Shark Tank – First Impressions

I was turned onto Shark Tank by a friend.  I’m a little late to the party considering the show has been on the air for about 3 months.  He thought I’d like it.  He’s right.

Unfortunately, there are only two episodes on Hulu.com, so I can only go off what I’ve seen.

From what I see so far, I like it.  It makes me reflect on my business skills and deficiencies.  As an entrepreneur, working with your head down, makes it difficult see the big picture at times.  Let’s face it, the product is just a piece of the business.

The angel investors are a pretty diverse and authentic group.  I think they add a lot of value to the show.

My friends and I talk business all the time.  The principles are the same for any size business.  There are two quotes that stick out in my head.  The first one is by Warren Buffett.  “Price is what you pay.  Value is what you get.”  He’s the ultimate investor.  The second is Robert Kiyosaki who says “Money follows management.”

What these angel investors are looking for is good management and a good value.

What’s missing from the show is after you give up a piece of your company, and you run out of the money they injected, how do you get capital into the business?  For example, one woman received $50k for 35% of her company.  There are two things I don’t like about this deal.  First, $50k is not even a years salary.  Second, after the money runs out, who’s on the hook to fund the company.  If you’re the founder and working for free (pretty much), what happens?  You probably get bought out for pennies on the dollar.

Now, these angel investors understand success and have connections, so I see the value.  I wonder how involved they get.

I’ll end with this, the Shark Tank has got  a lot of potential.  My favorite investor, by far, is Daymon John founder of FUBU.  Everything that comes out of his mouth is very truthful.  He’s pretty much awesome.

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