Shark Tank Jump Start Your Business: How to Launch and Grow a Business from Concept to Cash (26 page)

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Authors: Michael Parrish DuDell

BOOK: Shark Tank Jump Start Your Business: How to Launch and Grow a Business from Concept to Cash

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FINAL WORDS

S
hark Tank Jump Start Your Business
isn’t just a catchy title; it’s a call to action—a declaration of opportunity. While the primary goal of this book has been to provide the knowledge and insights you need to successfully launch a business, its greater purpose is much more profound than that.

Starting a business is a marathon, not a sprint. And whether you find yourself standing at mile one or mile twenty-five, rest assured the race has only just begun. By offering a mix of useful information, words of wisdom from entrepreneurs who have appeared on the show, and advice from the Sharks themselves, this book is more than just a guidebook. It’s a tool to connect the dots between what you see on
Shark Tank
and what you experience in your own life.

It may not be clear from your vantage point, but you already have a great deal in common with the Sharks and entrepreneurs who enter the Tank. Just like you, each one of them made the decision to believe, to tinker, to take action. Just like you, they overcame barriers large and small. And although today they are defined by their successes, they were undoubtedly shaped by their failures—just like you will be.

The path you’ve chosen is full of many highs and lows. But of course you already knew that. And while it’s rare you’ll uncover “right” answers or “perfect” choices, there is one constant you can rely on: your own ability to persist and persevere. The greatest lesson you can take away from this book is that with hard work, discipline, and focus come tremendous rewards. It’s you who’s in control of your future—no one else.

Good luck on your journey, and thank you for being a part of this one.

TOOLS AND RESOURCES
MY SMALL BUSINESS JUMP START

MY BIG IDEA:

MY TARGET MARKET:

Demographic:

Geographic location:

Wants and needs:

Hobbies and activities:

Overall market size:

MY COMPETITION:

Competitor 1:

How I’m different:

Competitor 2:

How I’m different:

Competitor 3:

How I’m different:

MY NAME:

______ Check patent

______ Check online search

______ Open social media accounts in that name

MY MISSION STATEMENT:

MY TWO-MINUTE PITCH :

FROM IDEA TO INCORPORATION: A FLOWCHART

Incorporating your business is an important part of getting your venture up and running. But for the first-time entrepreneur, it can often feel complicated and unnerving. Below you’ll find a flowchart designed to help add some additional clarity to the process. Keep in mind that while this chart is a quick way to identify which incorporation structure is best for your business, you may still wish to seek out the assistance of an accountant or lawyer. Depending on the type of company you’re starting, there may be some important details to consider. For instance, certain types of companies, like banks and insurance agencies, must follow very specific guidelines.

TALK THE TALK: SMALL BUSINESS TERMS TO KNOW

Accrual method:
An accounting method wherein revenue is recorded when the order occurs or the service is provided and not when the payment is received, and expenses are accounted for when they are incurred and not when they are paid.

Affiliate marketing:
A type of performance-based marketing where affiliates are compensated for each visitor or customer delivered.

Angel investor:
An individual who provides capital for a business in exchange for debt or equity ownership.

Asset:
Anything of economic value that a company owns, including property and equipment.

Banner ad:
A graphic or image used on a website to advertise a product or service.

Barriers to entry:
Obstacles that prevent competitors from easily entering an industry or business.

Business model:
The method by which an organization generates revenue and makes a profit.

Business plan:
A set of documents that outlines the goals of a business and the steps required to achieve them.

Capital:
Money invested in a business with the purpose of generating income.

Cash flow:
Incomings and outgoings of cash that represent the operating activities of a business.

Cash Method:
An accounting method wherein revenue is recorded when the payment is actually received, and expenses are accounted for when they are actually paid.

Consumer segment:
A group of consumers who possess specific similarities, such as gender, location, or spending habits.

Convertible debt:
A bond that can be converted into a predetermined amount of equity ownership.

Due diligence:
The process of researching and validating specific material facts related to a potential investment or sale.

Equity ownership:
An ownership interest in an organization expressed in the form of stock.

Fixed cost:
Regular operating costs a business accrues on a weekly, monthly, or yearly basis not associated with the individual cost (variable cost) of producing the actual product or service. EXAMPLE: Rent and equipment.

Franchise:
A business system wherein a party (the franchisor) allows another party (the franchisee) the right to produce and/or sell a product or service.

Franchisee:
An individual who purchases a franchise business.

Franchisor:
A company that allows an individual to open and run a location of their business.

Fringe benefits:
Nontaxable benefits provided by an employer that supplement an employee’s salary.

Gross profit:
A company’s total amount of revenue minus the cost to produce the product without deductions (or the variable costs). EXAMPLE: It costs $10 to make a product and you sell it for $25. Your gross profit is $15.

Hard launch:
A method of launching a new business to the general public.

Independent contractor:
A self-employed individual who provides specific services to a business or on behalf of one.

Intellectual property:
Knowledge, creative ideas, or expressions of the human mind that have commercial value and are protectable under law.

Letter of intent:
A nonbinding document that expresses the interest of an individual or business in purchasing another business.

Liability:
Anything of economic value that a company owes to others, including debts and obligations.

Marketing:
The activities of an organization related to buying or selling a product or service.

Market share:
A percentage of total sales volume in a market captured by a brand, product, or organization.

Markup:
An amount added to the cost of a product or service by the seller to cover expenses and profit.

Metrics:
The measurement used to determine a quantifiable element of a company’s performance.

Mission statement:
A written assertion of an organization’s core purpose and intention.

Net profit:
A company’s gross profit minus any deductions. EXAMPLE: The same company that sells a $10 product for $25 must also factor in their office space, equipment, and other fixed costs. Once that’s subtracted from their $15 gross profit they will have their net profit.

Net worth:
The monetary value of a company, figured by subtracting the total dollar amount of liabilities from the total dollar amount of assets. Also known as net value or equity.

Profit margin:
A ratio of profit, often expressed as a percentage, earned from the sale of a product or service.

Proof of concept:
Evidence that establishes that an idea, invention, process, or business model is feasible.

Public relations:
The practice of promoting and maintaining the positive image of an organization through outside media and other nonpaid forms of communication.

Revenue:
Income generated from the sale of a product or service before costs or expenses are deducted.

Soft launch:
A method of launching a business to a limited audience, often used to test the viability of a product or service.

Supply chain:
A network of different organizations or individuals that play a role in the production or delivery of a product or service to a consumer.

Target market:
A specific market segment at which a company aims its products or services.

Turnkey operation:
A business that can be started with no additional work from a buyer.

Value proposition:
A business statement that clearly explains why a consumer should buy a product or service.

Variable costs:
Costs that change frequently based on a company’s level of activity or a specific business variable. EXAMPLE: production, labor, and material.

Vendor:
Any outside company or individual that provides goods or services to an organization

Venture capitalist:
A private investor or group of investors who provide(s) a very large sum of capital to promising ventures in exchange for equity ownership.

ONLINE RESOURCES
PART ONE
TO BE OR NOT TO BE… AN ENTREPRENEUR
General Small Business Publications

Entrepreneur:
http://www.Entrepreneur.com

Fast Company:
http://www.FastCompany.com

Forbes:
http://www.Forbes.com

Fortune:
http://www.Fortune.com

Harvard Business Review:
http://www.HBR.org

INC.:
http://www.INC.com

Education

General Assembly:
https://generalassemb.ly

Marie Forleo’s B-School:
http://rhhbschool.com

MBA Programs:
http://www.mbaprograms.org

Personal MBA:
http://www.PersonalMBA.com