"Look for a problem" — When Shark Tank investor Robert Herjavec revealed five business tips for thriving in competitive markets

In a May 16, 2019, interview with Business Insider, Shark Tank investor Robert Herjavec shared key business principles for succeeding in competitive markets. He emphasized that entrepreneurs should prioritize solving problems over simply starting businesses. The Shark Tank investor stated:

"Don't look to start a business, look for a problem."

This approach highlighted the importance of identifying market needs before launching a venture. Robert Herjavec outlined five essential strategies to help entrepreneurs navigate competitive environments effectively.

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Identifying problems, and 4 other insights by Shark Tank's Robert Herjavec on succeeding in competitive business environments

Identifying and solving problems

Herjavec’s first principle is that successful businesses emerge from addressing real-world problems. The Shark Tank investor explained:

"Too many people think about, ‘Oh, I got to start a business to do this or do that.’ The best businesses are ones that find a problem."

Rather than starting a company on an idea alone, entrepreneurs should find areas of pain that need solutions. Moreover, Robert suggested that companies should concentrate on getting firsthand feedback from potential clients before investing resources. He said:

"Ask a paying customer. People are deathly afraid of rejection. They'd rather take a fake yes than a real no. Get the truth."

This underscored the importance of validating business ideas early in the process to avoid unnecessary investment in untested concepts.

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Managing finances and focusing on a niche

Financial stability is another critical aspect of business success. Herjavec emphasized the necessity of ensuring that essential expenses can be covered, explaining:

"Make sure you have enough cash to pay the rent because it's going to take a long time for a business to generate cash."

It's common for entrepreneurs to underestimate how long it takes to become profitable, so the need to remain financially disciplined early on is key. Another tenet he promoted is the necessity of focusing business efforts.

He insisted that trying to manage a variety of different areas simultaneously may water down both expertise and performance.

Instead, he pointed out that focusing on a single niche enables a business to establish strength, develop specialist knowledge, and create a dominant market presence. Focusing enables entrepreneurs to specialize and create a dominant market presence.

Herjavec also observed that specializing in a niche enables greater efficiency and competitive advantage.

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Speed and accountability in competitive markets

Robert Herjavec highlighted the significance of moving quickly when entering a competitive space. The Shark Tank investor stated:

"If you're gonna compete in a big market, move quickly. If you move fast, they can't catch you."

Rapid decision-making and execution can help businesses gain a competitive edge and establish market leadership. Holding team members accountable is another factor he discussed, explaining:

"If it's your job to do something, it's not my job to do it for you."

Making sure tasks are well-defined and expectations met can enhance effectiveness and business operation. In the competitive marketplace, Herjavec made it a point that business owners should expect to have an arduous workload.

According to him, business owners will usually have insufficient time to fulfill many tasks at once, meaning they need to prioritize productivity and efficiency.

He also noted that running a business is continuous and has fewer opportunities for taking long breaks. This supports the fact that one needs to spend time and focus to establish a thriving business.

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