Shark Tank is a successful and long-running reality television series. Shark Tank features entrepreneurs that pitch their ideas in front of business tycoons that have the ability to finance their business ideas. Shark Tank is not only beneficial for the participants but also the people who follow it regularly. There are many Shark Tank Lessons for entrepreneurs and small business owners. It takes certain skills to get clients and investors interested in your idea. The show is currently in its seventh season and some great ideas have emerged in the past seasons.
Shark Tank Lessons for Entrepreneurs
Here are six of the all-time best Shark Tank Lessons:
1) Take Things Slowly
It is common for entrepreneurs to be enthusiastic about their ideas. If an investor takes an interest in your idea and provides you with the required cash flow, don’t let it run out. Accept the fact that businesses don’t become successful overnight. If you start expanding too quickly, you will probably be running back to the investors. This way you might lose ownership to your own idea.
2) Differentiate between Want and Need
Entrepreneurs are required to have a sound knowledge of the business. Therefore, if you remember your marketing lessons, you must know the difference between a want and need. Your business will soon lose ground if you are creating something that is a want in the target market. A want will soon get turned into something else putting it out of people’s mind. Your idea should serve a need. A need is going to make your business run longer and need-based ideas have high success rate with investors.
3) Show your Passion
Investors will ignore you if you are not passionate about your own idea. It leaves a good impression on them if you share your story to add a personal touch. You need to prove that your idea is bigger than making money and that you really want to make a difference with it.
4) Make Deals
Investors might like your idea but express some conditions. You can’t run a business if you don’t know how to negotiate. Learn the art of offering interesting deals and counter offers to create a win-win situation for both parties. You will end up with no finance if you are too rigid.
5) Create Liquidity
Your idea of business must be able to convert inventories into cash quickly. A liquid business has more chance of catching the investors’ eyes. To improve liquidity, it is recommended to keep working capital mostly in cash and to avoid unnecessary expenses.
6) Go after a Bigger Target Audience
The most successful entrepreneur ideas are those that serve a mass market. However, the level of competition in the mass market you select may also come into play. For example, investors may reject your deal due to fear of entering a market where there area already big established players. But, investors are more likely to invest in a bigger market – if you have a compelling solution – then a smaller one. After all, they say that bigger the risk, the greater the rewards. So, be sure your total addressable market is large enough to be interesting for investors.
Getting funding from investors for a new business is not a piece of cake. Many new ideas are long shots and have a high potential of failing. However, it is easy to catch the investors’ attention, if you present them in a realistic manner. So, utilize these entrepreneur lessons from Shark Tank to help improve your chances of securing funding from investors.