Credit: Parade
Highlights
- Only 100 pitches are presented to the judges on Shark Tank every year.
- The entrepreneurs appearing on the show may have previous experience in the industry.
- The pitches are not presented spontaneously; pitchers are given time for preparation.
The unending love viewers have for Shark Tank can be ascertained from the fact that it is all set to enter its sixteenth year. As a reality show that has been running for over a decade, it is often assumed that the audience of the show functions are expected to behave in a specific manner, which is false.
If you are a regular follower of Shark Tank, you must have also witnessed that the show maintains a set format. Entrepreneurs approach the judges with their brand new business ideas, who then listen to their pitches for a fixed time and then may or may not invest in it. But there is a lot more that will break your preconceived notions.
Here, we will debunk 5 of the biggest myths of Shark Tank:
1. All The Pitches Are Aired
Every year, almost 3500-4000 people send out their applications to Shark Tank. They do so by either applying directly on its website or attending auditions conducted throughout the country. Out of them, the makers remove thousands of applicants after an initial review of their profile and their business.
Even if you do get selected eventually and get a chance to pitch your product/company in front of the Sharks, there is no guarantee that your pitch will come on television. As per Daymond John, they get to assess about 150 pitches every season. But only about 100 lucky entrepreneurs find a place in the actual episode.
The main reason for this is the show’s run time of about 42 minutes. Four pitches are telecasted in each episode. The total episode count is somewhat between 20 to 24.
2. Every Pitcher Is New To Entrepreneurship
It is presumed that all the contestants who present their company/products in Shark Tank are new to the world of entrepreneurship. But this may not always be true.
Numerous business owners make it to the investors even after having a decent previous experience in the business arena. An example to support this fact is Doorbot owner Jamie SIminoff, who already owned two companies (Phonetag and Unssubscribe.com) before coming on Shark Tank.
Here is his Shark Tank episode:
But this did not stop his Shark Tank endeavor in any way. Thus, even if you already own a company, you can try your luck on the show with a new venture.
3. All Deals Materialize Into Real Deals
As a viewer, when you see a Shark shake hands with a pitcher, you might believe that the deal is final. But this is not true at all. There have been several cases where the deals have not closed after the episode aired. Multiple reasons result in this situation.
At times, the entrepreneurs may refuse to accept by the promise made on the show. Further, they may go ahead and make any compromises if demanded by the Sharks. They may even have arguments about funds or licensing.
Next, the investor/s only pour their money after making a thorough financial check into the company, the claims made by the pitcher on the show, and the potential future outcomes. If they feel the deal negatively affects their hard-earned money in any way, they may choose to step out.
4. Only Fully Developed Products Are Accepted
It is normal for you to assume that only those products that are fully developed get a chance to be presented in front of the panelists. But this is not true. Both developed and prototype products have been accepted by Shark Tank alike.
Young entrepreneur Cassidy Crowley presented one such prototype product. Seeking a $50K investment for 50% equity in her baby spoon product, ‘The Baby Toon,’ she presented the prototype samples to the investors.
The deal was locked with Lori Greiner for the same valuation, i.e., $50K for 50% equity. The judges were hugely impressed by her confidence and presentation.
This shows how prototype products are accepted by the judges on the show.
5. All The Pitches Are Spontaneous
You might think that the pitches we see on the show are prepared on the spot. But the truth is that the makers ask the entrepreneurs to be prepared in advance. This is done to avoid any confusion or misinformation during the actual pitch.
But another thing to note here is that you get only one chance to present the pitch to the judges. This is why, before appearing in front of them, you must be prepared with the basics, including the valuation, sales figures, debts (if any), and profit margins.
Failing to do this, you might lose interest in the Sharks, who ultimately would not propose a deal for your business.
To Conclude
The popularity of Shark Tank has always kept the viewers engrossed in digging details related to the show. While some may be true, there are several myths related to the show which are viewed to be real. With this blog, we attempted to debunk all such false notions and help you get a clear idea of what actually follows before, during, and after the show.
References
1. Behind The Scenes Of Shark Tank As A Startup, Daymond John The People’s Shark
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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