"Create a customer" - When Shark Tank's Robert Herjavec shared what the real value of a business is

Shark Tank investor Robert Herjavec shared the real value of the business in a world where entrepreneurs often focus on profitability. In an interview with Fast Company, he recalled a conversation that he had with Warren Avis, the founder of Avis Rent-a-Car, which changed his perspective on how he viewed a business.

They talked about how creating a customer is more important, and this is what creates success. Creating value for a consumer is the most crucial aspect. Robert says that this perspective is different from why many entrepreneurs launch their businesses and why he, himself, thought of it in the first place.

Focusing on customers first leads to lasting success and a strong brand identity. Herjavec also talked about how this value is different for various customers and thus, businesses should adapt and evolve constantly to meet these ever-changing demands.

Explaining the same, the Shark Tank investor said,

"One day, he asked me, 'Robert, what’s the purpose of business?' I said, 'Oh, to make a profit,' and listed a few other things. He said, 'No, the purpose of business is to create a customer. Everything else takes care of itself if you can create customers and provide value for them.'"

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Shark Tank investor Robert Herjavec talks about the real value of a business

Robert, the Shark Tank investor, revealed how he was inspired by the words of Warren Avis, who asked him what the real purpose of business is. The interviewer even pointed out that he had talked about the idea of creating value in his book that was released at the time.

She asked Robert what was the value that made him get up in the morning and work on his business, and this is when he revealed the conversation.

The Shark Tank investor says that it used to be for monetary gains, but now, his perspective has changed on the matter, and instead, he focuses on creating value for his customers.

Later in the interview, he also talked about the emotional side of the industry. He says that passion can, of course lead a business to success, but if an entrepreneur holds anger or resentment in their mind, it could lead to poor decisions.

Talking about the same, he explained,

"You have to leave emotions out of it because when you're angry or full of hate, you make bad decisions. But that doesn’t mean you have to be a jerk or mean-spirited. Nobody likes to do business with someone who isn’t nice."

In his book, Robert talked about how he is a "nice guy" and during the interview, he said that emotional intelligence is important in leadership. Being level-headed and building relationships based on respect and integrity is crucial.

The takeaway from Robert's interview is all about the long-term success that a business is building for their customers. An entrepreneur whose focus is based on short-term profits without considering customer growth often struggles to maintain steady growth.

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Shark Tank season 16 episodes are released weekly on ABC at 8 PM Eastern Time on Fridays. They are later available to watch on Hulu.