“It is time for you to learn how to lure those Sharks out”

Shark Tank

So while you were away this summer sunbathing and spending your money shamelessly on small goodies you will never ever use (that is the point of shopping anyway) WE DID OUR HOMEWORK.

Fast food, drinks, Geeky friends & Shark Tank.

So if you want to get funded on Shark Tank, look no further cause we got all you need in another yet UNIQUE guide.

SHARK TANK DO’S

1. Watch the heck out of the Show

Watch the whole show and monitor everything closely.  Do not only learn from the “winners” but make sure to pay attention to MISTAKES as well.

learning is the most important

Attitude is not the thing you should only go for. Stage and nature of product, past traction & competition are three main key aspects into which you should focus.

A geeky partner is highly advisable while watching the show, for commenting and more pleasant viewing.

2. Be there only if you are the one behind the wheel

You should thy to get funded on Shark tank only if you are the one who has control of the company.

Investors need to see you (as the main shareholder) and not just any good pitcher or advisor or limited partner.

YOU!

shark tank

3. Be specific on your demands

Be precise, and demand exactly what you need. Do not be afraid to go all out, just keep the following in the back of your mind:

Don’t go low on the amount because you want to look appealing to the investors, and not too high because you want to impress them.

BE FAIR & CORRECT!

4. Pitch your idea early on

Be clear on what you ask and what you are ready to give. Start referring the amount you ask for and the percentage of equity you are ready to give.

shark tank shark tank

5. Be clear as to where the budget will be allocated

This is also known as “Roadmap”.

The levels on which you should elaborate are as follows:

  • How much money you need
  • Why you need the money
  • What it will be used for
  • Intended outcome

Making your very own roadmap will help you because:

Each successful company and organization has a roadmap. It forces deep thinking, explains where they are going, and helps everyone stay on track. Successful people have roadmaps as well, whether they know it or not. That’s because they have a clear purpose that aligns the daily grind with their long-term aspirations. – Brian De Haaff – CEO, Aha!

6. Practice again and again & leave all worries behind

Remember when you are practising on pitching your ideas, mirror is your best friend!Click To Tweet

image00

7. “Pitching your idea for dummies”

That is the mindset with which you should go on the show. Be clear, be simple and short. Explain like your audience is full of 5-year-olds.

No one said getting funded on Shark Tank was gonna be an easy job!

Ehmm… btw I don’t mean those pitches.

8. Know your sales numbers!

And yes this is an order.

  • Total Revenue (in terms of dollars, not units)
  • Total Cost-of-good sold (Cost of goods sold is the accumulated total of all costs used to create a product or service, which has been sold. These costs fall into the general sub-categories of direct labor, materials, and overhead)
  • Total Profit per UOM (Unit) (the difference between how much you sell and how much it cost you to build it)
  • Total margin per Unit (the percentage of the above figure)

shark tank

9. Know your marketing numbers!

  • CPA – Cost per acquisition. Cost per acquisition (CPA) is calculated as: cost divided by the number of acquisitions. So for example, if one spends £150 on a campaign and gets 10 “acquisitions” this would give a cost per acquisition of £15.
  • Acquisition Channels. Knowing those, means that you know where your audience is, and where do they convert from. It also implies that you have tried different channels and you have concluded in only those that work for you. If you are in retail business, please consider few very interesting insights here

10. Beware of “strange” terms like

  • User acquisition
  • User retention*
  • Lifetime Value

*Cohort analysis is hard to do in general because we need to generate an action and activity dates.

You need to build a cohort analysis event strategy early on your product.

Cohort analysis is not a report. It’s a mindset on how you monitor your progress.Click To Tweet

To create a cohort we need to access the date that a conversion, or some other action, happens. In order to do cohort analysis in any system (such as google analytics, mixpanel etc) we need to inject a date, usually the date when a conversion happens, into Google Analytics and attach it to a user.

shark tank

11. Emphasize on web presence and self-service business rather than bricks and mortar!

shark tank

Maybe a little bit more enthusiasm is strongly advisable!

