Lessons Every Startup Can Learn By Watching Shark Tank

It might be easy to look at reality television as a low brow form of entertainment because it harbors more than a few strange or excessive shows. That being said, there are a handful of shows in this genre which can offer beneficial information if the viewer is interested. One example of this is the show Shark Tank. Each episode, some hopeful entrepreneurs go before a panel of business moguls who are in search of their next great investment. Through presentation and conversation each member of the panel will decide to accept, counter or decline the business offer presented by the entrepreneur. Essentially, the show gives the audience a behind the curtains view of the startup business world. For many entrepreneurs, this can provide unique insight that can be utilized in their own startup. It’s also a wonderful way to avoid possible mistakes as Shark Tank businessman Kevin O’Leary once said,  “The road to riches is never straight and narrow. It can be riddled with financial land mines.”,

What are the lessons every startup can learn by watching Shark Tank? We connected with ten different business experts to discover their answers to this question. Also Read Foam Party Hats.

Be reasonable

Isaiah Henry is the CEO of Seabreeze Management, a company specializing in people management. He believes rational and logical thinking is a key takeaway from the reality television show.

“If you’ve ever seen Shark Tank, you’ve seen the pitches that are doomed from the get go because of the entrepreneurs inability to be reasonable. While a scene like this is good for a laugh, I think it’s important to keep this in mind if you’re starting your own project. Whether you’re designing a product or pitching it, set goals or offers with care and concern. Compare your companies to others if possible and see what they did. Your dreams should be big but they should also be feasible.”

Know your numbers

Andar specializes in handcrafted leather goods. Their Co-founder, Eric Elggren, suggests taking the time to gain a deep understanding of the financial aspects of the startup.

“There’s so many areas of business that an entrepreneur must be aware of that it can become overwhelming. The numbers may be the most overwhelming of any of these. However, it’s also one of the most influential. On Shark Tank, some of the most unique ideas have popped up during pitches that it’s head scratching as to why they didn’t receive offers. Until you realize that many of these people did not have a solid grasp of the finances pertaining to the startup and the offer being presented. In a lot of cases, the more information you have, the better your decision making will be.”

Network

Connecting with people is a necessity for creating success as an entrepreneur. The Shark Tank investors are a wonderful example of this. Cleared offers online allergy help. Their Co-founder, Ryan Rockefeller, considers this helpful to learn from.

“There’s numerous reasons why the Shark Tank investors have been so successful. I’d argue one of the more significant reasons is how extensive their networks are. No matter who is making an offer to an entrepreneur, each investor routinely provides examples of the businesses and experts they are connected with which will bring value to the entrepreneur. This speaks to each investor’s ability to build valuable relationships and it’s proof that we should follow their example.

Importance of appearance

Max Schwartzapfel is the CMO of Fighting For You, a personal injury law firm. He advises others to ensure to pay special attention to all visual aspects of the startup.

“Regardless of if your startup is digitally or physically based, everything that a potential customer or investor is able to see with their eyes should be given extensive scrutiny. This is apparent on Shark Tank when the pitching party blows the celebrities away with their professional appearance. Not only does the viewing party take their first impression of your startup from these items, it’s also how they will remember you. If you need to hire some help to touch up your website or put together a sleek business card, do so. It matters.”

Be open-minded

Acre Gold specializes in affordable ways to buy gold. Their Head of Operations, Jared Hines, believes being open to suggestions is a powerful insight to be gained from watching the reality television show.

“Every once in a while, an eager entrepreneur will appear with a sense of overconfidence and knowledge only to have this rebuffed by one of the business personalities. At this point, the entrepreneur is offered constructive advice and direction from the personalities. Some entrepreneurs are quick to adjust their thinking while others remain stubborn. The personalities come from experience that can be matched by very few humans. While you may not have access to someone on Shark Tank, advice will be thrown your way and you shouldn’t brush this off.

Do not think small

Sometimes the Sharks are incredulous at the low or non-existent sales of an entrepreneur’s product. Other times, the Sharks are hesitant to enter a niche market. Emjay is a business providing cannabis delivery. Their CEO, Chris Vaughn, proposes learning from these entrepreneurs.

“The funniest interactions seem to happen when a guest brings a unique product forward that while interesting, may not have broad public appeal. The investors are quick to shoot these ideas down because they realize there is likely to be potential for the startup to grow. Other funny moments happen when the investors incredulously drop their jaws at a guest’s mediocre sales record because they’re focused elsewhere. In both cases, the entrepreneur is thinking too small and you should be wary of doing the same.”

Keep it together

Lauren Kleinman is the Co-founder of The Quality Edit, a platform curating the web’s best brands. She cautions others to be mindful of their physical and mental composure.

“Keeping a level head in every business scenario is imperative to cultivating success. If you let your emotions guide you, it can lead to results that you would much prefer to avoid. There are a few examples of this taking place in episodes of Shark Tank. Someone steps in the room to show off their idea and for one reason or another, they begin to demonstrate far too much emotion. From anger to sadness, reaching this state can cause poor decision making or harm to relationships. It’s not always easy, but try to keep yourself together.”

Passion

Ohza specializes in mouth-watering mimosas. Their Growth Marketing Manager, Riley Burke, considers it critical to identify people who display excitement about what is being done with a startup or product.

“Those who know Shark Tank know that each investor has a handful of areas of passion. Some are in tech, others are in food or real estate. They know what they’re passionate about and continuously seek more exposure to these things. As a result of this passion, they’ve been driven not only to reach where they are, but to continue to grow. Find people who exhibit this level of passion for what you’re doing. Not only is it an encouragement to you, it will greatly benefit your chances of success.”

Acquire information

Just because an entrepreneur must take on an attitude of do-it-all, does not mean they should take one the attitude of a know-it-all. Kevinmiller.com’s, Founder Kevin Miller, advises this approach.

“In business, there is only success and failure. Inevitably, you will meet one of these outcomes. Failure in many cases can simply take place because not enough information was known prior to or during the startup process. The Sharks have sometimes offered examples of doing their research before getting involved in a market. This is a prime example of someone realizing they don’t know everything and letting that reality push them to new heights. You should do the same.”

Acknowledge your errors

Fred Gerantabee is the Chief Experience Officer of Foster Grant, a brand offering high-quality lenses. He suggests owning mistakes that have been made in order to avoid repeating them.

“Everyone will make an error no matter who they are or what they’re endeavor is. On Shark Tank, the judges have provided stories of times when they have committed an error. Along with this they also discuss the lesson learned from that experience. A mindset like this can help you move forward efficiently and effectively. You don’t want to spend your time duplicating the same efforts if they’re unsuccessful and the only way to do so is to admit your misstep.”

Running a successful startup is no small task and going the road independently is never advisable. While using Shark Tank as the sole guiding light is not the correct way of going about this, there are lessons to be learned from it. At the end of the day, the responsibility of the success of a startup falls to the founding entrepreneur. And, they should do everything in their power to ensure success. Shark Tank investor Mark Cuban put it best, “It’s not whether the glass is half empty or half full, it’s who is pouring the water. The key in business and success at any endeavor is doing your best to control your destiny. You can’t always do it, but you have to take every opportunity you can to be as prepared as–and ahead of–the competition as you possibly can be.”