Things You Can Learn From the Shark Tank

In the Australian season movie, the Shark Tank, contestants that have business ideas or existing businesses seeking to fund their business from wealthy entrepreneurs, who are termed the Sharks; they have to agree to part with a percentage of the business before the sharks to provide them the funding they need.  The purpose of the funding is to help them establish their business ideas or to expand their already existing businesses. The show is just a reality show like any other, but it can serve as an eye opener to the viewers and teach them some very helpful lesson in business.

The show is new in Australia, but it has been showing in the United States for some years.  The sharks in the movie are worth up to $1 Billion. The panel of sharks is made up of the following individuals:

  • Naomi Simson (Red Balloon)
  • John McGrath ( McGrath Real Estate Agents)
  • Andrew banks (Talent2 Recruitment)
  • Steve Baxter (Internet pioneer and one of the most successful tech entrepreneurs in Australia)
  • Janine Allis (owner of salsa’s Fresh Mex Grill and Boost Juice)

The movie only points out very important lessons in business, which is that a businessman needs to prepare and plan.  Investors will always want you to show them how profitable the business can be before they can commit their resources. You need to know your number before you can show them the money.

There are many entrepreneurs in Australia with a lot of brilliant and innovative ideas.  However, nothing can come out of good business ideas without a business plan, marketing or funding. There are reasons any many wonderful ideas never reach their full potentials or why some business remains small for a very long time. It is a certain fact that about 99% of all the businesses operating in Australia do not have annual turnover up to $1 million.

The question is how you can transform your small business into something really big.

Big business takes a lot of work.  It is not just about having ideas; you also need to have a good business plan.  You need to do a SWOT analysis of the business and identify its threats, opportunities, weakness, and strengths. A new entrepreneur gives all his focus on the goods and services the business is generating without giving any meaningful attention to the weaknesses of the business.  If such a new entrepreneur attempts to swim in the tank, he can be eaten alive if he does not have a clear marketing plan, a business plan, and a distribution network, since these are things the sharks will feed on.

The sharks are known to transform a small business into big ones. They also have distribution channels and established networks that can help to fast-track your business.  With their connections, your business can move faster than imaginable.

You can rely on the strength of the shark for complementing your weakness.  Your business growth can be stunted if you do not recognize your weakness.  It is not difficult to form a partnership or joint ventures to grow your business; it is also not difficult to outsource those tasks you cannot handle or buy any missing skill.  Be that as it may, make sure you have the necessary information and clear ideas about your business before you ever attempt to swim with the shark.

Do not rush to sell equity in your business, find a partner or rush off if your business revenue is on the decline or has flat lining and you are already getting frustrated about the situation. First of all, carry out the SWOT analysis of that business and also find out about the missing ingredients in the business.  Look for something else that may be missing bond the fantastic team, cutting edge website and a great product that you already have.  You may be the source of the problem if you are a micro or small business owner.

The conclusion of it all is that you must do your homework properly before you ever attempt to swim with the shark. You need to with a good SWOT analysis you can successfully identify any missing skill in your business.  If you do not know how to do this by yourself, you can always employ experts to help out.