"It's really hard" - Shark Tank's Lori Greiner shares the hardest part about investing

Lori Greiner is an esteemed investor on Shark Tank and has recently shared what it feels like to be on the show. She talked about how entrepreneurs need to be resilient and have the ability to handle both praise and criticism.

She has developed a reputation among the fans for being someone who has not just built an empire for herself but also someone who understands the weight of her words when it comes to hopeful entrepreneurs who pitch their businesses on the show.

In this video, she talked about the challenges of being a shark and the responsibility that comes with offering feedback that can shape the future of a business.

She acknowledged how much goes behind an investment decision when she is on Shark Tank. Entrepreneurs have poured their time money and passion into their businesses and the opportunity.

Lori says that for them, a chance to pitch to seasoned investors is not just for funding, but to also get an analysis of their hard work.

She explains,

"Often, it is really hard to be a shark. Because we have people who stand before us with their whole life, their world, everything they've worked for is laying on the line and it's how we respond, what we say that determines for them their fate."

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Shark Tank investor Lori Greiner reveals the responsibility of being a shark

The Shark Tank investor then points out the importance of being honest when it comes to evaluating the business idea that is presented before them.

She gives a reference to a quote that says, "It's better to be saved by criticism than ruined by praise." This makes it crucial for her to provide constructive feedback rather than false encouragement. She says,

"Because if we sit here and we tell somebody all sorts of praise when we really don't think they're going to make it or their product is any good then, they may walk out thinking that they don't have to do anything, change anything or work harder, pivot. It's better to be honest and real with people about what they need to do."

This is one of the most important aspects of the business world where even though it feels good to be positive and get validation, it is often better to not get misguided into believing that the business is on the right path when it's not.

This constructive criticism helps business owners to improve themselves and analyze their strategies amidst a competitive market.

Talking about the other side of that referential quote, Lori says that when you are dealing with someone's feelings (and not a business), then it is important to be kind first. Even though criticism is important for business growth, she argues that human feelings are not the same and thus, a different approach is necessary. She says,

"And the flipside, that same quote, it doesn't work as well when it comes to a human being and their feelings. It's much better to remember that you always should give praise, before you give criticism so that somebody feels good about themselves and they will listen better to that criticism."

This insight by Shark Tank's Lori Greiner explains both sides of the psychological impacts of criticism. She has also explained the method by which it shall be delivered.

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