To answer this question, you have to be specific about the customer segment you are initially targeting. In addition, what customer acquisition channels are you currently using and which ones can you tap into if you get additional funding? You also have to define how much market share you think you can really capture in the next few years. Your customer acquisition cost is going to be key in figuring out your profit margins, which is all they care about. How much does it cost you to acquire your current customers? If you don’t know, figure that out. You have to explain how you are going to do that. It not good enough to tell them you are going to use the money they give you to grow your customer base or invest in sales and marketing. That was a defining moment when they realized this could be big if Amazon is getting on board.ģ. For me, one of the key points that swayed the sharks during my presentation was when I told them I had just signed an agreement with to exchange gift cards for credits. You can also talk about a deal you have with a large company to buy from you or stock your product. You should also have to be prepared to answer this question: “what prevents someone from doing what you are doing?” This is your opportunity to discuss the secret sauce that makes your product unique or any intellectual property you hold. You should be prepared to talk about the competition and why your product or service is better, especially when you are going up against a large, more established competitor. To them, that means no one has found the idea worth pursuing. The sharks will probably grow suspicious when you tell them there is no competition. It’s surprising to me how little some entrepreneurs know about their industry, competition or threats their business could potentially face. To do that, here are a few points you have to absolutely hit:Ī.) Define the problem and state the market size (the bigger, the better)ī.) Tell them how your business solves the problem and how you make moneyĬ.) Explain what makes your solution uniqueĭ.) Show them how much traction you’ve gained in a short period of time selling your product or service and why they will make a lot of money investing in you.Į.) Be clear about what you are asking for and what you plan to do with the money (sales and marketing, fulfilling a large order, building capacity so you can produce more to meet demand etc).īe clear about what you are asking for and what you plan to do with the money (sales and marketing, fulfilling a large order, building capacity so you can produce more to meet demand etc). The best way to get them to pay attention to your pitch is to have a solid introduction. In addition, depending on what time of the day you are scheduled, their patience may be running thin. It is in your best interest to make it easy on them.
That means that on a typical day, they are listening to a few dozen pitches. The sharks usually spend a few days taping all the episodes for an entire season. If you get this wrong, things begin to fall apart quickly. The first hurdle you have to overcome is describing your business to the sharks in a clear and concise way so they get it right away. If you take the time to answer these questions, you will increase your odds of getting a deal.Įven if you don’t make it on Shark Tank, most of these tips are applicable whenever you are asking someone for money for your business, whether friends, family, angel investors or venture capitalist. From my own experience and years of watching the show, I have compiled 7 secrets to landing a deal on shark tank. As a result, I find it unfortunate when I see some entrepreneurs go on the show and blow the opportunity due to poor preparation or a lack of understanding on of what motivates the sharks. That not only makes your business credible in the eyes of millions of viewers but also gives you leverage in attracting other critical partners you need to succeed. Shark tank gave us the launchpad we needed, for an idea that was fairly new, in an industry that most people didn't know existed.Īs a startup, there is no greater validation than for one or more of the sharks to take an interest in your business. Gift Card Rescue went on to sell over $60 million in gift cards during our 8-year run. The following year, we did $2 million in revenue. Within 4 months of the show, sales grew by another $150,000 to $250,000 for the year. When I went on Shark Tank, my business was on track to make $100,000 that year. Getting a deal on Shark Tank is an even bigger deal. Going on Shark Tank is a great experience you should never pass up. 7 Secrets to Getting a Deal on Shark Tank
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