Takeaways: When In Doubt, Hail Oprah!
By: Matt Turner
Writer and Entrepreneur
While Shark Tank is certainly entertaining and fun to watch, the show can really be quite educational if you take the Sharks' words of wisdom to heart. Each of the Shark's feedback to every pitch is full of valuable lessons and inspiring insights. Unfortunately, some of these lessons are quickly forgotten as a result of the excitement Shark Tank fans have for the entrepreneurs and the deals they make in the Tank. Well not anymore! Blog Shark Tank is proud to announce a new weekly segment which will highlight the key takeaways from each week's episode, so that you can implement them into your business and apply them to your daily lives!
Here are the Top Five Key Takeaways from this week's episode (Season 5 Episode 14):
1. Two Questions
To the founders of Locker Bones, Robert had two specific questions he wanted answered to determine his interest in investing:
1. Why is your company worth $________?
2. What does my money get me?
Being able to put yourself in the mindset of the investor is the key to understanding where your company stands today. Even if you are not looking for an investor, periodically asking yourself these questions will help you gauge your progress.
The founders couldn't answer this question all that well, and boy did it hurt them! They went into the Shark Tank asking for $175,000 for 10%, but ended up settling on a deal of $175,000 for 50%. OUCH!
2. Follow the Green, not the Dream
When it came to forming a sales strategy for Locker Bones, Mark saw the path of least resistance as growing from one school to the next. Having proven the concept and made sales, they could expand from school to school, and generate cash-flow for their business.
Sometimes as entrepreneurs we get so focused on the big picture that we miss the basic steps right in front of us that could take us to the next level. Look at your business: what opportunities are glaring right at you that you could take action on today?
3. When it doubt, Hail Oprah!
After all of the investors but Lori were out, the founders of InvisiPlug mentioned that they were going to be featured in "O" Magazine. In response, all ears perked up, Robert even re-entered with an offer, and they ended up landing a deal (with Lori).
Tribes carry weight. If you can be someone with a big tribe you can bring massive value to others. If you can align with someone with a big tribe they can add massive value to you.
4. Be a Master Negotiator
Lori created an incredible deal for herself with the founders of InvisiPlug. After she recognized the opportunity with this product, which of course is a great fit for her skill-set and expertise, she crafted a deal that not only gave her equity, but a stream of income as well that first returns her investment, and second turns into a perpetual royalty on the sale of every unit of this product.
In this pitch, two of her best lines were:
"You're nice guys, but it's what I feel I need to make the deal."
"You guys, I respect everything you're doing, but I did say that was my final offer."
Creating a great deal has three parts:
1. Know your worth.
2. Determine what the best deal for you is.
3. Stand your ground.
5. I treasure my money!
As Barbara bowed out of the InvisiPlug deal, she questioned the value placed on the business and said, "I treasure my money more than that."
As entrepreneurs, our relationship to "money" is a crucial element to our ability to allow it to flow into our lives. Many people don't realize that their misalignment or judgmental beliefs around the idea of money are the very things preventing more of it from entering their lives.
Be careful and start to recognize what beliefs you have, what emotions you feel, and what words you speak about money. It is amazing to see how the Sharks talk about the subject of money (especially Kevin). By adopting their language, beliefs, and attitudes, we can set ourselves up for success, and hopefully see more prosperity in our lives and our businesses.
What other important lessons or insights did you take away from this week's episode? Comment Below!