Shark Tank is a reality TV show in which businesses pitch to 5-6 investors on the show for investment in their company. The businesses come to the show in hopes of getting funding and access to the business connections of the investors or as they call them on the show 'sharks'.
Here are 5 business lessons from Shark Tank.
Know your business numbers like the back of your hand. This isn't just so you can raise money from investors; it's so that you can access the actual health of your business. You need to know what your revenues, expenses, and actual profits are at a bare minimum. Try to quantify and use metrics to see who your best customers are. Come up with metrics that will show which aspects of your business are working and which aren't.
Learn everything about the domain your business is in. To run your businesses at operational efficiency you need to learn as much as you can about the domain it operates in. Are you a landscaper, then learn everything related to landscaping, a freelancer learn about the best practices for freelancers, in catering then learn about the best tools which will help you cook large quantities of quality food, etc. This not only makes you impressive in front of investors but more importantly, it will help accelerate your business.
Know which parts of your business you need to outsource. As a business you cannot do everything yourself, you need to figure out what the core of your businesses is and then outsource the parts that someone else can do better. Hire another business, contractor, or use a tool to handle what is not in your core competency. Trying to do everything yourself can be an expensive mistake in the long run.
Leverage and build your network of customers, friends, and businesses contacts. A strong business network is often helpful in not only help businesses survive in down times, but they could get your business it's next gig, contract, or sale. Don't underestimate the power of 'Network Effects'. It is one of the reasons why the sharks ask for more equity; it because of their network and the powerful 'Network Effects' that can accelerate a business into the next level.
- Hustle. Sometimes businesses burn themselves out trying to find the perfect opportunity, the perfect sale or the perfect hire. They burn up too much time, that they really don't have. Businesses need to hustle and just get things done. It doesn't matter if your not experienced in sales, marketing, hiring, etc. Just get it done. Nothing is perfect the first time you do it, but you'll learn and improve.