Robert Herjavec, one of the investors of the TV series “Shark Tank” is very optimistic about how the US economy is going to get in post Coronavirus world.
“The human spirit is about hope,” said Herjavec on CNBC’s “Squawk Alley” Thursday. “Each time that somebody comes to Shark Tank, they all are full of enthusiasm and they’re full of hope.”
“It is a difficult moment, but entrepreneurs will find out a way to get through this” said Herjavec, founder and CEO of the cyber security company Herjavec Group.
Herjavec stated that “Shark Tank,” which first premiered in August 2009, was released as the United States economy struggled to recover from the turmoil of the global recession.
“No one could get a loan, and people launched a lot of companies that you did not need money for, and then we switched to online sales,” he said. “This is going to be the same stuff.”
Herjavec encouraged entrepreneurs that have recently launched a company to develop a post-crisis growth strategy.
“The stimulus package, the defense plan, all of these aid money are basically survival funds. They ‘re not development funds, “he said. “If you don’t have a plan to expand, if you don’t have a plan to win market share, having an incentive today just keeps you in business. It doesn’t help you grow.
He also recommended smaller companies to speed up their online presence or build on their current presence.
,Herjavec also said that the emphasis of his investments will change in response to the coronavirus, which has led to dramatic revenue decrease for all types of companies as operations have been halted or downsized to try and reduce the progression of Covid-19.
“It makes me want to put money in two kinds of enterprises: either businesses with a very healthy cash flow, or businesses like Uber, or small businesses that can reduce their costs,” said Herjavec.
“The key here will be fluidity and the willingness to adapt in a small company,” he added. “I wouldn’t want to invest in a big infrastructure companies— buildings, facilities, all that things. These stuff are really hard to scale down.