Explore the Working Parts to Running a Business
Shark Tank will be running two encore episodes tonight with the Super Bowl also taking place this evening.
Each week we produce a preview article showcasing some of the entrepreneurs and startups that the show features. With the program running older episodes tonight, I thought it would helpful to relate some of the most impactful lessons that I have learned from the business leaders on Shark Tank.
These lessons have helped me find ways improve my business, and my personal life.
The amount of working parts that play into business ownership can be complicated. I often compare running a business to fishing. In many ways a person that goes to fish will face many obstacles to achieve their goals. In connection to Shark Tank, I find that business owners must have a thorough business plan, and a vision to catch a shark.
Browse over the list and catch Shark Tank on ABC each Sunday starting at 9:00 p.m. EST.
- Sweat Equity
The most important element to running a business is the amount of time a person can invest into product development. This section of running a business also connects with time management. Entrepreneur reported:“Great entrepreneurs invest the time, no matter how many hours a day, to learn more about their industry and the business they want to start than any one else.” – Mark Cuban
- Accounting and Balancing a Budget
Several creative minds can come up with innovative ideas, but also being able to properly balance a budget can be difficult. In a best case scenario a business owner will get help with financial management, but if they lack resources, the responsibility of accounting will need to be handled by the business owner.
The more time invested into setting financial goals and restraints, the better the company will run over time.
FreshBooks is an application that helps organize financial data.
- Rise and Grind
Daymond John has recently released a book titled Rise and Grind: Outperform, Outwork, and Outhustle Your Way to a More Successful and Rewarding Life. His mindset on being a successful entrepreneur is shown by describing a passionate work ethic.
Currently, I am working a full time job in addition to working part time with this company. In order to reach larger audiences, I have started to set my alarm clock earlier each week. This provides me time to reach audiences on the East Coast just as they are rising and grinding.
- Marketing and Advertising
The old saying of ‘it takes money to make money’ applies to roughly 97 percent of businesses. There are original and unique products that have an instant high demand that make up a small percentage of new companies. In the YouTube video below, Kevin O’Leary is brutally honest with a contestant on the show. His message is loud and clear:
“You need huge marketing dollars to make that brand mean anything. That’s the problem, you know that. You know what I think, I think you know your dead.” – Kevin O’Leary
A large percentage of business owners also face this problem, but many of them attempt to avoid the obvious, and focus on the other working parts to running a company. When a business owner can acquire an investor or a bank loan, it can help build awareness for a product. That being said, those acquisitions can end up costing the owner a percentage of every dollar made. Balancing a budget to include investments is an excellent tool to running a successful business.
Another important step to running a successful company is asking for help from other successful entrepreneurs in similar fields of business. My personal solution to this problem has been to research and acquire skills through business leaders online. YouTube is an excellent source to review interviews with investors, as well as business leaders. One of the best channels to check out features Chase Jarvis. His ability to articulate informative questions provides an excellent source of information.
- Planning and Achieving Goals
At the end of 2017 I setup a series of goals for our company to achieve during 2018. After reviewing the goals, I started to realize that most of them are statistical-based goals. One element that I have recently learned is that it is important to set personal goals, statistical goals, and financial goals.
When working to complete different goals, it is important to have a well thought-out timeline to use as a guide. Robert Herjavec from Shark Tank has provided excellent insight on the timeline theory. Pre-planning is extremely important to helping launch a company.
- Research and Development
It can be difficult to come up with a new product or service that fills demand in our current economy. One piece to being a successful company is doing tremendous amounts of research and applying data to product development.
Dive deeper into this topic with Encyclopedia Britannica.
- Managing a Team
To properly run a team in a business setting takes emotional and psychological maturity. When a person has created an innovative idea, learned how to balance a budget, one of the next steps is acquiring talented individuals to help keep the company moving forward.
It depends on the scope of the product or service, but several companies will need additional help to create long-term growth.
- Unique Products
A key to creating user demand is creating differential goods and services. When I see Shark Tank investors get turned off by a product it sometimes lack the unique qualities that will help it stand out in a sea of similar companies.
I suggest doing product research and see what other companies are currently producing. Take that knowledge and find a problem within the product, then create a new product that stands out on its own with additional benefits.
- Selling and Psychology
Product placement and distribution are two of the key ingredients in business. Lori Greiner, inventor, entrepreneur, and television personality has excellent connections and business relationships with QVC, as well as with Bed, Body & Beyond. Her business relationships help her sell products with a large-scale scope.
Many smaller businesses use Amazon to sell their products. Service-based companies often will build websites and applications to connect with customers.
One of my friends that excel in selling products still uses the door-to-door method when selling home security. His ability to directly connect with consumers has always been impressive.
One quote from the movie Glengarry Glen Ross sums up the psychology of selling products with “always be closing.”
- Test Small, Test Often
After a company has started to gain traction within their field, a crop of new companies will be looking to knock them off their platform.
In combination with research and development, companies need to take the time to test and research how new products or services will react under specific circumstances.
Google is an example of a company that does product testing on a small scale, and if successfully, they scale it up in size.
- Rejection and FailureFor some startups the idea of failure or rejection can create an unwanted feeling. That being said, it is part of the game. I have rarely heard one of the investors on Shark Tank make it through their career without a few failures.
The release of a product or service regarding timing is an important skill to master.
I suggest every business owner to perform door-to-door sales, or telemarketing before investing heavily in a business. After I have personally been through hours and hours of rejection in these forms of business, it has provided me with insight on filling supply and demand.
- State of Mind
Successfully investors will often note that creating a positive state of mind is important to accomplishing their goals.
- Time Management
It is vital to master and refine time management skills as a business owner. When managing a company or a household there are times when people get stressed out from handling responsibilities.
My theory with time management and stress is connected to the rise and grind mentality. When leaders properly plan out their day in advance, it will lead to better results for different goals.
- Problem Solving
Each company should focus on how is their product solving a problem for consumers. An important step to acquiring new users is providing benefits to help people solve their problems.
If a company can other people solve their problems, it will help them problem solve within their own office and team.