Barbara Corcoran from Shark Tank: Give It a Shot, Even If You Fail

Since it’s National Small Business Week, I’ve got a special treat for you – a chat with the amazing Barbara Corcoran. You might know her as a serial entrepreneur, best-selling author, and the lively co-star of the super popular show Shark Tank.

Barbara’s got some interesting thoughts on entrepreneurship these days. We talked about her most successful investment, how she defines success, and what really drives her up the wall: investing in a company that doesn’t share her love for business.

USamerica.US: So, what does it tell you about entrepreneurship today when you sit in front of all the different contestants on Shark Tank and listen to their pitches?

Barbara Corcoran: Well, let me tell you, it’s not just the people on Shark Tank who are entrepreneurs. It’s the cab driver who drove me to the set, it’s the waitress who’s excitedly telling me about her new idea. It seems like everyone has a business idea these days! Now, I have to admit, some of these ideas may sound pretty silly at first. I might even think they won’t go anywhere. But who am I to judge?

So here’s the thing: I totally bombed with my first business, the Flower of the Week Club. But you know what? I didn’t let that stop me. I dusted myself off and tried again with my second business, and guess what? It worked! So, here’s the lesson I’ve learned: sometimes, you just gotta go for it. Tell people about your big dreams and give them a shot. Because trust me, you don’t want to end up on your deathbed with regrets of what you could have done.

Now, let’s talk about something interesting. In an interview, someone brought up how technology has made it easier to bring ideas to the market. But you know what? I think it’s not that simple. Yes, technology has made some things easier, but it doesn’t mean it’s a cakewalk. There are still a lot of challenges to overcome, even in today’s world. It’s like a puzzle that keeps changing. You gotta stay sharp and adaptable.

Barbara Corcoran: Let me tell you about a great option for small businesses: crowd funding. It’s like a magical boost! If you can explain your idea well and show regular folks that you’re onto something great, they’ll gladly chip in with ten to a hundred bucks and believe in you. This kind of support was unheard of in the past. In my opinion, crowd funding levels the playing field. It gives you the opportunity to be discovered online. If you’re resourceful, can write an awesome blog, and have a knack for getting people to like you, you’ll have an equal chance to succeed.

I wanted to talk to you about something that’s been on my mind lately. It seems like there are more options available now for funding small businesses. And I’m not talking about those fancy investors, but rather something called Fund Box. They recently came on the scene and offer a unique service. They allow you to fund your outstanding invoices, which might not sound like a big deal at first. But let me tell you, it can become a real game-changer if you’ve been relying on credit cards to fund your business. When you have invoices that you can’t turn into cash, it becomes a pretty big deal, and Fund Box can help with that situation.

Now, I have to admit, it’s not all sunshine and rainbows out there. These days, there’s so much noise and clutter, everyone is vying for your attention, constantly trying to grab your eyeballs, ears, and everything in between. It’s becoming harder and harder to get people to listen to you. And this is not just a problem for small businesses; big businesses are struggling with it too. So, while there are certainly challenges, overall, I think there’s more good news than bad in the end.

USamerica.US: How do entrepreneurs measure both the intangible and tangible aspects of their business? How does this help you understand what your business is all about?

Barbara Corcoran: I’m not a numbers person. I never really read financial statements. Even though I managed a big business with thousands of employees, I relied on a partner who was great at that stuff. You don’t have to be a math genius to be successful in business. Sometimes, all that left-brain analysis can hold you back because you don’t always make decisions based on logic and reason. Sometimes you have to follow your gut and trust your instincts. But of course, you have to think things through and have a good reason for your choices.

It’s awesome to hear that someone is making sales, but I personally believe in the potential of those sales. It’s about using your own common sense to figure out if enough people might actually buy the thing.

For me, what matters the most is my trust in the entrepreneur. Are they the right kind of people? Do they have the qualities that will lead them to success? Or are they not cut out to be an entrepreneur? I focus 90 percent of my attention on the entrepreneur, and the remaining 10 percent on the business itself.

USamerica.US: So, which company that you invested in was the most successful, and why did you consider it a success?

Barbara Corcoran: There are two ways to measure success, in my opinion. One is by the amount of money you make, and the winner in that category is Grace and Lace. They create beautiful lacey socks, shawls, and women’s clothing. Their designs are incredibly appealing, but that’s not the only reason for their success. They have a fantastic product that sells like crazy. In just three days after appearing on Shark Tank, they sold over a million dollars worth of merchandise. That’s the most successful in terms of making money for me. In fact, I earned a twenty-fold return on my investment in just two years. That’s pretty impressive.

