"82% of small businesses fail": Shark Tank mentor Lori Greiner reveals 5 unnecessary costs that entrepreneurs can get rid of

Shark Tank judge Lori Greiner revealed five expenses "killing" startup businesses. The female entrepreneur shared insights via an Instagram post on March 25, 2025. She talked about how, without realization, 82% of small businesses fail because they are burning cash "too fast."

Lori Greiner chimed in on business insights for startup owners, as she often shares such vital information to help entrepreneurs. She captioned the Instagram post with the following:

"82% of small businesses fail by burning cash too fast—without realizing! Don't let that be you. Cut these 5 unnecessary costs NOW."

Shark Tank mentor Lori Greiner reveals 5 expenses that might be killing a startup and how to fix them

"01. Hiring too fast! - Hiring too fast drains cash and locks you into long-term costs. Early-stage cash flow is everything!"

The first is about hiring candidates "too fast," which results in cash draining and is unsuitable for business startups. To fix that, entrepreneurs can opt for freelancers and part-time workers. Later on, hiring candidates might be an option when the demand grows.

"02. Pricey Office Space! -A flashy office burns money fast..Some of the biggest brands started in garages!"

The second point was getting an expensive office space. Shark Tank's mentor referred to that as a "flashy office" and that it "burns" money fast. However, for start-up owners, the female entrepreneur noted that some of the biggest brands started from simpler spaces, such as garages.

According to Lori Greiner, the solution for this was to work remotely or use a "shared" office space.

"03. Cheap Cost, Big Lost! - Cutting corners on software, marketing, or suppliers leads to poor quality, inefficiencies, and lost customers."

The third one was to cut costs and opt for cheap solutions. That includes software costs, marketing costs, and more. According to Lori Greiner, the solution was to "not just go cheap" but to "invest" in long-term value.

"04. Premature Scaling! - Scaling before demand wastes money, inflates teams, and creates excess inventory. Bigger is not equal to better."

Shark Tank mentor's fourth point was "premature scaling." She mentioned that opting for scaling before the demand results in wasted money. Along with that, she noted that bigger does not mean better. Hence, to solve that, Lori mentioned validating first and then scaling later.

"05. Bad Accounting! - Poor money tracking equals to cash disappears fast. Many startups fail just because they lost their numbers."

The last point was "bad accounting," in which Lori stated that poor money tracking resulted in a loss of cash. Most startups fail because their numbers are not as clear as they need to be. Accounting tools or part-time financial experts are necessary to solve that.

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Fans can stream the latest Shark Tank Season 16 episodes starring Lori Greiner among the investors on ABC Network.

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