"Burnt toast theory" - Shark Tank's Lori Greiner on why business owners must never settle

Shark Tank investor Lori Greiner, in her recent video on Instagram, shared about the dilemma known as the "burnt toast theory." It highlights the aspect of the world where compromises are sometimes inevitable, but often, business owners settle for less than they deserve.

The analogy given by the Shark Tank investor captures a tendency that individuals go through with business or in life. They do so to avoid confrontation in that situation or to cause any inconvenience.

However, Lori says that when this mindset is applied to the business, it can limit the growth potential and overall success. Elaborating on the same, Lori explained,

"You're served a slice of burnt toast. And instead of asking for a fresh slice, you eat it anyway just to avoid the hassle. Sounds familiar? That's the burnt toast theory. And it's not just about breakfast, it's about life and business."

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Shark Tank investor Lori Greiner talks about the cost of settling in business

The Burnt Toast theory, highlighted by Shark Tank investor Lori Greiner, could cause a lot of roadblocks for business owners and entrepreneurs. She says that they might accept a deal or a partnership that they are uncomfortable with due to this mindset.

These collaborations might not even match the value of the service or product they are providing. Sometimes, this happens to new business owners who feel compelled to accept unfavorable deals due to the fear of missing out and getting their brand established among consumers.

Lori says that this is a common mistake and should be avoided. Expressing her beliefs on the matter, the Shark Tank investor says,

"As entrepreneurs, this happens all the time. Maybe you've taken a deal that wasn't great, or settled for conditions that didn't match your worth. But here's the thing, you don't have to settle."

Lori says that settling can manifest itself in various ways, such as underpricing a product or service. This is because one might want to attract more customers, but this will directly impact the profitability of the business.

She says that it could also happen with unfavorable business deals when an owner signs contracts that have terms that do not align with a vision that they see for their company in the long term.

Settling could also mean accepting a poor work culture as an individual. Someone staying in an unsupportive environment due to fear of change is a prime example of this.

Greiner's advice on facing self-doubt is to stay true to the values that one has set for oneself. She wants to use those as a boundary and never let anyone invade it. The Shark Tank investor says,

"Recognize your value, believe in your ideas and your products and yourself. Don't be afraid to ask for what you truly deserve. So the next time you are served burnt toast in life or in business, don't just settle, stand tall, ask for what you deserve, and keep striving for the best. You've got this, you're worth it."

Lori's message is a powerful reminder that settling is not a necessity but a choice. She asks entrepreneurs to actively recognize their worth and fight for what they deserve.

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Shark Tank season 16 episodes are released weekly on ABC at 8 PM Eastern Time on Fridays. They are later available to watch on Hulu.