Want to know what really matters when investing in a business? Barbara Corcoran, real estate mogul and “Shark Tank” star, said it’s not the financials — it’s the founder. After backing over 140 businesses, she’s learned to trust her gut over spreadsheets.
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Here’s how Corcoran decides whether or not to invest in a business.
Why Resilience Matters More Than Revenue
Corcoran believes it’s the entrepreneur that makes a business successful — not the business itself.
“You could be in the business of plumbing supplies,” she said while appearing on “Lo on the Go.” “I don’t even pay attention to business. I’m just focused on the entrepreneur. Are they good at getting back up? If they take a hit, are they going to get back up fast?”
Corcoran credits her own resilience to her business success.
“When I think about all I did to build my business, I think it was more about being able to get back up,” she said. “It’s the same thing with all the great entrepreneurs.”
Even if you’re struggling, if you keep going, you’ll eventually turn things around.
“Just get up and stay in the game,” Corcoran said. “The luck’s going to come around once in a while.”
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Why Accountability Is a Must for Entrepreneurs
Another characteristic that sets successful entrepreneurs apart from those who fail is their ability to take ownership when things don’t go as planned. When Corcoran meets with the “Shark Tank” business owners she has invested in, she looks for this trait.
“If they start doing a blame game, I write them right off,” Corcoran said. “I just know that they’re never going to make money because they’re a victim. You’ve got to take responsibility, even if it’s not your fault. If you own the business, eat it up and get going.”
The Surprising Trait Behind Corcoran’s Biggest Investment Win
Corcoran’s most profitable “Shark Tank” investment was in The Comfy, a wearable blanket company. She invested $50,000 for a 30% stake in the business, and in just three years, her initial investment grew to $468 million. But she didn’t invest in the company because she loved the product.
“I just bought in because I thought they were fun guys I’d like to have a drink with,” Corcoran said.
Whether you’re pitching investors or building your own business, Corcoran’s advice is clear — resilience, accountability and likability can be worth more than a perfect pitch deck.
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This article originally appeared on GOBankingRates.com: Barbara Corcoran’s Secret to Picking Million-Dollar Businesses on ‘Shark Tank’
