7 Money-Making Lessons from "Shark Tank"...

[Dien Rice]

I'm a fan of "Shark Tank"... but not everyone is!

I recently read a scathing review, which likened "Shark Tank" as an exercise in seeing people be humiliated. The reviewer thought that that was all there was to the show - seeing people be humiliated, embarrassed, and crushed by the jaws of the Sharks...

In contrast, I'd say you can learn a lot from the show! What you are doing is learning from other people's mistakes... The sharks often give quite good advice, and have good insights... Though sometimes they are harshly worded, they are blunt, and that's actually the most useful way to get the information - so there's no "pussyfooting" around, missing the point, or misunderstanding the lesson...

Here are some of the business lessons you can learn from "Shark Tank"...!

• You learn about the importance of "likability"... Because "likability" is definitely one of the factors the Sharks use in making an investment decision! They often won't invest in someone, and work with them, if they don't "like" them... Because for them, it's often not worth spending time with people they just don't like...!

• You learn about the importance of competence. Multiple "Sharks" have said that they invest in the "people" more than they invest in the "companies"...

• You learn several things about negotiations... One lesson is that a negotiation is not necessarily just about the money. Many other factors can come into the mix! Including when the money will come, how there could be "bonuses" if certain targets are hit by certain time periods, or maybe a shark's money is not just what's important to the entrepreneur giving the pitch, but they want access to a Shark's contacts and other resources too, before they'll accept the investment...

• You can learn about using time limits to force people to make a decision. I've seen Mark Cuban make an offer - and give the person one minute (or was it two minutes) to accept it, before he said he'd withdraw the deal...!

• You learn about what are investable assets. Although they don't use this terminology, these are what Harvey Brody (and also Joe Cossman) call "toll positions"... Things like patents, copyrights, exclusive distribution agreements, etc. Many times, the Sharks' questions hone in on these aspects of the business which is being pitched...

• You learn to assess the competitors in a particular market - since this is one of the things the sharks look at (usually without naming any specific names, though)...

• You learn from the mistakes the entrepreneurs pitching make... Especially if they have a money-losing business, and they persist in sending good money after bad!

So, "Shark Tank" may make you roll your eyes, or squirm in your chair, but if you pay attention, it could grow your wallet a little fatter too...!

Best wishes,

Dien