"Virtually no barrier to entry" — When Shark Tank's Kevin O'Leary talked about how the middle class can benefit from online ventures

During an interview on The School of Greatness podcast with Lewis Howes on February 20, 2023, Shark Tank investor Kevin O’Leary was asked whether he believes the middle class is financially stuck and what steps they can take to achieve greater financial freedom. O’Leary responded,

"No, they're not stuck, and one thing that's democratized and we learned it since this whole pandemic started, you can create a new opportunity for yourself online with virtually no barrier to entry."

He emphasized that online platforms have enabled individuals to start businesses without significant upfront costs. Many people initially pursued online ventures as side projects, and some have grown these initiatives into their primary source of income.

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How online ventures offer financial opportunities for the middle class according to Shark Tank's Kevin O'Leary

The growth of online entrepreneurship

O’Leary explained that many people who started online businesses during the pandemic have experienced significant success. He noted,

"Many, many people did it as a side hustle, and it's now producing more income than their first job."

This shift demonstrates how individuals can leverage digital tools to create new revenue streams. He also pointed out that customer acquisition plays a critical role in online business success. He stated,

"The whole idea of trying to solve for customer acquisition using creativity, using video, using music, using photography, using storytelling, animatics, graphics to actually sell a service or product—starting locally and then expanding."

Additionally, O’Leary discussed how online businesses can scale beyond their initial customer base. He said,

"There are millions of new businesses that have started during the pandemic; we see them every day on Shark Tank."

He emphasized that these businesses have allowed individuals to improve their financial standing by taking advantage of digital platforms.

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Online business as a path to financial growth

O’Leary highlighted that online businesses have helped middle-class individuals achieve financial growth. He explained that many people who start digital ventures can move beyond their previous financial status by leveraging online tools and platforms. This statement underscores the potential for online ventures to provide financial mobility. He provided examples from Shark Tank, saying,

"If you look at Shark Tank, we have plenty of people that have been working in the middle class for years and all of a sudden exploded to the upside with a great service or idea that they did online."

O’Leary also mentioned that online business opportunities allow for experimentation without significant financial risk. He said,

"You can try things online, you can see what works, you don't have to get the first one right, but those tools are there for you."

This statement reflects how digital platforms provide a low-risk environment for testing business ideas before committing significant resources.

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The role of digital advertising in business growth

O’Leary discussed the importance of online advertising in growing small businesses. He highlighted how targeted advertising helps businesses reach specific audiences efficiently, saying,

"Most of this is done on Facebook in geo-locked advertising; 80 cents on the dollar of what my company spends on Facebook."

O’Leary explained that some people criticize social media platforms, but he emphasized that these platforms play a significant role in supporting small businesses. He highlighted that digital advertising tools, particularly those offered by platforms like Facebook, have enabled many entrepreneurs to reach their target customers effectively.

Additionally, he noted that digital marketing provides businesses with cost-effective solutions for reaching customers. He said,

"We shouldn't shut it down until we find something better."

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