One of my favorite TV shows is “The Shark Tank” where candidates pitch their innovative business and product ideas to a panel of potential investors who are known as the “Sharks”. The Sharks are very savvy people who have been highly successful in starting and growing their own businesses. They have been through the fire and they understand that it takes more than passion for a good idea to insure business success. If one or more of the Sharks feels that the candidate’s business or product is worth it, they will agree to invest their own money and provide guidance and contacts to make the candidate’s business a success.
Since the Sharks are investing their own money, they put most of the candidates through a barrage of questions covering financial details, patents, business plans, customer acquisition and operational issues. With some candidates, the Sharks might spot flaws in their business plans, product pricing, or design. Often the products that are presented are either too similar to those already on the market or they can easily be duplicated by existing companies. The Sharks are seldom happy with people who expect to run a business on a part time basis. They want people who will commit 100% of their time to make their business successful.
I notice that the candidates who fail to get funding seem to fall into certain categories. Some seem immune to criticism or suggestions from the Sharks. They steadfastly remain committed to their original plans and can not accept objective advice from people who have more experience and greater success. Other candidates do not have a full understanding of all of the costs associated with operating their businesses and they are unable to explain fully how they will spend the money they are asking the sharks to invest.
Sometimes as I watch the show, I try to imagine what it would be like if I was one of their candidates asking for investment dollars for my department. Even after many years of managing biomedical programs in the U.S. and the Middle East, would I have enough knowledge of my department’s operations to survive their questioning? Although I always knew my budgets, I am not certain that I knew my actual costs in depth. For instance; what does it cost to add just one new technician? It is easy enough to figure out salary and benefits costs, but what about workbenches, tools, training and added workshop space? Do I know the value of my repair parts inventory? Do I have a plan to sell unused inventory and get some return on that investment or will it eventually be discarded as trash? Do I have a solid business plan that answers how I would grow the department? Is my plan nothing but clichés about saving my hospital money or is it a realistic step by step program that the Sharks would find viable? I have the feeling that I am not ready for my trip to the Shark Tank. What about you?
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