Using Investor Advice in Developing Business Plan

In my previous post, I discussed the advice from ABC Shark Tank stars, Barbara Corcoran and Robert Herjavec. In this post, I will talk about the implementation of that advice into the development of a business development plan that would be presented to venture capitalists.

Barbara Corcoran, being the female balance on Shark Tank, heavily relies on an entrepreneur’s passion to help decide if the business is of interest to her. In my business plan, if presenting to Corcoran, I would convey the needs for my company’s concept that I have witnessed first hand. She wants to see that you have a great idea and that it is relevant to your life in some way; after all, its difficult to be perceived as genuinely passionate about something you don’t completely understand. (Bischoff 2011)

The investor pitch to a venture capitalist like Robert Herjavec is likely to go very different. Though Herjavec doesn’t appear to personify greed in the style of cast mate Kevin O’Leary, he still will be less impressed by passion and more concerned with numbers—or sales. After watching Shark Tank, its obvious that Herjavec’s favorite question is “what are your sales?” If you want an investment from Robert Herjavec, you need to come professional and prepared. The entrepreneur’s time is likely going to be wasted if they don’t have impressive sale patterns. (“Business Tips” 2011)

The reason why you don’t see Corcoran and Herjavec enter into many deals together is due to the fact they are different investors with different criteria, in regards to who and what they invest their money. To grasp the interest of both investors, an entrepreneur would need to have a revenue history that indicates long-term success potential (success being measured by profit) and a passion, or enthusiasm, which reflects the time and effort the entrepreneur has and will put into this endeavor. (Taylor 2010)

Source:

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

“Business Tips from the Sharks (2011). ABC: Shark Tank. Retrieved on August 24, 2011, from click here. 

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