Mark Cuban’s No. 1 Tip for Starting a Business: ‘Go for It’
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Kellan Jansen
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Amber Barkley
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Mark Cuban built a net worth of $5.7 billion by starting and investing in successful companies. In a recent interview with Good Morning America, Cuban offered this advice to people just beginning similar journeys: “Go for it.”
The former “Shark Tank” star said nobody will remember your failures, and you only need to be right once. If you don’t believe that, consider Cuban’s failed powdered milk company. You probably haven’t heard of it — you recognize the entrepreneur for his success.
What does “going for it” mean in practice? Here are four more tips from Cuban on starting a successful business.
Recognize, Then Embrace the Chance of Failure
Almost 25% of new businesses fail within their first year, according to LendingTree. Many that survive the first 12 months will fail within the first five years. That’s why Cuban says failure is part of being an entrepreneur — you have to embrace it.
In other words, don’t allow a fear of failure to keep you from pursuing a goal. Instead, recognize that failure is one possible outcome among several. Create a business plan with that in mind. That way, you can pursue your ideas to the fullest and still be financially OK if they fail.
Start Your Business With as Little Money as Possible
In an interview with ZenBusiness, Cuban said to start your businesses with as little money as possible. This is smart to do in light of the hard data on failure. If you use very little cash to fund your business, the fallout won’t be as severe if it ultimately fails.
You can also move between ideas faster when money is less of a limiting factor. For instance, if your first business fails, you may have a second idea to try. If your funding requirements for both startups are low, you can move from one to the next without wasting time.
Learn How To Learn
Cuban told ZenBusiness about the importance of continual learning as a business owner. He said loving to learn is a skill “every entrepreneur needs.”
The key reason for this is that starting a business involves trying a lot of new things. You become an accountant, marketer, salesperson, product designer and more. These are each deep fields of knowledge you may have never explored before — but your competitors have.
To keep up, you need to become an expert in each aspect of running a successful business. If you don’t love learning new things, it could overwhelm you.
If you’re someone who doesn’t exactly love learning, there may be ways past that. For example, you could learn by watching YouTube videos instead of reading or through conversations with colleagues instead of formal courses.
Focus on the Product, Not Sales, When Looking for New Customers
Finally, Cuban recommended focusing on your product when looking to expand your customer base. He told ZenBusiness, “Selling is not convincing.” If you have to devise crazy marketing tactics to make a buck, that can be a bad sign for long-term growth. Your customer should love the product you’re selling as much as you do.
Ultimately, there’s more than one way to start a successful business. Mark Cuban’s advice is informed by his experiences, which may not mirror your own — but learning from his success is a good place to start.
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