Ten Lessons from Shark Tank — James Altucher
In a recent post for TechCrunch, James Altucher describes that lessons he learned from watching ABC’s Shark Tank with his son. Shark Tank offers a variety of lessons for investors and entrepreneurs. James sums up the lessons in a top ten list:
1. Math — 10% of the company for $100k = The company’s valuation.
2. Not everything is as it appears — Study the background of your audience in detail, because looks are deceiving.
3. Sell the dream, not the sales — Investors want to see potential, so dream big and sell them on the future.
4. Don’t nickel and dime — As Cuban said, “better to have 20% of a $100 million company than 100% of nothing.”
5. Don’t take the Hail Mary Deal — The last investor left will sometimes throw out a lopsided offer, hoping you are desperate.
6. Be the source — As an investor, take control of the situation by teaming up with others or by becoming the information bank for the entrepreneur.
7. The deal doesn’t close until the money hits — Deals often fall apart after the handshake.
8. Know what you are good at — Invest in what you know, pitch to the investors that know your business
9. Get advice when you can — If the deals fall through, get some advice on what to do differently!
10. Who cares? — Just being on the show is a huge success for these startups. Incredible advertising! So, if you don’t get the money, who cares?
Read the full article here:
http://techcrunch.com/2012/02/25/ten-lessons-shark-tank/