Shark Tank Basics
Entrepreneurs enter the Tank asking Sharks for this two-part business deal.
What is equity in exchange for money (an investment)?
The money you make after expenses are paid. ($20 lemonade sales – $5 lemons/sugar = $15.)
Profit
The person who buys your product or service.
Customer
A quick and powerful way to explain your idea.
Pitch
If a Shark invests $100,000 for 20% of a business, what is the company’s valuation?
What is $500,000?
The famous opening line of every pitch begins with: “Hello Sharks, my name is ____, and I’m seeking this…”
What is an “investment”
All the money your business makes before expenses. (10 shirts × $20 = $200.)
Revenue
The name, style, and vibe of your business.
Brand
A sentence that explains why your business exists.
Mission Statement
When Sharks ask about “COGS,” they are asking about this.
What are Cost of Goods Sold?
This term is used when a Shark matches the exact offer an entrepreneur requests without negotiation.
What is “I’m in”?
The money you spend to run your business. (Ingredients, flyers, shipping.)
Expenses
A picture or design that represents your business
Logo
Meeting people who can help or support your business.
Networking
Sharks often ask about “customer acquisition cost.” This means…
How much money it takes to get a new customer.
If multiple Sharks want to invest, entrepreneurs can start one of these bidding contests.
What is a Shark fight (or bidding war)?
A plan for how to spend money wisely. (Proverbs 21:5 — good planning leads to prosperity.)
Budget
How you tell people about your business.
Marketing
The boss of the company
CEO
If an entrepreneur wants $200,000 for 10%, they are valuing their company at this amount.
What is $2,000,000?
When a Shark adds conditions like royalties or contingencies, it’s called this type of deal.
What is a structured deal?
A person who gives money to help your business grow, usually in exchange for ownership or future profit.
Investor
The group of people you want to sell to, requiring research and focus.
Target Market
Writing and communicating your company’s mission, vision, and purpose in a way that inspires others and guides decisions.
Leadership through Vision
This business term means the total value of sales made in a year.
What is annual revenue?