1 00:00:00,240 --> 00:00:04,359 Speaker 1: Small business owners are both optimistic and uncertain, the NFIB 2 00:00:04,600 --> 00:00:07,880 Speaker 1: Optimism index rising for a fourth straight month to its 3 00:00:07,920 --> 00:00:11,160 Speaker 1: highest level since February of twenty twenty two. At the 4 00:00:11,200 --> 00:00:15,480 Speaker 1: same time, the Uncertainty intex index also continues to climb. 5 00:00:15,520 --> 00:00:18,120 Speaker 1: Let's get a read on how business owners feel across 6 00:00:18,160 --> 00:00:20,840 Speaker 1: the country. Joining us now is Barbara Corkoran, the founder 7 00:00:20,880 --> 00:00:23,680 Speaker 1: of the Corcoran Group and of course executive producer of 8 00:00:23,760 --> 00:00:26,360 Speaker 1: Shark Tank. Barbara Great having on the program, Thanks so 9 00:00:26,440 --> 00:00:27,520 Speaker 1: much for joining us. 10 00:00:28,120 --> 00:00:29,720 Speaker 2: I want to ask you, thank you very much. 11 00:00:29,800 --> 00:00:32,600 Speaker 1: I want to ask you about your advice to small 12 00:00:32,640 --> 00:00:35,720 Speaker 1: business owners. They come to you time and again for 13 00:00:35,800 --> 00:00:38,600 Speaker 1: help and growing their businesses. And we're at a time 14 00:00:38,680 --> 00:00:40,960 Speaker 1: right now where it looks like the economy is growing, 15 00:00:41,000 --> 00:00:44,559 Speaker 1: but the US consumer is pulling back. What are you 16 00:00:44,600 --> 00:00:45,920 Speaker 1: telling these business owners. 17 00:00:47,520 --> 00:00:49,839 Speaker 3: I'm telling them that someone has to get more of 18 00:00:49,920 --> 00:00:51,960 Speaker 3: a fair share of the market than the next guy, 19 00:00:52,440 --> 00:00:55,880 Speaker 3: and fear stands in the way, Loneliness stands in the way, and. 20 00:00:55,840 --> 00:00:59,520 Speaker 2: It it erodes people's confidence. This always business to be had, 21 00:00:59,560 --> 00:01:00,760 Speaker 2: Why s you have it? 22 00:01:01,000 --> 00:01:03,200 Speaker 3: So I'm getting them to be more aggressive and more 23 00:01:03,240 --> 00:01:05,200 Speaker 3: confident in reaching out, and. 24 00:01:05,200 --> 00:01:07,880 Speaker 4: Of course Barbara on Bloomberg. We talk about the FED 25 00:01:08,000 --> 00:01:10,680 Speaker 4: all the time. We talk about high interest rates all 26 00:01:10,720 --> 00:01:13,319 Speaker 4: the time. Matt has made the point just this morning 27 00:01:13,360 --> 00:01:16,319 Speaker 4: that even if the FED cut rates in September, that's 28 00:01:16,360 --> 00:01:18,000 Speaker 4: going to work with a lag. You're not going to 29 00:01:18,040 --> 00:01:21,360 Speaker 4: feel that immediately in the economy. What is the on 30 00:01:21,400 --> 00:01:24,520 Speaker 4: the ground view, the on the ground perspective that you're 31 00:01:24,520 --> 00:01:28,080 Speaker 4: hearing about how high interest rates are filtering through down 32 00:01:28,120 --> 00:01:29,320 Speaker 4: to small business owners. 33 00:01:30,920 --> 00:01:33,040 Speaker 3: Over the last six months, it's been nothing but a 34 00:01:33,080 --> 00:01:35,560 Speaker 3: series of complaints. I almost put my phone on mute 35 00:01:35,600 --> 00:01:37,840 Speaker 3: when I get a call from someone. But in the 36 00:01:37,920 --> 00:01:41,120 Speaker 3: last month, I would say, once people have passed the fear, 37 00:01:41,160 --> 00:01:44,880 Speaker 3: people are feeling more optimistic. My very tiny entrepreneurs have 38 00:01:45,000 --> 00:01:47,840 Speaker 3: just started within the last year a feeling more optimistic 39 00:01:47,880 --> 00:01:51,200 Speaker 3: because they're greatly affected by business loans and they're expecting 40 00:01:51,560 --> 00:01:54,960 Speaker 3: rates to come down somewhat, so they're feeling more optimism. 