"They're feeling more optimism"- When Shark Tank investor Barbara Corcoran explained how entrepreneurs adapted amid high interest rates

During an interview with Bloomberg Open Interest on August 14, 2024, Shark Tank investor Barbara Corcoran highlighted that while small business owners initially expressed concerns, many have started to see opportunities. She stated,

"I'm feeling more optimistic as they are greatly affected by business loans and they're expecting rates to come down somewhat. So they're feeling more optimism, I would say, overall across the board."

This shift in perspective has led business owners to adjust their strategies to navigate financial challenges effectively. The Shark Tank investor underscored that entrepreneurs have adapted to high interest rates by shifting their focus toward solutions rather than concerns about borrowing costs.

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Shark Tank Barbara Corcoran's insights on how entrepreneurs overcame high interest rates

Entrepreneurs adjust to market conditions

Many business owners have changed their approach in response to higher borrowing costs and real estate expenses.

Barbara Corcoran explained that the most successful entrepreneurs focus on solutions rather than concerns, highlighting that business owners themselves are responsible for overcoming challenges and driving their businesses forward.

She also noted that fear often prevents businesses from progressing, but those who move forward strategically can gain a competitive edge. Corcoran stated,

"What I have learned in business, every time I move my own business, it was in the worst of times that everybody was a naysayer, because when those times hit, everybody is laying low and everybody is afraid to move ahead."

According to her, these periods can present opportunities for entrepreneurs to capture market share while competitors hesitate.

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Lessons from past economic cycles

The Shark Tank investor provided historical context, comparing the current situation to past periods of high interest rates. She recalled that interest rates were once significantly higher than they are today and that businesses found ways to adapt. She stated,

"I do remember when interest rates were 18% and everybody was afraid of buying except the super rich because they had the capital behind them to go out there and pay all cash for anything they wanted."

This reference to previous economic conditions suggested that businesses that remain flexible and adjust their strategies can still succeed despite market fluctuations. She also shared how she adapted during previous high-rate environments.

When real estate sales declined, she shifted her business strategy, explaining:

"At that time, when interest rates were 18%, I remember making the actual decision in one day to switch my business half way out of sales and go into rentals to move with the market."

Her experience illustrates how business owners can pivot their focus in response to economic changes.

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Identifying opportunities amid market challenges

Despite concerns over costs such as real estate and labor, Corcoran emphasized that business owners should focus on identifying new opportunities. She stated:

"The only thing that counts in growing a business is what can you do about it? And certainly you have no control over the rates."

This perspective suggested that instead of waiting for conditions to improve, entrepreneurs should find ways to work within the existing environment. She also pointed out that periods of uncertainty often create opportunities for those willing to take action. Corcoran noted,

"I tell people that whenever there's a change in the in the making of business and everybody's afraid just to look around and see where you could take advantage."

The Shark Tank investor's comments suggested that businesses that adapt quickly can gain an advantage over those that hesitate.

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