What Stage of Business Works for Shark Tank? | FranFinders
ALL businesses would work for Shark Tank and NOT ALL businesses would work for Shark Tank. What do I mean by such a conflicting statement?
Regardless of the business, as you notice after watching many seasons of Shark Tank, you see a wide variety of business models. Product-based, food, retail, service, online and the list goes on. It’s the stage of the business that attracts the Shark.
There are 5 stages of the business growth cycle. Seed, Startup, Growth, Expansion (Rapid Growth) and Maturity.
Seed – This is the early “Idea” phase. Nothing is finalized, just getting the thoughts together. No revenue. Sharks not interested.
Startup – This is where the formation of the business takes place. Capital is usually scarce, since it’s difficult to find investors, since there are no revenues to prove the model. Sharks not interested.
Growth – In this stage, the business is refining processes, building a team, overcoming cash flow issues by increasing sales and pushing through. While it’s at this stage the business is showing some revenues and profits, the strength of which do not attract Sharks. Most Sharks not interested.
Expansion/Rapid Growth – This is where it all happens in the Shark Tank and you see the Sharks swirling around the opportunity and each other. At this stage of the business, processes and teams are in place and revenues and profits are skyrocketing. The business is crushing it. The need for a Shark is vital for continued growth at this stage. Not only the capital, but the strategic planning that is needed to take a expanding business to even higher levels. Sharks want this business!
Maturity – At this stage, the business has developed through the life-cycle and now has steady or slightly declining revenues/profits. Unless the business makes changes to adapt to the current market demands, it will fail. Sharks not interested.
To sum up, to have the best shot at attracting Sharks, have a business that is in the Expansion/Rapid Growth stage. Otherwise, you’re wasting your time.