Last updated on August 14th, 2022 at 01:57 am
Shark Tank India is produced by Studio Next. The show is making many businesses successful all over the world and now in India too. There have been more than 180 seasons of this show abroad and more than 30 awards have been won in its name worldwide. And now this show has started in the world’s third-largest startup ecosystem i.e. our country India.
Show format
The format of Shark Tank India is different from other reality shows. Here the contestant does not have to perform again and again. Nor does he have a direct competition with other contestants. People coming to Shark Tank India have to perform only once.
Why come? Suppose you have a great business idea and you think that this idea can give a lot of money, then what will you do? The simple answer is to turn that idea into a business model. But for this you need money. If you are already doing business and now want to make it big, then you need money. From where will I get the money? Its options can be many. Shark Tank India is one such option.
The contestants participating in the show come here in an attempt to raise investment for their business. The first thing to do in this exercise is to better explain your business idea in front of the sharks, that is, the judges.
Idea pitchers also tell that how much money they need from sharks in their business model, now if investment is needed then profit will also have to be given in return. So the pitchers also tell the sharks how much they will stake in their business model in return for the investment amount.
If both these things are done, then the judges ie sharks ask all kinds of questions to the pitchers. For example, how old is the business? What is the revenue last year, what is the marketing plan, etcetera.
Who are the 7 Sharks?
There are 7 sharks for entrepreneurs to deal with in Shark Tank India. The first name is Ashneer Grover. He is the founder and managing director of Bharat Pe domain. The other shark is Vinita Singh, CEO and co-founder of Sugar Cosmetics. The third name is Piyush Bansal, the founder and CEO of Lenskart. The fourth name is – Aman Gupta, he is the co-founder and chief managing officer of Boat.
After this, Ghazal Singh is the co-founder of Mama Earth. The sixth shark is Namita Thapar, executive director of Emcure Pharmaceuticals. And the last name among the sharks of Shark Tank India is – Anupam Mittal, who is the founder and CEO of Shadi.com and People Group.
What’s hard about watching the show?
There is no particular difficulty for the new generation. Yes, many words come in the discussion between pitchers and sharks which can be a bit difficult for those who are not particularly interested in subjects like business, commerce and finance. By the way, Shark Tank India has also maintained a separate website for the glossary of its show. But apart from this, there are some words which are used multiple times during the show, let us understand them.
Equity – The first word is equity. It roughly means a share in ownership. When the participants start briefing their idea in front of the sharks, they say that we will give such % (percentage) of equity for so much investment. Now if a participant said that he wants an investment of one crore, in return he will give 10% equity. This means that if one or more of the sharks shows interest in the business idea, then alone or more than one shark together will give one crore rupees as an investor in the business of the pitcher and in return they will get 10 percent share of the business.
Valuation – It means how much is the total financial position of the company. It can also be understood by the equity share offered by the pitcher and the investment desired in return. Taking the previous example, if the pitcher is confirming for an investment of 10 crores in return for a 10% stake in his business, it means that his company or business has a net worth of 10 crores. Many times it is also possible that the real worth is less than this, but he is trying to give less equity in return for the investment. In such a situation, sharks come up to him with more questions like how old is his business, how much total revenue has come, how much is last year’s sale etc.
Gross Sales – Suppose there is a chip-making company that sold one lakh chips packets at the rate of 10 rupees in a year, then its gross sales was 10 lakh rupees.
Net Sales – If you remove some things from the gross sales, then net sales remain. For example, a chipmaker made a gross sale of ₹ 10 lakh, but under any offer, it gave a net discount of ₹ 1 lakh, a refund of only ₹ 1 lakh, and an allowance of ₹ 1 lakh to the customers due to product damage or defect. If given, the net sales of the company will be considered as ₹ 7 lakh only.
Revenue – Net sales, service income, investment income etc. The total amount of money collected by a company’s business model is called its revenue.
Net Revenue – The total amount of money earned in a business by taking out all the expenses, discounts, product costs, etc. is called Net Revenue. Many times the net sales are good in the business, but the expenses incurred for that sales and all other costs together become more than the net sales, that is, the business goes in loss. That is why net revenue is an important point of concern for investors.
Pre-Revenue – This is not really any income, but before the start of the business, a pitcher’s assessment of how much money he will earn from his business.
Margin – Margin or profit margin is the difference between the cost of selling a product and its cost. Suppose a company that sells chips worth Rs 5 costs Rs 2.5 after manufacturing, delivering, and adding all other expenses, then the profit margin of this product will be 50%.
Overhead – The cost that is not directly related to the production of a product. That is, the cost that comes apart from raw material, labor cost, packaging, delivery etc. is called overhead, such as warehouse or office rent, legal fees, insurance etc.
Royalty – You must have known this. If a third party does the work of selling any patent, copyright, or trademarked goods of a company to the customers, then it has to pay a part of the sale-price of each product piece to the original owner. This is called royalty.
Scalability – You can guess the meaning of this word from its name. Scalability means how much growth potential is there in the business. How much sales can a business increase, how will the profit be, how far can it meet the demand of the market. The scalability of a business is decided on the basis of all these parameters.
Purchase order (PO) – A purchase order is a type of agreement that decides how many pieces of the product will be purchased by the person or business from the supplier at what rate.
Patent – You invented a new thing. Got that invention patented in his own name. Patent means now your name has been stamped on that item. Only the owner of the patent can allow someone else to make, use and sell that Invented Item. And without his permission now no one can copy that patented item.
Trademark – What are Apple and McDonald’s? You would say that the brand name. What are iPhone and McAloo Tikki, obviously the product names of these two companies. Similarly, Apple’s sliced apple is its logo and ‘I’m lovin it’ is the McDonald’s slogan. These are all trademarks of the company. You must have seen that a small T is written in a circle along with its name on the wrapper of a product. This trademark cannot be copied by any other company.
Copyright – This is also exactly the same as patent and trademark. You must have seen circled C on products many times. This means that the right to extract copies of such a product is with only those who have the copyright of it. In addition to company products, copyright is generally used for books, movies, pictures, songs and websites, etc.
Perpetuity – The word Perpetuity is synonymous with Forever. It means ‘always’. Suppose you wrote a book and told the publisher that we will take a royalty of Rs 50 per book on the sale perpetuity, it means that as long as your book is sold, you will continue to get a royalty of Rs 50 per book.
Customer acquisition cost – Every company spends money on things like ads to increase its customer base. Suppose a company spends 1000 rupees on an ad to increase its 100 customers, then the ‘customer acquisition cost’ of that company will be 10 rupees per customer.
