People have watched “Shark Tank” since 2009. As are result, people who normally would not have gained an interest in business have developed ideas hoping to gain investments from the sharks. In many instances, the concept has worked. However, it is not as easy as one would think.
Rest assured, the sharks you see on television are not the only entrepreneurs that can give you advice. Other entrepreneurs have come across the same issues. But, getting their advice will set you off in the right direction.
One of the issues that many of the show’s contestants don’t realize is the process of collective bargaining. Depending on the type of situation, the negotiations are governed by the National Labour Relations Act, the Railway Labour Act, the Civil Service Reform Act, or by different state’s laws. It is important to understand which laws cover your negotiations. You also need to realize that negotiations entail several issues, and can be ongoing. They may not just occur in the beginning.
The data for the show proves why the deals fall through. As of 2013, the sharks invested over $20 million dollars with 186 deals. But, there were 377 pitches made in the same time span. Many of those deals didn’t profit. The sharks offer advice on how to improve your deal.
Focus on the Need First
It is best to find out what people need first, then build a product around it. Do the research. Read about business needs. Ask people in your neighborhood, and your social media contacts. If you create something they need, they will want it.
Know Your Numbers
You also need to understand the numbers by realizing how many units you will sell, how many people will buy it, and your price point. This will help you figure out your profit, and it helps the sharks know their investment is worth it. Otherwise, they won’t know how much money will be returned on your investment, and “they’ll be out.”
Passion is Important
Knowing all this information is beneficial. But, you have to have a great attitude, as well. If you don’t bring a great attitude to your presentation, no one will be enthusiastic. If that happens, there will be no deal. But, if you, and the investor are excited, a deal should be successful.
Know Your Limits
Understanding the difference between good and bad deals will help you in the end. The research you did will help you understand what your product is worth. So, it is OK to not accept certain negotiations. You want to make a good deal. But, don’t sell yourself short. Your hard work should be worth it.
“Shark Tank” has been a successful show that showcases businesses deals. But, if you want to have a successful one, follow the provided advice and the tips in the following infographic: