One of the most appealing things about appearing on a show such as Shark Tank is the exposure that your business receives and the thought of reaching a deal with a world-famous investor. However, as with many things in life, there are pros and cons to taking your business proposal on a reality TV show.
Pros to Appearing on Shark Tank
One of the biggest benefits of Shark Tank is you can pitch your business idea to millions of people. You will also get the assistance of skilled entrepreneurs. Mark Cuban and the rest of the crew have access to large networks that most business owners dream about. With these connections and their desire to see their investments succeed, it’s a win for everybody.
Another reason to take your chances on a show such as Shark Tank is to give your business that infusion of capital that you so desperately need. This happens because once these entrepreneurs decide to invest in your business, you sell them some of your equity for immediate cash. Be careful, though, as this move can be a double-edged sword.
Cons of Going on Shark Tank
One of the biggest downfalls to appearing on a show such as this is giving up equity for an infusion of capital. This means that you are no longer the only person in charge of your company. You will have at least one new partner. When you bring in others to access their capital, they want to have a say in what you are doing and you might not like the direction that they want you to head in.
This next disadvantage is related directly to bringing in new partners. You may no longer have a controlling share of your business in some cases, depending on what percentage you gave them. This can also affect your bottom line as they will now be taking a portion of your profits, which can alter your ability to pay back certain debts that you owe.
Remember that if something sounds too good to be true, it often is. Many previous show attendees have reported that they weren’t given the same deal that they were initially offered. Having these entrepreneurs’ help could prove to be very valuable, but there are many risks involved.