Keeping a family or a business on budget is never an easy undertaking, and it is much harder under the Biden administration.
Out-of-control federal spending and onerous government regulations are driving up the cost of everything.
But Kevin O’Leary has some sound advice for entrepreneurs that everyone can use in this inflationary environment.
O’Leary cuts through the “BS” in a finance savvy conversation with Ankur Jain
Kevin O’Leary is a billionaire investor that rose to national fame following his time as one of the top investors on Shark Tank.
On the show, O’Leary was known for delivering blunt advice that people weren’t always willing to accept, and some people may have paid the price.
Now the celebrity businessman is turning heads with an appearance on the digital game show Rent Free hosted by founder of Bilt Rewards, Ankur Jain.
The two discussed the economy and how Americans and Entrepreneurs should respond to skyrocketing inflation.
Jain says that she enjoys hearing O’Leary’s take because “he’s all about cutting through the BS.”
“His advice is so important right now when life is so expensive and people are trying to figure out how to get more value for their money and how to make more money,” he added.
O’Leary says entrepreneurs that ignore his warnings “deserve to burn in hell in perpetuity” and that average Americans should realize they “don’t need a lot of the crap they buy.”
Americans need to focus on what they need and create goals to get themselves there
Mr. Wonderful’s advice to average Americans might not be easy to swallow for most people, but he believes it’s necessary to stop impulse shopping and reduce the burden you’re putting on your family financially.
“Why do you have 40 pairs of shoes? You only wear two. Why are there 16 jeans here when you only wear four?” he asked rhetorically.
O’Leary says that credit cards are also a major source of financial struggles for Americans.
The average credit card carries an interest rate of 22 percent in the United States.
“Pay off [your] credit cards immediately, that’s what [you] should do,” he says.
Focus on creating a reward system for yourself and using it as a way to make good decisions for you and your family’s financial situation.
“If you’re thinking about rewarding yourself for great moments in your life, it’s because you’ve achieved something,” O’Leary explained. Look for goals and achieve them.
The billionaire investor then turned to small business owners and hopeful entrepreneurs.
O’Leary says that “great ideas are a dime a dozen” and entrepreneurs need to do more
O’Leary says one of the biggest pitfalls of people seeking investment is their inability to describe their business powerfully and in less words.
Entrepreneurs need to remember that investors have limited time.
“Be able to articulate your opportunity in 90 seconds or less,” he says.
Stop focusing on the idea, and give more attention to how you can make it functional and profitable. O’Leary says, “great ideas are a dime a dozen” while “execution skills are very rare.”
“You have to combine both of those to work together,” the billionaire explained.
Lastly, know your numbers and the numbers of your industry.
O’Leary listed off metrics that investors will want to know, “How big is the market? How fast is it growing? How many competitors are there? What’s the break-even analysis? What’s the cost of customer acquisition?”
“If you don’t know your numbers and you get the first two right, you deserve to burn in hell in perpetuity and I will personally put you there,” the shark said.
O’Leary wants to see more success in the business world, and that is why he speaks so bluntly.
Do everything with purpose and know what you need to get where you are going.
Informed American will keep you up-to-date on any developments to this ongoing story.