The 4 Tips to a Winning Pitch on Shark Tank

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After being a guest shark on Shark Tank on Seasons 10 and 11, I often get stopped and asked the age-old question: “What’s the secret on getting my business in the tank?"

Hearing countless successful pitches (and some not-so successful pitches), I’ve distilled what the Sharks and I are looking for when founders walk through those large wooden doors and enter the tank.

1. Quantify the Opportunity

Is your business exciting to investors…or just you? It’s a question I ask every founder I see. Personal missions are great to have, but in order for an investor to write a check - they need to see true opportunity. It might be what gets you out of bed every morning, but in order for an investor to put money in, they’ll likely ask you these 3 questions:

1. What’s the TAM (Total Addressable Market)?
2. Is this solving a problem that occurs all over America? All over the world? A problem that is too niche often results in a business that never achieves exit velocity.
3. Is there a chance for eventual hockey stick growth where this small business eventually becomes a unicorn?

2. Prove Traction

Show me someone cares. I don’t want to be the first person to support your venture, and I certainly don’t want to be the last. Traction can come in all shapes and sizes:

• A few more investors pledged to back your fundraising efforts
• 1,000 eager customers with emails on your waitlist
• $10,000 in sales (or pre-orders!)
• 100,000 Instagram followers
• 1,000,000 loyal fans on TikTok

It doesn’t matter how you show traction, but you must have some social proof. Ideas scribbled on the back of a napkin are a dime a dozen. What is rarer to come by is true buy-in from the public. If you’re struggling with how to prove traction, take a stab at one of the bullets above and hone in on it. Don’t worry about having all of them - what’s the most doable in the next 3 months for you? If you can get TikTok followers faster than waitlist emails, focus on that. Or maybe the prospect of securing 3 angel investors is more manageable to you - focus your energy there.

Do what you can to show that people (and future customers) care.

3. Have Conviction

You’re going to be attacked. After all, we are Sharks.

All joking aside, both in the tank and in the real world, your business plan, your credibility, and your idea will all be scrutinized at some point. Investors and customers alike will find holes in your business and reasons not to support you.

When you’re faced with scrutiny, do not bend like a reed in the wind.

Be prepared to defend your company, your decisions, your tactics. Sometimes, you’re too close to the work to even realize your own blindspots. But do not allow external voices to become internal ones. Consider all feedback from outsiders, but ultimately, trust your instincts and personal conviction during the critical junctures of your company’s journey.

4. Stick to the Facts

We’ve been conditioned to love a comeback story, a rags-to-riches tale that culminates with a winning pitch on Shark Tank. But, emotional manipulation doesn’t bode well in the tank. This isn’t American Idol, where the only thing on the line is a “ticket to Hollywood”. You might not know this, but the Sharks are using their own money for these investments. While we appreciate a heartfelt story of passion and conviction, we'll also look past the tears and want to get to the financials.

The likelihood of a business succeeding is often determined by an amalgamation of great product, unflappable founder, and a market that is craving a solution like yours. Most customers don’t know the personal backstories of the founders of the products they buy.

Did you know about Kevin Systrom’s passion of photography when you scroll on Instagram everyday? No. And you likely don’t care.

Sharks are the same way. It’s nice to see conviction and emotion, but stick to the facts. Let your emotions fuel your conviction and preparation so when we ask about your LTV to CAC ratio (Customer Lifetime Value to Customer Acquisition Cost) - you’re steady as can be.

Look, not every business is destined to succeed on Shark Tank, nor should that be the goal for every founder. Shark Tank is simply one of the ways to scale your business, but as I detailed in my book Burn the Boats, there are countless other strategies and tactics that game-changing founders utilize to find a way to win.

LIGHTING THE MATCH

Each week, I’ll be sharing some of the amazing messages I’ve received from fellow Boat Burners who have decided to stop hesitating and go all in on their life’s true purpose. To be featured on Lighting the Match, DM me on Instagram or LinkedIn!

Reading Burn the Boats has fundamentally changed how I approach decisions in my business. It provided me with a renewed outlook on how I approach problems and contracts, and has enabled me to have a clear focus on how, when, and why I make decisions. I strongly recommend this book for anyone who runs their own business. Even if you don’t, you will gain fantastic knowledge from reading it.