What Sharks Tank Egypt Investors Want Before Investing
Have you ever seen Shark Tank Egypt? On this show, people who want to start their own businesses pitch their ideas to the “sharks,” who are six successful business people who made their own dreams come true and turned their ideas into profitable empires.
On the show, the contestants try to get one of the “sharks” to put money into their idea. When more than one shark wants to get in on the action, it can lead to a bidding war, which drives up the cost of the investment. But only a few of them have this happen sometimes.
Entrepreneurs often have to deal with tough situations. Some entrepreneurs have to deal with failure, long hours, and the constant need to impress investors.
Many people with business ideas decide not to go through with them because of how hard it is. Almost 40% of entrepreneurs say that they don’t take chances because they’re afraid of failing.
The TV show Shark Tank has helped put entrepreneurs in the national spotlight. People like to see entrepreneurs in action.
Shark Tank investors listen to real pitches that lead to real businesses and real investments.
Let us analyze Shark Tank’s entrepreneurial formula and Get the inside secrets to winning over Shark Tank investors in Egypt with this must-read guide! We reveal what venture capitalists are looking for and disclose tips to increase your chances of success.
What’s Needed for Entrepreneurial Success, According to the “Shark Tank” Formula.?
1- First, Get Over It
Fear of failing can make a lot of entrepreneurs give up. Entrepreneurs must get over this fear if they want to start a business that does well.
If you look at how often people succeed on Shark Tank, you might be right to be afraid of failing. There’s no way around the fact that only 1 out of every 17 projects on Shark Tank ever makes money.
Those odds don’t make me feel very hopeful. But investors have said over and over that getting past fear is the only way to win.
The best way to get over being afraid of failing is to fail. Take the first step, and if you fail, fail again, or fail as many times as you need to before you succeed.
The more times you fail, the less scary it gets. You will see failure as a necessary step on the way to success that helps you learn.
2- Make a Lean Business plan.
Investors on “Shark Tank” hear a lot of business pitch decks, but they only make deals with a small number of the entrepreneurs they hear. Most pitches fail because the people who made them were not ready.
Finding your market is the first step to a good business plan. No matter how great your product is, investors won’t buy it if no one wants to buy it.
Next, run all the numbers that have to do with making your product. To get investors on board, you’ll need things like sales goals, manufacturing costs, expected investments, and so on. They want to know if your plan will work no matter what.
If you want to run your numbers, it helps to talk to experts like BznsBuilder Coaches and other business owners. They know how to help you figure out what your numbers mean along with the financials.
If you’re not sure you may check our blog for some tips, or you can sign up for the BznsBuilder tool, which will help you write a lean business plan with a step by step guidance. try it for FREE.
3. Do the math, and do it well
Prepare Detailed Financial Projections, Know how much it costs to make your product or run your business and how much money you make. Know what your margins are and be clear about them. Know how big the market is as a whole and how much of it you can get. Know what you want to do with the money someone gives you. Remember all this, and be able to prove it.
Detailed financial projections for the business can be important for the following reasons:
- To find out if the business will make a profit in the end
- To determine your cash “burn” before you get cash flow profitable, showing how much startup capital you will need
- List your key financial assumptions (price per product, cost of developing the product, marketing costs, employee costs, rent and overhead, gross margins, and much more) so that you and others can test how reasonable they are.
- To have these projections ready and believable when investors ask for them, which they will do.
Financial forecasts will cover a period of 3 to 5 years and will include:
- Profit and loss statement
- Cash flow statement
- Detailed categories of income and expenses
- Balance sheet
- Underlying assumptions
Of course, your financial projections and actual results won’t match up, but you can change your financial projections as your business grows.
You can try out the automated financial plan tool at BznsBuilder to get rid of all the trouble and confusion.
3. Have faith in yourself and what you’re selling.
Only 8% of those who made pitches were successful, despite the fact that 66% of entrepreneurs claim they started their businesses to make money off of a business plan.
How did most people fail to persuade investors of the value of their product? It’s straightforward: people only care about their financial gain and don’t believe in their own products.
Entrepreneurs who make pitches to investors with the sole intent of making a profit give up on their product. After all, the product is a business plan created to generate revenue.
It’s critical to have faith in the long-term potential of your company (and product) and to think beyond short-term financial results. You must think that your product will succeed.
A Tip for Landing an Investment From Shark Tank – Egypt Edition
If you’re seeking angel investment from Shark Tank Egypt, make sure you know what investors are looking for before submitting your pitch. Doing your research is key to success – learn about their preferences and develop a competitive strategy that incorporates their desired elements. Applying our successful formula will give you the best chance of landing the perfect investor for your project!
Before pitching their business plan, Shark Tank Egypt investors want to know if the entrepreneurs solidified the business concept, have done their market research, and have a specific plan for how they will use investor money to grow the business. They also look for good team dynamics and a unique product or service. Additionally, great pitch decks with well-presented information can help clinch a deal from the Sharks!
Now we highlight the proven success formula, let us dig more to the path of nailing it
CAN A GREAT BUSINESS PLAN EARN YOU A SPOT ON SHARK TANK?
No, it won’t, of course. But a good lean business plan is a good place to start and can help you build a business that does well. It gives entrepreneurs a place to start putting their ideas together. It is a guide for how companies in their early stages should run. It helps companies that are already up and running continue to grow and stay in business.
