Do you think Shark Tank is just TV drama? Think again. Investments aren’t the only thing offered on the show, as the Sharks never shy away from sharing their wisdom in matters of business and entrepreneurship. Behind every pitch, deal, and rejection lies a masterclass in entrepreneurship. Every small business can learn from Shark Tank and step towards success.
Whether you’re building a side hustle or scaling a small business, Shark Tank offers real-world lessons on what works and what doesn’t. Not every brand becomes the next Bombas, but there’s still a ton to learn if you’re paying attention.
Takeaways for Small Businesses
Every business has some tried and tested methods, as observed in the Shark Tank, that could be used to scale up your own beloved business. Here’s what every small business can learn from Shark Tank.
1. Know Your Customer and Market
Ensure your product is making a difference or at least a dent in the consumer’s life, and is not just a dud made to sell until your core market figures out they don’t actually need it.
Validate your idea with real customers before scaling by utilizing surveys and analytics tools.
Squatty Potty from Season 6 is a great example of this, as their success was largely based on knowing the market and customer needs.
2. Keep Your Competitors Close; Your Network and Investors Closer
Monitor competitors’ moves to identify market gaps or future threats, and maybe even read their customer reviews to identify gaps and trends to capitalize on.
Seek investors who bring in more than just money, as your network can define your net worth. Ever wondered why Lori Greiner is called the Queen of QVC and why certain businesses seek certain Sharks?
3. Know Your Product and Business
We have seen many good products and businesses fall apart because the entrepreneur could not pitch them correctly. Remember that all the world’s a stage, and you should always be able to sell your product on that stage.
Ground-level understanding of unit economics, such as costs, margins, and break-even points, is crucial; we have seen many founders not get a deal because they did not have the microeconomics of their business on their fingertips.
Remember Track Days? It is considered one of the worst pitches on the show because of how uprooted from real-life economics it was.
4. Identify Your Problems
No small business makes it big without any hurdles, but as Robert Herjavec once said about Jones Scones from season 4, a consultant won’t be the key to your salvation. Negative feedback can always be interpreted as free consulting.
5. Don’t Be Greedy
While profit maximization is important for growing businesses, make sure it does not come at the expense of deceit. The pursuit of a quick buck might just derail your business in the long run.
Transparency goes a long way; ergo, avoid hidden costs or misleading pricing as they destroy credibility, among other things.
Copa Di Vino’s wine business appeared twice on the show, and both times failed to secure a deal just because of a lack of cooperation.
6. Become The Brand
Apart from the literal product, people will also buy based on the person you are and the identity you are trying to create. Having a multifaceted approach when it comes to marketing and customer retention will follow.
Your story is your number 1 advertisement, as people connect with ‘why’ more than ‘what.’ Wicked Good Cupcakes from a mother-daughter duo is a great testament to this spirit of business.
7. Have Realistic Numbers
Many contestants failed to convert and land a deal because their valuation was way off the charts for a product that had not even done a single sale yet. Don’t repeat the same mistake.
Build forecasts on data, not dreams, and understand industry norms.
Wake N Bacon was one such novelty product that had an exaggerated evaluation without having sold a single unit at the time of its appearance on the show.
8. People Will Judge a Book by Its Cover
In the modern world, devoid of attention span, presentation matters. You NEED to have your product stick out. If it is a D2C business, your website needs to be in the best shape. No one wants to browse through a maze as a shopping experience.
The Lip Bar had a unanimous vote of no confidence from the Sharks because of its subpar packaging and presentation (although that did not end up being a hindrance in their larger success story).
9. Be Open to Criticism
Not everyone is going to see your vision, and that is alright. In a world of 8 billion people, there are 16 billion perspectives (if not more). Seek honesty instead of praise from your network and peers.
Kevin O’Leary is infamous for his harsh criticism of pitches, and Brellabox bore the brunt of his signature “you’re dead to me.”
Best Business Advice From ‘Shark Tank’ Judges
Shark Tank has been around for 16 seasons, and every week of its airing, the Sharks offer blunt, practical, and often life-changing advice to business owners.
Whether it’s Mark Cuban hammering home the importance of sales or Barbara Corcoran urging founders to tell their personal story, these lessons apply to anyone chasing a dream.
Here are the most powerful business advice from the Shark Tank judges, and how you can use them.
1. Mark Cuban – “Visualize the Work, Not Just the Win”
The wisest words that have come out from Mark Cuban in Shark Tank with respect to small businesses have been that just visualizing success does not work alone; you have to visualize putting in the work and hours as well.
Why It Matters
Many founders picture their dream outcome but underestimate the grind required to reach it. The Shark, Mark Cuban, reminds them that consistent effort beats daydreaming every time.
How to Implement
Start each planning event by mapping the actual steps needed to reach your goal, such as calls to make, skills to learn, products to build, services to offer, etc. (it’s a never-ending list, honestly).
2. Robert Herjavec – “Your Time and Energy Are Your Real Currency”
Robert has emphasized the importance of being able to say “no” to things and planning, even a year in advance. Your time and energy are the real currency.
Why It Matters
Overcommitting can result in burnout and stress. It drains the focus you need for big opportunities in turn reducing productivity. Planning keeps you prepared and in control.
How To Implement
Before agreeing to any new project, ask yourself a question: Does this align with my goals? If not, decline it and protect your calendar for what truly matters.
3. Lori Greiner – “Get in the Game and Get Your Hands Dirty”
Lori Greiner’s gospel of truth revolves around getting in the game and getting your hands dirty. As the QVC Queen with more than 1,000 products and 120 patents, her best advice is to get your hands dirty in the business.
Making mistakes and learning from them is her motto. She emphasizes leaving fear aside and doing everything you can for things that are in your hands.
Why It Matters
Many entrepreneurs hesitate to take new steps because they’re afraid to make mistakes. Lori insists that mistakes are part of the journey, and the sooner you start, the sooner you learn.
How to Implement
Take one solid step toward your idea, whether that’s prototyping or testing a small version of your product. Try to learn, adjust, and keep moving.
4. Daymond John – “Master Financial Literacy Before It Masters You”
Daymond never shies away from propagating the importance of financial literacy, as he has almost gone bankrupt three times. By the third time, he was an established player in the game, but the first two times, he did not even have money.
Why It Matters
Even successful entrepreneurs can fail without a handle on their finances. Daymond’s experiences show the danger of ignoring money management.
How to Implement
Ensure you understand the financial aspects like cash flow, profit margins, and budgeting. If you don’t have any idea of any financial term in your business, take the time to learn it before making decisions. Remember that your business will only grow as much as your own economics will allow it.
Conclusion
You don’t need to land a Shark to build a successful business. What matters most is staying humble, staying sharp, and staying teachable. Whether you’re pitching to Shark or your first customer, the Shark Tank lessons can help you build a better, smarter business. The rest is up to you.
