Watching ABC’s Shark Tank is a part of the weekly routine for many American families. The show tells the stories of aspiring entrepreneurs looking for investments and help with their budding businesses.
But, for those who pay attention, Shark Tank is much more than just a television program. It actually drives home a lot of sales lessons that can help you increase and maintain the value of your business. Let’s take a look at some of the top lessons from the show.
1. Differentiate Yourself from Your Competitors
Not every product on Shark Tank is a patented concept with no direct competitors. In fact, many of the sharks on the show make no bones about tellings entrepreneurs that if they haven’t been ripped off yet, they will be soon.
But, if your product or company has some sort of advantage over its potential competitors, the sharks will still invest in the business. This advantage could be anything from differences in the supply chain, altruistic principles, or even just a highly motivated leader.
2. Be Clear With Your Message
When someone comes onto Shark Tank with an idea for a new product, it’s important for them to communicate what their business is and how it is profitable. There’s no time to waste.
When an entrepreneur comes onto the show with too many different kinds of products or an unclear direction for the company, the sharks are unlikely to invest. This is true for buyers of businesses as well. They want to see what you have to offer upfront and in the open.
3. Back-Up Your Valuation
In order to come on Shark Tank, you have to come up with a valuation for what you believe your company is worth. Then, your products and services have to back up that valuation.
If you come in with an overinflated figure, then the sharks are unable to negotiate a deal with you. This can happen in real-world business sale situations as well. If you think your company is worth more than you can demonstrate to potential buyers, then you won’t be successful in making a sale.
4. Demonstrate How Your Business Solves a Problem
If your business isn’t solving a problem in your marketplace, then it’s not necessary for the economy. The only way unnecessary businesses survive is if consumers demand their products.
For example, if you own an ice cream parlor, there may be no basic advantage to your business. But, if your business is located a few blocks from the beach in an area with a lot of foot traffic and a school nearby, then it will be much more valuable to potential buyers.
Know the problems your business is solving and how to communicate that value to a buyer.
5. Make the World a Better Place
Many of the businesses on Shark Tank don’t have products that are truly innovative. But, the differentiate themselves from other companies by the processes and techniques they use. A lot of the time they will use organic resources or give back to the community by donating one of their products for each one they sell.
You too can make the world a better place by improving your supply chain practices and paying your employees a livable wage. These choices will result in a higher sale price for your business at the end of the day.
For more help selling your business, contact Dolan Sales today.