What role did Barbara Corcoran's father play in shaping her?

Her father's struggles with authority, his drinking, and the fear he sometimes instilled led Barbara to become a 'control freak' and develop a strong aversion to being talked down to. This fear also led to her mother protecting the children, influencing Barbara's protective nature towards her own employees.

Why does Barbara Corcoran believe being dyslexic helped her business career?

She believes that her struggles with reading and writing in school fueled a deep-seated drive to prove she wasn't stupid. This insecurity, while painful, pushed her to excel in every job and ultimately to build her own successful business empire.

What is Barbara Corcoran's strategy for dealing with negative employees?

Corcoran views negative employees as 'thieves' who drain energy and morale. She believes in firing them quickly, ideally on a Friday, and advises not giving specific reasons like 'negativity' to avoid arguments, simply stating they don't fit the company.

How did Barbara Corcoran create a successful company culture?

She prioritized fun and team bonding, organizing unique parties and activities that broke down barriers and made the workplace enjoyable. This approach led to extremely low turnover, as employees preferred the fun environment to higher commissions elsewhere.

What is Barbara Corcoran's advice for aspiring entrepreneurs?

She advises entrepreneurs to focus on people and ambition, not just business plans. She also prefers investing in entrepreneurs who grew up poor and have something to prove, as they tend to be more driven and resourceful than those from affluent backgrounds.

Does Barbara Corcoran believe in treating all employees the same?

No, she believes leadership requires customizing treatment to individual needs to get the best out of each person. She was never 'even-handed' and made biased decisions based on what would motivate each unique employee.

What is the most important quality Barbara Corcoran looks for in a business?

She emphasizes quality of the entrepreneur over the business itself. She looks for trust, the ability to overcome adversity, ambition, and drive, often relating to founders who have overcome significant personal challenges.

How did Barbara Corcoran handle out-earning her husband, Bill?

It was a struggle initially, causing her to feel less feminine and even hide her success. Bill, being an accomplished former FBI agent and Navy Captain, had a higher 'bulletproof' ego, but eventually, he found his identity overshadowed by her growing fame and wealth.

What is Barbara Corcoran's approach to learning from failures?

Her greatest lesson is the habit of getting back up after failure. She believes that by getting up, you will inevitably find new opportunities and possibilities to pursue.

Why did Barbara Corcoran prioritize hiring people who make eye contact and have good lighting?

She believes these elements indicate confidence, ambition, and a willingness to present one's best self. During her hiring process, especially during the pandemic, she found these indicators crucial for assessing a candidate's potential.

What is the key to being a great boss, according to Barbara Corcoran?

The cardinal rule is understanding that 'I work for you, you don't work for me.' A great boss selflessly showers their people with support, making their jobs easier and helping them grow, which ultimately benefits the boss as the team advances.

Key Moments

Barbara Corcoran: Turning $1,000 to $1Billion! | E204

The Diary Of A CEO

People & Blogs5 min read72 min video

Dec 15, 2022|2,711,293 views|77,521|3,246

The Diary Of A CEO steven bartlett steve bartlett podcast the diary of a CEO podcast life lessons CEO

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TL;DR

Barbara Corcoran's journey from a challenging childhood to a real estate empire founder.

Key Insights

Childhood disadvantages, like dyslexia and poverty, can forge resilience and drive.

Early life experiences, including family dynamics and parental influences, significantly shape character and skills.

Fear of failure and a desire to prove oneself can be powerful motivators in business.

Success in business hinges on people skills, efficiency, and creating strong company culture, not just numbers.

Learning from every job, even menial ones, provides invaluable life and business skills.

Embracing challenges, reframing insults as motivators, and taking responsibility are crucial for entrepreneurial success.

EARLY LIFE AND THE MAKING OF A COMPETITOR

Barbara Corcoran's upbringing in a crowded household of ten children fostered intense competition for attention, which she credits with developing her exceptional ability to build effective teams and quickly assess people's strengths. Her parents, though hardworking and loving, faced financial struggles, yet instilled a strong work ethic and a sense of security through their love. This environment taught her the importance of collaboration and understanding group dynamics to navigate life and ultimately, business.

OVERCOMING ADVERSITY: DYSLEXIA AND EXTERNAL MOTIVATION

Corcoran's struggles with dyslexia in school led to negative self-perception and a teacher's harsh judgment, fueling a lifelong drive to prove her intelligence. This perceived inadequacy became a profound motivator, pushing her to excel and demonstrate her capabilities. She acknowledges that while this insecurity fueled her success, it also highlighted the need for self-awareness and personal growth, though she humorously avoids traditional therapy, preferring self-reliance.

THE VALUE OF EXPERIENCE: 22 JOBS AND LIFE SKILLS

Before founding her real estate business, Corcoran held over 22 diverse jobs, from receptionist to waitress. She views these roles not as mere employment but as critical learning experiences. Waitressing, in particular, taught her invaluable skills in customer service, sales, organization, and quick thinking—abilities that directly translated into her success in building and managing her real estate empire by understanding people and creating efficient systems.

BUILDING AN EMPIRE: INNOVATION AND THE OLD BOYS' NETWORK

Corcoran revolutionized the New York real estate market by competing against the complacent 'old boys' network. Her innovative approach involved creative publicity stunts and rapid decision-making, contrasting sharply with the established firms' slow, bureaucratic processes. She capitalized on her agility and willingness to take risks, outmaneuvering competitors who were resistant to change and underestimated her capabilities due to her gender and lack of privilege.

