ABC’s Shark Tank is a highly popular reality TV series where budding entrepreneurs pitch their business idea, product or service to a panel of five wealthy entrepreneurs ready to sink their toothy jaws and business prowess into a potentially profitable business venture. Some contenders survive the shrewd tactics of the predators, others don’t. The innovative ones who’ve done their homework are offered up to $10 million in investment capital and have gone on to create and expand businesses on a national level.
Returning for a third season, Daymond John, founder of clothing manufacturer FUBU and star of the hit TV show, shares there’s a simple formula to a successful business: having a strong base. Here he offers eight tips to boost your business know-how.
1. “You should know who your customers are.”
A customer is the recipient of your goods, services, product or idea. Knowing who will buy your product will determine the success or failure of your business.
2. “What is your goal? Past accomplishments? Milestones?”
Your goal will only be effective if you have a clear vision of what you want to achieve and how you will do so. Outlining past accomplishments and milestones are essential to your success in securing investors and making progress toward achieving your goal.
3. “In your industry, who are your targets?
It’s the first step to a successful marketing strategy. Don’t make assumptions about who will or who won’t buy from you.
4. “How are you positioned?”
Know who your customer is so you can direct your marketing efforts and dollars toward them.
5. “What is your price point?”
Determine the total production cost, take into account what your competitor is charging, then add a profit margin.
6. “What are your weaknesses? What are your strengths?
These are the fundamental elements of strategic planning. Once they have been identified, they will offer powerful insight.
7. “Have you identified your strategic alliances?”
They have become an essential driver for growth. You can partner with a business and work toward a common goal without losing your individuality while reaping the rewards of a team effort.
8. “What are your financial [statements]? You need to know what your losses and gains are and understand profit margin. You need to know them down to a tee.”