In my previous post, Valuable Lessons From The Shark Tank Sharks, I discussed important pieces of advice Daymond John and Barbara Corcoran have said about business plans. John said branding and marketing were the most important aspects of a successful business plan, but Corcoran believes the investor pitch is the most important aspect.
Currently I am creating a business plan for my courses at Full Sail University. When I came across my marketing section, I thought of John’s words of wisdom. I analyzed which pieces of marketing would best fit my company, rather than going all in to the traditional forms. In my company’s case, I have a very specific target market. I know who I am trying to sell to, so it is better for my company to spend lots of money on certain marketing tasks. Traditional forms of marketing, like radio advertisements, flyers, and television advertisements don’t work well with my company. The world doesn’t need to know about it, just my targeted clientele.
John also mentions standing out from all of the other businesses. When developing my company, I knew I wanted to do something that wasn’t readily available in my current location, Orlando, Florida. Creating a business that is directed at a specific industry and has limited to no competition is a huge advantage. As John put it, my company stands out from all of the other businesses.
Corcoran’s piece of advice hasn’t come in to play yet, but as I enter my final course at Full Sail University, I will be able to use her tip. She advised presenting your pitch to someone who will give you an honest answer because then you can go back and make necessary changes. This is so true. Many times people take the safe way out and go with what’s comfortable, but when they present, they’re in an uncomfortable situation and are not prepared for preceding question and answers. There’s a saying in sports, practice how you play. For your investor pitch, practice how the situation may turn out. Practice with someone who makes you nervous and gives you honest feedback.
Since I’ll be presenting in my final month, I know I have friends who are blunt, even if it hurts. They are my best option when practicing my pitch. They are not afraid to tear apart the weaknesses in my pitch, but I know it will only make it better.
Thursday, August 25, 2011
Friday, August 5, 2011
Valuable Lessons from the Shark Tank Sharks
According to Brian Morris of getbusymedia.com, “there are 27+ million small businesses in the U.S.” (2011). A critical component in order to join the ranks of successful small businesses is to create a business plan to attract investors. But what is it an investor looks for?
The ABC television series Shark Tank is a great example of investors looking for a potentially successful business plan. After the people present their plan, the sharks critique and either offer money, or deny the people seeking money. Two sharks to look to for advice when creating a business plan are Daymond John and Barbara Corcoran.
John is the founder and CEO of FUBU fashion. He got his start in New York City, selling his own version of tie-top hats for a more reasonable price. John and a friend grew the business to include hockey jersey’s, sweatshirts, and t-shirts with the FUBU (For Us, By Us) logo emblazoned on them. During a promotional shoot, John used friend LL Cool J as a model. Upon seeing the potential in his bold colored sportswear, he attended a Las Vegas trade show where he returned to New York with $300,000 worth in orders. Not long after, Macy’s picked up John’s fashion line, placing it with the ranks of Tommy Hilfiger and Donna Karan New York. Currently, John invests in other’s companies and speaks about his experience and knowledge on television programs (Shark Tank, n.d.).
In a blog written by Steven Burhoe he writes, “According to John, branding is the most important part of a successful business plan. The plan should be focused, and the business should be able to be marketed in a way that makes it stand out from all of the other similar businesses (Ribitzky, 2010). Even if you plan on doing something that has already been done, a great marketing plan and good branding can make for a successful business” (n.d.).
Branding is important for a business plan because your target audience, the people buying your product or service, need to be able to associate with what you’re selling. It needs to stick in their minds so they’ll remember the product or service and come back for more. As stated by John above, branding distinguishes your business from others.
Another shark to learn from is Barbara Corcoran. Corcoran grew up with low grads through high school and college while accumulating 20 jobs by 23. On her last venture, she borrowed $1000 from her boyfriend for a real estate company that, over 25 years, grew to $5 billion (Shark Tank, n.d.).
In an interview with mixergy.com, Corcoran reveals her advice for entrepreneurs: “never go to their family and friends to practice on. Because they’re going to tell them they’re the greatest. You know what you ought to do? You ought to go to your brother-in-law that you can’t stand, let him tear you to shreds on your pitch. Because whether you’re going to Shark Tank, or whether you’re going to some other angel investment group to get your cash, you’re going to be questioned on what’s weak–not what’s great about your presentation, but what doesn’t add up, what doesn’t quite click as making sense. You really want someone who’s critical of you to listen to you, before you do the real deal” (2011).
