Shark Tank Is a Great Learning Tool
April 28, 2011
There are only a handful of shows on TV that I would consider educational and entertaining. I would definitely have to place NBC's Shark Tank into that category. Our family has really enjoyed watching it together.
Keep in mind that my kids have grown up surrounded by entrepreneurial activity. They see the work that I do with entrepreneurs everyday. In fact, they've been able to go to with me to many client offices and see the inner-workings of a startup venture. Most of my friends are entrepreneurs, too. So they hear us discussing strategic plans, business plans, angel and VC funding, bank financing and many other topics related to high-growth companies.
Of course, living with a dad who owns a couple of companies has also given them an education. They see the late nights, weekends, and hard work that goes along with business ownership.
So watching Shark Tank has been an extension of those conversations and observations with them. We typically treat them like case studies. We pause the show to talk about the pitch that the entrepreneur has made and first critique that portion.
We then talk about the market opportunity. How big could this company become? Or, what could an investor potentially expect as a return if investing in the business?
We also discuss "the deal". What did the entrepreneur ask for and what is being offered by the sharks? Great lessons in valuation, control, ownership, and entrepreneurial return.
While I'm sure that things have been dramatized for TV, the questions asked by the sharks are the kinds of questions that will be asked of entrepreneurs who are seeking capital from outsiders. The show should be used in classrooms across America to help prepare a future generation of entrepreneurs!