"Family love is not product" - Shark Tank's Kevin O'Leary urges selling beyond friends and inner circle

Shark Tank investor Kevin O'Leary, in a recent video on his Instagram, pointed out that entrepreneurs often find solace and comfort when their products are a hit among their family members.

However, that can not be defined as success or growth in his eyes. Even though it might feel reassuring when just about anyone buys the product, despite them being one's inner circle of friends and family, it is not a true sale.

He says that even though it is emotionally fulfilling, it does not equate to actual market demand. He urges entrepreneurs to find people outside of an "arm's length" and see if the product is valid.

This distinction made by him is critical because businessmen often mistake the familial enthusiasm for product-market fit. The Shark Tank investor made it clear that families support our love and not necessarily our consumer needs. He wrote,

"Family love is not product validation. You need real, paying customers—people who don’t owe you a damn thing. That’s when you know your idea works."

Shark Tank's Kevin O'Leary asks entrepreneurs to find customers outside of their family base

Kevin O'Leary, the Shark Tank investor, says that true validation comes from impartial, paying customers. It is because these people owe nobody anything and are not emotionally invested in one's success.

The only incentive that they have is that the product being sold solves a problem, or meets a need, or offers them something that they genuinely want. Kevin says,

"The most important thing is to get a customer for your idea that is not your mother, brother, sister, or uncle. Someone that is independent, at arm's length that sees the merit in your product and is willing to buy it at whatever price you can sell it for. That's the confirmation that your idea works."

He added,

"Because, most of the time, I see companies who say, 'Well, my whole family buys this.' Of course they do, they're your family. They want to be supportive. But that does not determine you whether the market wants it. I've got to see real sales from, you know, independent people."

Pointing out the solution to finding these customers and how an average entrepreneur can seek them, the Shark Tank investor says that marketing is free in the digital age if one knows how to sell by telling a story.

It all boils down to social media and being able to produce great content that tells the story of the product or service that people can see.

This allows the entrepreneurs to test the waters at a low cost, where platforms like Instagram, TikTok, and YouTube come into play. Via this, an entrepreneur can cultivate a base of genuine customers without driving into costly digital marketing campaigns.

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Episodes of Shark Tank season 16 release weekly on ABC at 8 PM Eastern Time on Fridays. They are later available to watch on Hulu.

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