“Tell within 60 seconds”- When Shark Tank’s Robert Herjavec discussed his investment checklist

Shark Tank investor Robert Herjavec shared in a February 11, 2020, LinkedIn post, that he has a five-investment checklist that helps him to "tell within 60 seconds" if he is interested in learning more about the company or is out.

"When someone walks onto the set of Shark Tank, I can usually tell within 60 seconds if I’m interested in learning more or if I’m out," he wrote.

Robert explained that he has seen thousands of pitches from entrepreneurs worldwide, and over time, he has become good at identifying what piques his interest.

The Shark Tank star has a checklist of key factors he considers when deciding whether to pursue a deal with an entrepreneur. He advised both investors and entrepreneurs to use this checklist "to leverage a strong investment opportunity."

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Robert Herjavec's top 5 Shark Tank investment checklist

1) Authenticity

Shark Tank star Robert Herjavec’s first point on his checklist is authenticity. He believes that if an entrepreneur doesn’t have a "genuine interest" in their product or service, they would have a hard time handling the "nitty-gritty of operations and running the company."

Hence, during the pitch, Robert shared that he often watches for thoughtfulness, openness, passion, and good character.

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2) Solve a problem

Robert noted that investors are often drawn to innovative ideas, particularly when there’s a profitable margin. However, this can distract entrepreneurs from the excitement of their great idea, losing sight of whether it solves an existing problem or if customers are willing to buy what they’re selling.

"Strip back all the bells and whistles and determine if the product or service is going to simplify consumers’ lives and provide them with value," he added

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3) Know your numbers

Robert believes that numbers are crucial in any business. He emphasized their importance by saying that he doesn't even consider a pitch if an entrepreneur doesn't clearly understand their company's costs, sales data, and projections.

The Shark Tank investor further explained that numbers are the backbone of any company, and if the owner doesn’t have this crucial information, partnering with them would lead to many uncertainties.

"Investing with you would be like driving on a backroad at night with no headlights. You can’t go anywhere if you can’t tell what’s behind you, in front of you, or if you have no concept of your surroundings," he explained.

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4) Willingness to work hard

Robert said he wouldn't invest in a company whose owner lacks the drive or willingness to work hard and succeed. He emphasized that he would always pick "a great entrepreneur with a bad product" rather than a "bad entrepreneur with a great product."

The Shark Tank investor explained that if the owner truly believes their company will succeed, they need to put in a lot more effort than any of their employees.

"Ultimately this one is very simple, if your company is going to make it, you need to be willing to put in the blood, sweat and tears, more than anyone else you employ," he said.

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5) Not (necessarily) after money

While Robert acknowledged that everyone in business wants to make money, he believes a company is likely to fail if profit is its only driving force. He advised that entrepreneurs need to be as passionate about their mission, products, and business development as they are about making money.

"I look for someone who finds fulfillment improving other peoples’ lives and combating societal issues. Those are the most rewarding aspects of business that will keep an entrepreneur pushing toward greater success," he comcluded.

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Shark Tank season 16 episodes air every Friday on ABC.