"No story? No money" — Shark Tank's Kevin O’Leary comments on the importance of storytelling in business

Shark Tank investor Kevin O’Leary recently emphasized the importance of storytelling in business. In an 11 April Instagram post, Kevin shared a video featuring CEO and co-owner of Pholicious, Anh Trousdale, and CEO of Boost Oxygen, Rob Neune, two of the entrepreneurs he invested in during the show.

In the caption, Kevin emphasized that a compelling story helps entrepreneurs connect with consumers on a deeper level. He called storytelling “the X-factor,” adding that a company without a story won’t be able to generate revenue.

"Storytelling is the X-factor. No story? No money," he wrote in the caption.

In the video, Kevin described Anh and Rob as “great storytellers,” emphasizing that no one should back an entrepreneur who can’t effectively share their story. He explained that a strong entrepreneur should be able to tell their story in 90 seconds or less. Kevin added that he doesn’t invest in anyone who can’t tell an "authentic" and "real" story.

The Shark Tank star then turned to Anh and Rob and explained how they were able to build their business through their storytelling skills.

"This whole thing of Mamma Thu's recipe... You should have seen her. She was a whirling dervish on Shark Tank. Because she's in a total commodity business, but she told a great story and I loved it and we've been building this business up and now using television. Rob, same deal. I mean, it was air in a can," he explained in the video.

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Shark Tank investor Kevin O’Leary explains how entrepreneurs can use storytelling to improve their business

In a March 3, 2023, interview on The Daily Show, Shark Tank star Kevin O’Leary offered a brief explanation of why he believes storytelling is a crucial component of doing business.

During the interview, host Hasan Minhaj asked Kevin whether he considered himself a “great investor” or a “great spokesperson.” He was essentially trying to determine which quality the Shark Tank star believed was more important in building his career. Hasan later remarked that he saw Kevin as more of a “great spokesperson.”

Kevin disagreed with Hasan and went on to reflect on the last 10 years to explain. He believed that the ability to tell a company's story, to get people to understand their mission and the benefit of their product, was highly valuable for doing business.

"Because there's a million stories out there, and the biggest problem every company has, including giant S&P companies, is, how do they get customer acquisition? How do they acquire customers? 8 out of 10 companies fail in America after 36 months because they're never able to get their customer acquisition costs below the lifetime value," he continued.

After emphasizing the importance of storytelling in attracting customers, the Shark Tank investor noted that when he invests in a company, he makes it a point to communicate their story effectively. He admitted that he’s consciously taking a risk with this approach, but believes it’s a crucial element in helping a company grow.

Kevin pointed out that this was part of their job as sharks on the ABC show. He explained that most of the companies that appeared on Shark Tank became successful because the investor panel and the production told their stories to "100 million people every year."

"So I think I'm a great investor by being able to be a great storyteller too. People need to know what the product does, what the merits of it are. That's why they try it. That's why it's important to tell these stories," he concluded.

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Shark Tank season 16 episodes air every Friday on ABC.