I have watched almost every episode of Shark Tank for the last three seasons. The Sharks ask every single entrepreneur/contestant one or more of the following questions. To get an investment from a Shark (or any other investor), an entrepreneur needs to be ready to answer each of these questions…….
1. What were your actual sales for the last 12 months?
2, What is your selling price? What is your Business Model?
3. What is your cost to provide the product or service?
4. Do you have a patent?
5. What makes your product or service unique?
6. What does it cost to acquire a new customer?
7.What are you going to do with the money if you get an investment?
8.How much of your own money have you put into the business?
9. How did you come up with the company’s valuation?
10. Is the business easily scaleable (can the business grow rapidly without lots of my time and effort)?
These 10 questions are closely aligned with those asked by Venture Capitalists, Angel Investors, and other potential third party investors. Any entrepreneur seeking third party investment should have a solid Business Plan, be able to give a compelling presentation, and be ready to answer these 10 questions.