10 Lessons Shark Tank Can Teach About Business

shark tank is one of those binge-worthy tv shows especially if you’re into business and innovation   it’s about a group of multi-millionaire and multi-billionaire angel investors who give funding   to entrepreneurs with brilliant ideas and also help them grow their business through mentorship   every small business owner knows the exposure from the show alone is enough to make one want to   get a shot with the sharks since not all of these brilliant ideas make the cut to impress the sharks   some have to settle for just taking away some of the show’s most important lessons   today we list for you ten great amazing lessons we could all learn from shark tank one communication   is a product the sharks are big on communication and if you’re a fan of the show you can see how   they’re always scrutinizing how entrepreneurs are handling this in their presentation   the how in communication plays a big role for many organizations and can’t be compromised   all current communication channels need to be examined to determine if the set systems   and networks are effective the most effective means of getting word out there is preferred   the most important goal here is clarity often you may know what you want to communicate but then   fail to communicate clearly needless to say poor communication is one reason so many initiatives   fail you must think carefully about expressing yourself and develop a communication plan how you   communicate with people will vary depending on the recipients and their positions in the organization   the parts of the initiative you want to share with them and the timing of the communication   try adapting the kiss principle keep it short and sweet no need to get lost in your words   remember clarity is key 2. doing your homework pays off if you noticed contestants who’ve done   their work beforehand have a better chance in convincing the sharks and scoring a deal the   best way to win in business is to be prepared the entrepreneurs who get a decent deal on shark tank   are the ones who practice their presentation and polish it until it’s perfect so if you need things   to work to your advantage do your homework and understand how everything works before presenting   yourself extensive research goes a long way i mean how can you convince the next person that you know   what you’re doing if you also don’t understand it sharks love it when the entrepreneurs come   in well acquainted with what each shark could bring to the table for their businesses these   equipped entrepreneurs are also aware of their production costs and have gone the extra mile to   seek licenses and patents most of the time these entrepreneurs have also done their market research  

and can demonstrate that there’s an interest or need in the product they are presenting   taking their pitch into consideration it’s evident that the most confident entrepreneurs   have tried presenting before other investors or at least an audience who offer honest feedback   multiple times before getting on shark tank understanding the how and why will save you a   lot about anything you pursue in life three don’t accept the first offer many of us have a bad habit   of rushing for the first offer presented to us especially if it beats our expectations truth is   the sharks are aware of what you’re bringing to the table so they will lowball you to see if   you’ll fold and walk away with the first offer presented to you if you don’t like the offer   you’ve been presented with make a counteroffer what have you got to lose well you could lose   everything if you don’t come into an agreement but you’ll probably do that anyway if you don’t try   sadly some entrepreneurs shy away from negotiating and end up leaving the show with nothing   negotiation is one of the most important and critical aspects of business   if you learn the art of negotiation you can easily build strong business relations   don’t just try to act greedy and ask for absurd terms or request offers that do not make sense   learn to judge value and make offers and counter offers that reflect your knowledge   4. humility first if anything entrepreneurs do not cope well with failure because most put their all   into their businesses not everyone will appreciate your creativity or understand your vision better   than yourself however if you’re humble enough to understand the shortcomings of your product   and use constructive criticism to improve instead of being arrogant then you’re bound for greatness   when doorbot appeared on the show in 2013 it was a disaster and the ceo jamie simonoff acknowledges   as much the sharks were all highly skeptical that a wi-fi enabled doorbell with a camera   in it had any value beyond being a neat gimmick and almost all of them passed with one offering   a deal the company could not accept like most success stories from shark tank jaime simonov   appeared on the show as a guest judge because his idea kicked off pretty well after he listened to   the shark’s advice and made the necessary changes to his product the sharks may not have seen the   value then but consumers absolutely did and doorbot began moving far more products and   saving the company in the process ultimately the company was renamed ring and sold to amazon which   uses it to streamline their delivery if jamie was arrogant he wouldn’t have seen any faults   or shortcomings with his product and maybe it wouldn’t have been the success story it is today   5. know your production costs so you’ve got a product or a service that’s doing   good numbers in sales do you know how much it costs for the production or service provision 

