COVER STORY Shark Tank Star Barbara Corcoran Shares Her Formulas for Entrepreneurial Success “Having the ability to bounce back is the essence of a great entrepreneur,” says Shark Tank star investor Barbara Corcoran. All Photos Courtesy of ABC-TV, Shark Tank B Y S AMANTHA J. H ENRY C ONTRIBUTING E DITOR R EAL ESTATE MOGUL, AUTHOR thinking on your feet fast and using When I finally got to the top of the and reality television personality practical judgment. You also need to mountain, I made sure everyone was Barbara Corcoran knew from be a good salesperson, selling both comfortable and happy. When a man a young age that she wanted to be her your product and personality.” in the same position is halfway up the own boss. From the time she graduated Spotting the Right People: “I think mountain, he’s screaming that he is king college, she worked odd jobs until she I am very good at picking the right of the mountain. Women and men started The Corcoran Group in 1973 people and the best entrepreneurs. often aspire differently. Women have with a $1,000 loan from a boyfriend— I don’t really care about the business, more on their plate. We have the she sold the firm nearly 30 years later honestly. The business has to make babies.” for $66 million. common sense, but it does not have Risks, Startups and the Long Game: As an angel investor and a stakehold- to be this new, unbelievable idea. “Entrepreneurs need to be prepared to er, she is a driving force behind many Almost all of my businesses are in the lose lots of their own money. My success successful companies, as well as a star space in which things have been done ratio is higher because I have the help investor on ABC’s hit reality series Shark thousands of times before. There is of Shark Tank and the contacts born of Tank, where she and fellow business nothing that unique, but what I am many years of investing. If you want to titans Mark Cuban, Damon John, Lori looking for is that unique, exceptional be an investor in a startup business, the Greiner and Robert Herjavec battle for entrepreneur. When I pick out this type great majority of companies won’t make the best deals to capture equity in com- of entrepreneur, the business always you any money, so you better be com- panies run by eager entrepreneurs. turns out to be successful.” fortable with that reality. The winning In this exclusive interview with plays in business always require picking Hardship Breeds Entrepreneurship: COMMERCE, Barbara Corcoran reveals “When you have a privileged back- the right person—finding a great entre- the secrets to picking the right people, ground, you’ve already enjoyed the preneur is the first step, always.” the best investments and what drives riches of what success can bring. You’ve Family Business: “When I was growing her to be an entrepreneur even after gone on the right vacations to the right up, my dad was fired from the printing achieving so much success and earning places, you’ve got what you wanted press pretty much every year. This was millions. Succeeding in business is no in life and you have not had to struggle. bad news for my mother who was accident, and she still—and always— I prefer to invest in entrepreneurs who supporting 10 kids, but it was always plays to win. Here are Corcoran’s key know hardship—that want and need very exciting for me and my siblings. thoughts on business, investing and to prove something and are hungry My dad would come home and say that being an entrepreneur. for success.” he told his boss to ‘shove it up where Women in Business: “Today, there the sun don’t shine.’ We would all cheer Being a Successful Entrepreneur: “First and foremost, it’s having the abili- are more businesses being started by him. It was not that my father was inca- ty to bounce back. That’s the essence women than by men. That’s great news pable, but he was a walking, talking of a great entrepreneur. Second on the because women build tremendous example of insubordination.” list is being competitive in your rise to teams and are also less territorial. When Early Lessons: “What my siblings and the top. The third is having good street I was climbing the ladder with the big I learned was that we did not want to smarts, not book smarts. This involves boys, I was willing to share the credit. work for somebody else. We watched continued on page 38 COMMERCE • www.commercemagnj.com 36
COVER STORY continued from page 36 our father miserably work for somebody nesses of all types and is available thought out business plan. Find out his whole life. We thought he deserved to assist entrepreneurs to help them what strategies could have a direct better than that. I did work for 22 peo- succeed in the Garden State. impact on profitability, know how to ple before I started my own real estate manage your cash flow and have a business. I loved every job I had, no mat- proper budget based on your cash-flow Bederson LLP ter how menial it was. However, I always projections, and hire the right people By Steven Bortnick, CPA, hated having a boss.” for the right positions. Before making Partner Good Advice: “When I was a teenager, any decision, seek advice and support I suddenly had very hairy arms. I was For every entrepreneur, from your advisors and take calculated mortified. A woman with hairy arms! a critical factor for success risks based on solid information. It’s bad enough with all of the other is to understand the regulatory environ- hang-ups you have as a teenager. I had ment in which the business operates. CohnReznick LLP a grandmother who lived with us. She In New Jersey, many businesses are By Martin Picinich, CPA, used to go from bed to bed each night required to obtain licenses and/or per- Partner, Entrepreneurial rubbing our feet and arms. Such a sweet mits to operate; and every entity, in Services Group lady. I remember one night she came addition to federal taxes, faces many to my bed and saw my arms hanging potential levies: state level taxes, As entrepreneurs focus out of my pajamas. She said, ‘Hairy income tax, sales tax, payroll taxes and on launching or growing a business, arms! That means you’re going to be more. Some are quite unique to New it’s critical to have a strong team in rich!’ And you know what—I assumed Jersey, such as the cosmetic procedure place, including an accountant and/or I would be. It’s psychological program- tax, cigarette tax, litter control fees and bookkeeper to maintain books and ming. She spoke with such authority, admission surcharges. Compliance can records of the company. This enables all 4 feet 8 inches of her. Those words be time consuming and difficult; non- the business owner to concentrate on always stuck with me. I believed her.” compliance can literally kill the business strategies, planning and creative think- and hold the owner responsible. ing rather than bookkeeping functions. *** Professional help is key. Even more important, an accurate set Editor’s Note: COMMERCE asked the of books will enhance the entrepre- neur’s ability to use the financial infor- following New Jersey accounting firms, Citrin Cooperman mation in the planning and operating banks and law firms to offer advice for By Anand Madhusudanan, of the business. Cloud-based accounting entrepreneurs, and share some of the CPA, MST, Partner programs and apps can be used in con- keys to success that have helped their Entrepreneurs have junction with accounting programs to business clients thrive, grow and profit instincts that help them enhance reporting capabilities, giving in the Garden State. become successful business owners; entrepreneurs access to information ACCOUNTING however, there are considerations that they need to succeed. can increase their chances of success. As business advisors, we tell our clients BDO USA, LLP EisnerAmper LLP to thoroughly educate themselves about By Mark Giamo, CPA, By Michael A. Aversa, their industry and then develop a well Assurance Office Partner-in-Charge, Managing Partner Private Business Services Surround yourself with To be successful in busi- talented employees and experienced ness, create a proper system of record- advisors (tax, financial, legal, etc.); ing your accounting matters. If you New Jersey has a skilled workforce do not have the experience, invest in and highly accomplished professionals. a bookkeeper to record your activity. Establishing the right team, both inter- Create a monthly balance sheet and nal and external, will have long-term an income statement. It’s imperative to returns. Also take advantage of incen- have a handle on how you’re doing so tives that are offered by the State you’re able to make necessary adjust- of New Jersey, such as the GrowNJ ments. Be proactive and ask questions Assistance Program, lending programs, of your accountant and financial advisor. tax credits, the Technology Business Tax Ask questions as soon as issues arise, Certificate Transfer Program and other such as bringing on a new employee as programs that can assist you financially. an independent contractor or starting The NJEDA is a great resource for busi- to do business in another state. continued on page 40 COMMERCE • www.commercemagnj.com 38
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