Shark Tank investor Robert Herjavec shares 5 must-know rules for entrepreneurs

Shark Tank investor and businessman Robert Herjavec shared five key rules for entrepreneurs in an Instagram post on February 18, 2025. He stressed that those people wanting to raise money or expand businesses need to comprehend important principles of success.

These rules highlight financial awareness, communication, realistic valuations, demonstration of sales, and market strategic positioning. These principles can help entrepreneurs tackle the difficulties in managing a business and be able to attract prospective investors.

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Essential advice for entrepreneurs from Shark Tank Robert Herjavec’s 5 key rules

1) Know your numbers like your own name

In the Instagram post, Rovert Herjavec mentioned that one must have an understanding of their financial metrics. He wrote:

“Investors are shocked by how many entrepreneurs don’t know their costs, margins, or competitors.”

Entrepreneurs seeking funding should be prepared with accurate financial data rather than relying on estimates. Herjavec stressed that one should avoid making guesses, as investors expect concrete numbers when evaluating a business.

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2) You have 90 seconds to make an impact

Effective communication is crucial for entrepreneurs presenting their ideas to investors or customers. The Shark Tank investor stated:

“Whether you’re pitching to investors or convincing a customer, first impressions are everything.”

He explained that if a person "can't clearly and persuasively" present the idea under two minutes, it leads to the audience losing their interest. He advised entrepreneurs to keep their business pitch concise and compelling.

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3) Confidence sells, but numbers close the deal

While passion and confidence are important, business decisions are based on measurable data. The Shark Tank investor wrote in his post:

“Dreams and passion are great, but they won’t convince a banker to invest.”

Herjavec explained that a company’s value is not determined by what an entrepreneur hopes it to be but by what the market dictates. He asked the aspiring businessmen to know their "worth, but be realistic."

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4) Sales speak louder than promises

Investors prioritize businesses that reflect revenue generation. Herjavec highlighted:

“Investors don’t buy into ideas—they buy into results.”

Herjavec emphasized that showing actual sales figures is a key indicator of a business's viability and success. The Shark Tank investor pointed out that if there are no sales, it means the business has not yet proven itself worthy of investment.

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5) It’s not about the market size, it’s about your share

Market potential alone does not guarantee business success. The Shark Tank investor explained:

“Saying, ‘If I capture 1% of a billion-dollar market, I’ll be rich’ means nothing.”

He added that investors want to know how entrepreneurs intend to bring customers in and what makes their business unique compared to others. He advised that one needs to show how their business will capture market share through their competitive strengths.

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Shark Tank airs on ABC on Fridays at 8 PM ET and stream episodes on Hulu to catch up on all the latest pitches and investor tips.