It's Not the Money Lessons from Shark Tank
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Watching Shark Tank always teaches me something. It might be feedback from a shark, a memorable (which can mean a lot of things) pitch, or a standout product. Regardless, I consider it a worthwhile 45-minute business – and entertainment -- investment.
The latest episode had two pitches that stood out for different reasons. If you’re a Shark Tank fan and haven’t seen the April 15th episode yet, I’ll try not to spoil it for you.
Who Knew Hair Could Be Funny?
The first pitch was for HairFin, invented by Tony the awkward engineer. Tony clearly missed his calling as a standup comic. HairFin is a niche product that solves a real problem for DIY haircutters. All five of the sharks felt the product was too niche and unscalable. They initially passed on the investment.
But Tony, the likeable computer engineer, kept them engaged. “We care about hair but not a lot” might be one of the funniest unintentional taglines I’ve heard in a long time.
In the end, Tony did earn an unnamed shark’s investment.
Tony's initial ask of $75,000 for 20% equity was modest by any measure. The lone investor increased his equity to 30% even though his involvement would be very limited. He saw the opportunity to connect Hair Fin with one of his complementary hair product companies. The two founders would work together to develop the market.
The takeaway from this pitch –
Tony was credible, unassuming, and humbly committed to his purpose. His creator’s story was simple and relatable. The investor saw the potential for collaboration that would benefit both of his companies.
Cultural Awareness’ Time Has Come
The second company wasn’t competing with comedy. Instead, the two founders of Browndages struck the cultural awareness chord.
As the name suggests, the Browndages product is a bandage for all skin tones. Even though there is heavy competition from firmly established leaders like the Band-Aids brand, the sharks were quickly onboard.
What made this niche product with strong competition attractive?
The product is timely, it speaks to a long-neglected cultural need, and the creators are deeply focused. The husband and wife team recognized the competition they are facing and had a clearly articulated plan for overcoming it.
In the end, three sharks came together with a generous investment because they supported the cultural importance.
A Final Word
We hear about spectacular financial investments and lofty company valuations every day. These deserve to be recognized and studied as one yardstick of company growth.
Investors expect a return on their financial risks. Rightly so.
But what these two Shark Tank pitches remind us of has nothing to do with investors, money, and valuations. Instead, the ultimate measure of a company’s success is the meaningful value their product or service delivers to its customers.
In both of these pitches, the sharks focused on the problems these products solved for everyday customers.
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P.S. --
If you're looking for a read that will let you slowdown and laugh, take a peek at The Book of Awesome by Neil Pasricha
Linda Rolf
Fractional CIO
Quest Technology Group
407.843.6603
www.quest-technology-group.com
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