As Shark Tank Season 2 continues to enthrall viewers across the country, it has made the audience far more comfortable with financial terminology and business jargon! However, there is more to be taken away from this hit TV show than just entertainment. The Sharks’ behavior allows a deeper insight into the businesses and entrepreneurship. Here are the top lessons to take away from the hit TV show.
Do what you know
Judge Namita Thapar rejects pitches from companies she doesn’t have any knowledge or expertise in. Knowing your business, the market and offerings extremely thoroughly will help you set a path for the present and plan for the future. It will also help gain an insight and understanding into your competition, this will assist in positioning their product or service in a unique way that sets it apart and appeals to their target customers.
Learn to manage your risk
Even though all Sharks receive the same pitch, they decide to buy equity at different stakes or price points according to the risk they are willing to take. Each judge has a varied appetite for risk and accordingly, they barter their capital for equity in the company. If the risk to their investment supersedes their comfort level, the Shark often counters with a revised offer to protect their money. Every judge has a different level of risk potential, which is why they give different offers. This season, Namita Thapar and Aman Gupta have emerged as the biggest investors, while Vineeta Singh and Amit Jain have sought to protect their bottom line from risk. Learning to manage risk will help optimize investments to the level that one is comfortable with.
Be flexible
Flexibility is another key lesson from Shark Tank India. The Sharks are searching for businesses that are scalable and have exponential growth potential. Entrepreneurs must be open to feedback and willing to make changes to their business model if necessary. This demonstrates that they are open-minded, adaptable, and willing to do what is necessary for success and can overcome challenges faced in the future.
Understand finances
Knowing about the basic numbers is also crucial; a clear understanding of financials, including your revenue, costs, and projected profits helps determine the health and potential of a business or investment. Contestants on the show who are not aware of their base numbers often draw the ire of Anupam Mittal, therefore every contestant tries to keep this information handy when seeking investment from the sharks. Even if there is no extensive, in-depth knowledge, a working understanding can go a long way.
Think long-term
The Sharks always hunt for entrepreneurs and innovators with vision and goal for the future. The business models pitched by the contestants have to have scalability and a positive outlook for long-term growth, which will give the Sharks maximum returns. These returns are the driving force behind Peyush Bansal’s incessant questions about the future and vision for the firms or products. Apart from their business or product, the contestants must also have a forward-looking outlook for the industry or market. Thinking long-term helps prepare a proper business plan and also helps mitigate risk. By applying these lessons, entrepreneurs or investors can increase their chances of success.