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Marcus 'The Profit' Lemonis Reveals 2 Common Mistakes That Destroy Businesses

Oct 29, 2014, 21:28 IST

Retail executive and serial entrepreneur Marcus Lemonis is famous for his brutal honesty with struggling businesses on his CNBC show, "The Profit."

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In the show, Lemonis invests in various companies that are heading for disaster and he tries to execute a turnaround.

So far, he has invested $7 million of his own money in the companies featured on the show.

Lemonis is also the CEO of Camping World and Good Sam Enterprises, which recorded nearly $2.5 billion in sales in 2013.

We asked Lemonis to tell us the two most common mistakes he encounters among business owners. Here's what he told us.

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1. Overconfidence. "I see so many people believing their own press and thinking that their own ideas are the best ones," Lemonis said.

Business owners have to not only listen to others' ideas, but also be willing to implement them, he said.

2. Lack of investment in good hires. "Not hiring good enough people and thinking you don't need people at all" is a recipe for disaster, Lemonis said.

"When I hear someone say, 'I can't afford to hire that person,' it's almost always the case that they can't afford not to hire that person," Lemonis says. "Why did you start a business if you aren't willing to invest in it?"

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