5 Things Small Business Owners Can Learn From 'Shark Tank'

Shark Tank is a popular reality television show that provides a platform for entrepreneurs to pitch their business ideas to a panel of seasoned investors called "sharks." The show has become incredibly popular over the years, and has inspired many small business owners to pursue their dreams. Shark Tank is not just an entertaining show; it is also a valuable source of business knowledge.

1. Believe in your business idea, but be realistic

The first lesson that small business owners can learn from Shark Tank is to believe in their business idea. Many entrepreneurs who appear on the show are passionate about their businesses, and they have a clear vision of what they want to achieve.

The sharks can sense when someone is truly passionate about their business, and they are more likely to invest in a business when they see that the entrepreneur believes in their idea.

While passion is crucial for success, it's important to acknowledge the challenges and limitations of your business.

By being honest and practical, entrepreneurs can make informed decisions, identify areas in need of improvement, and continue to grow and innovate. When it comes to attracting investors, it's important to focus on the present rather than solely considering idealistic or hypothetical scenarios.

2. Know your numbers

The sharks on Shark Tank are notorious for asking tough questions about finances. Small business owners who want to succeed need to know their numbers inside and out. This includes revenue, expenses, profit margins, how much is in their business bank account, and more.

In one episode with a food truck selling lobster, the co-founders learned that "just because your company is making money, it doesn't mean you are." Owners are so focused on running their business that they are not keeping track of their finances.

Understanding your financial data will help you make informed decisions about your business. Sharks often ask funding sources for the business, operating costs, market share, and other important metrics.

3. Be prepared for rejection

One of the challenges of entrepreneurship is dealing with rejection. Rejection is a common occurrence in the business world, and it can be tough to handle. The entrepreneurs who appear on Shark Tank face rejection all the time, but they never give up on their dreams.

In the first 10 seasons of the show, only 55% of contestants received a deal. Venturing into entrepreneurship can be challenging, and at times, discouraging. But, persistence pays off, and success awaits those who keep pushing until they finally receive that one positive response.

It takes only one "yes" to officially kickstart your business journey. Stay motivated, and you'll soon be on your path to success.

4. Solve a problem with a unique solutions

Uniqueness is the key to standing out in a market full of competitors and copycats. It could be an unusual business idea, a creative approach to an existing model, or perhaps a product that has never been seen before.

But it's not enough to just be unique. A business must also solve a problem. Whether it's a gap in the market that needs to be filled or a problem that consumers face daily, businesses should offer a solution that people can't find anywhere else.

Identifying a problem and then crafting a unique solution is crucial for any business to thrive, and it's what sets apart those who succeed from those who do not.

5. New doors open when you expand your network

As an entrepreneur and small business owner, it's important to recognize the value of networking and connections. Shark Tank itself provides a prime example of how a strong network can impact the success of a business. The sharks, successful and influential investors in their own right, bring a wealth of knowledge and connections to the table.

By expanding your network and who you know, you open yourself up to opportunities for growth and success. Building relationships with other industry professionals, attending networking events, and utilizing social media can all lead to invaluable connections.

Shark Tank is not just an entertaining television show; it is also a valuable source of business knowledge. By watching the show, small business owners can learn important lessons about entrepreneurship, including knowing their numbers, being prepared for rejection, and being adaptable. These lessons can help entrepreneurs build better, more successful businesses, and achieve their dreams.