41 00:01:55,040 --> 00:01:57,080 Speaker 3: I would say overall across the board. 42 00:01:57,520 --> 00:01:59,800 Speaker 5: When you think across the board as well, and you 43 00:01:59,800 --> 00:02:02,240 Speaker 5: think but the cost that business owners are still struggling with, 44 00:02:02,440 --> 00:02:05,120 Speaker 5: it's everything from real estate costs. As you know very 45 00:02:05,240 --> 00:02:08,840 Speaker 5: very well this industry. It's also still wondering about where 46 00:02:09,040 --> 00:02:12,359 Speaker 5: labor goes from here, What are the biggest challenges you're 47 00:02:12,360 --> 00:02:15,000 Speaker 5: seeing that they have, and who do you think comes 48 00:02:15,040 --> 00:02:15,720 Speaker 5: in to fix it? 49 00:02:17,880 --> 00:02:19,560 Speaker 3: The only one who could fix the business as the 50 00:02:19,720 --> 00:02:23,160 Speaker 3: entrepreneur themselves. That's why our webinar series sponsored by AT 51 00:02:23,240 --> 00:02:26,240 Speaker 3: and T Business is so valuable because we give a 52 00:02:26,320 --> 00:02:29,799 Speaker 3: lot of practical answers and examples and into a lot 53 00:02:29,840 --> 00:02:32,320 Speaker 3: of people who are doing it right. Really, the only 54 00:02:32,400 --> 00:02:34,560 Speaker 3: thing that gets in the way of a business moving 55 00:02:34,639 --> 00:02:38,080 Speaker 3: forward is really thinking that it's a time to be afraid. 56 00:02:38,480 --> 00:02:40,359 Speaker 3: But what I have learned in business, every time I 57 00:02:40,480 --> 00:02:42,480 Speaker 3: moved my own business ahead, it was in the worst 58 00:02:42,480 --> 00:02:45,399 Speaker 3: of times that everybody was an aasayer. Because when those 59 00:02:45,480 --> 00:02:49,320 Speaker 3: times hit, everybody's laying low and everybody's afraid to move ahead. 60 00:02:49,360 --> 00:02:51,640 Speaker 2: And that's when you can actually. 61 00:02:51,280 --> 00:02:54,880 Speaker 3: Grab the basis of customers from your main competition if 62 00:02:54,880 --> 00:02:58,000 Speaker 3: you care to, because this great opportunity all around that 63 00:02:58,040 --> 00:02:59,040 Speaker 3: you could take advantage of. 64 00:03:00,400 --> 00:03:02,720 Speaker 1: We talk about interest rates now as if they are 65 00:03:03,600 --> 00:03:06,160 Speaker 1: sky high, and we've never seen anything like this. You know, 66 00:03:06,560 --> 00:03:12,720 Speaker 1: seven percent mortgage rates. You crazy became famous, made your fortune, 67 00:03:12,760 --> 00:03:15,600 Speaker 1: started your career in real estate at the time when 68 00:03:15,720 --> 00:03:16,720 Speaker 1: rates could. 69 00:03:16,520 --> 00:03:17,440 Speaker 2: Get much higher. 70 00:03:17,480 --> 00:03:20,040 Speaker 1: What do you tell people who are worried about you know, 71 00:03:20,160 --> 00:03:24,520 Speaker 1: rates at this level, you know, paralyzing transactions. 