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Just Elementary, Inc. » Business Tips, Negotiation » Shark Tank Keeping Your Cool During Negotiation

Shark Tank Keeping Your Cool During Negotiation

Invis-A-Rack as Featured on ABC's Shark TankLast up in the Shark Tank was Donny McCall of Invisa-A-Rack (@InvisARack).  Invisa-A-Rack is an innovative product that is used on pickup trucks to help organize and haul additional cargo.  You can find Invisa-A-Rack on Amazon.  The genius of the product is that the racks can fold away and be out of sight, letting the truck not look like a cargo vehicle when desired in less than a minute.  This is a product that makes a lot of sense.  Invis-A-Rack has a lot of customers, and a passionate following.  Hearing Donny McCall take a firm stand for manufacturing in America is inspiring.  The Sharks possibly would have been interested in Manufacturing it in America, however the Sharks main concern was wanting to partner with people who would be open minded to their ideas.  Market forces change all the time, and investors want to know their business partners are open minded enough to adapt to the changes, to not only survive, but Thrive.  However, despite a tear jerking life story, McCall walks away without a deal.  Important Lesson Learned here:  Investors have a mind, consider them as partners, if you are not open minded to anybody’s suggestions then forget about getting investment.  Being Closed Minded works if you are committed and able to bootstrap your own financing.  Here’s hoping Donny McCall can keep making Invisa-A-Rack in America!

The First segment in Shark Tank involved Steve Gadlin of I Want To Draw a Cat Drawer on ABC's Shark TankCat for You, on Twitter: @catdrawingguy) who had the Sharks in stitches with this introductory Rap Ditty.  Getting potential investors in a good mood, is always key to keeping their minds open, which means you’ll have their attention for your pitch, which increases your chance to get an investment.  Though, it doesn’t mean that you will get any extra in terms of investment since Investors are typically savvy enough to not be swayed emotionally on valuation.  But, an important lesson on display here, put  your investors in a good mood and close them quickly while their minds are open to your pitch.  People on Twitter were expecting Steve Gadlin to get laughed off of the set.  However, never underestimate the power of enthusiasm and a company branding that fits the personality.  As evidenced by Barbara Corcoran’s tweet:

Shark Tank On Twitter

 

 

 

 

Mark Cuban was interested and he struck a deal with Steve Gadlin.  Lesson Learned:  Get your Investors to buy into you by liking you, that gets you an opening to make your pitch.

Salesrepreneur On ABC's Shark TankSecond up in the Shark Tank was Dave Greco of Salesrepreneur (@dgsalespreneur).  Salesrepreneur is a business that offers products for sales teams to significantly and rapidly increases sales success via shortening the sales cycle and increasing conversion rates.  Dave Greco comes in with his sales guns blazing, as he goes beyond claiming to be able to sell ice to an igloo dweller.

Dave Greco’s sales presence is so strong that the Sharks are believers and they pepper him with questions.  Dave Greco ends up going the opposite way of Steve Gadlin, which is that he isn’t there to make friends, instead he is there to show his mettle by dictating the action, evidenced by him telling Daymond John (@TheSharkDaymond) that he is OUT.

However, since there is merit to Salesrepreneur, there is interest including an offer from Mark Cuban (@mcuban).  So you don’t have to be ‘nice’ and ‘likable’ to get an offer, but you can expect that offer to be on a short leash, and sure enough, Mark Cuban withdraws the offer when Dave Greco solicits the other Sharks for offers.  After getting no other offers, and losing Mark Cuban’s, Dave Greco is left with no offers.  Lesson Learned: Don’t try to leverage an offer unless you KNOW for a FACT that you have another offer waiting in the wings or already on the table.  See our post from the previous episode to see an example from EZ VIP on how to properly use negotiation leverage when you actually have it.

Rick Smith Jr. On ABC's Shark TankThird up in the Shark Tank was Rick Smith Jr. (@RickSmithJr1), a professional magician from Cleveland Ohio.  He is there to pitch his magic business which is doing well and has potential.  Obviously, Magic Tricks well done always entertain an audience and get their interest, so Rick Smith Jr. is going down the same path as Steve Gadlin in getting the Sharks interested in him.  His tricks had the Sharks amazed and impressed.  They all felt that he was going to be BIG.  But, they felt that the amount that However, he asks too much for his business, and is proof of the Lesson Learned from Steve Gadlin, in that people will show interest if they genuinely like you, but will never Overpay.  Always ask for a fair amount for your business, that is the secret to getting offers.  Simply put, ‘Overpriced’ ends up being Ignored or outright rejected.

For More information on how Just Elementary, Inc, Business Brokers can help you with Valuation Matters & Negotiation Techniques for your business contact our Client Care Manager Sonia Chhabra at  (888) 926-9193 or email cs@justelementary.com

     

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