Cover story for Mediaplanet’s “Small Business” issue, published with San Francisco Chronicle.

Kevin O’Leary photographed by Miller Mobley.

There’s no denying that ABC’s entrepreneurial reality hit “Shark Tank” has become an absolute cultural phenomenon.

“I’m so proud of what we’ve built,” Kevin O’Leary, one of the show’s hosts, shares. “To see 11-year-old girls getting interested in the structure of financing venture capital — it’s inspiring.”

Entrepreneurship is thriving in the digital age, where technology and social media make it easier than ever to start and scale a business. However, with high start-up costs and increased competition, it’s never been more important for business owners to hit the ground running. I sat down with O’Leary in the heart of New York City to learn what new business owners need to know to survive and thrive in 2016.

KEEP IT SIMPLE

Never underestimate the importance of a strong elevator pitch, O’Leary stresses. “An entrepreneur should be able to articulate the opportunity in 90 seconds or less,” he says. “They need to know exactly what they want to do and be able to explain the opportunity very quickly.”

PIVOT FOR SUCCESS

What do Starbucks, Groupon and Twitter have in common? They’re all companies that pivoted from their initial direction, eventually becoming the industry titans we know today.

“The truth is that running a business is really hard,” he adds. “You have to be able to pivot, particularly if you’re a startup.”

Starbucks initially sold espresso machines, not the frozen coffees and baked treats we associate with them today. Groupon began as an online fundraising website, while Twitter's original concept was a platform for discovering podcasts. Through strategic shifts in focus, these companies successfully pivoted into the thriving enterprises we recognize today.

COUNT YOUR COINS

Why do so many new entrepreneurs fail? “Their growth projections are wrong,” says O’Leary. “Their revenue projections are wrong and they run out of money; that’s why 8 out of 10 businesses fail.”

Understanding cash flow is one of the most important aspects of being a CEO — especially if you’re starting small, O’Leary urges.

“Never waste money in the startup phase. Keeping the pulse of how much cash is left and whether that will carry the company through to successful financing has never been more consequential.”

KNOW YOUR COMPETITION

“If you’re talking about something like a hot sauce, or a food product where the ability to get shelf space is practically zero — that’s not really interesting for me,” he explains. “I tend to be focused on the product, the service, the market and of course, the people. But right out of the gate if it’s an overly competitive space: that’s a huge negative.”

MASTER YOUR EMOTIONS

Emotional reactivity can influence perception and behavior, and ultimately impact your business’ bottom line.

“Don’t get emotional about business,” O’Leary advocates. “Understand what it’s all about. Don’t let your emotions make decisions — let the numbers decide for you.” ■