The show aims to get funding from angel investors to help contestants take their business ideas to the top.
There are only a few slots on The Shark Tank. However, you can learn a lot about entrepreneurship by watching the show.
These ten lessons are for entrepreneurs and small business owners.
You are a real business once you have made your first sale.
It doesn’t matter if you have a great business idea; you won’t be considered a real “business” unless you make your first sale. Instead of focusing on expensive overhead like glossy business cards and slick office, you should develop a minimal viable product (MVP). which appeals to a willing, ready, and paying market. Your great idea may not be a success if there is no demand. It could cost you time and money.
Your business must have something unique to offer.
Most contestants in Shark Tank bring innovative products or services unavailable. Or, they have advanced features their competitors don’t. Those contestants with a ready-made market will probably enjoy a significant advantage when launching. The hosts emphasize the importance of creating something unique that only some offer.
Prepare yourself to hear “no” repeatedly.
Over 13 seasons, there have been over 290 shark tank episodes. In the first ten seasons, 55% of contestants received deals on average.
This rejection rate is not just a dramatic television show. It can also be a good reflection of real life, as some investors and clients you approach will likely say “no.”
This can be very deflating. It is essential to keep trying and waiting until you get the “yes” before starting your business.
Listening is more important than speaking.
The “sharks” on Shark Tank hold the purse strings. The contestants are, therefore, receptive to all their feedback, including criticism and suggestions.
Mark Cuban, the Shark Tank investor, may need help to sit down with you to discuss your business idea. But indeed, friends, family, coworkers, and potential clients have valuable insights they can share. Listening to others’ opinions can teach you a lot. Listening to others is more valuable than pitching an idea right away.
Anyone can learn to sell and master it.
Many of us need the natural ability to sell. This doesn’t matter since salesmanship can be awkward at first and even painful. With enough practice and patience, you can learn the basics.
Shark tank investor Barbara Corcoran held 22 jobs throughout her life, including teaching and serving tables. Corcoran, however, always continued learning to sell. Her net worth now is $100 million.
You must perfect your pitch if you want to be successful.
What is your company, and why should I be interested? This is the purpose of The Shark Tank. Contestants have one chance to answer, present, and convince investors.
You have many opportunities to share business ideas, even though the stakes for the contestants are high. You should improve your sales pitch after each encounter, whether it’s a good one or a bad one.
You may need to wait a while, but you will eventually be able to present your unique product in such a way as to earn you more “yeses” than “noes” from potential buyers, suppliers, and investors.
Think like a client.
You can improve your pitch by putting yourself in your audience’s shoes. You need to identify the problems that they are facing and explain how your solution will help them overcome their obstacles. You can increase your sales by using the same language as your customers when they describe their pain points.
Continue to build connections and expose your business.
It’s easy to think that solo entrepreneurs are the ones who do all of the work in Shark Tank businesses.
Every successful business is built on a network of contacts, advisors, and alliances. When nurtured properly, these relationships can boost your exposure and bring you more sales and opportunities.
Solve your problems.
You may get some business ideas when you identify a need to be met in the market. You must then study the problem and identify any potential pain points. Then, it would be best to speak to your customers’ needs.
If you have personally experienced the problem, you can already do most of the work. You intuitively understand the pain points. You also know how to solve the problem with your product. Your sales pitch will be more impactful and authentic if you have first-hand experience.
Stop when you have what you want.
The show’s name may be a bit scathing, but one of the lessons that are repeated over and over again from Shark Tank is to “not be greedy.” Trying to get the best deal possible at any cost is tempting, but to build a business, you must ensure everyone feels satisfied after each transaction. It’s not just your investors who should be happy, but also your customers, suppliers, and anyone involved in your business.
You might get your first sale by taking on more than you can handle, but you may not retain the customer if they feel cheated or ignored.