What Entrepreneurs Need to Know Before Starting a Business

Culled from Jason Fell

Mark Cuban is known for being outspoken and no-nonsense when it comes to business. This week, the billionaire tech entrepreneur, investor and owner of the Dallas Mavericks participated in a question and answer session on popular social news site reddit where he discussed all things business, basketball and, of course, Shark Tank.

When starting a business, Cuban said every entrepreneur needs to know that it’s not so much about having a killer idea as it is about being completely prepared to take a product or service to market. “Everyone has ideas, most don’t do the work required to get the job done,” he wrote. Another thing aspiring business owners need to keep in mind: Sales are the most important aspect of a small business, Cuban wrote. “No sales, no company.”

Below, a sampling of Cuban’s points that were related to business and entrepreneurship:

On funding tech startups:

There is a HUGE bubble in the Valley for tech startups. The valuations have gotten out of hand. When valuations go up beyond the reality point, the funding goes down. It’s almost become like the movie business was 10 years ago. There was so much dumb money coming in and so few actually making money that the suckers finally wised up.

 

On how many of Shark Tank deals wind up getting modified or canceled:

We get the chance to do due diligence after the show. As a result you uncover things that were not brought up in the show, so it’s not unusual for a deal to fall through in the DD phase. I have had things like people who never paid their taxes, people who lied on the show, people who didn’t think that if they spent money on their personal credit cards it should be considered an expense. You name it. There is so much pressure on the entrepreneur during the show that sometimes they say what they think we want to hear rather than the truth. The DD helps us separate the two. On the most ridiculous thing pitched on Shark Tank: The ion watch deal was pretty much it. You can’t come on expecting to scam us. We will nail you.