Not everyone can be so lucky to get all five sharks, let alone one to team up and invest, but here are the top three Shark Tank Tips from the sharks themselves.1)What makes a good business idea great?Barbara Corcoran: If your business idea clearly answers a need in the marketplace, it’s probably a good idea. If the need is already being met by well-entrenched competitors, it can still be a good idea if it’s a new, cheaper or cleverer way of doing it.Daymond John: Something that solves a problem (i.e., helps you do something faster), satisfies a need (i.e., makes an existing product cheaper), or improves quality of life (i.e., medical devices).Kevin Harrington: A good business idea is a product or service that solves a problem that is not already being solved in the marketplace. The product or service should be unique enough that it’s not something already readily available.Robert Herjavec: There are lots of good ideas but most great businesses are built on better execution of an existing idea. I am not a big believer in creating a better idea and the world beats a path to your door.2)What are the most important first steps a new entrepreneur should take?Barbara Corcoran: Be clear about what’s most important. Figure out what it will cost to produce your product or service, what you can sell it for and to whom.Daymond John: Educate themselves in the product and the industry they are attempting to enter.Kevin Harrington: A new entrepreneur should always first put together a business plan. Once the plan is together, then test it out with people you trust (friends, relatives, mentors, bankers, etc.). With positive feedback, the next step for the entrepreneur is to raise money and put a good management/advisory team together.Robert Herjavec: Find a customer!3)What makes an investor put their money into a deal? Barbara Corcoran: My most important criteria when making the decision to invest are: 1) Do I trust the individual? and 2) Do they have the fire in their belly to bring the business to the finish line?Daymond John: Trusting and believing in the CEO, knowing that the business can grow and distribute large profits, and knowing you have a patent that can be defended as well as licensed out to a larger company.Kevin Harrington: First of all, an investor likes high return and accelerated payback. Generally, there is going to be more risk in what you are offering to an investor, so you must offer the him or her a higher rate of return either through the existing deal or continuing involvement, for example, the first right of refusal on new projects and new opportunities.Robert Herjavec: A great probability of a healthy return on the capital – and the likelihood of capital being returned (element of risk).For more tips from the Sharks, check out this link, http://abc.go.com/shows/shark-tank/tips.
Shark Bites: Top Three Shark Tank Tips
