Richard Bucker

Knowing the numbers - A lesson from the 'Shark Tank'

Posted at — Mar 15, 2015

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.The Rules:sweat equity is considered free. It’s a required component but always free.Know your numbersHaving an idea alone is not good enoughProtecting your investment with Patents or high cost of emulation or reverse engineering is mandatoryYou gotta have sales and they must be trending upHaving backlogged orders is good but only a fraction of the value because it’s execution not investmentSo don’t expect to come up with an idea and have the sharks fall over themselves without:productcustomersordersprotectionBasically 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.