As of late, Shark Tank has become one of the most popular shows on television. Before the last few years, entrepreneurship wasn’t a topic highlighted much through media so it’s great to see people getting a first-hand perspective of it.
Whether you own a business or not, you can learn a lot about entrepreneurship from watching Shark Tank. From the catfights to the considerably stupid pitches, Shark Tank has a lot of moments that put entrepreneurship in a negative light.
At the same time, there are a lot of amazing things the entrepreneurs or Sharks do/say that is a valuable lesson for everyone. In this article, we share 5 lessons from Shark Tank entrepreneurs:
- Don’t Get Married To An Investor
The Sharks are labeled by that name because they often make deals that are highly beneficial for them. Many people don’t know this, but you give up a small equity percentage to ABC just to pitch. Regardless of whether or not you get a deal, you still lose equity in your business.
Kevin O’Leary constantly pushes out absurd deals asking for high royalty rates from the entrepreneurs while the others often make offers taking a large portion of the company. I’m not here to argue who is right, but rather to teach you a valuable lesson.
Many people take a bad deal on the Shark Tank against their gut. If you aren’t in love with a deal involving equity in your company for money, you shouldn’t take it. It’s okay to walk away and there are worlds of opportunities out there for you. Don’t get married to an investor too quickly.
- Be A Good Marketer
If this isn’t you, find a partner who can fulfill this role. I have seen great ideas lose out on investments all because they can’t market themselves or their ideas. The Sharks are human and they buy into people more often than they do the products or services that they are selling.
You have to learn to sell to be successful as an entrepreneur. Many people are horrible sellers, but great innovators. You need to take the backseat and allow someone to come in and do that job. If not, sharpen up your selling skills and make better use of your abilities.
- Think On Your Feet
Before you enter the Shark Tank, you should really know which investors you want to have in your business and at what percentages. This is true about any meeting with investors. Come in with a bare minimum percentage in mind along with a list of things you expect them to provide.
I have seen far too many deals get lost or change simply because a team cannot think on their feet. They have to go outside to make a phone call or to chat with their partner, which gives the Sharks time to process their thoughts. This decision-making period is often detrimental for the entrepreneur because things change quickly.
In business, you’re going to have make rash decisions on the go at times. You’d hate to lose out on a big opportunity simply because you couldn’t decide on something. Entrepreneurs have to be quick and process things on the go, which is an essential skill to develop early on.
- Numbers Matter
You make or break yourself on Shark Tank based on the numbers behind your business. Kevin O’Leary says it best when every single entrepreneur comes in, “Lets talk about the money.”
If you don’t have revenue, you don’t have results. If you come in valuing your company at something it’s not worth, the Sharks have no reason to work out a deal with you. These small numbers are the reason why tons of entrepreneurs walk out without a deal.
If you’re trying to build a business to lure investors, partners or others, you have to be realistic about the numbers. Nobody cares about projections unless they have some kind of merit. Get a second and a third opinion on your business valuation to make sure it’s accurate. On top of that, focus on results before you worry about at anything else!
Whether you’re on the Shark Tank or going through daily life, there is a ton of amazing wisdom that is shared. Some people talk while others do, while the intelligent people listen.
If you keep quiet and listen to what others have to say, you’ll learn a lot. I have seen numerous times where Mark Cuban has given million dollars worth of advice to an entrepreneur without investing in his or her business.
If you want to be successful, you need to shut up and listen to what others have to say. Take everything with a grain of salt and make your own decisions, but give others the opportunity to share what is on their mind. You’ll be surprised at how much you can learn.
Success Starts With You
Shark Tank is a great show that shares the stories of numerous people who have taken a chance to pursue their entrepreneurial dreams. If you wish to be successful, you must take action. These are just a few of the tips and pieces of advice that will guide you in your journey.