The Essential Lessons from Robert Herjavec on Shark Tank
In a thought-provoking LinkedIn post from December 14, 2017, Robert Herjavec, a prominent investor on Shark Tank, shed light on the profound impact of the show on aspiring entrepreneurs. He emphasized how both the entrepreneurs and the investor panel face high stakes during each pitch, making it a pivotal moment for all parties involved.
With over 250,000 applicants vying for a spot each year, only about 150 make it to the filming stage of the show. Reflecting on his nine years of experience, Herjavec shared six invaluable insights designed to guide up-and-coming entrepreneurs as they navigate the treacherous waters of business pitching.
1. Don’t Be Boring!
“Don’t Be Boring!”
Herjavec immediately asserts that a captivating pitch is essential. As a nationally recognized platform, Shark Tank requires innovative and exciting pitches; monotonous presentations tend to fall flat. He has observed that if entrepreneurs lack passion about their ventures, it is unlikely that the investors—referred to as ‘Sharks’—will show any interest. Every entrepreneur has just one opportunity to make an impression, and maximizing that chance is crucial for success.
2. Master Your Numbers
According to Herjavec, having a comprehensive grasp of your business’s finances is paramount when standing before potential investors. This includes understanding your sales figures, revenue streams, and profit margins. He advises entrepreneurs to present realistic and fair business valuations to avoid the pitfalls of inflated expectations.
“If your revenue means your business is currently worth $100k, don’t value your business at $1 million.”
3. Invest in the Entrepreneur, Not Just the Business
Herjavec underscores the importance of the entrepreneur’s character over the business concept itself. While he has funded many successful companies, he believes that the “magic formula”lies in the entrepreneur’s dedication and resilience. Investors seek partners who demonstrate hard work and unwavering commitment to their ideas.
4. Understand the Competitive Landscape
While the Sharks maintain a collegial atmosphere, Herjavec reminds us that business is inherently competitive. Each Shark is ready to seize a lucrative opportunity when it arises. Respect among competitors is not only crucial but fundamental to professional integrity in business.
“Things may not always go your way… but treat others with respect no matter what.”
5. Address Real Problems
Herjavec emphasizes that successful businesses are built on solving genuine problems. Entrepreneurs must focus on creating solutions rather than just products, or they risk being labeled as “joke products.”He encourages a long-term vision that aims to address fundamental challenges with their offerings.
6. Control Your Emotions
While passion is a natural part of the entrepreneurial journey, Herjavec cautions against allowing emotions to overwhelm logical decision-making. Investors are looking for rational entrepreneurs who can listen to feedback objectively. Emotional responses might signal instability to potential investors.
“If we’re going to invest in you, we want to see a good return… being driven by emotion rather than rationality is a red flag for us.”
Fans of the show can catch new episodes of Shark Tank season 16, airing every Friday on ABC, where more entrepreneurs will take their shot at impressing the Sharks.