Who would have thought venture capitalists and angel investors would get their own TV show? ABC’s Shark Tank is now one of the most popular shows in ABC’s lineup but even better than that, the average American hears stories of the American dream playing out each week.
Viewers have also found that pitching your idea to investors is no easy task and getting money out of them is even harder. In order to walk away with money from the Sharks or a local investor in your area, consider these ideas.
Anybody can start a business but entrepreneurs have to love what they do. Your passion for your business has to show through because building a business is never smooth. When times get tough, it might be nothing more than your passion that pulls you through. Investors know that and they want to know that you have staying power.
There are very few successful and passive entrepreneurs. Entrepreneurs know how to turn an idea in to action rapidly. They know that an idea has zero earning power and until that idea becomes a product or service, it runs the risk of being brought to the market by somebody else. Show the investor that you’re a person who knows how to get things done.
It’s a Must Have
The best businesses solve a problem that people have struggled with for a long time. In the mind of the consumer, your business isn’t a want. It’s a need and they have to have it. It may not be a life saving drug but often, consumers see convenience and comfort as a need. A business that is a good idea but not a necessity faces a much heavier headwind to success.
Have a Team
It’s tempting to start a business on your own and at the beginning, that might be appropriate but investors don’t want to put their money in to a one person business. Not only do you not possess expert knowledge in every part of your business, what if something happens to you leaving you unable to work? Investors want to know that the business can sustain itself even if you aren’t there.
Even if you’re not looking for investors right now, you might need funding in the future. If you head to the Shark Tank, make sure your business is investor ready.