How to Survive the Shark Tank - Part 1 [Investor Tips] - @empoweredpres

This presentation is based on the analysis of all 100 entrepreneurs on Season 1 and 2 of the hit reality show on ABC Shark Tank.

Part 1 is about what not to say to a shark.
Part 2 is about what to say to a shark to get them to bite.

Follow us @empoweredpres

Transcript

1. HOW TO CHUM THE WATERS SURVIVING THE PART I
2. DISCLAIMER: The following are actual negotiations between entrepreneurs and investor “Sharks”. The Sharks are investing their own money at their discretion. There is no guarantee that by following these tips that you will be successful in your negotiations. Please enjoy this presentation.
3. Entrepreneurs who dare to enter the shark tank, pitch their company hoping that a shark will invest their money to start, build, or save their business. The sharks decide whether they want to invest in the business...or say, “I’m out”. BOUT THE SHOW:
4. MEET THE
5. A shark is a venture capitalist looking for a business, product, or service in which to invest their money and gain a substantial return on their investment. DEFINITION:
6. BARBARA Barbara got straight D’s in high school and college. Borrowing $1,000 from a friend & quit her job as a waitress to start a tiny real estate company in NYC. Over the next 25 years, she’d parlay that $1,000 into a 5-billion-dollar real estate business and the largest and best known brand in the industry. CORCORAN @barbaracorcoran
7. Daymond revolutionized the sportswear industry in the 1990s as founder, president, and CEO of FUBU --”For Us, By Us”, guiding it to a staggering $350 million in revenues by 1998. He is one of the most sought after branding experts and keynote speakers in fashion and business today. DAYMOND JOHN @thesharkdaymond
8. Kevin is an American businessman and investor. He is the chairman and founder of TVGoods Inc., co-founder of OmniReliant Holdings, Inc. and a pioneer in the infomercial industry. @harringtonkevin KEVIN HARRINGTON
9. Kevin made his millions helping children learn how to read by launching SoftKey Software Products from his basement and eventually selling it for 3.7 billion dollars. To keep this money working hard, he founded his own mutual fund company and now looks hard for investments that make money. KEVIN O’LEARY @kevinolearytv
10. Mark Cuban was an entrepreneur from the early age of 12, when he sold garbage bags door-to-door. Today, Mark is the highly successful entrepreneur and investor who founded HDNet, Broadcast.com and MicroSolutions. He is best known as the owner of the NBA Mavericks team. @mcuban MARK CUBAN
11. Robert has lived the classic “rags to riches” story, waiting tables by day and working his first technology company, BRAK systems by night which he sold to AT&T for $100 million dollars in 2000. He now leads The Herjavec Group, a leading IT security and infrastructure integration firm. ROBERT HERJAVEC @robertherjavec
12. part I: DO NOT WHYTHEYBITE
13. THAT ENTERED THE TANK... OF THE 100 BUSINESSES [Season 1 & 2]
14. Product Franchise Service 84 6 10
15. THE SHARKS INVESTED IN WERE... THE 45 BUSINESSES OUT OF THOSE 100,
16. Product Franchise Service 39 2 4
17. ASKING INVESTMENTS WERE... OF THE 45 DEALS MADE THE AVG LOW MED & HI
18. High Low Med 400k 50k 225k
19. EQUITY PERCENTAGES WERE... OF THE 45 DEALS MADE THE AVG LOW MED & HI
20. High Low Med 40% 12.5% 25%
21. PERCENTAGE was OF THE 45 DEALS MADE THE AVG ROYALTY 6%
22. 4REASONS WHY SHARKS BITE: DO NOT
23. 1EGO
24. DEIDREAHAYSEL A pharmaceutical sales rep by day, designed Hot Mama Gowns because she felt humiliated and insecure while wearing hospital gowns during the birth of her first child.
25. With short sleeves and a full snap-down back, these gowns are for beautiful joyful moms-to-be, not sick hospital patients.
26. Deidrea entered the shark tank offering 20% equity for $30K.
27. Barbara grew concerned about Deidrea’s open- mindedness and made a few demands that were initially met, so Barbara bit...
28. ...but Deidrea thought 40% equity was too high and walked away...with nothing.
29. I’m worried about closed-mindedness because any suggestion that’s made here it’s been ‘but’ against it. - Barbara Corcoran
30. You are asking for the Shark’s money, not the other way around. LEAVE YOUR EGO AT HOME.
31. NO SALES 2
32. MARY ELLENSIMONSEN Invented the Sticky Note holder because she had a problem keeping track of all her Post-It notes.
33. This holder attaches to the side of your computer and folds into it when closed, keeping all your sticky notes in one place.
34. Mary Ellen offered 20% equity for $100K...
35. but the pitch went south when Mary Ellen revealed that she did not have a patent, let alone a single sale for her product.
36. So with the exception of Barbara, who thought Mary Ellen was solid but had the wrong product, the sharks basically shoo’d her out of the room.
37. I think that if you walked in here today with some kind of interest in this project, I think you may be getting a different reaction from us right now. - Kevin Harrington
38. NO SALES. A USELESS IDEA. Feed the sharks substantially or they’ll find something else to sink their teeth into.
39. 3BAD HISTORY
40. JEFF COHEN Jeff & his family cooked up Granola Gourmet because he is diabetic and wanted his wife to make something he could eat, without spiking his blood sugar.
41. Jeff offered 25% stake in his business for $175K, that put the value of his company over $700K.
42. Despite being in 24 Whole Food stores, Jeff made a fatal mistake...
43. Jeff admited he could not get a bank loan to fund his company because his previous company went bankrupt, and with that, all the sharks were out.
44. Stop the Madness. - Kevin O’Leary
45. SHARKS DO NOT LIKE BAD HISTORY. If you have one, best of luck.
46. TRANSPARENT 4
47. James created Pure Ayre which is the only Food- grade odor eliminator that breaks apart the odor instead of masking it with a fragrance. JAMESMITCHELL
48. James offered 150k for 10% equity of his company to the sharks.
49. Even though James had an amazing product, the sharks felt he was non- transparent and shifty because he was never able to answer a question.
50. The sharks wanted to buy-out James’ company and leave him with a 7% royalty,
51. but James did not want to give-up his company, so he declined their offer.
52. I’ve learned in life that when something’s too hard it’s probably good to get out...You seem to have a difficult time with giving me a straight answer, so I’m out. - Robert Herjavec
53. ANSWER THE QUESTIONS. Have the ability to answer a question directly. If not, it makes sharks think you’re indecisive.
54. OVER VALUE BONUS TIP! 5
55. STACYERWIN Stacey is the owner of Fitness Stride that claims you get double the exercise benefits while wearing one of his products.
56. These fitness bands are designed to get you in shape while multi-tasking.
57. Stacey asked for $140K for a 15% stake in the product, which puts the value of his company at almost a million dollars.
58. ...so all the sharks were out. With only $150K in sales, this caused the sharks to question his valuation of the company...
59. Do not valuate your company for too much. That makes it too rich of a deal for me, and for that reason I’m out. - Daymond John
60. KNOW YOUR VALUE. Valuing your company for more than what it’s worth today is a BIG no no.
61. THELOSING FORMULA
62. NO Ego + No Sales + Bad History + Non-Transparent + Over Value DEAL
63. NOT TO DO NOW YOU KNOW WHAT
64. SHARE W/OTHER SHARKS.
65. SHARK TANK WHAT TO DO! View: PART II: PART II
66. TANKSYOU: abc.go.com hulu.com pureayre.com attachnoted.com hotmamagowns.com fitnessstride.com fotolia.com granolagormet.com
67. WATCHSHARKTANK Fridays 8/7C on
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