[ad_1]
You do not have to deal with Kevin O 'Leary to learn what "Shark Tank" teaches. A new study does it for you.
October
15 2018
6 min read
Opinions expressed by Contractor the contributors are theirs.
The successful series Shark Aquarium can be 10 years old, but entrepreneurs always have new opportunities to learn about how successful their competitors have been or why they have failed.
Related: These offers that you see entrepreneurs celebrating on "Shark Tank" do not always come to pass
In the first nine seasons of the show (the 10th season started on October 7), 441 teams in total won a contract – and 362 have not. What was the key ingredient of these successes? In fact, a multitude of variables have affected the results of these aspiring millionaires.
Some companies have succeeded beyond the wildest dreams of their founders. Others have not even responded to soaring orders that usually follows the appearance of a company in the series.
Then there was Jamie Siminoff, the entrepreneur who rings a wifi bell on Shark Aquarium in 2013, five years later (in 2018), the sale of his business to Amazon had failed. As a result, he was invited to become the newest guest Shark.
Along the way, the show offered benefits not only to entrepreneurs, but also to viewers, in terms of lessons Shark Aquarium transmits on the fundamentals of entrepreneurship. These include: the creation of a relevant and viable business, the clear communication of its value proposition through backup data and the securing of financing. All these novice entrepreneurs need advice and Shark Aquarium l & # 39; offer.
Related: This entrepreneur could be the "best" in the history of Shark Tank
That's why my company has started to assist in conducting a study on Shark Aquarium locations of our customers at SimpleTexting. This text marketing company spent two months analyzing 803 presentations on the show and reading the official notes of its producers. Along the way, the researchers examined each competitor's case and his (or her) final pitch performance (s) during the show.
Below are the results of the study, presented in the form of four conclusions on how entrepreneurs can earn huge investments for their own business – whether they have earned a coveted place in Shark Aquarium or not:
1. Do not work alone if you do not have to.
Shark Aquarium candidates must work in pairs. Those who work with partners are 21% more likely to get an agreement (61.44% for a team and 50.62% for an individual); and the average value of their businesses was generally 22% higher than that of individual competitors (USD 2,923,778.77 versus USD 2,397,072.79).
What does it mean: As the old saying goes: "If you want to go fast, go alone. If you want to go far, go for it. There is a truth to that when it is about being an entrepreneur. It may seem easier to realize the idea you had alone, but ultimately you will have a better chance of success if you invite others you trust.
Sociological studies confirm the added value of collaboration (and its ability to add literal value – increased profitability). The performance of Shark Aquarium the candidates.
2. Do not compromise a potential investment by asking too much of an investor.
Shark Aquarium applicants who asked for more were less likely to get an agreement. Those requesting investments below $ 200,000 had a transaction rate of 57 per cent, with the rate falling to 49 per cent for transactions ranging from $ 400,000 to $ 599,000, and still below 44 per cent for requests of $ 600,000. dollars and more.
What does it mean: In the end, investors are people, and people are all different. Investors come from different backgrounds, have special interests and work in various sectors. You must find an investor who fits your specific business case. Similarly, judges (a.k.a. "Sharks") on Shark Aquarium have a unique perspective and invest their money in different ways than their co-stars.
There are six main sharks associated with the series – Mark Cuban, John Daymond, Barbara Corcoran, Lori Greiner, Robert Herjavec and Kevin O-Leary – and five appear in a given episode, sometimes with an exchange against a guest Shark ( for example Richard Branson). It is extremely rare that all present Sharks invest in a pitch. In fact, the first time that such unanimity has occurred goes back to 2013, which means that four full seasons of the series have been passed even before that happens.
Instead, the winning arguments will usually be dealt with by one or more investors; hence the variation in the total amount that each shark has invested over the history of the series.
3. There is no perfect formula for success.
This is true on Shark Aquarium. In the first nine seasons, competitors who asked the Sharks to invest more were less likely to get an agreement. Those requesting less than $ 200,000 had a transaction rate of 57%, while the transaction rate fell to 49% for those requesting $ 400,000 to $ 599,000. The rate dropped further when applicants asked for $ 600,000 or more – falling to 44%.
What does it mean: Make sure your business really meets a need and can communicate its value proposition. Sure Aquarium with sharks, some categories have largely succeeded (for example, the segment of holiday decoration products recorded a 79% transaction rate), while others have failed (for example, the entertainment segment, which only counted 30%).
4. If you are rejected, do not give up; see this as an opportunity for learning.
What is even more devastating than rejecting a mediocre idea is rejecting a good idea because it has not been communicated effectively. Sometimes, however, failure occurs. The first step, then, after a rejection, is to honestly and thoroughly evaluate what went wrong.
If the business premise is flawed, determine how to fix it or if you need to focus on a different idea. If you can not communicate well or respond effectively to investor questions, work on your argument before trying again. If everything about your performance and business has worked well but you still have not attracted the interest of the investor, look for one that suits you better.
Related: $ 13 million from companies that turned down "Shark Tank" offers
Of the many locations Shark Aquarium that failed, some have become very successful companies after all. Siminoff, the newest Guest Shark? His speech on the 2013 season of the show might have failed. But he finally managed big. So rejection can be difficult to accept, but perseverance is often the secret of success.
Source link