72 00:03:26,480 --> 00:03:28,919 Speaker 3: It's really a waste of time to spend a minute 73 00:03:28,960 --> 00:03:31,160 Speaker 3: worrying about it. The only thing that counts in growing 74 00:03:31,200 --> 00:03:32,840 Speaker 3: up business is what can you do about it? And 75 00:03:32,919 --> 00:03:35,360 Speaker 3: certainly you have no control over the rates. But I 76 00:03:35,400 --> 00:03:39,400 Speaker 3: do remember when interest rates were eighteen percent and everybody 77 00:03:39,520 --> 00:03:41,920 Speaker 3: was afraid of buying, except the super rich, because they 78 00:03:41,960 --> 00:03:44,080 Speaker 3: had the capital behind them to go out there and 79 00:03:44,120 --> 00:03:45,840 Speaker 3: pay all cash for anything they wanted. 80 00:03:46,080 --> 00:03:47,000 Speaker 2: They took advantage. 81 00:03:47,040 --> 00:03:49,400 Speaker 3: You got thirty percent discounts on the market rate of 82 00:03:49,400 --> 00:03:52,000 Speaker 3: a year before the price rate of a year before. 83 00:03:52,480 --> 00:03:55,120 Speaker 3: I tell people that whenever there's a change in the 84 00:03:55,560 --> 00:03:58,840 Speaker 3: in the making a business and everybody's afraid, just have 85 00:03:58,960 --> 00:04:01,200 Speaker 3: to look around and see where you could take advantage of, 86 00:04:01,240 --> 00:04:03,640 Speaker 3: where you could go in and scoop something out. At 87 00:04:03,680 --> 00:04:06,680 Speaker 3: that time, when interest rates were eighteen percent, I remember 88 00:04:06,720 --> 00:04:09,520 Speaker 3: making the actual decision in one day to switch my 89 00:04:09,600 --> 00:04:12,200 Speaker 3: business halfway out of sales and go into rentals to 90 00:04:12,320 --> 00:04:13,320 Speaker 3: move with the market. 91 00:04:13,560 --> 00:04:15,440 Speaker 2: But it's funny how not even. 92 00:04:15,240 --> 00:04:18,760 Speaker 3: Funny, but it's sad how entrepreneurs get stuck with their 93 00:04:18,839 --> 00:04:21,080 Speaker 3: old reality of what they specialized and. 94 00:04:21,040 --> 00:04:23,280 Speaker 2: What they're good at. I learned. I learned the rental 95 00:04:23,279 --> 00:04:26,520 Speaker 2: market right away because I had to. There were no sales. 96 00:04:27,040 --> 00:04:29,280 Speaker 4: Well, to use a personal example when it comes to 97 00:04:29,320 --> 00:04:32,120 Speaker 4: real estate, I tried to buy a house an apartment, 98 00:04:32,480 --> 00:04:35,160 Speaker 4: and the interestrars are just too high. And my bet 99 00:04:35,200 --> 00:04:37,240 Speaker 4: there was, Okay, I'll just wait a couple of years, 100 00:04:37,279 --> 00:04:39,680 Speaker 4: sign another multi year lease and then hope on the 101 00:04:39,720 --> 00:04:43,040 Speaker 4: other side that rates will be lower. How much pent 102 00:04:43,200 --> 00:04:45,520 Speaker 4: up demand do you think is on the other side 103 00:04:45,800 --> 00:04:47,480 Speaker 4: of lower mortgage rates from here? 104 00:04:49,600 --> 00:04:53,200 Speaker 3: Tremendous demand because there are so many people thinking exactly 105 00:04:53,240 --> 00:04:56,000 Speaker 3: as you are. And if you would take my advice, 106 00:04:56,080 --> 00:04:58,159 Speaker 3: I would say get out there because what you have 107 00:04:58,320 --> 00:05:00,360 Speaker 3: right now, which you won't have if rates come. 108 00:05:00,200 --> 00:05:01,000 Speaker 2: Down another point. 109 00:05:01,040 --> 00:05:03,480 Speaker 3: They just came down, but you need one more point 110 00:05:03,560 --> 00:05:05,640 Speaker 3: to bring everybody out into the market. 111 00:05:05,800 --> 00:05:07,360 Speaker 2: And what's going to happen is you're going to pay 112 00:05:07,360 --> 00:05:08,080 Speaker 2: more for the house. 