Anyone who has started a business, big or small, can tell you that the process is daunting.
Many new business owners make a number of common mistakes, and the “Shark Tank” investor Kevin O’Leary just named one of the most egregious ones.
In a tweet sent on the morning of Aug. 14, O’Leary explained that one “huge mistake” some companies make is taking on more debt than they can handle.
He advises never to go above one-third of your company’s cash flow, saying that’s the “magic number.”
O’Leary is known for his business acumen, especially since he began appearing on “Shark Tank” in 2009 and making a name via the blunt persona he wields on the show.
Advice about business debt varies. Some older advice says 20% to 40% is a good range to be in, while more recent advice leans in the direction of 30% being the hard cutoff.
The average business owner has between $100,000 and $250,000 in debt, according to a 2021 Statista survey.
According to recent Federal ReserveThe reports, small-business debt is rising: The amount of debt businesses are taking on is up 9.1% from 2020.
Dr. Sanjay Gupta: Should You “Lean Into” Your Chronic Pain to Relieve It?
Dr. Sanjay Gupta sits down with researcher and clinical therapist Dr. Eric Garland to explore how mindfulness meditation can be as effective as opioids in…
Thought Leader: Sanjay Gupta
Newt Gingrich outlines 3 key components for a “DRAMATICALLY better America”
Former House Speaker Newt Gingrich discusses the U.S. economy, Trump’s tariffs, A.I. and more on ‘Kudlow.’ Few figures in American politics bring the depth of…
Thought Leader: Newt Gingrich
Mike Pence says “time has come” for Trump administration to release “all” Epstein files
The Trump administration is facing criticism from some within the MAGA movement for its handling of the Jeffrey Epstein files. Former Vice President Mike Pence…
Thought Leader: Mike Pence
