Shark Tank is a hit television show that has captured the hearts and attention of millions of viewers around the world. The show features entrepreneurs pitching their businesses to a panel of highly successful and wealthy investors, known as the Sharks. While the show is highly entertaining and informative, viewers often wonder what really happens behind the scenes once the cameras are turned off. In this blog post, we explore what really goes on on Shark Tank, including negotiation tactics, investors’ strategies, controversies, and its impact on brand awareness and sales. Join us as we delve into the world of Shark Tank and uncover the secrets that make the show one of the most popular on television.
Behind the Scenes of Shark Tank
Shark Tank is one of the most popular reality TV shows that features entrepreneurs who pitch their business ideas to a panel of successful business people known as “Sharks.” But what really goes on behind the scenes of Shark Tank?
- The show is filmed on a soundstage in Culver City, California.
- Contestants spend hours waiting before their turn to pitch to the Sharks.
- The Sharks sometimes take breaks during filming to discuss deals and strategies.
- Each episode can take up to 10 hours to film.
Despite the long hours, many entrepreneurs see it as an opportunity of a lifetime to get their business in front of millions of viewers and potentially secure a deal with one of the Sharks.
Life After the Deal: What Happens to Entrepreneur’s Businesses?
Appearing on Shark Tank can be a game-changer for entrepreneurs, but what happens to their businesses after the deal is made? About 50% of deals made on Shark Tank do not close after the show is aired, which can be a disappointment for both the entrepreneurs and the Sharks. However, for those businesses that do close deals, the results can be significant.
Some entrepreneurs experience significant growth in sales and brand awareness after appearing on the show. The exposure from Shark Tank can lead to a surge in website traffic and social media followers, which can translate into more sales. Sharks often provide more than just financial investment, such as mentorship and networking opportunities, which can be invaluable for entrepreneurs looking to take their businesses to the next level.
That being said, some entrepreneurs struggle to keep up with the sudden demand and attention on their business after appearing on Shark Tank. They may need to invest in additional resources, such as hiring more employees, to meet increased demand. Additionally, some businesses may need to pivot their strategies or make changes to their products or services to succeed in the long-term.
Overall, while appearing on Shark Tank can be a major boost for entrepreneurs, it is important for them to have a solid plan in place for how they will manage their businesses after the deal is made.
Negotiation Tactics Used by Contestants to Survive the Tank
Appearing on Shark Tank can be a make-or-break moment for entrepreneurs. To ensure they survive the Tank and secure a deal, contestants often employ various negotiation tactics. Here are some of the most effective strategies:
1. Know Your Numbers
Contestants who have a solid understanding of their finances and can defend their valuation are more likely to earn trust and respect from the Sharks.
2. Create a Bidding War
Some contestants may use a Shark’s offer to their advantage and create a bidding war between the Sharks to drive up the offers.
3. Use Emotion to Your Advantage
While it’s important to have a strong business pitch, sometimes tears and emotional stories can persuade Sharks to make a deal based on personal connections or empathy.
4. Consider Alternative Forms of Investment
Sometimes, a contestant’s idea may not be the right fit for a traditional equity deal. Investors like Kevin O’Leary have successful licensing and royalty agreements that can still provide value to a business without giving up equity.
By using these techniques, contestants can increase their chances of success in the Shark Tank and secure a deal that can help take their business to the next level.
Investors’ Strategies: How Robert Herjavec, Mark Cuban, Kevin O’Leary, Lori Greiner, Barbara Corcoran and Daymond John Approach Deals
Each Shark on Shark Tank has their own approach to investing and making deals with entrepreneurs. Here are some of their strategies:
Robert Herjavec often invests in technology and cybersecurity companies. He has a background in IT security and sold his own cybersecurity company for over $100 million, so he looks for companies that can benefit from his expertise and network.
Mark Cuban prefers to make deals that have the potential for rapid growth and scalability. He looks for companies in emerging markets or those that are disrupting established industries.
Kevin O’Leary looks for companies with a solid financial plan and return on investment. He often asks tough questions about numbers and wants to see a clear path to profitability.
Lori Greiner focuses on consumer products with a unique selling point and strong brand potential. She has a background in product development and is known as the “Queen of QVC,” so she looks for products that can sell well on TV and online.
Coming from a humble beginning she has amassed to date $100 million dollars from her investments. Often her and Kevin O’Leary banter back and forth with their antics on screen, which people seem to get a kick out of. She is ruthless, sometimes sweeping in to get the deal done.
Daymond John often invests in fashion and lifestyle brands that appeal to a broad audience. He has built successful brands himself, such as FUBU, so he looks for companies that have a clear brand identity and understand their target customer.
Controversies and Scandals on Shark Tank: Fact or Fiction?
Despite the intention of Shark Tank to provide a transparent platform for entrepreneurs to pitch their business ideas and secure funding, there have been a few controversies and scandals that have emerged over the years.
Some entrepreneurs have been accused of misrepresenting their products or sales numbers
For instance, in one episode, an entrepreneur claimed that his product had generated $300,000 in sales within a two-month period. However, it was later revealed that the numbers were inflated, and his business had only made $8,000 in sales. Such incidents have raised concerns about the credibility of the information provided by the entrepreneurs on the show.
There have been rumors of Sharks making deals off-camera that never make it to the show
There have been speculations that some of the Sharks make deals with entrepreneurs off-camera that do not make it to the show. Although this has not been officially confirmed, it has led some to question the authenticity of the deals made on the show.
One contestant accused a Shark of stealing his idea, which was later dismissed in court
In a highly publicized case, entrepreneur Johnny Georges accused Shark Kevin Harrington of stealing his idea for a tree fertilizer product. The case was eventually dismissed, but it highlighted the risk entrepreneurs face when presenting their ideas to potential investors.
Overall, it is important to note that controversies and scandals on Shark Tank are rare, and most deals made on the show are legitimate. However, entrepreneurs should always be cautious and ensure that they have legal representation when negotiating deals with the Sharks.
The Shark Tank Effect: Impact on Brand Awareness and Sales
Appearing on Shark Tank can have a significant impact on a business’s brand awareness and sales. Here are some ways in which the show can affect an entrepreneur’s success:
- Entrepreneurs can see a significant boost in sales and website traffic after appearing on Shark Tank.
- Sharks’ endorsements can help build credibility and trust with consumers.
- The exposure from Shark Tank can lead to partnerships and collaborations with other companies.
- Entrepreneurs need to be prepared to handle the increased demand and attention on their business after appearing on Shark Tank.
It’s important for entrepreneurs to have a solid plan in place for how they will handle the increased volume of interest that comes with being on the show. They should have a strong web presence, be prepared to scale their operations quickly, and have a plan for fulfilling the increased demand for their products or services.
Overall, the Shark Tank effect can be a game-changer for entrepreneurs, but it’s important to be ready for the attention and growth that comes along with it.
In conclusion, Shark Tank is a fascinating show that gives entrepreneurs the chance to pitch their businesses to successful investors. However, as we learned in this blog post, there is much more to the show than what is captured on camera. From grueling hours of waiting to negotiating tactics and investor strategies, Shark Tank is a complex and multi-faceted experience for both contestants and investors alike.
While some entrepreneurs experience tremendous growth and success after appearing on the show, others struggle to keep up with the sudden attention and demand. Nonetheless, Shark Tank has undoubtedly created a powerful and far-reaching impact on the business world, and it will continue to inspire and captivate audiences for years to come.