Although few attempts to obtain venture capital will ever transpire as quickly as the presentations featured on ABC’s TV show Shark Tank, you can still pick up some valuable pointers by watching this show. In fact, one entrepreneur decided to watch 400 episodes of this now-popular program -- and he’s now written an article summarizing his findings.
Although some of his pointers about obtaining funding for startups and other companies overlap a bit with common sense, others are truly worth bearing in mind should you ever find yourself in this type of real-life situation.
Important Tips to Remember When Trying to Win Over Potential Business Investors
- Know all of your numbers, inside and out. Be ready to talk about all of your initial investments in the company, how many hours you currently have available to devote to the business on a weekly basis, if you have other investors, and all facts tied to any profits you’ve made since you started the business. Of course, if you’ve suffered any sizeable losses, you need to also provide that information. After all, many people don’t realize that many of this program’s deals are later disavowed when the show’s regular panel guests discover that critical business information has been withheld or concealed;
- Explain hour your product uniquely meets a sizeable demand in the marketplace and why your able to meet that need better than any of your competitors. If you can’t make a strong argument based upon these particular facts, you’re highly unlikely to ever find enough investors, unless they’re directly related to you and have always underwritten your successes and failures;
- Make sure the world really can use your product or service – and that it’s not something that most of us will never take seriously;
- Trendy products and services often fail. Be careful if you’re marketing something that’s tied to current fashion tastes, whether they’re tied to clothing or a current “hot” tech product. These often become outdated rather quickly and are eventually replaced by newer inventions;
- Don’t be petty. It’s always sad to watch people on this TV show (which is also available online) who walk away from pretty generous offers – just because they can’t get absolutely everything they want. Compromise is critical in the business world – so be sure to learn this skill as quickly as possible;
- Be ready to talk patents and copyrights. If you have a highly unique product, you’ll almost certainly be asked if you’ve already applied for one or more patents related to it, so be sure you can respond. The same is true if any copyright protection needs to be sought;
- Be personable and dress like a professional. While it may be fine to look like you just rolled out of bed and don’t own any tailored shirts or pants at your startup office, most venture capitalists actually want to believe that they’re dealing with a professional.
To obtain help with handling all of your Georgia business planning needs, please contact Shane Smith Law today. You can schedule your free initial consultation with a knowledgeable Peachtree City estate planning attorney by calling: (770) 487-8999.