faced with the regular shakers in the market. He then compared his product with other shakers, highlighting how his design eliminated those problems. By showing your product as a problem-solving option, you put it forth as a necessity and not just a want.
2. Know the worth of your business
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It's not necessary that the exact deal offered by the Sharks has to be accepted. Back in the very first episode of ‘Shark Tank,’ College Hunks Hauling Junk and Moving made an appearance. They did not have a deal at the end because they didn't accept the investors' offer, as it required them to give up full ownership of their College Hunks franchise. Its co-founder, Omar Soliman, later shared that if your business is going on ‘Shark Tank,’ you should be ready to react strongly. “Stand your ground and be confident,” he told the outlet, adding, “Investors like the Sharks will always try and poke holes in your business. If you lose confidence in the pitch, you could lose a deal. Remember, you are the expert and your brand holds the keys!”
3. Know the numbers
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It is crucial to know the numbers involved in your business. This includes total sales, annual revenue, net profit, and more. Robert Herjavec, a judge on the show, mentions that in case the entrepreneurs don't know this information and if they give a wrong valuation, the Sharks always refuse to be a partner in their venture. A former contestant, Kelly Costelloe, stated, "I went onto the show thinking that my passion and unique products would be all the Sharks needed and neglected to spend time on the cold, hard facts of my company’s current and potential profits."
4. Keep emotions away
Yes, your business is your passion, but "you can't let your emotions control the moment," Herjavec stated. "If we tell you there’s a mistake in how you’re running your business, you’d better listen,” he went on to add. Your emotional reaction to constructive criticism can upset the Sharks, making them think that you are solely driven by your feelings and not rationality, which is one of the most important things in business.
5. Showcase your authentic side
Always remember that people are drawn to authenticity, and investors always look for a trustworthy business and entrepreneur. "We've all seen people on the show whose business idea wasn’t exactly going to save the world, but the passion and integrity that the entrepreneur showed made us root for them," a former contestant, Ryan Bethencourt, mentioned.
6. Don't force it all
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Most of the time, to save money, entrepreneurs try to juggle multiple jobs at once. However, this approach might not bring you much learning or growth, as Shark Kevin O’Leary warns the contestants, "My partners […] taught me that in order to create wealth, I needed to pair up with people whose strengths compensated for my weaknesses."
7. Rejection doesn't mean you’ve lost your business
As we all know, a pitch doesn't always guarantee an offer from the investors. Even though the creator of Ring, Jamie Siminoff, did not land a deal, his appearance on the show opened many doors for his business. "In terms of dollars, it was worth millions, but it also brought and provided an incredible amount of credibility and awareness for us with industry partners," Siminoff stated.