If you’ve ever watched the Shark Tank television series, you know that it’s a show where successful, deep-pocketed business professionals listen to pitches from entrepreneurs who are looking to raise funds by selling stakes in their businesses.
Over the course of seven seasons of the series there have been 151 episodes, 609 pitches, and 328 deals. But while the sharks have offered to invest north of $44,215,000 over the course of the series, a mere one-third of the deals reached on the show have progressed to completion.
The reason is that after deals are reached on the show, the sharks conduct an exhaustive due diligence process to comb over the entrepreneurs and their businesses. And what has often been the case is that many entrepreneurs are founding lacking in some area.
So that you can be prepared to succeed as an entrepreneur, read on for some advice that can lead to success in the business world.
What Need Does Your Product Fill?
When it comes to being an entrepreneur with a business idea, it helps to avoid putting the horse in front of the cart. In other words, you need to, first, find a target market with a specific need and to, second, create a product that fills that need. Remember that statistics show that 46 percent of entrepreneurs fail due to incompetence. So, don’t forget to find a need before meeting that need.
Always Be Prepared
Whether you’re making a pitch to a shark, heading to a business meeting, or putting together a business plan, you need to be prepared. That means knowing your numbers like the size of the market, the amount of sales you’ve achieved, and the profit margin.
Great Ideas + Great People = Success
If you have a great idea, and you have a great team behind the product, you’ll be more likely to succeed since investors need to feel enthusiastic about not only the opportunity, but also the team aiming to turn opportunity into reality.
Build Investor Network
Building an investor network makes a lot of sense. It not only will give you access to the capital you need to grow your business, but also provide you with access to new ideas and to connections that can help you scale your business properly.
Master Negotiation Skills
When you have the right training in negotiation skills, you’ll know when to accept an offer and when to back away. If you’ve seen the Shark Tank program, you know that entrepreneurs who take an excessive amount of time to mull over offers — or who ask for too much — oftentimes end up leaving empty-handed.
Learn & Listen
Whether or not the sharks on Shark Tank actually invest in an entrepreneur’s idea, they always dispense valuable information that can help the entrepreneur going forward. So, learn and listen regardless of whether or not you get the capital you’re after. What you learn could help out later.
If you’re looking for entrepreneurial inspiration, Shark Tank has you covered. Consider the advice above and the infographic below and you’ll have what you need to succeed in business where others fail.