Lessons Every Entrepreneur Can Learn From Shark Tank

Shark Tank is an American reality show where hopeful entrepreneurs pitch their ideas to a panel of investors.  It is a great show from which entrepreneurs can learn a great deal about how to secure investments for their venture.  Here are lessons every entrepreneur can learn from the show.

Lessons every entrepreneur can learn from Shark Tank

1) Math is important

When an entrepreneur enters the show, the first thing the person asks is a certain amount from investors in exchange for a certain percentage of stake in their company.  In the beginning it may look like a simple number. However, many of these entrepreneurs coming on the show do not carry a clear idea about the numbers regarding their business. For example, a contestant on the show failed to answer quickly when asked to give the valuation for his Company after offering 15 % stake in exchange for $ 85,000.  When the investors start talking about actual business numbers like gross margin and relevant costs of the startup, the contestants get confused and lose their opportunity. It is quite important to get your numbers straight and be prepared to answer any questions regarding the numbers of your business.

2) Know your investors

This is important in any kind of situation where you have to meet an investor.  Having a clear idea about the investor’s background will give you a hint about what kind of questions the investors may ask.  It will also help you prepare your pitch in a way which will be appealing to investors. An added advantage of doing research about your investors is you will have a clear idea about which investor will be the best for your business.  For example, well known Shark Tank investor Mark Cuban is known to cancel a deal if the contestant tries to negotiate too much.

3) Presentation is the most important thing

Another great lesson Shark Tank taught us is, the way you present your product will determine your success.  The show has seen many such examples where even though the product was average, the presentation of the product convinced the investors to put their money on it.  However, great products presented without any proper presentation failed to catch the investors’ attention. During an episode of Shark Tank, a website which drew cats on demand got successful investment simply because of a memorable presentation given by its creator.  Hence, it is always important to seriously work on your presentation in order to get a successful investment.

4) Clarity about your product

Lastly, having a clear idea about your product is the most important of all.  You should have a clear idea about how their products work and which problems they solve.  Knowing your products inside out will help you answer any burning questions from investors.  It will also help convince the investors as to why your product is worth their money.

If we missed mentioning any other important lessons one can learn from Shark Tank, comment below and let us know.