In 1973, Barbara Corcoran took a $1,000 loan and turned it into a multi-million-dollar real estate empire. Since then, she’s become a mainstay on the hit show Shark Tank, investing in dozens of companies and becoming a role model for anyone with big dreams.
When it comes to razor-sharp entrepreneurial instincts, there aren’t many out there who can top the 76-year-old. She’s a “shark” through and through, which is why we were thrilled to have her join Work in Progress, our new series on LinkedIn (subscribe right here) in which we pick the brains of the best in business.
We spoke to Corcoran about the one deal she regrets passing on, who she thinks is the show’s best negotiator, and a whole lot more. Let’s dive in.
What’s the toughest deal you’ve ever closed?
Every deal has its quirks, but the most unique deal I closed made me $1 million in a single day. I was tasked with selling 88 empty apartments at a time when no one in New York was buying, and I was on the brink of bankruptcy. I thought back to a puppy sale I’d seen in New Jersey, where the farmer had a line down the block for his eight Jack Russell puppies.
I priced all 88 apartments alike and told each of my brokers to bring only their best customer, because there wouldn’t be enough apartments to go around. The day of the sale, I had 150 people lined up for those 88 apartments. It created a buying frenzy! Every apartment sold within the hour.
Is there a deal you passed on that you wish you would’ve made?
That sponge with the face! Those things print money. I thought it was a silly product, but Lori [Greiner] was smart enough to snap it up and make millions. But with any deal I pass on, my mind is onto the next one the minute the doors close behind them.
Whether you’re on Shark Tank or at any negotiating table, what’s the most common tell that someone’s out of their depth?
I pay close attention to who takes responsibility and who plays the blame game. Six months after Shark Tank, something always goes wrong — the supplier didn’t deliver, the molds were wrong, an employee messed up. But the minute an entrepreneur starts blaming the next guy, I know it’s over and they’re going to lose my money.
Which mistake taught you the most — and how would you coach someone else to avoid it?
I’ve made a lot of mistakes in business, but I don’t regret any of them. All my best successes happened on the heels of failure. It’s the best way to learn and bounce back stronger. I learned that the harder the ball hits the pavement, the bigger the bounce. You just have to stay in the game long enough to see it come back.
I blew my first $75,000 profit on what I thought was a great idea — to put all our listings on video tape. None of my agents wanted to risk losing a client to another broker [who appeared] on the tape, so no one handed out the tapes. It was a total flop! A few months later, I learned about this new thing called “the internet.” I registered my URL, pulled the tapes out of storage, and put them online. We had two sales out of London within a week.
Other than yourself, which shark do you think is the best negotiator?
Mr. Wonderful is the ultimate negotiator. He can talk anyone into a royalty deal.
What qualities do you look for in an entrepreneur you’re considering backing?
I invest in the person, not the product. I have a quick litmus test to assess the business: Does the product make sense? Will people buy it? Then, I focus on the entrepreneur. Do I like them? Trust them? Do they have the qualities needed to be a successful entrepreneur?
I’ve invested in hundreds of entrepreneurs over the years, and I’ve learned the most successful ones have many traits in common: They’re not afraid of risk and they’re super competitive. They have wild enthusiasm and know how to bounce back from failure. If it’s a partnership — and the best entrepreneurs often are — the partners have opposite traits and complement each others’ strengths and weaknesses.
Who’s a current CEO or entrepreneur you admire?
Danny Meyer. He’s a master culture-builder and proves that if you treat your team well, they’ll treat your customers well. And I can never say no to a good ShackBurger and fries!
What’s your go-to power outfit?
The best power outfit is one that looks the part. I spent my first $340 commission check on a real fur coat from Bergdorf Goodman. It made me look like the power broker I knew I’d become.
When I was competing with the Old Boy Network in New York real estate, I knew I had to find a way to stand out and be seen. So in a sea of black and grey suits, I opted for a bright-red power suit so that everyone saw me coming.
If you could hire one fictional character to join your company, who would it be and why?
Ted Lasso. Who wouldn’t want him on their team? He’s got every quality of a good leader: He’s got a positive attitude, cares about every team player, walks the talk, and really knows how to motivate a team.
