Just getting on ABC's reality pitch show "Shark Tank" is an achievement in itself, bringing a great deal of publicity and new business to any growing company. But even confident entrepreneurs with solid revenues can get tripped up and lose potential deals if they're not prepared for the questions that are almost certain to come their way.
The investors on "Shark Tank," and investors generally, typically ask several specific questions to get the answers they need. Some are straightforward and some a bit trickier, but hopefuls would be wise to have excellent answers prepared or tailor their pitches to answer each right off the bat.
Here are eight questions that every entrepreneur should consider before pitching:
1. What are your sales?
This is always the first question. And just knowing the dollar figure isn't enough. Where are they coming from, on what platform, are they driven by promotions, and what sort of partners are you working with? Is the marketing working?
The number better be good, too. You can't charm the Sharks into liking a company that isn't likely to make any money.
Most importantly, the Sharks want to know if sales are growing and what your plan is to keep it that way. You should have a story about how expanding to new geographies, new product lines, or online has boosted or can potentially boost sales. The investors are profit-focused, and the more a business can scale, the better.
2. What do you bring to the table?
The investors on "Shark Tank" say over and over again that an investment isn't just in an idea or a business, but in the entrepreneur themselves.
That means being able to highlight a record of success, industry experience, or why you're dynamic enough to justify taking a gamble on. A strong personal story or a great narrative about the business, along with strong presentation skills, go a long way toward answering this question.
3. Why do you need our money?
This might be the question that trips up entrepreneurs the most. It's usually not enough to seek funds to simply grow the business and have the help of an experienced investor.
Instead, it's much more effective to know exactly what you could do with the amount of money you're asking for, and how it could help the company grow and scale rapidly. Whether it's building out production, hiring, or marketing, spell out exactly what the plan for the funding is.
SEE ALSO: This Awesome Idea Got All 5 'Shark Tank' Investors To Invest $1 Million Together