Shark Tank: Market Size Chum Won’t Catch a Great White

I love the ABC “Shark Tank” television show. Not because it’s inspirational (it’s usually not.) Not because of the great deals (most aren’t.) And not to see which folks will present the latest and greatest products and services (many are interesting, but certainly not revolutionary.) No, what I love are the facial expressions of the sharks, particularly those of Mark Cuban, self-made multi-billionaire and owner of the Dallas Mavericks NBA basketball team. Especially when the entrepreneur says something that “sounds good,” but has little or no business value.

“But it’s a 15 billion dollar market,” one presenter exclaimed, to which Mark Cuban pointed out, “Which you have none of”…accompanied by that cocky grin of his, eyes dancing like flames, with one hand gesturing wildly in mid-air. Many entrepreneurs spend fruitless minutes trying to convince the sharks of something that flies in the face of common sense and simple business logic, insisting that the audience of five “doesn’t get it,” only to hear one after the next say, “I’m out,” which is frequently communicated with a pained expression, some eye-rolling or both.

The bewildered looks on the faces of many who receive Mark Cuban’s and the other sharks’ criticisms over such assertions is almost tragic, and I often feel badly for them. I often wonder if these folks had ever sought some basic advice from seasoned business people before they went on the air, if only to gain some wisdom and insight from those who have walked in the same shoes in which they wish to step.

Yes, it’s wonderful to encourage folks (“Hey – at least you tried!”) And it’s certainly okay to let people know that in your opinion, they have a great idea (“Wow…that is fantastic! Everyone will want one!”) But when it comes to uncharted waters that are infested by sharks, it is best to board a vessel that has a seasoned captain who knows what kind of bait to put in the water.  There’s no shame in being humble and asking advice of those who have successfully landed a Great White themselves…particularly if you’ve never been on the ocean before.

Canfield's 1st Law and the 1st Corollary to the 1st Law

Law #1: There are two and only two ways to learn:  experience and reading.

1^st Corollary to the 1^st Law: If you’re going to learn from bad experience, learn from someone else’s!!!

No one ever enters a race determined to finish last.  No one ever pulls an all-nighter before a final exam hoping to fail the test.  And no product development engineer ever begins a design with the ultimate goal of designing a product that doesn’t work.  Yet many folks have entered races for which they have never trained or even observed being run; many more have crammed for an exam without having attended a single class or studied with someone else; and countless product development specialists have gone “into their closets”, spent countless hours “inventing”, without ever examining the marketplace they wish to enter.  The world is full of people who insist upon making their own mistakes, refusing to learn from others…

The truth is that most of us hate hearing “Don’t do that”, forever believing that it is unwarranted criticism or an attempt to “control” what we think, do, and say.  So often when we do hear that phrase, our stubbornness creates the very momentum we need to continue on towards inevitable failure or to experience what is often called “The Law of Unintended (or Unforeseen) Consequences.”  Many will no doubt counter with, “What about determination, eh?  What about the Little Engine That Could?  I think I can!  I think I can!  Don’t you think you’re quelling dreams with the direction you’re heading in here?”  Nothing could be further from the truth.  There is a big difference between one who  desires to quell dreams and establish control, and one who has a mentoring motive or God-honoring desire to adaptively challenge someone to steer clear of those obstacles that the student or protégé cannot foresee.  The three year old does not know the danger of a hot stove, prompting his mother to yell “Don’t touch that!”…and in many ways, all of us are three years old, refusing and/or rejecting the wisdom of those with respectable motives.  The problem is often that we “believe” that in any given situation, circumstance, or challenge, we know more or better than anyone else.  Those who have that kind of arrogance are destined to a life of learning only from their own bad experiences, and sadly, often being proud of it.

Years ago I was stubbornly adding a bunch of bells and whistles to a product design, ignoring the market demands or the counsel of others.  I was convinced they were all wrong.  Although I had been told that “bells and whistles” generally only add ten percent to a product’s value and appeal, but often cost ninety percent of any R&D budget, I chose to ignore the wise counsel…naturally, I knew they were wrong!  Months beyond the scheduled start of production, a fax arrived one day to my attention which simply read:

THERE COMES A TIME WHEN YOU MUST SHOOT THE ENGINEER AND GO INTO PRODUCTION

The fax was from a man I greatly respected, Jim Hall.  I read it about 50 times, laughed, cried, realized that he was right, stopped doing what I was doing, finalized the design, and went into production.  Shortly afterwards several people were killed by lightning at a major professional golfing event and our Storm Alert hit the national news…our small company had the only affordable lightning detection device on the market, and we became the go-to experts as a result.  Had I stubbornly stuck to my own agenda and avoided Jim’s wisdom, I would have ultimately lamented a huge missed opportunity.

I still have that fax.  And my youngest daughter, Kimberly Canfield, has the middle name “Hall”.  Not because Jim gave me one good piece of advice.  But because this wise man sowed into me for many years and helped me to avoid a lot of bad experiences that I would have otherwise insisted on experiencing myself.  I can say the same thing about my mom and dad and many other folks, too.  Proverbs 1:8 says, “Listen, my son, to your father’s instruction and do not forsake your mother’s teaching” and Proverbs 28:26 says, “Those who trust in themselves are fools, but those who walk in wisdom are kept safe.”  Good teachings to live by!