12. Beware of the TOP 16 METRICS of your startup.

Jeff Jordan (Adreeseen Horowitz partner) & Frank Chen (Adreeseen Horowitz partner) are two significant people whose signature is all over the top metrics article.

13.Emphasize on the growth-hacking abilities you may have

Well if you don’t, at least learn few things about a growth hacking mindset at the Growth University.

Screen Shot 2016-09-30 at 11.44.21

14.Demonstrate your patent(s), if you have any!

State the type of the patent (utility, process) and the stage (pending, approved etc).

You need to go all out if you want to get funded on Shark Tank, keep that always in mind.

15. Be prepared to discuss barriers to entry

More specifically companies that may come with the same product in case you bring some remarkable results.

How possible is it for someone to copycat you?

shark tank

16. Be mentally ready for “tough” lines like:

    • Stop the madness 🙂
    • You don’t deserve the amount you ask for
    • You are dead to me !!!
    • You don’t have a company you have an idea!

shark tank

17. Engage people emotionally.

Everyone loves to hear stories, even the investors at Shark Tank. So tell an exciting story about your startup.

18. Remember, Investors tend to invest in what they know.

Your major frustration/downside is that you may have a solid, growing business that has a ton of potential, but you’ll get a lot of “no’s” simply because investors don’t understand the market you’re in.

19. Win the first impression.

Your first sentence is about the amount you ask and the percentage to give. Check the table below to see how that will be perceived.

Amount for %Interpretation IInterpretation II
25k for 20%Business is too small
Business has no potential
Business is too early
Most probably it’s a pre-product or pre-revenue
100k for 5%Percentage is too small for an investor to have scheme in the game
Valuation may be too high
Retention and high revenues should be reported

250k for 10%Valuation too highAmount to low if revenues are already very high
2m for 20%Amount too high for this percentage
500k for 30%Amount too high and need to be justifiedHigh revenues are expected

20. Don’t forget about Branding!shark tank

Branding is so much more than just your logo or company colours. Most people don’t understand that.

DriveThruBranding is a true friend in need. Just in two weeks, these guys will rebrand your company. Oh, and their prices are JAW-DROPPING.

I adore their three USPs as to why you need to get branded. Clarity, SPEED and everlasting VALUE.

GET BRANDED = GET FUNDED

As simple as that. Face Shark Tank like a pro.

SHARK TANK DONT’S

21. Do not go with “a rabbit from the hat” especially in cases of:

    • Multiple companies
    • Multiple products
    • Multiple investors
    • Complect shareholder schema

shark tank

22.Do not counter-argue all the time

Listen carefully and accept their feedback and try to learn from it.

23. Asking for their day to day help is not on the menu buddy

They expect you to take care of operational tasks. They have no time to run your business.

This is your job. Mentoring, Financing and Networking is their job

24. Do not cry (although sometimes that worked really well)

25. Do not focus on physical expansion only

Bricks and mortar business scales are very difficult!

26. Do not go on Shark Tank too early.

If you have no traction, no product, no patent, no co-founder it’s not the correct time for you to be there.

27. Seeing an interest? Do not let greediness take over!

giphy

28. Don’t be arrogant because you are in love with your product

29. Do not negotiate changing the valuation.

30. Don’t forget to mention if you get a salary and don’t forget to emphasize if you don’t get one

31.  NEVER go with a pitch you DIDN’T compose, they will all understand in seconds.

At the end of the day

All in all, it is now time for you to go out there and conquer the world. With some good preparation, everything will be fine.

And in case you do not get funded, well, it is not the end of the world. Always keep in mind the lessons learned.

At least even after this experience, you will know what works for you, if your product is good if you did mistakes representing it, etc.

Is anyone in for some Shark Tank episodes? Well, we are and so should YOU!

Theodore has a 15-year experience in running successful and profitable software products. During his free time, he coaches and consults startups. His career includes managerial posts for companies both in Greece and abroad and he has significant skills on intrapreneurship and entrepreneurship.

Call us now

Worldwide: +44-2035142427
US (Toll free): 1-888-401-2402

Get actionable growth tips