Here are the 10 Things Shark Tank Investors Demand but that most entrepreneurs don’t take time to prepare for to delve deeply into success.
The 10 Things Shark Tank Investors Demand
- Sales: Sharks want to hear that after one year, that sales are at least $150,000
- Strong margins: 50% is a good start, 75% to 100% is better
- Search engine-optimized websites: Sharks want advertising-savvy, deep-thinking marketers
- Patents: Sharks want patent ownership or in-process patents
- No debt: Sharks want boot-strappers who made it without taking out loans or multiple investors
- Big ears: Sharks want people to listen, be accountable and be honest
- Deal makers: Sharks offer deals but, entrepreneurs must make financially-sound counters
- Unique: One-of-a-kind selling points that only this product/service/brand can provide
- Fight: Find a way to charm Sharks while fighting to the death for your business
- Impeccable presentation: Talk like a business plan sharing sales, margins, unique selling points and patents. Cute presentations won’t cut it in the Tank if numbers are poor.
The Best Entrepreneurs
The best entrepreneurs know whether a business, product or service will sell and whether there is a long-term market.
The worst entrepreneurs will NOT have a business plan or understand margins, P&L, or how to strategize or position a brand, have debt.
Many entrepreneurs don’t have business backgrounds. That’s OK. Persistence. Belief and passion for a startup matter most. However, Sharks hate it when a business owner has sunk hundreds of thousands of dollars into a business and it’s six years later and there are still no sales.
Don’t invest if you can’t produce revenue in a year. If you are at a loss, you’ll lose in front of the sharks.
A “business” can be short lived for those who are misdirected by blurry, fiscally-unfit dreams. But big ideas can work out and take off IF the entrepreneur can write a business plan, research the market, find a magical financial formula, gets some start-up money and has a market that will produce sales.
There are places for entrepreneurs to run deals past investors: incubator groups, small business development liaisons, government organizations, in every state. Don’t go it alone if you’re struggling, there is a lot of free help available.
But there’s a solid platform: Shark Tank, the ABC phenomenon, gives viewers a first-hand look at how hard it can be to succeed in business. Watch every episode.
Billionaire entrepreneurs Lori Greiner, Barbara Corcoran, Kevin O’Leary, Robert Herjavec, Daymond John and Mark Cuban, devour business dreams with zeal, daily.
Shark Tank billionaires pick business ideas apart, dissecting entrepreneurs who either spit out stunning margins, patent ownership, sales success or are finished with the statement: “I’m out.”
Start Without Debt and Plenty of Drive
The Internet is filled with how-to videos and articles on how to start a business. Hell, you can Google Harvard and Yale Business Plan competitions online!
There’s no reason entrepreneurs should fail unless business is too challenging and it’s not in the blood.
There are skilled marketers, teams of advertising firms who can make and they don’t ask for help when they reach a wall and can’t figure it out.
Great athletes have coaches as soon as they reach the pros to bring them up to the level of performance needed every competition.
Watch Shark Tank. Every season. Every episode. The Sharks teach as they go, which is very unshark-like behavior. It’s all done for TV and in the end there’s a clear formula for a successful business worth investing in that is divulged to those who watch carefully.
Shark Tank is raw and ruthless. Cut throat business people cut to the chase and to the quick with similar questions. Big ideas are easy. Real deals are hard to come by and harder to continue without guidance when insight and know-how run thin.
What do you think?