What makes a good Shark Tank deal? Do investors ask for too much?

Shark Tank dealShark Tank deals are always the big reward at the end of any good pitch. Entrepreneurs and small business owners live for the moment when one of the Sharks offer up cash, a loan, connections or advice for a piece of the company. At home, viewers watch the Shark Tank deals very closely to see if they would take the deal or walk away.

On Shark Tank, not everyone who walks into the tank walks away with a deal. The most common reason is a contestant doesn’t pique the interest of the Sharks. The other reason? The Shark Tank deal isn’t really a deal at all. Not fitting into the focus of the business, the option to take the opportunity is declined with the Shark Tank deal left on the table.

What defines good Shark Tank investment?

As every entrepreneur knows, a good deal is like a shoe. It only feels good if it fits right. If it’s too tight, it pinches. And if it’s too loose, there is a sloppy feeling. Investor deals need to align with the primary goals and define ways to further the company’s profits.

Watching Shark Tank, sometimes the investors try to take too much stake for their financial contribution. Typically a large stake in the company is the biggest reason contestants walk away, especially if they have other investors already owning a piece of the company.

Another reason a Shark Tank deals is left on the table? The offer is too low. Getting an investor means looking for funding beyond what could be found at a bank or what a best friend could offer. Add what is expected in return and it’s possible the Shark Tank deal isn’t right for the opportunity.

Walking away from an investor’s offer?

As with any investment, the key to success is finding the best opportunity. You might have to walk away from a deal, like those folks on TV who walked away from Shark Tank deals, before finding the right one. Could you do it? Watching the show, it looks tough to walk away, but there are times when those who opt to not take the deal come out better for it. They can find their money in alternate places, and their business can thrive, too.

Entrepreneur tip: Before you decide to search for an investor, consider your perimeters. Are you willing to give up a huge stake in your company? Will you settle for less money than you asked for?  Define what you want so if you ever have to turn down an investor, you know exactly why.

This review was written by Jodi Jill and if you’re looking for more then be sure to head on over to the link here. Also, you can follow her on Facebook and Twitter! (Photo: ABC.)

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