How to get a deal from a Shark – Part I
Shark Tank is an American reality television series that premiered on August 9, 2009, on ABC. The show is a franchise of the international format Dragons’ Den, which originated in Japan in 2001. Shark Tank shows aspiring entrepreneur-contestants as they make business presentations to a panel of “shark” investors, who then choose whether to invest. Each Shark (Investor ) is from different background and loads of experiences from various Industry . Here are the names and businessness of Sharks from Shark Tank. In Part I will cover for these Sharks,
1. Kevin O’Leary : O’Leary Funds , O’Leary Ventures , Softkey and StorageNow Holdings
2. Barbara Corcoran : Founder of The Corcoran Group, Barbara Corcoran Inc. and Forefront Venture Partners
While pitching to Shark here are some key rules you must follow to get a deal ,
1. You should be clear with your numbers (Revenue, EBITDA)
2. Your business must have minimum debt
3. You should own maximum % of your business (more than 80%)
Now lets see the which Shark will be suitable for your Business / Idea ,
1. Kevin O’Leary : He is shrewd venture capitalist and has brilliant Business Accumen. Kevin’s favorite question to you are
– What is your customer acquistion cost
– Have you valuated your Business correctly ?
– Is there anything propritory or IP or having patent on your Business idea / Product
He only wants his money back thats it he will invest irrespetive of his own liking or passion in your product / Business or idea . His deals are usually of royalty based he doesnot want you equity / stake in your business like,
If you are asking for $250,000 in 20% stake means you are valuating business at $1.25 million : Deals he would make
a. If it’s retail / Bakery items / Beverages / Fitness products,
For every item sold $2 untill he recouped his $250,000 and drop $1 in perpetuity
b. Mobile app / Software
He wil, give $250,000 as loan at 18% interest rate , doesnot want any equity.
c. Likes to liecense a product .
d. Sue over intellictual property or patent (Utility or Design) that you have.
Successful deals on Shark Tank
- Wicked good cup cakes
2. Barbara Corcoran: Barbara is one of my favorite Sharkats 🙂 , because she knows how to judge people quikly and whether can he / she do the Business with her ? . Her majortiy of deals are Baking products or Food items / Cuisines etc. She has vast experience in taking an idea and making it into big business , also know how to Brand , Design a product .
Barbara sticks to what she offers , she wants atleast 20 % of Business (According to avg. taken from deals she made ). She must feel passionate about your product or like a test if its a food item / cuisines.
Successful Deals Best deals on Shark Tank
- Ryans Barkary
- Tom + Cheese
- Cousins Main Lobsters.
In next Part will see for next Sharks .
Image source : Wikipedia
Image source : ABC.com
To be Continued …..