5 Lessons from Shark Tank for new Entrepreneurs
The seven seasons of famous American reality television series “Shark Tank” has witnessed business pitches from thousands of entrepreneurs looking to raise fund for their business ventures. Among these, majority are of new age entrepreneurs looking either to scale their business idea / beta product or expansion for an early stage venture. But out of these several pitches only few of them get success in convincing the “Sharks” & secure funding.
If we analyze the successful pitches closely, we can draw some common points among them, as
- Big Market – Investor’s first point of consideration for a startup funding is its “scope”. For investors, startup should be addressing a common problem impacting a wider audience. This helps them to visualize the size of the market & growth opportunities.
2. Founders Fondness – A passionate founder/s is another trigger point for investors to consider the startup. Founder/s without the knowhow of the industry & business basics has less chance to secure funding. Founder’s background, education & work experience also plays a vital role during business pitches.
3. Show me Numbers – Investors love to hear about the business numbers like Production Cost, Net Profit , Gross Profit, Margins, Revenue estimate for next 12 months etc., hence should be at the fingertips of the founders.
4. Protection for Money – Another important aspect that investor considers while hearing pitches is the protection for their investment. Businesses with proprietary techniques, patents, have significant chances to grab the funding.
5. Value PLUS – Majority of investors like to hear about the pitches those can add value to their existing investment or business portfolio or sometimes based on their liking for a particular industry.
According to Robert Herjavec, Canadian businessman & an active Shark (investor) on the show, “there are also few parameters based on which he personally judges the entrepreneurs”, like
- Professional dressing
- Body Language & zeal
- Insights about own company & clear vision for growth
The above findings are applicable in all the business scenarios be it Shark Tank or other business pitches. Such shows are great opportunity for budding entrepreneurs to get motivated & learn cutting edge skills before approaching the investors.
