Know Your Numbers (Shark Tank Tips)

Shark Tank logoThis is post number three in the series – Presentation Tips from Shark Tank.

In post one – we discussed Personalizing Your Message.

In post two – we discovered that People Buy You.

Today’s post will remind us all that we need to Know Our Numbers.

As hopeful entrepreneurs present to the sharks they present a valuation on their business. They say, “I’m asking for $100,000 for 10% equity in my business.” – which would be a $1,000,000 valuation.

It is only logical that the sharks would want to know why the business is worth $1,000,000. So they ask about the sales (both units and revenue). They want to know what assets the company has, what margin they are operating on and what projected sales and growth will be.

Many entrepreneurs enter the Shark Tank and get shot down because they can’t answer these questions. In other words they Don’t Know Their Numbers.

As you and I give presentations, we too need to know our numbers. If we are selling a product, pitching an idea, or casting a vision – it is important that we know the important and pertinent facts and figures.

In the second post (People Buy You) we discussed the idea that people do business with people they know, like, trust and Value. To be a person of value we need to bring a knowledge base and confidence to each and every presentation.

The truth is people want to feel as if they are doing business with an expert. The great part for you and me is that expertise and knowledge is something anyone can develop.

That doesn’t mean that you have to wait until you are an expert to get started, but I will make a couple suggestions:

1. Look at your presentation from the viewpoint of the audience and see what questions come to mind. Make sure you are prepared to answer all of the perceived questions with confidence.
2. After every presentation, make note of the questions that were asked and how you handled them. After a handful of presentations, you will have a journal of every possible objection or question you will ever face.
3. Record your presentations and go back and study them. If you don’t handle certain questions well, practice and be ready the next time around.

The entrepreneurs who enter the Shark Tank and know their numbers are the entrepreneurs who breed confidence in the Sharks and because of that confidence, they get their deal and take on quality partners.

Isn’t that what we all want?

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