{"id":29004,"date":"2014-11-06T15:43:40","date_gmt":"2014-11-06T20:43:40","guid":{"rendered":"https:\/\/balancedscorecard.org\/staging\/?p=29004"},"modified":"2022-08-23T10:57:37","modified_gmt":"2022-08-23T14:57:37","slug":"3-tips-for-shark-tank-would-your-business-attract-a-shark","status":"publish","type":"post","link":"https:\/\/balancedscorecard.org\/staging\/blog\/3-tips-for-shark-tank-would-your-business-attract-a-shark\/","title":{"rendered":"3 Tips for Shark Tank: Would YOUR Business Attract a Shark?"},"content":{"rendered":"

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I love to watch Shark Tank and I\u2019ve been known to purchase a product that the Sharks reject.\u00a0\"\"<\/p>\n

So, what was the problem?\u00a0 Why don\u2019t the Sharks bite on a good product?\u00a0 Because it\u2019s not about the product.\u00a0 It\u2019s about the business.<\/p>\n

I\u2019ve observed business owners make the same 3 missteps in Shark Tank over and over.\u00a0 The owner is passionate about his\/her product.\u00a0 They BELIEVE in it.\u00a0 But\u2026<\/p>\n

    \n
  1. Customer Value Proposition:\u00a0 They cannot articulate what sort of customers they would attract and what it is about the product or its usage that would ATTRACT those customers as compared to the competition.\u00a0 This is fundamental.\u00a0 And if you listen closely, Mark Cuban will usually ask questions about this.\u00a0 Skipping this step is a mistake.<\/li>\n
  2. Knowing the Numbers:\u00a0 When the Sharks ask questions about customer base, sales, cost of production, market share, and such, they are assessing the current results of the business\u2026not wishful thinking.\u00a0 Business valuation is based on some combination of current results.<\/li>\n
  3. Growth Strategy:\u00a0 The Sharks will ask a lot of questions as they look for drivers of future performance.\u00a0 They are looking for a growth strategy.<\/li>\n<\/ol>\n

    And here is where things usually break down in the Tank.\u00a0 The owner cannot clearly articulate a viable strategy for reaching customers and growing the company to serve them.\u00a0 They cannot explain how the investment is connected to future results.<\/p>\n

    Sometimes a Shark has prior experience with a similar company and feels confident in his\/her ability to identify the drivers after the investment.\u00a0 Other times, the Sharks give up because they cannot perceive a strategy to grow the company.<\/p>\n

    I\u2019m waiting for the day when an owner shows up in the Tank with a plan similar to one that a start-up client of ours used to rapidly obtain investment funding.\u00a0 By laying out a clear picture of his growth objectives and how he intended achieve them\u2026using a strategy map that connected the dots between drivers and results, this client laid out exactly how he would use the money and why.\u00a0 For example: To build staff capacity needed to grow, he needed to improve the knowledge and skills of his employees.\u00a0 He specifically wanted $10,000 to fund some specific training.\u00a0 Increasing capacity via his employee skills would drive a key process objective: to enhance vendor relationships.\u00a0 To further improve vendor relationships, the client asked for $15,000 to build a vendor database which would also differentiate him from the competition.\u00a0 And, improved vendor relations would increase efficiency in related processes which would free up staff to serve a larger client base.\u00a0 To grow the client base, he asked for $10,000 for specific marketing activities.\u00a0 And so on\u2026it was all connected: from investments through resultant profit projections.<\/p>\n

    The client called us to SHOUT, \u201cWe got the $250,000 funding!\u00a0 No questions asked!\u201d\u00a0 Amazing?<\/p>\n

    Not really.\u00a0 They used the proper tools to connect the dots and communicate their plan and to attract the investment.<\/p>\n

    So, would YOUR business attract a Shark?\u00a0 Or would you be rejected in the Tank?<\/p>\n

    To learn how to create a plan that is clear and easy to communicate\u2026and to execute\u2026we invite you to explore The Institute Way:\u00a0 Simplify Strategic Planning & Management with the Balanced Scorecard<\/a><\/em>.<\/p>\n

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    I love to watch Shark Tank and I\u2019ve been known to purchase a product that the Sharks reject.\u00a0 So, what was the problem?\u00a0 Why don\u2019t the Sharks bite on a good product?\u00a0 Because it\u2019s not about the product.\u00a0 It\u2019s about the business. I\u2019ve observed business owners make the same 3 missteps in Shark Tank over […]<\/p>\n","protected":false},"author":5,"featured_media":29005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[23],"class_list":["post-29004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-strategy"],"yoast_head":"\n3 Tips for Shark Tank: Would YOUR Business Attract a Shark? - Balanced Scorecard Institute<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/balancedscorecard.org\/staging\/blog\/3-tips-for-shark-tank-would-your-business-attract-a-shark\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Tips for Shark Tank: Would YOUR Business Attract a Shark?\" \/>\n<meta property=\"og:description\" content=\"I love to watch Shark Tank and I\u2019ve been known to purchase a product that the Sharks reject.\u00a0 So, what was the problem?\u00a0 Why don\u2019t the Sharks bite on a good product?\u00a0 Because it\u2019s not about the product.\u00a0 It\u2019s about the business. 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