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Currently the biggest business risk

Herjavec Group CEO, Robert Herjavec

Scott Murin | CNBC

Robert Herjavec, co-sponsor of Shark Tank and founder of the Herjavec Group, said the pandemic year strengthened a basic lesson on speed as a factor in success.

While decision-making accelerated in an unprecedented way during Covid-19, Herjavec said decision-making entrepreneurs acted swiftly as the US economy boomed and the state lifted Covid’s restrictions. They say they haven’t cut or grown cautiously because they need to. It’s time to make a big bullish bet in the future. Companies that prolong their fears will lose.

The “cruelly realistic” thinking sought by owners over the past year is a thing of the past, and the United States is entering a boom period that entrepreneurs need to embrace. “I’m very bullish,” Herjavec told CNBC at the Small Business Playbook event on Tuesday. “I think we see one of the best [periods of] The economic growth we have seen in our lifetime. “

CNBC Small Business Playbook Details

Recent CNBC | SurveyMonkey SME Survey Q2 2021 We’ve found that small businesses are gaining credibility, but that’s just a small reading of the overall sentiment that remains net-negative for over a year after Covid. More business owners are expecting higher revenues, and employment is expected to increase in the hardest-hit sectors such as food.

“Human never thinks it will be as bad as it will ever be, and will never recover fast enough,” said Harjabeck. “That’s what I’m looking at right now. People aren’t ready for expansion, too conservative, and not bullish enough.”

When optimism was the wrong feeling

Shark Tank co-sponsor, who may be known for his optimism and business confidence, reveals the horrors and uncertainties he experienced during a pandemic during a CNBC small business event. I didn’t hesitate to do it. February as “incredible horror”.

“Everyone told me,’You are a’shark’and you have a big company, a relatively large company, but fear stopped us for about three days,” Harjabeck said. He quoted co-moderator Barbara Corcoran’s advice. He says the difference between successful people and others is “not that they don’t feel sorry for themselves, but how long they allow them to fall into a dire situation.”

“For about a week I’ve been nodding a lot. I’m a pretty tough guy and many things don’t scare me, but business uncertainty can be very devastating. There is. First. “

Herjavec’s core cybersecurity business has become a pandemic winner as much of the world goes online, but he is also working on many portfolio investments through the “Shark Tank” transaction, one of the pandemics. Risk said it was a portfolio business that stuck to “unfounded optimism.” .. “

“It kills the business,” he said. “I’m a very optimistic person. I wake up every day believing that tomorrow will be better than yesterday, but when in crisis, it’s about reality, not optimism …. I told these companies, “Don’t expect the world to end, but be prepared for the worst.”

During the pandemic, too many SMEs were in trouble because they were afraid to cut costs and overkill. “I saw many small businesses in trouble saying,’Maybe I’ll just fire a few people … or I don’t need to fire … maybe things will come back.'”

Herjavec has set up these business owners straight. “In a crisis, no one but ourselves can help you, so we encouraged people to take a more pessimistic view. Many small businesses just believe … things are good. Will be. “

But now he says dealing with reality is completely different. A year after Herjavec and his CFO sit down to perform a “black swan” scenario and realistically evaluate how long they can survive, the employer is “completely on the other side.” is needed.

Currently the biggest business risk

Source link Currently the biggest business risk

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