It’s no secret that ABC’s Shark Tank has taken the world by storm and I have become an avid watcher of the show myself. It’s not unusual for me to find myself on weeknights 2 hours deep in crazy, sometimes genius, inventions and ideas. So, needless to say, I’ve learned a lot from watching the show, but there are 3 things that I believe every entrepreneur should know before pitching an idea or product to potential investors.
1. Know your numbers!
According to Robert Herjavec, shark and CEO of The Herjavec Group, “If you don’t understand your basic numbers, you’re going to fail.” When preparing to present to potential investors, it is crucial to have complete knowledge about all of the numbers involved with your business, so ask yourself and be prepared to answer these questions and more: How many units have been sold thus far? How much does it cost to make the product? What are the wholesale and retail prices of your product? What are your projected sales for next month? Next year?
You can see how overwhelming all of these questions can be, especially when the future of your business is at stake. Do your research and know the business’s numbers inside and out, so when the questions come, you’ll have the answers.
2. Know what sets you apart.
As an entrepreneur, you need to know what makes your product or service different from all the rest. In order for investors to see your entrepreneurial vision, they have to see enough value in the business so they know it’s worth their time, energy, and money. I’ve watched Kevin O’Leary quickly shoot many ideas down that he believes have no proprietary value, because the business owners didn’t convey the uniqueness of their product well enough during their Shark Tank pitch.
Research other businesses and products in your industry and know why your product is special compared to the rest, and you’re one step closer to success.
3. Be honest.
Perhaps the most critical aspect of any presentation, especially to prospective investors, is to be completely open and honest. I always cringe on the inside whenever I watch a good product miss out on an investment because the business owner lies about projected sales, or tries to hide the fact that they plan on taking the investment money as a salary. Let’s face it, the truth always comes out.. and it usually isn’t pretty when it does. Be honest about everything from the start, so you won’t lose respect and possibly an investment.
There are many other lessons to be learned from Shark Tank, but these are three of the most important ones I’ve picked up from my weeknight routine. So go, be number knowing, unique, honest, and most of all, successful entrepreneurs!
Until next time,
K
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