Following the investor pitch, their outcome, and subsequent progress of those who receive funding on Shark Tank reiterates some fundamentals of entrepreneurship.
I’ve been an avid follower of Shark Tank. Apart from its entertainment value, I’ve found Shark Tank to be instructive about some fundamentals of entrepreneurship, and of pitching to investors. The deal making and deal structuring also provides us a range of possibilities beyond just equity based venture capital funding for startups.
Here are some things I learnt from Shark Tank:’
Gimmicks and showmanship doesn’t impress investors: Passion, commitment and conviction does.
Setting the context right is super important in helping investors appreciate that what you are doing has a strong market potential. Clarity of communicating what you do gets investor attention.
Having clarity on who you will target as customers (even if your product is relevant for everyone), how you will reach them, what your sales pitch to them will be, how you will deliver the product/service and how you will provide after-sales support are as important, if not more important, than a good product or service
Know your numbers: Entrepreneurs with a good understanding of market dynamics, and what their fully loaded costs will be and how the numbers stack up have a much better chance of getting investor attention…. and better valuation.
Resourcefulness is about leveraging all your current resources to overcome current constraints. Get things done. Somehow.
Apart from other learnings outlined above, one observation that stands out is that good sales numbers shuts everyone up. Else, everyone has an opinion on how you should go about your business.
Having an idea is not the same thing as having a plan. At Applyifi we urge entrepreneurs to develop a comprehensive business plan, and then execute it well.
If someone you know could benefit from what we do, please direct them to www.applyifi.com.
By Prajakt Raut – Founder Applyifi
Applyifi helps startups refine their business plans and investor pitch deck [www.applyifi.com].