THE POWER OF CULTURE: FUN, TRUST, AND TEAMWORK

A core element of Corcoran's success was cultivating a vibrant company culture centered on fun, trust, and individual recognition. She believed that fostering a joyful environment, through unique parties and spontaneous gestures, created strong bonds and loyalty among employees. This approach minimized turnover by making the workplace enjoyable, proving that investing in people's happiness and a sense of belonging is paramount for long-term business success.

TURNING SETBACKS INTO TRIUMPHS: RELATIONSHIPS AND RESILIENCE

Corcoran's journey was marked by significant personal and professional challenges, including a business partner leaving with her assistant and later, her husband, Bill, struggling with her out-earning him. She emphasizes that setbacks, like her business partner's departure, often provide critical impetus for growth. Her philosophy is to learn from every failure, get back up, and view challenges as opportunities, showcasing resilience and adaptability as essential traits for any entrepreneur.

THE GENIUS OF PEOPLE: AMBITION OVER PASSION

Corcoran prioritizes people skills and ambition above all else in business, often choosing entrepreneurs based on their character rather than just their business plan. She values individuals who are driven, resilient, and possess a strong work ethic, particularly those from humble beginnings who have something to prove. This focus on the entrepreneur's spirit and drive, rather than just financial projections or passion alone, has been a key predictor of success in her investments.

LEADERSHIP PHILOSOPHY: SERVING YOUR TEAM

Barbara Corcoran operates under a leadership model where the boss works for the employees, not the other way around. She believes in showering her team with support, understanding their individual needs, and empowering them to grow and succeed. This philosophy of selfless service fosters loyalty and high performance, enabling the company to thrive as employees feel valued and supported, ultimately carrying the leader forward through their own success.

IDENTIFYING AND MANAGING NEGATIVITY

Corcoran has a strong aversion to negativity and complaining in the workplace, viewing it as a drain on energy and productivity. She advocates for quickly removing chronic complainers, while valuing constructive criticism that leads to improvement. Her approach, influenced by her mother's method of addressing disputes, is to decisively address negativity to protect the positive workforce and maintain a high-performing, optimistic environment, emphasizing that good energy is a business's most valuable asset.

THE ART OF THE COMPLIMENT AND TRUST

Genuine, specific compliments are a powerful tool for Corcoran in recognizing and reinforcing positive contributions. She believes in identifying the unique gifts in individuals and nurturing them, as demonstrated by her turning a mediocre salesperson into a successful advertising manager. Crucially, she believes the greatest compliment is offering trust, an acknowledgment that people are often more capable than they realize, fostering confidence and encouraging them to reach their full potential.

ASSESSING CANDIDATES: EYE CONTACT AND PROFESSIONALISM

In evaluating potential employees, Corcoran looks for key indicators of professionalism and drive, such as making direct eye contact and maintaining good lighting during virtual interviews. These seemingly small details, she argues, reflect a candidate's aggressiveness, self-care, and seriousness about the opportunity. She prioritizes meeting candidates in person to gain a thorough understanding, reinforcing her belief in the importance of personal connection and observation in hiring.

LEARNING FROM FAILURE: THE HABIT OF GETTING BACK UP

Corcoran's greatest lesson from failure is the imperative to get back up, viewing this resilience as a habit that unlocks new opportunities. She emphasizes that setbacks are inevitable, but the ability to quickly recover and identify new paths forward is what distinguishes successful individuals. This core principle underpins her entrepreneurial philosophy: face challenges head-on, embrace responsibility, and continuously strive forward, making resilience a non-negotiable aspect of success.

Mentioned in This Episode

●Products

●Software & Apps

●Companies

●People Referenced

Barbara Corcoran's Business and Life Philosophy

Practical takeaways from this episode

Do This

Embrace competition as a motivator.

Build strong, cohesive teams by understanding individual needs.

Leverage everyday experiences for learning and skill development.

Cultivate a fun and imaginative company culture.

Focus on people and ambition over just business plans.

Hire individuals who are not negative or chronic complainers.

Give genuine, specific compliments to motivate employees.

Trust people and recognize their potential beyond their current self-perception.

Develop systems for efficiency and business growth.

Be agile and willing to take calculated risks.

Learn from setbacks and take responsibility for failures.

Treat employees by understanding their individual needs and motivations.

Hire and meet people in person when possible.

Maintain eye contact and good lighting during interviews to show confidence and care.

Value energy and positivity in your team.

Avoid This

Don't let unhealthy insecurities drive you without seeking help.

Don't avoid seeing a therapist if needed; sometimes it's cheaper than the alternative.

Don't shy away from being the boss; embrace it.

Don't underestimate your ability to create publicity and new ideas.

Don't be complacent or slow like the 'old boys network'.

Don't settle for boring parties; create unique and fun experiences.

Don't tolerate negative employees; they drain energy and ruin the team.

Don't tell employees the specific reason for firing them (e.g., negativity) as it leads to arguments.

Don't invest solely based on a business plan; choose the entrepreneur.

Don't be afraid of losing money from rich kids' investments; it's not 'sweat equity'.

Don't measure people solely by money or wealth.

Don't rely only on passion; look for commitment and drive.

Don't let your father's or mother's past dictate your present.

Don't shy away from conflict resolution; make people figure it out.

Don't measure success by pure financial gain alone; consider impact and influence.

Common Questions

Growing up in a crowded household with ten children fostered a strong sense of competition and the ability to quickly assess and build teams to get attention. Her parents' work ethic also instilled a deep sense of the importance of hard work.