Shark Tank's Robert Herjavec reveals the 5 biggest myths about running a business

Robert Herjavec, an investor on Shark Tank, just recently shared common misconceptions regarding entrepreneurship on his Instagram account. Most people think opening a business leads them to success, financial freedom, and independence. According to him, though, five myths make many potential entrepreneurs have very wrong perspectives.

Herjavec’s insights highlight the importance of realistic expectations in entrepreneurship. While starting a business offers opportunities for success, it requires strategic planning, disciplined management, and a clear understanding of market dynamics.

Shark Tank's Robert Herjavec debunks common myths about running a business

1) A great product will sell itself

Many entrepreneurs believe that if they create an excellent product, customers will naturally seek it out. Herjavec explained that this assumption is inaccurate because even the best products require marketing and promotion to reach potential buyers. He wrote,

"A great product won't sell itself without proper promotion."

Branding, advertising, and sales strategy shall be invested in so that awareness and interest can develop among people about the product. An unnoticed product is not necessary even if it is the best in its class. The Shark Tank investor's statement underlined the fact that before communicating with them about the value of offerings, a company must communicate with customers to gain their confidence.

2) Starting a business will bring you money immediately

The most common misconception is that launching a business is the fastest way to accumulate wealth. Herjavec's comment implies that starting and growing a business takes time, effort, and financial investment. Many entrepreneurs do not see immediate returns and often reinvest profits back into their companies.

"Starting a business is not a shortcut to getting rich," he noted.

According to Shark Tank investor, business success is determined by the conditions of the market, the competition, and operational efficiency. Financial success happens to some entrepreneurs but not to all and not overnight. It is important for aspiring entrepreneurs to have a realistic understanding of the challenges and risks involved in starting a business.

3) Boss and employees will be friends

Entrepreneurs tend to think that people that they know will make a great work environment. However, Herjavec makes it loud and clear that professional relationships at the workplace should always be maintained and writes,

"Employees can be friendly, but they shouldn’t be your friends."

While being friendly and collaborative has its advantages, this can blur the boundaries between employer and friend. It creates problems in management, the decision-making process, and accountability. It is the duty of business owners to define limits and establish leadership roles while maintaining professional boundaries.

4) Business owners have more free time

Many aspiring entrepreneurs believe that becoming their boss will provide them with more flexibility and free time. Herjavec made the point that business ownership often leads to longer hours and increased responsibilities.

Entrepreneurs are responsible for overseeing operations, managing finances, solving problems, and ensuring that their business expands. In contrast to the more defined tasks of traditional employment, business owners have to perform several tasks at once. Additionally, entrepreneurs must constantly adapt to market changes and trends to stay competitive. He said,

"Owning a business often means more work, not more free time."

5) Reducing prices ensures profitability

One of the common misconceptions among business owners is that if one can offer a more affordable price than others, one will receive more customers and higher profit. Herjavec continued to add that, primarily competing on price may lead to financial loss because reduced prices may not be enough to cover the operational costs involved.

"Competing on price often leads to losing money, not gaining profit," he wrote.

Every business needs to keep in mind such factors as production expenses, overhead, and sustainability while arriving at a price. Companies should move beyond price wars and talk about value, quality, and differentiation for a robust market presence.