Is your new product Invention Idea worthy of a SharkTank TV success?
If so, here are just a few of the many lessons to help you pave the path.
FACT: If you have ever heard of new product pitches on Shark Tank over the years, I’m guessing you’ve noticed that most are rejected because they lack what the “Sharks” consider to be viable products for the market.
Shark Tank venture capitalists Mark Cuban, Kevin Harrington, Lori Greiner, Daymond John, Kevin O’ Leary, and Barbara Corcoran fund new product ideas based mainly on commercial product viability.
Of course, there are those pitches (like Jamie Siminoff’s Wi-Fi doorbell) that have failed to immediately secure deals on Shark Tank. The good news is they didn’t stop with their new product when they heard…we’re not interested. In fact, several of those who did their pitch on SharkTank have learned how to fail forward, refine their strategy to determine commercial market viability and have moved on and become 7 figure and even 8 figure companies.
To help you better understand how to prepare your new product for commercial market viability, here are some 4 key lessons learned about getting products to market from Inventors who have succeeded in getting funding from the “Sharks”.
Lesson 1: Have a unique and competitive advantage
In other words, this is your opportunity to create an amazing product with significant VALUE and BENEFITS to surpass your competition and fulfill your target market needs.
Sharks aren’t interested in great ideas. You must think “outside the box” and come up with a product that has a significant advantage over existing competition in the market.
Your new product idea needs to be unique, novel and provide significant value and benefits to your target market.
In regards to Goldenseed’s example, they displayed product differentiation, a unique and competitive advantage to grow the brand incredibly fast with a solid business infrastructure and a large target market.
You need something unique about your product to create significant interest and repeat business. Here are a few examples:
Product Differentiation: Provide something different to the consumer besides just a low price. The key is to provide VALUE and unique BENEFITS to your target market.
Competitive Advantage: Provide unique benefits and value of your new product so it is perceived by the target market as significant and superior to the competition. It’s the WHY of your brand loyalty and WHY we prefer one product over another.
Lesson 2: Have a talented and knowledgeable resource support team
Your team is critical when you are starting out with a new product concept. For your idea to be transformed to a success story, you must identify and align with the most effective resources including. These resources can be in the form of your own internal team and external resources such as 1099 contractors, vendors, coaches and mentors.
Shark Tank’s venture Capitalist Kevin Harrington is on record, stating that strong management and a knowledgeable resource team were some of the main reasons he invested in Goldenseed – a cannabis and hemp company. Despite having received many pitches from other Hemp and CBD companies in the past, he never invested in any of these companies because… they lacked strong teams.
Lesson 3: Have a solid business strategy and infrastructure
Kevin Harrington also invested in Goldenseed because the company had a legendary network, business strategy and a solid infrastructure of California growers in place. Besides having facilities and permits needed to be among the largest growers in CA, Goldenseed also had the best hemp and CBD processing facility in America. The company was well prepared with the capacity to grow and evolve.
Even if you don’t have an established company in place yet, you need to at least think about how you’ll do business even before you start.
Lesson 4: Don’t give up when rejected
You should also be ready to learn from rejection. New Product Pitches have a low success rate if you don’t know how to effectively position your idea in a way that causes them to say, “Oh, Tell me More!”.
We’ve seen classic cases of pitches that were rejected by sharks like Jamie Siminoff’s Wi-Fi doorbell but became huge successes because the ideas were refined and realigned to fit the target market needs. These scenarios and other similar ones highlight the fact that a great product idea can be rejected by venture capitalists and buyers simply because of not being prepared and lack of product viability.
If you can’t prove market viability, get back to work and do more research. Remember, how you determine product viability could be the difference between the success or failure of your new product journey. Preparation and understanding how to navigate the process of acquiring this information is key and critical to your potential for success.
These are just a few of the many lessons, tips and strategies to help you navigate a new product idea to get it from Mind to Market.
We look for these attributes in our new product development clients and mentor them to help effectively narrow the gap from mind to market, and then pave the path to profit.
Learn how to evaluate your new product viability for the market. Click HERE to schedule a complimentary inventor strategy call.