“Ruins thanksgiving dinner”— Shark Tank investor Kevin O’Leary advises to separate family and business

Modified Nov 24, 2024 15:33 GMT

Shark Tank investor Kevin O'Leary also known as Mr. Wonderful has invested in many small businesses on the show. He, however, has rules when it comes to involving family in business which is to not mix both of them. Mr. Wonderful shared that his extended family had previously reached out to him asking for money or loans.

Kevin has a no-loan policy with his family members and shared he wanted them to consider the amount he gave them as a gift. In a video posted to Kevin's official YouTube channel on September 6, 2024, he shared that he doesn't want to have business partnerships with his family. Kevin said:

"Family member comes to me and says 'Look, I want to build a restaurant. I need you to give me $150,000 to get started.' I don’t want to go into partnership with somebody in my extended family. That really ruins thanksgiving dinner.”

Kevin explained that expecting a family member to give back his loan would be a "real issue" and if they are struggling financially it wouldn't be easy for them to return the amount right away. Kevin said this is why he makes a "generous" contribution by giving them a gift that would help them out.

Shark Tank investor Kevin O'Leary shares advice about making deals with family members

Shark Tank investor shared that he doesn't mix family with business. According to him "money destroys families" when it's too much of it. He stated that the rule behind not making deals with extended family or investing in their businesses comes from a place of establishing healthy boundaries.

Mr. Wonderful aka Kevin mentioned that he never gives a loan to his family members when they ask for money or help. Instead, he gives them the amount as a "gift" without wanting a return. He also mentioned that this gift comes with a condition for them to never ask him for money again. According to Kevin, he placed this condition to manage the expectations of his family.

The Shark Tank star further explained:

"So what I say to them is: 'Look, you've never asked me for money before, I'm going to give you, in that case, $50,000. It's not a loan, it's a gift. I never want it back from you on one condition and one condition only: you never ask me for money again — ever, ever. You never come to me again for money and we never talk about this again, ever."

In another clip posted to his official Instagram account on September 13, 2023, Kevin said:

"Money destroys families sometimes when there's too much of it; it just does."

The Shark Tank star also mentioned that caring for family is important but he wouldn't want to invest in for example a disco business. He admitted that he wouldn't want to invest in every business started by his family members. Kevin elaborated on his no loans and gifts-only rule:

"Well, no, I don't want to be in the disco business, and in the bar business, and the restaurant business — those are businesses I don't want to invest in. I've faced that in our own family and I've decided no loans, gift, never ask again."

All previous episodes of Shark Tank are available on ABC. Viewers can follow Kevin on his official Instagram account.