AI Can Help You Swim with the Sharks
Let’s have some fun this week and talk about the world of our favorite entrepreneurial show, Shark Tank.
Shark Tank is where entrepreneurs pitch their wildest ideas to a panel of savvy investors. Under the glare of bright lights, dramatic music, and huge egos, a lineup of hopeful innovators prepares themselves to swim with the sharks.
The Biggest Fish in the Tank
“Shark Tank” features a panel of savvy investors called sharks.
They decide whether to invest in companies or products that are pitched by money strapped entrepreneurs. The sharks scrutinize the product, business model, and valuation, identifying weaknesses and faults, ready to pounce on an opportunity to make money for them, and the presenter.
The core group of sharks includes Mark Cuban, Robert Herjavec, Barbara Corcoran, Lori Greiner, Daymond John, and Kevin O’Leary. Occasionally, special guest investors join the tank, adding their expertise, insights or star power.
The grand dame of the tank is Barbara Corcoran. She built a real estate empire in New York City which sold for $66 million. She is a master in branding and marketing strategies.
The analytical Robert Herjavec's early life featured an escape from communist Yugoslavia. He founded and sold multiple tech companies and is passionate about cybersecurity and entrepreneurship.
Maybe the best-known shark is Mark Cuban. He is a billionaire part owner of the Dallas Mavericks. Like Robert he is an outspoken advocate for technology and innovation and was co-founder of Broadcast.com.
Then there is the Queen of QVC, successful inventor and entrepreneur Lori Greiner. She holds over 120 patents with expertise in product development.
Shark Daymond John founded FUBU clothing line and has overcome dyslexia to build a fashion empire. His passion is to mentor young entrepreneurs.
And finally, Mr. Wonderful himself, the bold and audacious Kevin O’Leary. He co-founded The Learning Company, which was later sold to Mattel for $4.2 billion. He credits his mother’s financial advice in shaping his investment philosophy.
Famous Fish
Often times, there are guest sharks that bring a different perspective to the tank.
From comedians like Kevin Hart and Jeff Foxworthy to athletes like Charles Barkley, Alex Rodriguez and Maria Sharipova to movie stars Ashton Kutcher and Gwyneth Paltrow have all sat in the tank.
But other big names have also swum with the sharks like Richard Branson, Tony Xu, Michael Rubin and Bethenny Frankel have all brought their big piles of cash and equally big egos to the group.
Baiting the Hook
The real stars of the show are the presenters and their companies. Some rise up and meet the challenge of presenting to the sharks.
Bombas Socks once was on the show. Known for their comfortable and stylish socks, Bombas is the best-selling product to come out of a Shark Tank deal. They’ve made millions in sales and have become a household name.
Everly Health (Everlywell): This health testing company has also achieved significant success after appearing on the show. Scrub Daddy also wanted to clean up on the show by introducing their smiley-faced scrubber that changes texture based on water temperature has become a sensation, with impressive sales figures.
Sometimes the Sharks Get Bit
In our daily posts this week we will be discussing some of the deals that the sharks could not complete.
But there are some that that they wished would have swam in the other direction. For example, Mark Cuban invested $1.25 million in fast-connect hose adapter manufacturer, HyConn. Unfortunately, the deal went belly up almost as soon as the season wrapped, reportedly due to disagreements between Cuban and the company founder, Jeff Stroope. The company faded into obscurity until a reemergence recently.
Despite a $1 million deal, an FTC investigation due to inaccurate readings caused its collapse of Breathometer. Following one of the most compelling pitches in the show’s history, Mark Cuban, Kevin O’Leary, Daymond John, Lori Greiner, and Robert Herjavec ended up splurging a collective $1 million in exchange for a 30% stake in the company. It wend belly up four years later after users complained of inaccurate readings, triggering an FTC investigation that forced the company to offer full refunds to all its customers.
When entrepreneur Shelly Ehler pitched ShowNo Towel, an innovative product that allows users to change in and out of bathing suits in public, on Shark Tank, Lori Greiner was so enthused that she wrote Ehler a $75,000 check on the spot. However, despite seemingly securing a lucrative deal with Disney after the show, the company failed to gain market traction and ultimately tanked.
Hammering It Home With AI
Lessons learned from Shark Tank seem endless for a small business.
The sharks are about knowing your numbers. Besides the obvious of revenue, costs and profits. They also ask about customer acquisition costs, market opportunity, sales channels and valuation. As well as product differentiation and scalability.
AI can be a life preserver for a small business with these areas of Shark concern.
To answer revenue and profitability concerns a presenter could use AI to analyze financial data, identify trends, and provide actionable insights. Predictive models can forecast future revenue based on historical data, helping them make informed decisions. Additionally, AI-powered pricing optimization maximizes profit margins by adjusting prices dynamically.
Understanding their market is crucial. AI analyzes market data, customer behavior, and industry trends to assess size and growth potential. Sentiment analysis gauges customer interest, helping you tailor your pitch.
When a Shark raises concerns about customer acquisition costs, the presenter can feel confident that AI optimizes their marketing campaigns by targeting the right audience. Chatbots and virtual assistants handle inquiries efficiently.
Questions about sales channels can be answered with AI recommendations for effective channels based on customer preferences and market dynamics. They can also point to how E-commerce platforms with AI-driven personalization enhance the customer experience.
AI assists in valuing their business by analyzing financial metrics and growth projections. Automated due diligence tools streamline the investment process helping answer equity inquiries.
The question “What sets your product apart?” can be answered with AI analyzation of competitor products, patents, and their customer reviews to identify unique selling points. Natural language processing extracts insights from feedback.
And finally, when a shark wants to know about scalability, AI-driven automation handles repetitive tasks, allowing efficient scaling. Predictive analytics guides expansion strategies beyond the initial stage.
With AI as a business partner, you can keep your mind on growth.
Adding Some Teeth to Your Business
Your AI Wizards has some other AI solutions that will help your business take a bite out of your competition.
The first is our Website Data Pro (WDP) tool. While WDP may not be the biggest fish in the pond it is a powerful solution. WDP identifies website visitors so that you are made aware of their presence and can start the selling process. What used to take hours to be notified, can now take minutes. We offer a TWO-WEEK FREE TRIAL of WDP so that you can experience this for yourself.
We also understand that one of the most important yet difficult tasks that you need to do is keep your social media presence current. Your AI Business Store (AIBS) was designed to have premade, social media content at your fingertips. Our content is designed to post in just a few clicks so that you can free your time from thinking about what to say and what the graphic should look like to building your business. Check out our store at www.YourAIBusinessStore.com.
Contact us (joy@YourAIWizards.com or tim@YourAIWizards.com if you have any questions or need more information about either WDP or AIBS.
We are also pleased to announce that have scheduled another session of our popular AI In Reach seminar for September 17, 2024 beginning at 12:30PM at The Hampton Inn & Suites (I-25 South) in Colorado Springs register by clicking the AI IN REACH button at www.YourAIWizards.com. Space will fill up fast, so reserve your spot today.
Fin-ishing Strong
Whether you're swimming with the sharks or just trying to stay afloat in the competitive business world, it's clear that preparation and innovation are key.
Shark Tank reminds us that knowing your numbers, understanding your market, and having a unique value proposition are crucial for success. And in today's fast-paced business environment, AI tools can give you the edge you need to stand out.
So, take a page from the Shark Tank playbook and leverage the power of AI to make your business not just shark-proof, but shark-impressive.
Who knows? With the right preparation and tools, you might just find yourself ready to dive into the tank yourself one day.
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