1. Make sure you know who your competitors are, if any. Tons of great product ideas pitch on Shark Tank and then Lori says “Yeah, I’ve seen this before, we just sold 10,000 of these last week on QVC.” This same idea goes for smartphone apps, you have to create something really unique in the app space and make sure no one else has already thought of it and did it better.
2. Make sure it has a WIDE application. The Scrub Daddy did $14 million in sales right after Shark Tank because it was a product that anyone on the planet (with a kitchen sink) could easily buy and use.
3. Don’t make your pricing insane. Who remembers the marital confrontation Stuffed Elephant in a Box that was a plush toy in a plastic box for $60? It might make for a fun gag gift, but not for $60.
4. Don’t ever mention “I’m going on the show for national exposure” anywhere in your application, phone interview and certainly not during your actual televised pitch. With 7 million viewers per show that is one of those blatantly obvious things that the producers hate to hear. It seems that there is a culture within Shark Tank in which the entire “free exposure” concept is taboo to talk about.
5. Be entertaining. Shark Tank is about 90% viewer share and only 10% real business. The brilliant producers who handled my segment rigged a balloon drop to coincide with the moment when I said “Balloon Distractions”. This would never happen in a dry business meeting with venture capitalists. I feel that some entrepreneurs get on simply because they are entertaining, not because they have a decent business idea. We are both; Balloon Distractions has done $5 million in sales and booked entertainers into restaurants 100,000 times, but I feel that we got on the show because I own a BALLOON business and the producers felt it would make for a fun segment.
6. If you have fun / attractive personalities in your business use them on the audition video. There are plenty of Shark Tank segments that have included good looking / sexy / pretty folks. This is TV after all, if you have a “looker” in your business include them in your pitch. In talking to the Nardo brothers at Nardo’s Naturals I’m convinced that Barbara invested in them because she thought the boys were sexy! I’ve watched every episode going back to Season 1, there has been no shortage of cleavage on the show….. case in point:
7. Before you pitch on the show go out and sell your product to PROVE there is some type of demand, even if your business is less than a year old. The sharks are impressed by hustle and moxie, if you go and work trade shows and state fairs for a few months and sell 50K in product you have proof that regular folks out there in the market can be converted to customers.
8. There is nothing wrong with taking something obvious and putting a new twist on it, grilled cheese sandwiches have been around for a thousand years, but Tom and Chee turned it into a successful restaurant franchise with proven sales and strong business systems.
9. Build your business big enough to support you full time. The Sharks hate part-time business owners. Your loyalties are divided if you make 70K as a pharmacist and 10K from your business. The Sharks know this, none of them became wealthy by building their companies 10 hours a week.
10. Last but not least, keep it very simple. Tom and Chee, Scrub Daddy, Chord Buddy, Wicked Good Cupcakes, etc. all of the successful pitches can be summed up in a short sentence. Our company sends balloon artists into restaurants to entertain the kids while they wait for the food to arrive at the table, that’s why we’re called Balloon Distractions!
Hope that helps, and Happy Twisting!
Founder / CEO