But let me tell you, the businesses that really impress me are the ones that I believe have the potential to expand the most; the ones that I could grow to become giant enterprises. And you know what’s interesting? All the successful entrepreneurs I’ve seen possess the same qualities. They all have the incredible ability to take a hit and bounce right back without feeling sorry for themselves. They’re not just book smart, they have that street smarts, that cleverness that comes in handy in any situation. They think quick on their feet and they are fiercely competitive. These traits are what make the best businesses stand out.

Now, if you were to ask me about the business opportunities aspiring entrepreneurs should focus on in the next four to five years, let me share my thoughts with you:

Barbara Corcoran: I don’t think there’s a clear-cut answer to that because entrepreneurs includes a diverse group of individuals. The key to a successful business, in my opinion, lies in the passion and dedication of the entrepreneur towards their product or service.

When someone is genuinely excited about what they offer, it usually means they excel at it. After all, we don’t usually get excited about things we’re not good at, right? So if you have something that genuinely excites you, that’s the path you should follow.

USamerica.US: What frustrates you more? Missing out on a contestant who you strongly believe will succeed or choosing someone who ends up not meeting your expectations?

Barbara Corcoran: When I don’t find an entrepreneur that excites me, it’s like a painful hit. I put in a lot of effort and couldn’t secure them, and it bothers me. I’m really competitive. I feel upset because someone else got them, not because I didn’t. You could say my competitiveness is absurd, right? But once they leave the show, I forget about them. I don’t dwell on them, and sincerely hope they succeed with their new partner. Too bad it wasn’t me.

But on the flip side, when I choose an entrepreneur, pour all my energy into working with them, and they turn out to be a lousy entrepreneur without the drive, work ethic, or spirit required, it really hurts. They’re just wasting my time.

In my office, I have a special wall where I proudly display all the entrepreneurs I’ve invested in. Each one is framed beautifully, capturing their spirit and vision. It’s a constant reminder of the faith I have in their potential. But there’s something important I’ve learned along the way – not every entrepreneur shares my level of drive and passion for success.

When I sense that a particular individual lacks the same intensity and determination that I bring to the table, I take their photo off the wall and flip it over. It’s a symbolic gesture that signifies my decision to move on. From that point on, I don’t waste any more time or energy thinking about them. Why? Because I know they won’t make it.

Now, let’s shift gears and talk a bit about my exciting partnership with Canon.

Barbara Corcoran: You might think this sounds silly, but why does a normal copy machine have to be longer than it is wide? It takes up too much room, and that’s how I feel. Plus, they’re really unattractive to look at. That’s why I prefer the compact Maxify printer. When they asked me to work with them, I told them to send me the machine. I decided to put it up against the best-selling machine on the market and observe my office staff. And you know why Maxify won over the other machine? It doesn’t waste time warming up, and I can fit two Maxify printers side-by-side in the same space as my old clunker with the big side-wing that looked like a barbecue machine. I should’ve never bought that thing in the first place! So, I really appreciate the neatness of the Maxify, you know?

And even though I have a big, successful business now and invest in lots of places, I hate losing money when I don’t have to. So I always find the cheapest way to do something more than once. And before I joined up with the Maxify printer, I did the math and discovered that it’s less expensive per page than all my other machines.

USamerica.US: I have one last quick question. It just popped into my head from a friend on Facebook. She heard that it’s harder for women to get money for businesses compared to men.

Barbara Corcoran: It’s true. There’s a famous study from Harvard that was done about 18 months ago — and I hope I’m explaining it correctly — but it definitely showed that men receive funding from angel investors three times more than women. And they had really smart women go in and make the pitch.

I saw something really interesting the other day. They brought in some really smart people to give a presentation to potential investors. These people were experts in their field, and they made the exact same pitch. But you know what happened? Two out of three of the investors chose to fund the projects presented by the men. Only one out of three chose the projects presented by the women. It’s hard to argue with those numbers. They even took it a step further and tested it with video pitches. They used the same video pitch, but with different voices. One had a male voice and the other had a female voice. Both voices were equally credible, but guess what? The male voice got twice as much funding as the female voice. It’s definitely true, no question about it.

USamerica.US: Well, let’s end things on a positive note. What advice would you give to people who have a great idea and the passion but just need a little push to achieve success? What would you tell them?

Barbara Corcoran: It’s really important to ask yourself, when you’re 60 or 50 and you haven’t done it yet, and you’ve been carrying this idea in your heart and head for a while, how will you feel? I’ve met so many people who have started businesses, succeeded, failed, succeeded again, failed again. And let me tell you, I have never met anyone who regretted trying. Even if they lost their house – they didn’t regret giving it a shot. But I’ve met plenty of people who always wonder. They wonder what could have happened. They wonder if they could have become wealthy. What a waste of a life spent on wondering. I believe you have to give it a try, and the sooner, the better. Before you have kids, a mortgage, and the weight of life on your shoulders.