Barbara Corcoran, a prominent figure in real estate and an investor on the popular show Shark Tank, emphasizes that financial backing is not a necessary condition for launching a successful business. During her interview on The Rachael Ray Show on November 2, 2016, she discussed pivotal moments and strategies that contributed to her noteworthy achievements.
In her account, Corcoran pointed out that a substantial number of successful business leaders emerge from humble beginnings, including herself. She stated:
“Well first off the great majority of people who start businesses come from poor families, I was one of them. You don’t need money to start a business.”
With only a $1,000 loan while working as a waitress, Corcoran turned her modest start into a thriving real estate venture valued at $66 million.
Strategies Behind Barbara Corcoran’s $66 Million Success
Launching a Business with Minimal Capital
Corcoran detailed her strategy for building a successful enterprise without substantial financial resources. She highlighted the necessity of meticulous planning and expense management right from the start:
“One thing I knew is I knew right away I was going to need a plan because I only had $1,000.”
With a clear understanding of her financial limitations, she calculated her monthly operating costs at $480. This budget covered renting a desk, securing a phone line, and running a classified advertisement in The New York Times. To remain afloat, she focused on generating revenue swiftly. Corcoran reflected:
“Once thing I knew is I only had six weeks to stay in business and I had to hit the floor running and make a commission fast and luckily for me I did.”
Her strategy included reinvesting profits into her business. For every additional $480 that she earned, she would hire another salesperson, gradually building a team that expanded to over a thousand sales professionals.
The Importance of Presentation and Confidence
Corcoran also underscored the critical role of personal presentation and self-confidence in entrepreneurial success. She remarked that entrepreneurs must genuinely believe in their own worth to effectively attract clients. She emphasized:
“Acting the part I have found is nothing more than convincing yourself you’re deserving of the business.”
Corcoran acknowledged that many new entrepreneurs grapple with self-doubt, which can inadvertently undermine their credibility in the eyes of potential clients. To project an image of success, she invested her first commission check in a luxury coat from Bergdorf Goodman, which later inspired her iconic red suit. This choice, she argued, played a vital role in establishing her business identity.
Effective Organization and Task Prioritization
Organization emerged as a key theme in Corcoran’s business philosophy. She recounted how growing up in a large family instilled in her the importance of structured routines, as her mother adeptly managed a household of ten children.
Applying these lessons to her business, Corcoran developed organizational strategies, including a color-coded system for managing various business segments. She explained:
“I do three types of segments: self-improvement, real estate, and of course business advice… I only have three colors.”
Additionally, she employed an “A, B, C”prioritization method to tackle high-stakes tasks first, ensuring that the most critical activities were addressed promptly for maximum impact.
If you’re interested in witnessing aspiring entrepreneurs present their ideas, tune into Shark Tank every Friday at 8 PM ET on ABC or catch the latest episodes on Hulu.