Watching Shark Tank is like taking a course in business: every episode is jam
packed with valuable insights that can help you become a successful entrepreneur.
If you pay attention to every episode, you will see the Sharks emphasize key
business factors such as knowing your numbers, scalability, tapping into a trending
market, customer experience, sales strategy, disruption, innovation, branding,
communicating the value of your offer, and much more. In this article, we are going
to examine three of these topics in detail.
Disruption & Innovation
Disruption and innovation are terms used to describe a new way of doing things
that creates significant value for customers or society. It’s not just about making a
better mousetrap, but rather creating a new mouse altogether.
In business, disruption is often thought of as something that upends an existing
industry or business model. But it can also be something that creates an entirely new
market or even redefines what customers want or need.
In recent years, we’ve seen a number of companies succeed with disruption
innovations, from Airbnb to Uber to Amazon. What all of these companies have in
common is that they saw an opportunity to do something different that would create
value for customers or society.
This is a critical factor every entrepreneur should understand because every investor
is looking for the next big thing. If you truly pay attention to how the Sharks
respond to each presentation, you will see that they are trying to figure out whether
or not the product or service is doing something that is new or innovative in that
industry.
For example, Daymond John invested in Bubba’s Q which is a company that has a
patent on boneless baby back ribs. This company discovered a new innovative way
to offer the product that would solve a lot of problems for fast food chains such as
Hardees. Since his investment, it has grossed over $16M.
Sales Team Management
It’s obvious when you watch Shark Tank that the most important thing they care
about is sales. In fact, many of the Sharks have invested in companies where they
may not fully like or believe in the product, but because the sales were so strong,
they decided to take a chance.
Sales teams are the lifeblood of any company that relies on them to drive revenue.
And yet, it’s not always easy to keep salespeople motivated. In fact, a recent
Gallup study found that only one in three workers worldwide are engaged in their
jobs. So how can you ensure that your sales team is motivated and engaged? Here
are four tips:
Offer Incentives
One way to motivate your sales team is to offer incentives for hitting certain
targets. This could be in the form of commission, bonuses, or even paid time off.
Foster a Positive Culture
It’s important to create a positive and supportive culture within your sales team. This
means providing adequate training and resources, and giving feedback that is
constructive and helpful.
Set SMART Goals
Goals should be specific, measurable, achievable, relevant, and time-bound
(SMART). This will help salespeople stay focused and motivated, as they can see the
progress they’re making.
Celebrate Success like the Sharks
Don’t forget to celebrate successes along the way. This could be something as
simple as a team lunch or an email praising a job well done. When you witness
someone doing a good job, take a minute to publicly acknowledge their efforts. A
simple “thank you” or “great job” can go a long way in motivating someone to
keep up the good work.
When you take the time to recognize someone’s good performance, you not only
make them feel appreciated, but you also motivate them to continue doing their
best. This is good for both the individual and the company as a whole.
For example, Barbara Corcoran did a deal with Cousins Main Lobster where she
invested $55K for a 15% investment which then went on to do $30M in annual
sales. Part of what she did to help them was structure their sales team in a way to
effectively incentivize them which is why their sales significantly grew. In fact, it is
the same sales management strategy she uses in her real estate business.
Customer Experience
In today’s business world, the customer experience is everything. Creating a positive
customer experience can mean the difference between a satisfied customer who
returns again and again, and a frustrated customer who takes their business
elsewhere.
In the business world, there is a saying that says, “It is five times more expensive to
acquire a new customer than it is to keep an existing customer.” One of the key
metrics you will see the Sharks talk about is customer acquisition and return
customers. What they are looking for when they are considering a new deal is
whether or not the entrepreneur has return customers. Because if they don’t, that is a
sign of a sinking ship.
Keeping customers coming back is all about delivering a great customer
experience. This is why Amazon invests heavily in allowing customers to easily return
their items. Here are a few tips on how to create a better customer experience:
Make it easy for customers to reach you
They should be able to easily find your contact information and should be able to
reach you by phone, email, or live chat.
Be responsive to customers
When they contact you, reply as quickly as possible.
Be helpful
Customers should feel like you want to help them, not that you’re just trying to sell
them something.
Take care of problems quickly
If there is a problem with an order, do whatever you can to make it right as soon as
possible.
Follow up like the Sharks
After an order is placed, follow up with the customer to make sure
they’re happy with their purchase.
As you can see, there is a lot that you can learn by watching the interactions on
Shark Tank. If you want to be a successful entrepreneur, then make sure you have
addressed each of these key business points.
****This guest post was written by Sam Jones****
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