Do you ever find yourself watching Shark Tank, hearing a pitch by an entrepreneur who wants a million dollars for 8% of his company, and thinking how they value it?
Well, I’ve always wondered the same thing.
That’s why I asked my friend Daymond John to break down the process at 10X Growth Conference a couple of years back.
Daymond John’s process on Shark Tank
One of the first things Daymond looks at is sales.
He explained to me that even if he hates the idea, the number of sales and where the entrepreneur makes these sales can change everything for him.
Other times, he’ll love the idea, but then he realizes he may not be the best partner for it. Daymond encourages all entrepreneurs to make sure they’re not partnering with an investor only for the money.
A common vision can make or break a successful partnership.
“If you’re looking for strategic partners and they don’t see the value of your company, they can actually hinder you.”— Shark Tank’s Daymond John at 10X Growth Conference 2018
Now, they edit all of this out. But the Sharks spend hours going back and forth with the entrepreneur and doing research before they even start negotiating.
“They technically have about 24 hours worth narrowed down to 8 minutes. So, my thought process is going through various things and you’re only seeing a little bit of it.”
So, remember that what you see in a couple of minutes has hours and hours of work behind it.
More Golden Nuggets from Daymond John’s 10X Growth Con Interview
Some other key takeaways from my conversation with Daymond are:
- Even if you’re the CEO, you have to sell.
- Diversity is the mother of innovation. Your company benefits from insights from a 17-year-old as much as it does from mature, experienced individuals.
- You can operate a business in one of two ways: reduce costs or increase sales. That’s it.
- There’s only three ways to acquire a customer: acquire a new one, upsell a current one, or make one buy more frequently.
10X Growth Conference is all about making business boom, baby. And the next round of speakers will blow your mind.
Claim your seat now for the ultimate experience in Las Vegas, Nevada!
Featured image source: Daymond John / Twitter
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