113 00:05:08,320 --> 00:05:10,600 Speaker 3: So what have you really gained by paying the landlord 114 00:05:10,680 --> 00:05:13,520 Speaker 3: over these years and taken the increases in rent? 115 00:05:13,720 --> 00:05:15,600 Speaker 2: Not much because price have gone up. 116 00:05:15,839 --> 00:05:18,039 Speaker 3: But wait, do you see what happens with prices when 117 00:05:18,080 --> 00:05:20,200 Speaker 3: interest rates come down another percentage point. 118 00:05:20,440 --> 00:05:24,680 Speaker 5: Well to that end also, right, you know, interest rates 119 00:05:24,680 --> 00:05:26,720 Speaker 5: go down, prices go up, And at the end of 120 00:05:26,720 --> 00:05:29,320 Speaker 5: the day, how much, Barbara, do you worry about housing 121 00:05:29,400 --> 00:05:31,080 Speaker 5: affordability in this country. 122 00:05:32,560 --> 00:05:34,680 Speaker 3: I worry about it all the time on two fronts. 123 00:05:34,720 --> 00:05:37,560 Speaker 3: Rents keep going up anywhere in the United States, and 124 00:05:37,600 --> 00:05:40,479 Speaker 3: that's a real concern because people can afford the rents 125 00:05:40,520 --> 00:05:43,360 Speaker 3: based on their income. And I also worry much more 126 00:05:43,440 --> 00:05:45,960 Speaker 3: so about people getting their piece of the American dream 127 00:05:46,279 --> 00:05:49,120 Speaker 3: buying their first house, because the first house market, the 128 00:05:49,160 --> 00:05:52,239 Speaker 3: story house market, is the hardest hit where the greatest 129 00:05:52,240 --> 00:05:56,400 Speaker 3: bidding is going on. I even I had the daughter 130 00:05:56,480 --> 00:05:59,000 Speaker 3: or a friend of mine tell me that last week 131 00:05:59,080 --> 00:06:01,240 Speaker 3: she was competing again. Are two best friends in the 132 00:06:01,279 --> 00:06:04,200 Speaker 3: New York market. It's crazy and she's going to have 133 00:06:04,200 --> 00:06:07,000 Speaker 3: to invite them for dinner parties after. So it's this 134 00:06:07,200 --> 00:06:09,960 Speaker 3: so much competitive bidding, so much going over the price, 135 00:06:10,080 --> 00:06:13,240 Speaker 3: and so much fear going around because people feel like 136 00:06:13,320 --> 00:06:15,720 Speaker 3: can't get a head no starter. Prices are a real 137 00:06:15,760 --> 00:06:18,160 Speaker 3: problem in America and they're going up everywhere. 138 00:06:18,520 --> 00:06:18,839 Speaker 2: Barbara. 139 00:06:18,839 --> 00:06:21,320 Speaker 1: I want to get back to the small businesses you're 140 00:06:21,360 --> 00:06:24,120 Speaker 1: helping out, you're working with at and t business talking 141 00:06:24,160 --> 00:06:28,640 Speaker 1: about technology driven solutions. That immediately makes me think of AI, 142 00:06:29,360 --> 00:06:33,120 Speaker 1: artificial intelligence, and I wonder, you know, given that you've 143 00:06:33,200 --> 00:06:36,039 Speaker 1: seen the real estate market and business move through the 144 00:06:36,160 --> 00:06:40,080 Speaker 1: Internet age, what's your take on this new, uh, you know, 145 00:06:40,120 --> 00:06:42,080 Speaker 1: supposedly revolutionary technology. 146 00:06:43,839 --> 00:06:46,200 Speaker 3: Well, it's a very good parallel you draw because I 147 00:06:46,279 --> 00:06:48,160 Speaker 3: remember the days when I went on the Internet, and 148 00:06:48,200 --> 00:06:50,920 Speaker 3: I was the first, over two years before my competitors 149 00:06:51,240 --> 00:06:53,200 Speaker 3: went on, and what an advantage it was. 150 00:06:53,440 --> 00:06:55,919 Speaker 2: But I had one magic thing. I wasn't afraid. 