"SO FOR THOSE REASONS, I'M OUT." - Sharks
Lesson #1: Know Your Numbers
When pitching your company or business model/ideas, passion for the business is not enough. Knowing the numbers is the essential and the key for business' success. Knowing the gross margin, sales, profit, forecast sales growth, customer acquisition cost, valuation, overheads, cash flow, inventory, etc. By this, it will enable the entrepreneurs as well as the investors to look into the future of the business and see some opportunities along the way, on how to scale the business so that they can maximize the business' potential.
Lesson #2: Understand the Language of Business
At first, I was a bit confused by some of the terms used in the tank. Although, some were familiar to me, but there are some terms/words that is new to me. I know that accounting and/or finance is the language of business. I'm really amazed because the sharks really understands and talk the language, and they're really knowledgeable about it. So, if you want to get investments, pitch your business model, or make future plans for your business, you must learn and understand the language of business. Being able to know, read and analyze the financial records and reports can bring huge advantages to the entrepreneur.
Lesson #3: Learn to say NO
Before coming to the tank, entrepreneurs already have what valuation they want and along the pitching session, there will be a negotiation. I know all sharks can add great value to the table but sometimes, they are willing to take a big bite if they see a huge opportunity. And as an entrepreneur, you know your business and products more than anybody else. What matters is that both parties should have a win/win situation. It does not matter if you go home and walk out empty handed, being in the Shark Tank is already a big accomplishment. Investors/sharks are there to just to guide you, help you, and whatever they bring that adds value to the business.
Before coming to the tank, entrepreneurs already have what valuation they want and along the pitching session, there will be a negotiation. I know all sharks can add great value to the table but sometimes, they are willing to take a big bite if they see a huge opportunity. And as an entrepreneur, you know your business and products more than anybody else. What matters is that both parties should have a win/win situation. It does not matter if you go home and walk out empty handed, being in the Shark Tank is already a big accomplishment. Investors/sharks are there to just to guide you, help you, and whatever they bring that adds value to the business.
Lesson #4: Business Needs Time to Grow
There's a positive and negative when investors say NO. The sharks may not like the business model, the product or the entrepreneur. But most of the businesses and the products that are being pitched has the potential and the opportunity to grow. But some of the entrepreneurs walk out without an investment from the sharks despite having the hero product/business. It's not a loss for them. Sure, the sharks can add huge value to the business but the real deal is the entrepreneur. You can succeed without the help of the other people. That does not mean you already lost. Rejection is part of the process, it's an opportunity to grow even more.
Lesson #5: Listen and Don't Interrupt while Others are Talking
Pay close attention. Many of the entrepreneurs go in the tank with the hope of getting an investment from the sharks. Going in with all the numbers, the forecasts, the plans, the right product and so on. The problem is most of them talk too much, they market themselves, do great sales talk that they forget to listen to the investors' questions, suggestions, problems, comments, or clarifications. It's a once in a lifetime opportunity; when it knocks, don't waste it. You either sink or swim in the tank.
Pay close attention. Many of the entrepreneurs go in the tank with the hope of getting an investment from the sharks. Going in with all the numbers, the forecasts, the plans, the right product and so on. The problem is most of them talk too much, they market themselves, do great sales talk that they forget to listen to the investors' questions, suggestions, problems, comments, or clarifications. It's a once in a lifetime opportunity; when it knocks, don't waste it. You either sink or swim in the tank.
So, there you go. There is so much to learn from this show.
The sharks have different characters and understanding about businesses, different skills, knowledge and strengths, but one thing is for sure, they are all very successful. And if I were to pitch my business to them and get a chance to choose my business partner, definitely, I would pick Mark Cuban and Kevin O'Leary. Their stories inspires me a lot, it brings a huge impact to me and their business mindset are simply amazing. They are all great individuals though. But I really like both of their personalities because I can also see myself in them, and we could get along for sure.
For you, what are the lessons you have learned and who's the shark/s you think is the best partner for you? Comment down below.
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