I have found myself watching a show called Shark Tank. I believe it is on ABC and I have it scheduled in my DVR so I am not sure when it airs, but it is definitely worth a watch. The premise is small business owner, inventor comes and pitches 4-5 billionaires (or close to it) who made their own money so they have connections and cash. The sharks then make an offer to buy into the company if they think it is a good idea.
Some of the ideas are fabulous, but some are horrific, but as a fan of the art of the deal it is great to watch the negotiations regardless of the products. I have seen good ideas not get an offer or not accept an offer, and bad ideas get a handy sum.
Here are the highlights:
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Be prepared for every question
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Be able to prove everything you say
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Be honest and forthright. Lying gets caught in like 2 seconds.
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Be personable. Jerks walk out empty handed almost every time.
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Be honest with yourself. If you stink at business, know that you are there for help not money.
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Be decisive. I have watched deals go away because the person couldn't make a choice.
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Don't get greedy. The best deal I saw, the guy got offered $4m for outright buyout of his company with a lifetime royalty. He said no humbly. "I can't believe I am going to say this, but no." The other sharks swooped in and gave him a deal that he could live with. In the end, he will make more by the deal he chose than the one that looked good at first, but was short term greed and long term loss.
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Be prepared for no. How you accept no may bring a yes.
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Realize your product or service is a commodity that is a vehicle to your success. Don't take anything personally.
On the show I watched last night, the guy was selling a product that was easily replicatable, had no patent and had burned bridges with the major drugstores. Two of the sharks offered him money for 100% of his company and a royalty for the rest of his life. The stipulation was that he was never to be a part of the company from the moment they cut him a check. He said no. His ego told him that HE was the reason the company was there and not the product.
Watching other people fail and succeed teaches you how to read a deal and make sure that you get what you ultimately want, a sale. And who said you can't learn anything from watching television.
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