By Gabrielle Seunagal
#SharkTank is all around us! Check out one of our businesses, @lovepop, at the #BBMAs TONIGHT on ABC! pic.twitter.com/X8aPkAh6eQ
— Shark Tank (@ABCSharkTank) May 21, 2017
Nearly every American has at least heard the words “Shark Tank.” For those who are unfamiliar, Shark Tank is a reality television show in which up and coming entrepreneurs are permitted to pitch their products, services, or concepts to five affluent investors, more commonly referred to as “Sharks.” If the Sharks like the entrepreneur’s idea, they usually make an offer, which generally comes in the form of funds in exchange for a certain amount of equity. If the Sharks dislike the business concept, they go out, and the entrepreneur is forced to pitch to the remaining investors. If all investors decline, then the business owner leaves without obtaining an investment into their company. Shark Tank is a phenomenal show which embodies capitalism and innovation while proving to millions of viewers that the American Dream is still alive and well.
Shark Tank has succeeded in creating a platform for viewers to witness inventiveness and creativity. One of the biggest Shark Tank success stories comes in the form of Charles Yim’s Breathometer, which records and tracks hydration levels and oral health. Yim’s product was so compelling that he managed to land a deal with all five Sharks. Yim has reportedly made over $20 million dollars in sales from his business and that number is projected to continuously increase. Observing entrepreneurs prosper from their endeavors can serve as effective stimulus for onlookers to fearlessly pursue their dreams as well. America needs more tycoons and enterprisers.
In addition to incentivizing the masses to pursue greatness, Shark Tank also provides an excellent outlet for up and coming innovators to learn from the mistakes of others. Investors will frequently provide details reasons as to why they rejected certain business models. Those reasons are often attributed to lack of preparation, lack of knowledge about the business/financials, inability to focus, or indecisiveness.
When attempting to secure an investment, it is important to enter the Shark Tank with readiness, confidence, and detailed information about all aspects of your company. Additionally, entrepreneurs should refrain from overvaluing their businesses. Proposing 5% equity for a $10 million investment is only reasonable if the sales, numbers, and projections indicate that the business model is worth that amount. Placing a high value on one’s company has frequently turned off Sharks who might have otherwise invested in the business. Aspiring entrepreneurs should beware when deciding how much equity they are willing to give up for a certain dollar amount.
Americans should watch Shark Tank because it inspires the men and women of this nation. Shark Tank also provides an ideal blueprint of a successful business model and how one should pitch to investors in order to secure a deal. For additional information on how to launch a prosperous company, purchasing and reading Shark Tank: Jump Start Your Business will provide invaluable insight.