By Warren Cassell | February 17, 2016 — 9:37 AM EST
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Despite a weakening American economy, it has never been easier for entrepreneurs to raise capital for their business ventures. This is a result of the rise in the number of financing avenues that are available for small businesses such as peer to peer lending and crowdfunding. For instance, Kickstarter, one of the world’s largest crowdfunding platforms, has raised around $2.2 billion for 100,364 crowdfunding campaigns from April 28, 2009, to February 16, 2016. Furthermore, one of Europe’s largest business peer to peer lending services, FundingCircle, has funded more than £1 billion loans.

In recent times, entrepreneurs have been able to receive mentoring and funding for their business from a number of business-related television shows. ABC’s Shark Tank and CNBC's The Profit are two of those shows in the United States that give business owners the opportunity to partner with wealthy and well-connected investors. According to Statistic Brain, more than $44.2 million worth of deals have been financed on Shark Tank during the show’s first six seasons while over $14 million has been invested in small businesses on The Profit. Although both shows can be an excellent source of startup and growth capital for businesses, they are definitely not the right option for every company that is looking for funding. Below is an unbiased comparison of what entrepreneurs can expect if they are successfully chosen to appear on Shark Tank versus The Profit.

An Overview of Shark Tank and The Profit
Produced by Mark Burnett, the co-creator of The Apprentice, Shark Tank is the American version of Dragons’ Den, a global television show franchise with local versions in the United Kingdom, Germany, Canada and Australia. Each episode features a set of entrepreneurs who lack sufficient funds to reach their goals for their business. As a result, the entrepreneurs on the show seek out a potential investment from at least one member of a panel of five wealthy and accomplished venture capitalists, known as the ‘Sharks’, who can help them start, grow or even save their companies. After listening to each pitch, the Sharks subject the entrepreneurs who presented to an intense interrogation session, which covers questions on every aspect of their business including the company’s unique selling proposition, its financials, possible patent ownership, and even the education and employment history of the business owner.

‘‘What measures have you put in place to stop someone from copying your idea?’’ and ‘‘If I invest in your company, when should I expect to see a return on my investment?’’ are two examples of the questions that entrepreneurs are asked while their business plan is being scrutinized on the show. The answers given to these types of questions will help a Shark determine if a viable business opportunity is being presented. While the average pitch on the television version of Shark Tank ranges from 8 to 10 minutes, the actual negotiations, before being edited, can sometimes take as much as one hour to finish. Furthermore, the Sharks are given absolutely no information on the entrepreneur nor his or her deal ahead of the live pitch, and the closing of all deals made in the tank are contingent to successful due diligence.

Unlike on Shark Tank, entrepreneurs who appear on The Profit have the chance to convince only one investor to become their new business partner. That investor is Marcus Lemonis, the founder of the world’s largest supplier of RV supplies and accessories, Camping World. In every episode of The Profit, Lemonis chooses to help turnaround one of the thousands of struggling business that applied to be on the show. The first half of each show follows Lemonis as he makes up his mind on whether he should invest his time, expertise and money into helping the enterprise. In addition to reviewing the business’s financials, Lemonis takes a tour of its facilities with the owners and learns the ins and outs of the operations. He also interviews random customers to get their thoughts on the service they receive and speaks to employees to learn what they think of management. If Lemonis determines that he can make money by helping turn the business around, he’ll present an offer to the owners to purchase an equity stake in the business. If the offer is accepted, the remainder of the show will highlight the initial changes that Lemonis made to the direction of the company to make his investment a success. (For more, see: 7 "Apprentice" Hosts From Around the World.)

Who is Shark Tank Best Suited For?
Newly established businesses. For the most part, the Sharks invest in companies that have a track record of exceptional management and growing sales. With that being said, they are also not afraid to take a bet on a startup that has very little sales if they are convinced that the company has the potential to grow in the future.

Technology and Internet companies. There are three Sharks who have had a successful experience in the technology industry: Kevin O’Leary, Mark Cuban and Robert Herjavec. Businesses in this field can benefit from having one, if not all, of these Sharks with strong tech backgrounds on their team.

Entrepreneurs who wish to pitch to, and potentially partner with, multiple investors. If getting your pitch in front of as many investors as possible is important to you, Shark Tank would probably be better suited for you than The Profit. Entrepreneurs who appear on Shark Tank get the opportunity to present their proposals to a panel of five investors from a range of impressive backgrounds, while all of the applications made to The Profit are seen by only one investor. (For more, see: Five Things Investors Can Learn from Shark Tank.)

What Type of Businesses Can Benefit the Most from The Profit?
Businesses that want an active investor. In addition to receiving a financial investment, the businesses on The Profit get to benefit from the expertise and leadership of Marcus Lemonis, who plays a very active role in the direction of all of the businesses in his portfolio. This may be attractive to entrepreneurs who are looking for an investment but also an active business partner.

Struggling To Make a Profit. Lemonis is an investor who believes that there are tremendous opportunities to profit in times of crises. This is why the majority, if not all, of the businesses that appear on his show tend to be going through difficulties. Entrepreneurs who are struggling to keep their businesses afloat are more likely to be accepted on The Profit than on Shark Tank.

Businesses with a physical storefront or manufacturing facility. Due to the nature of the show, it would be virtually impossible for home-based enterprises to appear on The Profit. This is also true for businesses that have no physical presence. As a result of this, small retail based companies have a very strong chance of being selected to appear on the show. On the other hand, these type of businesses do not do too well on Shark Tank because they tend to have limited scalability. (For related reading, see: What Private Investors Can Learn from ‘The Profit’.)

The Bottom Line
In addition to receiving a financial investment for their business, Shark Tank and The Profit are two television reality shows that give entrepreneurs across the United States the opportunity to become business partners with accomplished American titans of industry. On every episode of Shark Tank, entrepreneurs are given the task to pitch their business plans to a panel of business moguls, known as the ‘‘Sharks,’’ with the hope of convincing at least one of them to inject capital into their business. On the other hand, The Profit focuses on giving struggling business an opportunity to be turned around with the expertise, connections and cash of the show’s host Marcus Lemonis. The Profit is suitable for entrepreneurs who own traditional brick and mortar operations and do not have an issue with temporarily giving up full control of their business to an outside investor, to fix broken processes. Entrepreneurs and product inventors who need funding to get their ideas off the ground may find better luck by applying to Shark Tank. The show is also a lot more ideal for well-managed and profitable businesses that are looking for a fairly passive investor to invest additional capital in the company to further its growth at a faster pace.