
May 8, 2020
Why You Should Start A Business Today | Mark Cuban on 20VC with Harry Stebbings
Check out the 20VC podcast Podcast Page & Episode Notes
Key Takeaways
- “Right now and going forward, whatever time it takes to get through the other side, it’s going to be the best time in the history of mankind to ever start a business because there are no rules. Everything is open for negotiation.” – Mark Cuban
- If you’ve been fired or furloughed, this is the best time to start your business
- “Now’s the time to do it”
- If you’ve been fired or furloughed, this is the best time to start your business
- Mark views Silicon Valley investors as Old Hollywood. In Old Hollywood, everyone was trying to be an actor; In Silicon Valley, everyone is trying to be an investor.
- “Sales cures all. There’s never been a company in the history of companies that’s ever succeeded without sales.” – Mark Cuban
- “If the CEO doesn’t believe their product enough to sell it, then nobody else is either”
- “You’re never going to accelerate unless you delegate” – Mark Cuban
- “Hire slow and fire fast” – Mark Cuban
Intro
- Mark Cuban (@mcuban) is the owner of the Dallas Mavericks and investor on the TV show Shark Tank
- Host: Harry Stebbings (@HarryStebbings)
Books Mentioned
- Mark is currently reading:
- Rebooting AI by Gary Marcus
- This book is making Mark rethink the benefits and dangers of AI
- Healthy Buildings by Joseph G. Allen
- This book talks about air pollution in offices and all the health impacts being indoors can have on employees
- Rebooting AI by Gary Marcus
Mark’s Background
- Mark’s first job in tech was selling PC software
- From there, he taught himself how to program
- He was eventually fired from that job, so he started his own company called MicroSolutions
- He sold that company to H&R Block
- After that, he started a streaming company called Broadcast.com
- Sometime after that, he bought an NBA team
- After that, he started a streaming company called Broadcast.com
- He sold that company to H&R Block
- He was eventually fired from that job, so he started his own company called MicroSolutions
- From there, he taught himself how to program
- When Mark sold his first company, he bought a lifetime pass airline ticket and just traveled the world
- Mark went from being broke and living with 6 guys in an apartment to becoming a billionaire
Thoughts on Business
- Mark doesn’t like to take risks, but he’s okay with it as long as he’s done his homework
- “I wasn’t opposed to risk if I really did my homework and that’s the same now” – Mark Cuban
- When should you quit your company?
- When you run out of money or time
- “The greatest companies rarely have had to raise money” – Mark Cuban
- The best products often sell themselves, so if you can’t sell it, it’s likely people don’t want it
- When you run out of money or time
- “Right now and going forward, whatever time it takes to get through the other side, it’s going to be the best time in the history of mankind to ever start a business because there are no rules. Everything is open for negotiation.” – Mark Cuban
- If you’ve been fired or furloughed, this is the best time to start your business
- “Now’s the time to do it”
- If you’ve been fired or furloughed, this is the best time to start your business
- Telemedicine, technology, artificial intelligence, robotics, and many more industries will experience huge growth in the near future
Investing & Selling Advice
- When investing in a company, Mark prefers to make money from its cash flow rather than an exit or acquisition play
- “An exit, I can’t control. Cash flow and profitability, I can work with the entrepreneur and have some level of control” – Mark Cuban
- Mark views Silicon Valley investors as Old Hollywood. In Old Hollywood, everyone was trying to be an actor; In Silicon Valley, everyone is trying to be an investor.
- There’s so much capital and investors right now, that they’re throwing money at almost everything
- As an entrepreneur, you have to be authentic and self-aware of your shortcomings
- Don’t try to fake it till you make it
- “Every single fake it till you make it entrepreneur who fooled me has failed” – Mark Cuban
- Don’t try to fake it till you make it
- “Sales cures all. There’s never been a company in the history of companies that’s ever succeeded without sales.” – Mark Cuban
- “If the CEO doesn’t believe their product enough to sell it, then nobody else is either”
- Price your product in relation to the value it provides customers
- You can always price it higher and then work your way down if needed
Business Advice
- Have a vision for your organization and figure out how to align people on it
- Then you have to find managers you can trust
- Then you can accelerate things because you can trust your managers to delegate tasks
- “You’re never going to accelerate unless you delegate” – Mark Cuban
- Then you can accelerate things because you can trust your managers to delegate tasks
- Then you have to find managers you can trust
- “Hire slow and fire fast” – Mark Cuban
- If you’re an employee, you need to find a way to get better at your weakness
- If you’re an entrepreneur, you need to double down on your strengths and find a partner that compensates for your weaknesses