Tips From The Tank

To many, the idea of starting their own company is the ultimate dream—be the boss and limitless profit potential. Who wouldn’t want to be the CEO of the next Snuggie company? The starting of a business requires money—but what are investors looking for in a business development plan?

Barbara Corcoran was a below-average student, who then went on to take a $1,000 loan and create The Corcoran Group—developing it into a $5 billion real estate company. In 2001, Corcoran sold her company for $66 million. She is currently the female shark on ABC’s hit show Shark Tank. (“About Barbara” 2011)

Corcoran tells entrepreneurs that, when approaching investors, passion cannot be faked. The business development pitch needs to display the enthusiasm and belief in the concept. She further explains that she has invested in people who she wouldn’t consider extremely intelligent, but there passion was undeniable. Additionally, Corcoran warns entrepreneurs to first seek a business loan, verse a venture capitalist, because, though the bank will charge interest, they won’t demand any equity. (Bischoff 2011)

Another Shark Tank investor, Robert Herjavec, has an interesting journey to wealth. In college, Herjavec waited tables, while he worked on a dot com company at night. The company was a provider of Internet security software. The company was valued at $100 million—then Herjavec negotiated a deal with Nokia for $225 million. (“Shark Tank” 2011)

Herjavec emphasizes the importance of presentation in a business development pitch—“don’t dress like a clown, unless you’re selling clown makeup.” He continued by saying entrepreneurs need to add value to their concepts—how are you going to make the venture capitalist more money? Herjavec also discusses keeping your development pitch in terms the investor can relate—“a banker doesn’t want to hear about the risks.” Lastly, Herjavec recommends exuding a humble arrogance to show you’re a hard worker who is going to put everything into his or her idea. (Taylor, 2010)

Source:

“About Barbara” (2011). Barbara Corcoran. Retrieved on August 3, 2011, from click here.

Bischoff, Dan (2011). “Interview with a shark.” Lendio. Retrieved on August 3, 2011, from click here.

“Shark Tank” (2011). Robert Herjavec Bio. ABC. Retrieved on August 3, 2011, from click here.

Taylor, K. (2010). Dragon’s Den. Yourmoney.ca. Retrieved on August 3, 2011, from click here.