Have you ever wondered what it takes to launch a successful startup? ABC’s reality TV show, Shark Tank, demonstrates what it’s like for entrepreneurs to go through the process of pitching their business ideas to investors (otherwise known as sharks).
Over the course of five seasons, there have been 337 pitches and only 186 deals. Out of these deals, only one-third them actually closed! You’re probably wondering, why is this such a low rate?
The reality is, it’s tough to keep your startup afloat after launching. Since 2012, only one in 17 business ventures have actually experienced a profit. Unfortunately, not every entrepreneur has the opportunity to become the next Mark Zuckerberg.
Despite the challenges of launching a startup, there are a few things entrepreneurs can do to increase their chances of success. First, it’s absolutely necessary to know your product inside and out. Regardless of how cool you think your idea is, it won’t be valuable to investors unless it serves a real purpose for your target audience.
When preparing to launch, it’s also important to perfect your pitch. Entrepreneurs need to approach investors with a goal, a business plan, and also know their numbers very well. Investors only care about how profitable your business will be in the future. Make sure you understand your numbers and can identify the information about your business that will important to investors.
Finally, it’s important to build a strong network of investors. Remember, you want these people to take interest in your business and provide you with the funding you need. Spend time building relationships with investors and learn about what they’re looking for in potential startups.
These are just a few of the takeaways you should know from ABC’s Shark Tank. To learn more about launching a startup and what it takes to be a startup success, check out the infographic below:
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Author Bio – Ivan Serrano is a business and social media journalist living in the Bay Area of California.