First impressions are everything. You want not only your written business plan to be flawless, but you also want your presentation perfect. Whether it’s Shark Tank or an investor pitch in your hometown, you want them to buy into you so they’re more confident buying into your business.
The sharks of Shark Tank can teach us valuable lessons about what we should and shouldn’t do with business plans. They have years of experience creating their business, as well as investing in others business. Shark Tank airs Fridays at 8pm/7 central.
Resources:
Mixergy.com. 2011. Retrieved from http://mixergy.com/barbara-corcoran-shark-interview/
Shark Tank: Daymond John. n.d. Retrieved from http://abc.go.com/shows/shark-tank/bio/daymond-john/276281
Shark Tank: Barbara Corcoran. n.d. Retrieved from http://abc.go.com/shows/shark-tank/bio/barbara-corcoran/276269
Small Business Stats For Small Business Week 2011. 2011. Retrieved from http://www.getbusymedia.com/small-business-stats/
The Shark Tank Crew. n.d. Retrieved from http://bpexpertviews.blogspot.com/
The ABC television series Shark Tank is a great example of investors looking for a potentially successful business plan. After the people present their plan, the sharks critique and either offer money, or deny the people seeking money. Two sharks to look to for advice when creating a business plan are Daymond John and Barbara Corcoran.
John is the founder and CEO of FUBU fashion. He got his start in New York City, selling his own version of tie-top hats for a more reasonable price. John and a friend grew the business to include hockey jersey’s, sweatshirts, and t-shirts with the FUBU (For Us, By Us) logo emblazoned on them. During a promotional shoot, John used friend LL Cool J as a model. Upon seeing the potential in his bold colored sportswear, he attended a Las Vegas trade show where he returned to New York with $300,000 worth in orders. Not long after, Macy’s picked up John’s fashion line, placing it with the ranks of Tommy Hilfiger and Donna Karan New York. Currently, John invests in other’s companies and speaks about his experience and knowledge on television programs (Shark Tank, n.d.).
In a blog written by Steven Burhoe he writes, “According to John, branding is the most important part of a successful business plan. The plan should be focused, and the business should be able to be marketed in a way that makes it stand out from all of the other similar businesses (Ribitzky, 2010). Even if you plan on doing something that has already been done, a great marketing plan and good branding can make for a successful business” (n.d.).
Branding is important for a business plan because your target audience, the people buying your product or service, need to be able to associate with what you’re selling. It needs to stick in their minds so they’ll remember the product or service and come back for more. As stated by John above, branding distinguishes your business from others.
Another shark to learn from is Barbara Corcoran. Corcoran grew up with low grads through high school and college while accumulating 20 jobs by 23. On her last venture, she borrowed $1000 from her boyfriend for a real estate company that, over 25 years, grew to $5 billion (Shark Tank, n.d.).
In an interview with mixergy.com, Corcoran reveals her advice for entrepreneurs: “never go to their family and friends to practice on. Because they’re going to tell them they’re the greatest. You know what you ought to do? You ought to go to your brother-in-law that you can’t stand, let him tear you to shreds on your pitch. Because whether you’re going to Shark Tank, or whether you’re going to some other angel investment group to get your cash, you’re going to be questioned on what’s weak–not what’s great about your presentation, but what doesn’t add up, what doesn’t quite click as making sense. You really want someone who’s critical of you to listen to you, before you do the real deal” (2011).
First impressions are everything. You want not only your written business plan to be flawless, but you also want your presentation perfect. Whether it’s Shark Tank or an investor pitch in your hometown, you want them to buy into you so they’re more confident buying into your business.
The sharks of Shark Tank can teach us valuable lessons about what we should and shouldn’t do with business plans. They have years of experience creating their business, as well as investing in others business. Shark Tank airs Fridays at 8pm/7 central.
Resources:
Mixergy.com. 2011. Retrieved from http://mixergy.com/barbara-corcoran-shark-interview/
Shark Tank: Daymond John. n.d. Retrieved from http://abc.go.com/shows/shark-tank/bio/daymond-john/276281
Shark Tank: Barbara Corcoran. n.d. Retrieved from http://abc.go.com/shows/shark-tank/bio/barbara-corcoran/276269
Small Business Stats For Small Business Week 2011. 2011. Retrieved from http://www.getbusymedia.com/small-business-stats/
The Shark Tank Crew. n.d. Retrieved from http://bpexpertviews.blogspot.com/
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