“Shark Tank” is a reality television show that premiered on ABC on August 9, 2009.  Each episode features a series of investment proposals from the owners/creators of a business.  The offer from the Sharks includes a specific sum of money and an offer for a percentage of ownership stakes in the business exchange.  The eager entrepreneur’s presentation typically includes a description of their service, its financial figures (current sales, profit margins, costs, etc.), the business plans and how the Sharks’ money would be used.  As a result, negotiations often involve asking for a larger stake than was initially offered, either cash or ownership percent.  If offers are made, the entrepreneur must decide whether to accept, or decline.  Some of the ideas that made it were a gourmet food business, a fitness machine for pushups, and a lipstick mold to reuse old lipsticks.  Some that DIDN’T make it were a gift shop for children, a mail order printer ink refill service, and socks sold in sets of three.

What made the difference for those businesses that received support from the Sharks? The business owners were seeking money, and business expertise and those that were successful were willing to give up something to create a success.  They also were the ones that had the most details about their business.

Those unsuccessful in getting the Shark’s backing were the ones that had spent thousands of dollars of their own money, without a realistic idea of what was really needed to make their product successful.  They were unwilling to give up anything, were emotionally attached to their idea and allowed pride to get in their way.  W.C. Fields quotes, “If at first you don’t succeed, try, try again.  Then quit.  There’s no point in being a damn fool about it.”  There’s a Chinese Proverb quote:  “Of all the stratagems, to know when to quit is the best”.

Knowing when to walk away from a business proposition is as important as knowing when to accept one. As sales professionals and entrepreneurs, there are always good ideas on ways to increase your business and profitability.  When you are successful, many ideas come your way. The more successful you are the more people will seek your expertise and often your financial backing.

Often what seems like a great idea ends up a complete flop. For example, many choose to advertise on shopping carts in supermarkets. It is quite an expensive proposition. If you talk to those who have tried it, their response is usually…  “it puts my face out there and keeps me in front of the public”.  This seems like logical reasoning.  Until you question how much business was gained. More often than not, not a single deal was closed through this type of advertising. But hey, everybody knows your face, right?

When you are emotionally and financially involved with an idea, sometimes you can’t see the downside.  Spending too much time and money to make something work will never be profitable, especially when your ego is involved.  The sales world is constantly changing and you have to be willing to make changes too. It may mean trying new things….but if they don’t work within a specified time-frame; the idea needs to be dumped. Nobody likes change, but hanging on to ideas that cost money, and don’t improve your business are just plain foolishness. Know when to walk away.
The Sharks are comprised of five individuals who have been there done that. All started with nothing and built and sold empires.  They learned that it takes many ideas to make something work.  Never refuse help, advice and expertise from people because of pride.  If you’ve watched “Shark Tank” you know that those who refuse the Shark’s offer do so because they don’t want to give up control of their “company” for the Shark’s expertise. They were willing to give up the opportunity to make their business a success because they weren’t willing to give up control.  Sometimes, it is just a matter of hearing some ideas that you hadn’t thought of.  Not every piece of advice is going to work, but listening is the key. There are elements of truth in every piece of advice.

If you are starting a new marketing idea, considering a new job position or looking to expand your company, make sure that you think through the up and downside of the economics, time and commitment.  Get advice—don’t let pride get in the way.  Consider a mastermind group to bounce off ideas.  The “Make-It-Fly” group (go to www.make-it-fly.com  to learn more) is a local Denver group that allows members to bounce off ideas and challenges that they have in their businesses.  Do plenty of research, listen to your significant others, and weigh the financial commitment. Develop a business plan, along with a time frame for completion. Understand the commitment to your business and your family. If the idea is a winner, it will take off.  If not, know when to walk away.

Some of the most innovative ideas started as small seeds. Many started in homes or garages and grew into huge empires (think Microsoft, Apple). In nearly every case, the successful businesses were the collaboration of several people, eventual boards of directors and multitudes of people in the background. You NEED other people to make successes of your own business.  Understand what your strengths are and use them to advance the business.  Hire out your weaknesses.  Allow yourself to focus on what you do best and allow others to do everything else.  Knowing when to walk away will mean ultimate success for your business.

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