I’m not a shark and I didn’t stay at a Holiday Inn but I have watched enough ‘Shark Tank’ to have an opinion as to what it takes to get some cash from these guys and I suppose the criteria is the same everywhere. And if I were a shark I would probably do the same thing.
- sweat equity is considered free. It’s a required component but always free.
- Know your numbers
- Having an idea alone is not good enough
- Protecting your investment with Patents or high cost of emulation or reverse engineering is mandatory
- You gotta have sales and they must be trending up
- Having backlogged orders is good but only a fraction of the value because it’s execution not investment
So don’t expect to come up with an idea and have the sharks fall over themselves without:
Basically the perfect deal from the beggar’s position is not needing the money at all. (somewhere in there I find myself recalling a quote
from a Harvard MBA business class)
I remember when I was a “rocker” or wannabe rocker. The band had been together for a year we thought we could get a record deal. First of all the record companies would not accept demo tapes and such. But more importantly the bands that had been signed had a lot more time on stage. They had the people
and the product
. They needed the record company for the process