May 8, 2020

Why You Should Start A Business Today | Mark Cuban on 20VC with Harry Stebbings

“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”
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

Mark Cuban (@mcuban) is the owner of the Dallas Mavericks and investor on the TV show Shark Tank
Host: Harry Stebbings (@HarryStebbings)

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

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
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

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
“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”
Telemedicine, technology, artificial intelligence, robotics, and many more industries will experience huge growth in the near future

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
“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

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
“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