Here are a few other lessons I learned from Shark Tank.
- Don’t hold out for perfection. One
woman lost a deal for her all-natural kosher soups because she was worried
about losing control of the quality if she contracted with a commercial
kitchen to make and pack the soup. Unfortunately for her, she didn’t have
the facilities to fill all her orders and the sharks didn’t think that building
her own commercial kitchen was a viable option. If I remember correctly,
the sharks felt she was heading toward bankruptcy because she wasn’t
willing to settle for anything less than perfection.
If I refused to
submit my manuscripts to editors and agents until they were perfect, they would
never leave my office. Yes, I want to get them as close to perfection as I can,
but at some point, the time I spend revising has diminishing returns. That’s
when I stop tinkering and send the manuscript off.
- Don’t overvalue yourself and walk
away from needed help. If someone comes on the show asking for a
$100,000 investment for 5% of their company, that means they value the
company at $2 million ($100,000 X 20). As professional investors, the
sharks are experts at valuation, and they have a much lower one. Some
participants negotiate and give up a larger share, lowering their
valuation in exchange for the investment. Others refuse to adjust their
figures to match those of the experts and walk away from help they
desperately need to keep their companies going.
Writers act the same
way when they ignore suggestions from critique partners. Notice that I said
ignore, not reject. Some suggestions should be rejected, but only after
thinking them through. Years ago a member of my critique group frequently criticized
the stories I was writing for the Christian market. My knee-jerk reaction was, “you’re
not my target audience.” But when I thought about it more, I realized that I
was missing out on the opportunity to draw in a larger audience. Often a small
change made a big difference without losing the impact of the story. If I had
gone with my first reaction, I would have lost that opportunity to improve.
- Arrogance gets you nowhere. One
participant had a patented wine glass—with the wine included—that several sharks
wanted. He had been on the show before and Mr. Wonderful had offered him a
deal with the idea of licensing the product, but the participant turned it
down. When I watched, he had returned to the show because (if I remember correctly)
he didn’t have the funds to produce the inventory he needed for his own
sales. Kevin still wanted the product and one or two of the other sharks
were willing to join the deal, but their valuation was significantly lower
than the patent owner’s valuation. He left the room to call a mentor who
was successful in the beer business, and that person apparently agreed
with the participant’s valuation rather than with the valuation placed on
it by the sharks. When Mr. Wonderful asked if the mentor had invested
anything in the company the participant said no, that a good advisor must
be disinterested. That position is contrary to what the sharks have repeatedly
said. The very arrogant participant basically thumbed his nose at the
sharks and walked out without a deal. Personally, I'm not sure that wasn’t
his game plan to begin with, and I wouldn’t be surprised if his arrogance sent
the company into bankruptcy.
Arrogance also turns
readers off. So if you want to attract them, be humble.
- Be honest. I’m pretty sure that Shark
Tank isn’t scripted, and I believe them when they say the sharks make
their own decisions and invest their own money. But that doesn’t mean the
words “you have a deal” are binding. As good business-people, the sharks
would naturally check out the claims made on the show before writing a
check. Someone who misrepresents his or her product or sales will end up
with a lost deal and a bad reputation
Research is also an
important part of credible writing, even if it’s fantasy. If something doesn’t ring
true, readers won’t pick up the next book by that same author.
Now that you know more
about Shark Tank, don’t forget the lessons learned.
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