"Hold off on expansion" - When Shark Tank's Robert Herjavec shared his five commandments for entrepreneurs

In a LinkedIn post from March 4, 2020, Shark Tank investor Robert Herjavec shared that, according to him, there was no “right path to success" in the business world. He believes that to achieve entrepreneurial success a person doesn't need to have the right age, time, circumstance, or college degree but rather the "right attitude."

The Shark Tank star noted that starting a business depended on a person's mentality, and it tested if the person was willing to work hard, make the necessary sacrifices and face adversity head on.

While he emphasized that there was "no right path," he shared that there were five commandments that he believed all entrepreneurs should live by.

Holding off on expansion was one of the tips Robert shared. He explained entrepreneurs shouldn't think about expanding their business early on because problems could arise anytime, and they could also have to change their business focus.

His advice was to expand only if their core business was running smoothly and profitably and they had enough assets for it.

"Hold off on expansion," one of his five tips read.

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Shark Tank investor Robert Herjavec's 5 commandments he believes would give entrepreneurs "a chance at success"

1) Identify your passion

Shark Tank star Robert Herjavec believes that people start a business either if they want to make “a quick buck” or to follow their passion, which might include them wanting to make a change or "building something substantial."

As his first advice, Robert urged the aspiring entrepreneur to find a passion close to them, for their business, as it would help them keep themselves on the grind when their friends were "out attending parties, watching television, or just hanging out."

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2) Do your research

Robert emphasized that simply coming up with original ideas doesn’t make someone a "successful entrepreneur"—it’s the execution that truly matters.

He explained that entrepreneurs need to do proper research and should have the ability to identify and quantify a real need for their product or service. He added that they should also thoroughly determine who their competitors were and if it was "wise to challenge them for the same dollar".

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3) Hold off on expansion

As his third advice, Robert noted that even if a business achieved great success at the start, they shouldn't think about expansion.

The Shark Tank star emphasized that entrepreneurs should "start small and stay small." He explained that a lot of problems come up when someone is starting their business, so they could focus on resolving them and more importantly, they need to be able to change the focus of their business if necessary.

"Consider expansion only when your core business is running smoothly and profitably, and your assets permit you to fund the growth," the Shark Tank star added.

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4) Set fixed goals

Robert further advised entrepreneurs to write down five to six business goals and review them regularly. He explained that running a business requires constant decision-making, which can sometimes feel overwhelming.

By consistently revisiting their goals, entrepreneurs can stay focused and effectively prioritize tasks based on urgency and importance.

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5) Have an exit strategy

Finally, the Shark Tank star noted that it was important to include an exit strategy in their planning phase as it would guide them in making decisions to operate their business.

"Do you plan to sell it for a capital gain? Share management duties when it reaches a certain size? Close the doors and walk away at some point? Each alternative may influence your operating decisions differently so have an idea of where you want to be in 5, 10, 15 years," he explained.

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New episodes of Shark Tank season 16 air every Friday on ABC.