"You've got to be very cautious" — When Shark Tank investor Robert Herjavec offered insights on job market trends and financial risks

Shark Tank investor Robert Herjavec shared insights on job market trends and financial risks during a Good Morning America interview on April 11, 2023. When asked whether the latest economic data should prompt people to reconsider major financial decisions, especially with the U.S. jobs report showing the lowest monthly job gain since December 2020, he emphasized the need for caution.

"I think you've got to be very cautious right now," he explained.

The Shark Tank investor also emphasized the importance of evaluating personal financial conditions before making major investments or purchases.

---

Shark Tank's Robert Herjavec on managing financial decisions amid economic uncertainty

Navigating uncertainty in the job market

Following the release of the March employment report, indicating a less-than-expected employment growth of 236,000 jobs, Robert Herjavec was asked whether the time was still right for individuals to make such big financial moves as purchasing a home. He noted that such a report may reveal either a flagging economy or an economy still demonstrating strength.

Recognizing the dual nature of economic indicators, Herjavec explained how the jobs report may be a signal of a struggling economy or a signal of an economy that is still robust despite adversity.

He also underscored that individual situations should dictate decisions, rather than general economic conditions. The Shark Tank investor highlighted the need to prioritize one's financial well-being and requirements in deciding whether to undertake large-scale investments or purchases.

"Look at your personal situation cut out the noise," he noted.

---

Trends shaping the business landscape

When asked about trends that will influence the business environment in the coming years, Herjavec offered his opinions on entrepreneurship during tough economic times. He pointed out that many successful companies have been founded during times of economic downturn, stating:

"Every great business has started...in a bad time."

The Shark Tank investor emphasized that difficult times often lead to innovation and new opportunities for new businesses. However, Herjavec warned entrepreneurs to concentrate their activities in a specific, strategic direction.

"The biggest mistake people make when they start a business is they want to do everything," he advised.

To him, entrepreneurs must not overstretch their resources, especially when the economic environment is tough. Herjavec acknowledged that obtaining funding could be tougher and advised entrepreneurs to explore other sources, including borrowing from family, friends, or neighborhood banks.

---

Advice for startups and entrepreneurs

When explaining the startup process, Herjavec offered useful tips for aspiring entrepreneurs, especially those who may be inspired by a romanticized version of becoming an entrepreneur. He explained that entrepreneurship should be based on solving a particular problem, not chasing some vague business concept.

He highlighted the importance of a practical approach, urging entrepreneurs to focus on solving existing problems in the real world. Expanding on this idea, he stated:

"The world cares about solving problems."

The Shark Tank investor clarified that successful companies tend to be the result of finding gaps or problems that need to be solved, not necessarily an entrepreneur's passion project or personal vision. This strategy, Herjavec said, is crucial to long-term success.

---

Watch entrepreneurs pitch their ideas on Shark Tank Fridays at 8 PM ET on ABC, or stream on Hulu at your convenience.