Business plans are important for both established businesses and new businesses or businesses in their early stages. They are used by investors or buyers as well as guides for how to run the business. The ideas are pretty simple, but the plans are different for a startup or early-stage company, an established business that is being sold, and an established business that is growing. The best business plan for a company depends on how it will be used and where the company is in its life cycle.
Shark Tank Egypt has shown a lot of people how investors work.
A good business plan helps an entrepreneur or group of entrepreneurs organize their ideas for a business in its early stages. It’s a good way to start a business that will do well.
If you need help with your business plan, you can get a free consultation from the BznsBuilder team by clicking on this link.
Headline: What Shark Tank Investors Look for in a Business Plan or Pitch Deck.
Answer: When pitching on Shark Tank, entrepreneurs need to have a well-crafted business plan that displays a good understanding of their target market, how they will make money, and the potential of the venture. They should also have created a pitch deck with easy-to-understand diagrams and visuals to explain the idea. Sharks look for solutions that make life easier, create loyalty, and are scalable, so including any ideas on expanding the company will help impress investors. Additionally, it is important to prepare solid data and research why they should invest in your venture, and have answers ready when asked difficult questions.
Now that you have a better idea of how your business will work, it’s time to pitch it.
5 Things You Can Learn From “Shark Tank” Egypt About How to Pitch to Angel Investors
Watch how the sharks decide how much to offer. At the beginning of every Shark Tank pitch, contestants ask for a certain amount of money in exchange for a certain amount of ownership in their business. That’s how their proposed price is set. So, if they want to sell 10 percent of the company for EGP 100,000, that means it’s worth EGP 1 million, and if they want to sell 30 percent for EGP150,000, it’s worth EGP500,000. The math is easy.
Investors like valuations that are based on real business numbers, such as sales, gross margin (price minus direct costs), burn rate, or fixed costs. On the show, the sharks often disagree with prices that are too high, and sometimes they make their own offers based on prices that are much lower. All you have to do is make offers and counteroffers. Rarely will they accept a valuation that isn’t based on real business numbers, like the value of proprietary technology or the impact of a brand.
Since the Shark Tank is a TV show for entertainment, valuation is kept simple. But, angel investors often choose from a wider range of options. For example, Other Angel Investors may invest based on what is called “convertible notes.” These are short-term loans that can be turned into equity (ownership) based on a future valuation to be set by transactions with venture capital. But valuing things is also always important. And every new business should know the basics before it talks to investors.
2. Market Size
The sharks are looking for companies that have a significant and fascinating pool of potential customers. They are looking for niches that are intriguing and have the potential to expand rather than niches that are very specialized yet seem to have a fixed market size.
“What do you have that I can’t do myself?” sharks often ask. I could take the money you give me, hire some people, and start competing with you.” So much for being able to defend. The sharks want to put their money into a business that won’t be wiped out by competition soon.
For each business, defensibility comes in a different way. Sometimes it’s about having a strong patent. Most of the time, it’s secret recipes, secret ingredients, trade secrets, and relationships with channels of distribution. Sometimes it’s because of how the brand has changed. If the investment can’t be defended, it’s not worth making.
4. Scalability or Leverage
Leverage or scalability is simple to comprehend when you consider the differences between goods and services. If you sell products, it’s simple to see preparing to produce a lot more of them if sales increase. A product-based company may grow. Even though they provide services, some service-based businesses—web services are a fantastic example—are also scalable. Even so, a service provided by a person that needs an increased salary and fixed expenses in direct proportion to sales growth cannot scale.
The fact that so few Shark Tank competitors are offering services is not an accident. Owner-operators love services, but investors don’t have a lot to gain from them.
5. Industry Bias
Most of the time, the sharks like to invest in industries and businesses that are like what they have done before. Ahmed El Sewedy likes industrial businesses that could manufacture local products, which he knows a lot about. Hilda Luca knows how to run a store, especially a clothing store. Several sharks run businesses that use high technology. And that works both ways: Sharks are more likely to invest in businesses they know, and when contestants have a choice, they value certain sharks more for certain types of businesses.
Being on the show can help a small business get more attention. But pitching investors in real life isn’t like what you see on TV, where everything is pre-screened and practiced.
Practice, practise, practise is the best way to get ready for your own pitch.
Entrepreneurs who want to pitch to investors should remember the three main parts of the Shark Tank formula: get over your fear, know your business plan, and believe in your product.
When you put these three key parts of the Shark Tank formula together, your chances of being successful go through the skylight, especially if you have investors.
How did you find the process of starting a business? How have you been successful and how have you failed? No matter what. Book Your Free Consultation and let us help you.
How Can You Apply to Shark Tank Egypt?
You may now apply for a chance to compete in Shark Tank Egypt and win an investment from a Shark. Proceed to this application form and fill out your information.
You must fulfill the following eligibility conditions to apply:
– You must be 18 years old or older; if you are under the age of 18, your parent(s) and/or legal guardian(s) must apply on your behalf and sign and agree to all paperwork about your future participation in the Series.
– You must be present in Egypt and permitted to take part during your participation in the Series.
– You must not have been convicted of a crime within the last ten years (unless expunged).