If you have an idea for a business, or if you already have a company of your own, then you probably love the show “Shark Tank.” It’s reality TV, sure, but it’s not like a lot of the other junk that’s out there.
The people who go on “Shark Tank” are real entrepreneurs with real dreams, and it’s exciting watching people chase after their passions, even if that means watching a few poor souls get humiliated on national television.
However, if you’re someone who’s serious about launching a business, which means you’re serious about pitching to investors, “Shark Tank” is more than just entertainment.
In fact, it’s a chance for you to learn about the pitching process so that you can get better and have more success when the time comes for you to get in front of a bunch of VCs and ask for money.
But sitting down and watching a few episodes isn’t going to tell you much about what you need to do to sell your business idea.
There are hundreds of episodes, and because it is still mainly entertainment, there tends to be emphasis on that which will please audiences and get them coming back, not what works.
We don’t want you to miss you on everything the show has to offer, though, so we sat down and analyzed the first five seasons of the show.
Our aim was to figure out what the businesses that got funding did to convince the “Sharks” that investing in their business was a worthwhile investment.
Most people think offering large stakes in the company is what works, but this isn’t always true. In fact, what matters most is that:
- You’re offering a product in the food and beverage, household and kitchen, or sports and fitness
- You’re producing roughly a half a million dollars in gross revenue
- You’re asking for less than $185,000 for around a 25 percent stake in the company
But this is far from a guaranteed formula. There are a lot of things that go into a successful pitch with the sharks, and these ideas can help you figure out what you must do to get the needed financing for your business.
Check out the infographic below to learn more about what it takes to bait a shark: