Sixty Seconds in the Shark Tank

ABC’s hit show Shark Tank is coming back back for another season on September 14th. After three successful seasons, people are raving about the return of Shark Tank. The sharks, the show and the entrepreneurs featured on the show have taught the world a lot about entrepreneurship.

You Are As Important As Your Business

Numerous times, I have seen the sharks invest in an individual more than their business. While Kevin O’ Leary will always remind you about the money, some of the other sharks can be won over by you. I have seen hard-working, motivated and driven individuals come into the tank with a half-decent business idea and come out with an investment. The sharks do this because they want to invest in YOU more than the business.

When the sharks invest in an individual more than the business, they are counting on more business opportunities with you to generate them a return on their investment. If you are to ever pitch to investors, you need to keep in mind that they are investing just as much in you as they are in the business. On the same token, there are many entrepreneurs that come to the tank with amazing business ideas but still get sent home.

While the sharks are compelled by their idea, they decide against the investment for obvious reasons. Some of these obvious reasons include the entrepreneur being arrogant, hard to work with or even lazy. Even if you have a business that can be the next Facebook, you need to ensure that you show your investors you as an individual are worth the investment.

Presentation is Everything

Speaking in front of others is hard. Getting a great pitch together while speaking in front of others is even harder. To have a great presentation, you have to practice a LOT. The better presentations in the tank always manage to catch the eyes of the sharks. There have been a few entrepreneurs who gave bad presentations and the sharks were not shy to let them know.

The more you speak, present and pitch your business, the better you get. Over time, you will gain confidence in yourself and the delivery of your ideas will be much more fluid. The confident and prepared entrepreneurs that enter the tank walk out with an investment more often than not.

Know Your Numbers

On every episode of Shark Tank, you will notice one or more entrepreneurs who over-value their business. The sharks hate it and almost always consider themselves “out” the moment a business is over-valued. Nobody wants to be ripped off on a deal. In hopes of obtaining a better deal, do not value your business to be more than it really is.

Value The Shark

A lot of people come into the tank looking for a mentor along with their investment. While there is nothing wrong with trying to kill two birds with one stone, you must value the sharks time. If you expect the sharks to work for you, you need to compensate them greatly, which requires you to offer them larger equity in your business.

Don’t Piss The Sharks Off

There are a lot of things you can do to piss the sharks off. I can list all of them, but that will take too long. Be courteous to the sharks and respect their time and advice. If the sharks are offering you a deal, don’t nickel and dime there for 2-3%. I have seen a few entrepreneurs do that and that does not endear them to the sharks.

Review

If you are an entrepreneur, you NEED to watch Shark Tank. Not only do you learn so much about investors, but you also get a chance to see what other creative ideas are on the rise. Even if you aren’t an entrepreneur, the Shark Tank is a fun show for you to watch. Over the seasons, I have to credit the Shark Tank for teaching me so much.

Share your thoughts or lessons that you have learned from watching the Shark Tank below.