{"id":41495,"date":"2023-10-20T15:14:22","date_gmt":"2023-10-20T15:14:22","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/how-i-secured-a-600000-deal-on-shark-tank-in-10-minutes-a-minute-by-minute-breakdown-of-swimming-with-the-sharks-startupsmart\/"},"modified":"2023-10-20T15:14:22","modified_gmt":"2023-10-20T15:14:22","slug":"how-i-secured-a-600000-deal-on-shark-tank-in-10-minutes-a-minute-by-minute-breakdown-of-swimming-with-the-sharks-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/how-i-secured-a-600000-deal-on-shark-tank-in-10-minutes-a-minute-by-minute-breakdown-of-swimming-with-the-sharks-startupsmart\/","title":{"rendered":"How I secured a $600,000 deal on Shark Tank in 10 minutes: A minute-by-minute breakdown of swimming with the sharks – StartupSmart"},"content":{"rendered":"
\"Shark<\/div>\n

One national TV show, 10 minutes and a whole lot of exposure.<\/p>\n

That best describes my experience of appearing on Channel Ten\u2019s reality show Shark Tank.<\/a><\/p>\n

For those of you who don\u2019t know, here\u2019s a quick recap: On Sunday night viewers were treated to the spectacle of myself, a 25-year-old businessman with big dreams for a company I founded and love, pitching a business deal to five of Australia\u2019s most successful entrepreneurs.<\/p>\n

After walking in to raise $300,000 I walked away with an offer of $600,000 from three of the \u201csharks\u201d.<\/p>\n

Boost Juice founder Janine Allis, Talent2 International\u2019s Andrew Banks and tech startup multi-millionaire Steve Baxter wanted a combined 30% stake in ONTHEGO Sports.<\/p>\n

Following the wave of interest on social media about my appearance on the show, here are my tips for swimming with the sharks in any negotiation you enter. The Shark Tank negotiation lasted about 10 minutes, so here\u2019s a minute-by-minute breakdown pointing out key moments and decisions that helped secure the deal.<\/p>\n

Minute one: Why all the clich\u00e9s about dressing well are true<\/h3>\n

I don\u2019t wear traditional business suits. In fact, I recently commented on social media that the real estate industry could do with some shirt-wearing entrepreneurs to shake things up a bit.<\/p>\n

But I do believe first impressions count. I wanted to look professional, but show them I am 110% dedicated to my brand – I wore an ONTHEGO branded shirt under the business jacket – to the items we make and the DNA of ONTHEGO.<\/p>\n

Minute two: Serious business is fun<\/h3>\n

I\u2019ll admit it. I was nervous. My aim was to walk into the tank confidently, all the time making sure I eyed off the sharks. I was there to do business, not to muck around. But I was also there for a good experience and to have fun on the way.<\/p>\n

Minutes three and four: Sink or swim<\/h3>\n

I had no more than two minutes to explain my company\u2019s entire message and hook the sharks. This is the hardest part of any pitch.<\/p>\n

Often you\u2019re sunk if you don\u2019t hook them in the first 10 seconds. And for me, going on the program, there was a bigger risk. Allowing myself to be savaged by potential investors in front of millions of Australian viewers would not have been the best career move.<\/p>\n

During the pitch introduction, which may go for two minutes or less in many cases, the most important piece of information to impart is why you do what you do. Your purpose in life.<\/p>\n

Follow up by explaining what you do and the problem you are solving and how you do this.<\/p>\n

Then explain the opportunity you have spotted in the market. As the Shark Tank panel heard, ONTHEGO operates in a market which has a $200 billion opportunity, with a niche of $10 billion that we are going after.<\/p>\n

Finish by detailing how much money you need to fill the gap to get you from where you are now to where you want to be. Close by stating the worth of your business and be prepared to back up the numbers with evidence.<\/p>\n

Minute five: The sharks close in with teeth barred<\/h3>\n

Oh then it starts – the questions. Where am I making money? Where am I losing money? Where do I want to spend money? How can I back up what I\u2019m saying? Who is the team I am taking on the journey? How coach-able am in?<\/p>\n

Fortunately, I\u2019d prepared for a long list of possible questions prior to walking in.<\/p>\n

Minute six: The offer<\/h3>\n

I\u2019m getting ready for them to throw an offer at me. It arrives. Three sharks put forward individual offers of $300,000, each wanting a 20% stake.<\/p>\n

In my head, I have a plan: Acknowledge, but don\u2019t accept.<\/p>\n

I make an important decision – I phone my chief financial officer.<\/p>\n

Minute seven: The bravery<\/h3>\n

It\u2019s important to show them I\u2019m brave.<\/p>\n

If I fail to negotiate well on national television, it will not look good. And for the sharks, if I can can\u2019t communicate well now, it could spark some tricky questions. If I can\u2019t negotiate well here, how could I have crucial conversations with them when things aren\u2019t going well? Do I have the ability to negotiate better deals with suppliers?<\/p>\n

This is my chance to swim. And swim hard.<\/p>\n

Minute eight: Respect and the counter offer<\/h3>\n

I offer three sharks the chance to come in together on the same deal: 15% equity for a total of $300,000.<\/p>\n

But here\u2019s an important point: I\u2019m respectful. I admire these sharks hugely. I tell them it would be of massive value to work with them.<\/p>\n

Minute nine: The benefit of knowing your worth and standing your ground<\/h3>\n

The sharks offer $600,000 for a 35% stake. I\u2019m happy to sell 30% \u2013 and no more – for that sum of money. It\u2019s a stalemate, until Steve Baxter breaks and agrees to 30%.<\/p>\n

Minute ten: The deal<\/h3>\n

What a relief. The preparation has paid off.<\/p>\n

To win the trust of these talented business people is a great win for the ONTHEGO team and a confidence boost.<\/p>\n

The quick calculation is this: a $600,000 offer in the space of a 10-minute pitch works out at $1000 per second.<\/p>\n

The moral of the story? Make every second count. Make every day matter. This is the same for business pitches not conducted on national TV.<\/p>\n

Sometimes the shortest meetings are the most productive, particularly if you walk in with evidence to back up what you\u2019re saying and a well-prepared strategy.<\/p>\n

This article was first published on LinkedIn.<\/em><\/p>\n

Follow StartupSmart of Facebook, Twitter, LinkedIn and SoundCloud.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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