Guest post by Ivan Serrano
The Shark Tank Formula for Startup Success
If you’re reading this now, you’re probably an entrepreneur who’s thinking about launching a business. If so, you’re about to learn some valuable advice that can make or break your success as a startup founder.
Over the course of nine seasons, ABC’s Shark Tank has given hundreds of entrepreneurs the opportunity to pitch their business ideas to investors (otherwise known as Sharks). Throughout the show, 186 deals were made and the Sharks offered to invest over $20 million in 109 companies.
While it might seem like entrepreneurs who go on Shark Tank are extremely successful, there are a number of lessons to be learned. The reality is, launching a startup is a challenging goal and not every startup is successful even if they receive the funding they need. In fact, only one in 17 startups on the show have actually earned a profit.
When it comes to launching a startup and attracting investors, there are a number of variables to keep in mind. First, it’s absolutely necessary to know your product inside and out. Investors expect entrepreneurs to be able to explain the purpose of their product and how it’ll benefit their target audience. If you’re able to come up with a great product at fills a need, you’re on your way to a successful startup.
Next, it’s important to perfect your pitch and understand your numbers. As you approach investors, they only care about the numbers regarding your business and how you’ll be successful in upcoming years. When you meet with investors, be ready to explain how much profits you plan to earn in the next five years. This will make investors more interested in your idea.
These are just a few of the valuable lessons to learn from Shark Tank. To learn more about the Shark Tank formula for startup success, check out the infographic below: