One pitch, one message, one opportunity to fund your dream business.
Have you been watching Shark Tank?
What a great show. Rich guys and gal “Sharks” entice entrepreneurs with their deep pockets into pitching them with their products and business opportunities.
Here’s what’s amazing: If you watch the show regularly, you’ll notice that the Sharks want to know three things: How much are you asking for, what % of equity are you willing to give them for their dough, and how much have you sold in the last year.
They want to know what you think the value of your company is, and then they figure out if you’re reasonable or off the wall with what you think your business is worth.They decide whether they want to partner with you and help you become a super-success.
I’m amazed by how unprepared some of the entrepre-pitchers are, but also how indecisive they often are. Frequently, the Sharks are the best deal they’ve ever gotten and yet they think about it so long they lose the deal.
The best part is when they bring back former entrepre-pitchers to show you what’s become of the business in the last year. Barbara Corcoran gave Kim of Daisy Cakes $50,000 for 25% equity in the company. In 2010 she sold 2,000 cakes and at the close of 2011, she sold 18,000 cakes!
Shark Tank is on Friday nights at 8 PM on ABC.
I’ve enjoyed reading everyone’s comments here – all very good points! I’ve been teaching Financial Stress Reduction® classes for over 20 years, and how to ask for money and how much to ask for are central questions from entrepreneurs in every class. People often think they have to reduce their fees to less than the going rate in order to get business, but the opposite is often true – if you go into a furniture store and see a couch for $300 and another one for $3,000, which one do you think is a better couch? It’s important for you to stick to a price that makes your budget work – you can’t ever charge a small enough amount that everyone could afford it. How many clients do you need?
Great point Chellie. There will ALWAYS be someone who will try to charge lower than you.
Thanks for sharing your financial mindset wisdom.
Agreed Phyllis, knowing your value is essential.
And thanks for commenting.