  all the sharks want to know is what your profit margin is your total expense cost subtracted   from your selling price having a low cost to produce whatever you’re selling is a good thing   and looking for alternative methods that allow you to make your product with the proper quality   at the lowest possible price is good for your bottom line this attracts the sharks more because   they see an opportunity to recoup their investment within a shorter period of time if at all it   goes down to detail including the packaging and branding details okay so if you’re enjoying the   video so far i’d like you to do something for me pause this video right now and do me a huge favor   by hitting the like button if you did you’re awesome and thank you so much for your support   6. feedback matters if you can remember jamie one of the most invaluable parts of the process for   many entrepreneurs is the constructive feedback from the sharks whether it’s positive or negative   their input goes a long way towards improving your product do not shut down people who may be able   to help you identify some loopholes you may have missed to begin with the sharks in this instance   are often able to spot problems that are only obvious when you haven’t worked with an idea day   in and day out while this can sound discouraging many who go on the show incorporate the feedback   even without an investment make sure constructive feedback is part of your innovation strategy as   well it can inspire even people with rough ideas to try again just like jaime did 7. always think   like a shark this should have been the takeaway but it’s best we just get it out there just like   the sharks in the world of business you can eat or be eaten you may not consider yourself as a   predator but if you don’t think like one you’ll become the next predator’s meal have you seen   how aggressive these guys are especially when they’re all interested in the pitch idea they   pounce on it teeth out with their best offers trying to outweigh each other and even sometimes   throwing shade just to remain at the top they’ve seen the benefits of the idea and how profitable   the businesses could be and would stop at nothing to get a piece in short if you think like a shark   you’ll be able to survive some of the most wanting situations in life whether small or large your   business deserves good judgment no matter what sector you do business in you’ll survive much   longer if you sharpen your teeth and your wits eight innovation involves everyone detaching from   something you may have worked on for years sounds difficult especially if the idea is sentimental   to you however a different view or perspective is necessary if you wish to make it grow on a  

different level just like in shark tank as much as the judges offer funding to the entrepreneurs   they also provide mentorship that’s not all none of the sharks just cut their investment to check   and let them sink or swim they love a hands-on approach and will be at the center of the business   over the long term even at some point the ceo of the company is expected to move their business   across states if they want to keep going sometimes the sharks actively take the reins of the company   temporarily your innovation strategy should be built on the same concept people beyond   your innovation team should become invested in what you do and its success nine know your value   sounds a bit harsh but you won’t get anywhere in life or business if you don’t know your value   imagine facing the sharks unprepared and unaware of the value of your brand or product   if you don’t know how hungry the shark tank judges are watch an episode or two   you’ll witness at least one entrepreneur seeking capital who doesn’t understand how to judge the   value of their business this totally puts off the sharks or the opposite may happen   they may seize the opportunity and take the entrepreneur for a ride   as a result the entrepreneurs end up accepting ridiculous control losing offers just so they can   partner with a big shot or they walk away with nothing when you understand your value and know   what you bring to the table no one can shake you off because you’re coming in with all the goods  

and you know it 10. control your debt running a business is a tricky affair and when you   present yourself to investors while in debt the business doesn’t look so appealing anymore   getting a shark or any other source to invest in a company with a lot of debt would be a tough sell   this also applies to personal finances your ideal situation is zero debt though that’s   rare to achieve it’s critical to ensure your debt is under control and low to avoid it eating   away your profits bad debt can result in sleepless nights due to overthinking and even depression you   should do your best to stay away from adding debt to your financial equation if all your business   does is create more debt then it may be time to re-evaluate or seek a different strategy something   else not mentioned here that could be a great take away is to not fold when you’re under pressure   you can save yourself from such situations if you create a strategy of tackling worst case scenarios   these are situations that may find you off guard but just like the most successful   entrepreneurs on shark tank they anticipate the questions they’ll be asked while in the hot seat   as a result they respond intelligently without giving away too much information and they just   might walk away with a deal even if they don’t they can be satisfied that they leave the show  

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