If you have been following along, you will know that one of my favorite shows right now is Shark Tank. For the those who don’t know, it is a show that pairs wealthy investors (the sharks) with start-up companies in hopes of getting an investment. It is definitely high on entertainment value, but there are some good financial lessons (especially if you are small business owner) given while watching the show that I think are even relevant to the average Joe.
Stand up for what you believe in
Many small businesses come into the “Shark Tank” thinking they know everything about business but then are sometimes “attacked” or peppered with tons of questions throughout the interview process by the investors or “sharks.” It would be so easy to break under the pressure and cry. A lot of these business owners do stand up for themselves as they really believe in their product. This can be really amazing even if there is overwhelming evidence to the contrary. It is important to stand up for what you believe in because who else will? It is true in finance as it is for all other aspects of life. There are even business owners who do not get an investment, but they go on to do very well afterwards. If they had given up, then they would have lost that success.
Have a passion and go for it
Many of the small business owners have sacrificed a great deal for their businesses. It is the passion that they have for their businesses that has kept them going. It is also true when it comes to budgeting. If you sacrifice unneeded purchases and make a great effort to get out of debt, you will be so much happier in the long run. From personal experience, I know this is can be HARD. There are things that I want to do, but I can’t because I am paying off debt. I rely on my passion to be debt-free to keep me going.
Do your research
Too often, people come into the Shark Tank without doing their research on the markets. This almost always means they will always get ripped apart by the sharks. It is important to always look for the best deal when budgeting. I have used coupons in the past, shopped for the best deals on utilities, and bought clothes when only sale–but this takes the action of researching in order to find deals. Knowing how the market is going and researching accordingly can save you tons of money over the log run.
Negotiate, Negotiate, Negotiate!
The very premise of the show involves negotiating between small business owners and investors. Almost all deals go through an extensive process of negotiating back and forth in order to reach a final deal. These deals are made with a lot of blood, sweat, and tears as both groups fight for the best possible agreements between them. This is a great lesson for the average person as we have now entered a period that negotiation is not only acceptable but it is almost expected. Negotiating everything from furniture to portable fans will get you bigger saving and maybe even a great story to tell our friends if you negotiate hard enough.
One of the things that I love about the country is its entrepreneurial spirit. I think that the idea that anyone can have an idea and have the opportunity to pursue it is wonderful. Maybe that is why I like shows like these. Have a happy Thursday, guys!