Do you have a business concept you've always wanted to make a reality but lack the necessary capital?
If you answered yes, you need to watch Shark Tank so you can learn what it takes to create a successful company and maybe build the guts to present your business idea in front of business tycoons.
And, as a leading Florida SEO company, believe us when we say that it's impossible to watch an episode or two of Shark Tank without learning anything.
The award-winning ABC reality program, presently in its 13th season, involves entrepreneurs presenting their business ideas to wealthy investors.
No matter how unpleasant the rejections are, the business lessons you can extract from watching this show can potentially help you succeed in running your own business.
So, without further ado, here are five entrepreneurial techniques you can learn from Shark Tank:
Almost every contestant on the program has a good, if not an outstanding, idea. Unfortunately, it isn't always enough to persuade savvy financiers to hand out their cash.
This means that just because you have a great business idea or product does not imply that you have a viable business.
A successful business has strategies, objectives, marketing tactics, an internet presence, and, most importantly, a leader who is committed to success.
And, an entrepreneur must undertake significant marketing research and develop an organizational plan to transform their business into a profitable one.
While "Shark Tank" has featured many great businesses, the sharks themselves will not bite if they do not believe in the company.
Pro Tip: To make your business idea more than just a hobby, you must demonstrate to investors that it has the potential to succeed. Create a good, well-researched, and well-rounded business strategy, and ensure you'll be able to execute it as soon as you have the needed funding.
One more thing, if you have a mentor or an investor who has similar values to Barbara Corcoran and wants to give you advice, take it.
As an entrepreneur, creating a pitch for your business is a must! Going to your potential investors and stumbling through the process of your discussion because you haven't memorized what you're supposed to say is not an excuse.
Remember, every entrepreneur should deliver their elevator pitch (and numerous different variations) with ease.
You can start by creating a one-word business plan for your company. Once you've got it firmly in your head, try expanding it to one phrase, then one paragraph. Then, prepare rebuttals to any concerns an investor may have at each level.
Pro Tip: Your elevator pitch should be short but impressive enough to showcase your experience and qualifications in front of potential investors. So when you create one, remember these tips:
Try to practice your speech in front of a buddy or record it. This will let you know whether you're staying on time and delivering a clear message.
Sharks like Mark Cuban and Robert Herjavec are often shocked when hopefuls struggle with fundamental questions about the business they want to pursue.
In one episode, a couple of doctors presented Rolodoc, a social network for doctors. At first look, they seemed to be experts. They talked with zeal and grit, but as soon as the sharks began asking questions, they broke apart, causing Mark Cuban to label it "the worst pitch of all time."
They went away without a deal because they couldn't explain their future goals, how the site functioned, or who was using it.
At Digital Resource, we believe that a strong pitch is necessary, but it is not enough. Potential investors understand their industry entirely and thoroughly, and you must do the same if you want to gain their trust.
Pro Tip: Before you enter the meeting with investors, do the necessary research to demonstrate that you are informed and worthy of the money you ask for. The following are some of the most frequent questions you may anticipate an investor to ask:
If you can't answer these simple questions, even the strongest pitch won't sell your product or service.
Scrub Daddy, a smiley-face sponge that looked like any other kitchen sponge, was an unexpected hero and success story in Season 4.
After the entrepreneur's demo, it was proven that the material in the Scrub Daddy is soft and malleable when wet but rigid and heavy-duty when dry. This brilliant invention triggered a bidding battle, which resulted in QVC queen Lori Greiner giving double what the company owner had asked for.
The following day, she placed the Scrub Daddy on QVC and sold 70,000 sponges in six minutes, setting a QVC record.
So, before you accept a deal, consider what an investor can do to help your business grow and succeed.
Pro Tip: Often, the fundamental difference between a thriving business and one that fails isn't money - it's connections. Greiner was the ideal Scrub Daddy partner because she could introduce it to the correct audience and start selling right away.
While you may not have the opportunity to conduct business with a billionaire shark, you should never underestimate the value of a strong relationship.
Find a mentor, meet people online, join entrepreneurial organizations — do whatever it takes to broaden your horizons.
Just because some companies walk away without a deal doesn't imply that their business is bound to fail. If you do a web search for the businesses featured on "Shark Tank," you're sure to come across several that have a website, social media marketing pages, and a marketing plan in place.
They often capitalize on their presence on the program by providing updates, placing "As seen on 'Shark Tank'" banners, and even linking to footage of their appearance on their websites.
During season three, an entrepreneur called Scott Jordan promoted his company but didn't reveal its genuine estimates, which were actually rather promising. Later, he was accused of being on the program just for publicity. If that's the case, it was a success. To date, he has sold over ten million copies.
Jordan was presented as a villain on the program, yet he demonstrated the importance of visibility above money. He went away without a deal but with a lot of exposure, which helped boost sales.
Pro Tip: Always remember to build connections with the right people before anything else. Taking a little less money may be well worth it in the long term under the appropriate conditions.
While you don't have to go on reality TV to get exposure, consider that excellent marketing, word-of-mouth referrals, and having your company seen, heard, and talked about maybe just as beneficial as asking for an investment.
As an entrepreneur, the one crucial thing you should have is a thick skin. Sometimes luck is on your side. But, most of the time, the road is riddled with bumps and potholes.
Every unsuccessful pitch on the program teaches us a vital lesson: the only actual failure is giving up.
So, if you want to grow your starting business, don't hesitate to ask for help.
As a leading Florida SEO company, Digital Resource can surely be of help. We are a digital marketing company that can help you position yourself as a leader in your industry.
We want to see you at the top of Google's search results, generating more leads and closing more transactions!