Robert Herjavec said his role as an investor on ”Shark Tank” makes him optimistic about the U.S. economy on the other side of the coronavirus pandemic.
“The human condition is about hope,” Herjavec said Thursday on CNBC’s “Squawk Alley.” “Every time someone comes on ‘Shark Tank,’ they’re full of hope and they’re full of optimism.”
“This is a challenging time but entrepreneurs will figure it out,” added Herjavec, founder and CEO of cybersecurity firm Herjavec Group.
Herjavec noted “Shark Tank,’ which debuted in August 2009, was launched as the U.S. economy tried to emerge from the tumult of the financial crisis.
“Nobody could get a loan and so people started a lot of businesses that you didn’t need capital for and then we moved to online selling,” he said. “This will be the same thing.”
Herjavec urged entrepreneurs who recently started a business to have a growth plan for a post-crisis world.
“The stimulus plan, the protection plan, all these relief funds are simply survival funds. They are not growth funds,” he said. “If you don’t have a plan to grow, if you don’t have a plan to gain market share, getting a stimulus today is just keeping you in business. It’s not helping you to grow.”
He also advised small businesses to accelerate their online operations or build on their existing presence.
At the same time, Herjavec said the focus of his investing will change due to the coronavirus, which has resulted dramatic revenue declines for all manner of businesses as operations were paused or scaled back to try and slow the spread of Covid-19.
“It makes me want to invest in two types of companies: either companies with very strong balance sheet or companies like an Uber or a small business that can scale back its cost,” said Herjavec.
“Fluidity and the ability to adapt in a small business is really going to be the key,” he added. “I don’t want to invest in a business with a large infrastructure — buildings, equipment, all that kind of stuff. That stuff is very difficult to scale down.”
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank,” on which Robert Herjavec is a co-host.