151 00:06:56,360 --> 00:06:59,839 Speaker 3: What's stopping people using AI? And with so much chatters 152 00:06:59,920 --> 00:07:02,120 Speaker 3: or around it, I'm sure you've sensed it is that 153 00:07:02,200 --> 00:07:04,400 Speaker 3: people are afraid of it. But it's really like a 154 00:07:04,520 --> 00:07:07,160 Speaker 3: muscle that you have to use and exercise. And it 155 00:07:07,200 --> 00:07:09,840 Speaker 3: doesn't even take as much muscle as getting into the 156 00:07:09,880 --> 00:07:12,960 Speaker 3: Internet took, which was rather complicated for a lot of 157 00:07:12,960 --> 00:07:15,920 Speaker 3: small businesses. All you have to do is schedule ten 158 00:07:15,920 --> 00:07:18,480 Speaker 3: minutes a day and just fool around with it and 159 00:07:18,560 --> 00:07:21,760 Speaker 3: you start to learn, excuse me, AI and how you 160 00:07:21,760 --> 00:07:24,480 Speaker 3: can use in your business. It's the single best thing 161 00:07:24,520 --> 00:07:27,120 Speaker 3: that has affected small business and that's why we made 162 00:07:27,120 --> 00:07:29,960 Speaker 3: it a topic of our third at and T seminar 163 00:07:30,280 --> 00:07:33,680 Speaker 3: because people need to know how they could use a 164 00:07:33,680 --> 00:07:37,080 Speaker 3: pardon me a one to save costs of hiring people 165 00:07:37,120 --> 00:07:39,840 Speaker 3: that they get for free now by using AI, they 166 00:07:39,920 --> 00:07:41,560 Speaker 3: used to have to contend with the payroll. 167 00:07:41,800 --> 00:07:43,920 Speaker 2: Who do I hire? AI does all the. 168 00:07:43,880 --> 00:07:47,000 Speaker 3: Grudge work today for every small business I'm going to 169 00:07:47,040 --> 00:07:48,480 Speaker 3: change your attitude or AI. 170 00:07:49,040 --> 00:07:50,720 Speaker 4: Well, I want to talk about the attitude a little 171 00:07:50,720 --> 00:07:52,520 Speaker 4: bit more before we let you go, because we're talking 172 00:07:52,520 --> 00:07:55,560 Speaker 4: about fear among small business owners. There's a lot of 173 00:07:55,560 --> 00:07:57,880 Speaker 4: ways to get scared about AI. When you think about 174 00:07:58,000 --> 00:08:01,400 Speaker 4: robots replacing all of our I mean, how do you 175 00:08:01,480 --> 00:08:04,120 Speaker 4: get past that fear and actually change the attitude? 176 00:08:05,760 --> 00:08:07,880 Speaker 3: Well, I have to say people who get past the 177 00:08:07,920 --> 00:08:10,520 Speaker 3: fear are not the people who are employed, but the 178 00:08:10,520 --> 00:08:13,320 Speaker 3: people who should have no fear other people who employ them. 179 00:08:13,640 --> 00:08:16,080 Speaker 3: Because before you do that next hire that you think 180 00:08:16,120 --> 00:08:18,920 Speaker 3: you have a need for someone, you try AI. They 181 00:08:19,120 --> 00:08:22,760 Speaker 3: will answer your needs. So there's really a no fear 182 00:08:22,840 --> 00:08:24,960 Speaker 3: or shouldn't be fear on the part of the business owner. 183 00:08:25,280 --> 00:08:27,880 Speaker 3: All right, Barbara, So don't forget the seminar you could 184 00:08:27,960 --> 00:08:29,920 Speaker 3: find on eight A eight Barbara dot com. 185 00:08:29,960 --> 00:08:32,240 Speaker 2: I have to get that in sponsored by AT and 186 00:08:32,280 --> 00:08:32,880 Speaker 2: T business. 187 00:08:33,240 --> 00:08:35,760 Speaker 4: I respect it. You got that plug in. Barbara really 188 00:08:35,880 --> 00:08:38,400 Speaker 4: enjoyed this conversation. Hope to have you back soon. That, 189 00:08:38,480 --> 00:08:40,280 Speaker 4: of course, is Barbara Corcoran.