Investor Relations Training
- Published on Monday, 11 November 2013 16:00
- Bob Cannon
- 1,056 Comments
Shark Tank, the television show is investor relations training for anyone even thinking about marketing a new product. If I am at home on Friday night at 9 pm, you can bet that I am watching Shark Tank. This program is reality TV at it’s best. Each episode shows several inventors/wanna be marketers, presenting their ideas to 5 proven business people in hopes of gaining financial support, connections and business savvy.
In most cases, it demonstrates how ill prepared most of these people are to effectively present their business proposals. While not exactly the same as presenting to a venture capital company, there are certainly many similarities. The one thing that is really different is the dynamics that take place between the competing sharks. Anyone watching the show should discount these interactions to a large degree. Instead, focus on the questions that are asked by the sharks as this is the best investor relations training that you can get to starting a relationship with venture capitalists.
First, there must be a demonstrable appeal to the product or service.
Notice, one of the first questions asked is, “How many have you sold.” This is reinforcement of the Golden Rule for inventors which is, “The closer your product is to commercial success, the more Gold you can demand from investors.” (Bob Cannon, 2010)
Next in importance is profitability and the sharks always ask, “What does it cost to make?” and “What do you sell if for?”. There has to be a rate of return that makes your venture profitable for the shark investor. (Once again, see my Golden Rule for Inventors.)
If you can successfully prove enough potential volume of business and profitability, your investor relations issues will be solved.