Do you ever think about your dream business and convince yourself that now is not the time to start? Do you start listing off every possible excuse currently available in the book? Excuses about how the economy isn’t stable or how people are still recovering from the coronavirus shock? Well, American entrepreneur Mark Cuban believes otherwise.
History is witness to great businesses coming up at a time of chaos and uncertainty. Mark Cuban believes the same. In a recent interview with venture capitalist, Arlan Hamilton, the Shark Tank billionaire spoke about why young entrepreneurs should start their businesses now.
Referencing the chaotic atmosphere across the globe right now, Cuban says: “Five to 10 years from now, we’ll look back and there will be 30 businesses that were created where we’ll say ‘Damn, why didn’t I think of that? It makes so much sense now.”
Mark began his entrepreneur journey from very limited resources. He was sharing a three-bedroom apartment with five guys and was a college graduate with little to no savings. He made something out of nothing, and he believes that act is an advantage for all budding entrepreneurs.
His advice for entrepreneurs relies on mainly two things. Both of which are not only relevant to all times but help build a disciplined work culture for yourself.
Firstly, Cuban advises businesses to stop looking for capital.
Here’s why:
It is an awful time to get investors. Not because presumably your business model is bad but primarily because venture capitalists are extremely unsure of the future. They aren’t quite sure what the world will need in six months or a year, much less in a long-term plan. However, world-changing your business model may be, venture capitalists are bound to question it.
A good work-around, as stated by Cuban, was to rely on your own resources. A business strategy that has a long-standing proof of success, Cuban advises entrepreneurs to work and invest their own resources, network, and contacts, sweat equity before even thinking of reaching out to investors.
In a 2017 interview, Mark elaborated on the same saying: “Sweat Equity is always the best equity. The next best version of equity is Customer Equity where you get customers coming in buying from you and that’s how you’re funding your growth. Third is using Kickstarter/IndieGoGo as a way to support you. The last thing on the list is venture capital money. They aren’t giving it to you for charity and the minute you take that money, that’s not the end, but when the obligation really starts. You thought you had an obligation to grow your business before you took the money? You have no idea.”
Hence, it is extremely vital for businesses to understand how to budget their expenses and profits instead of relying on investors.
Secondly, Cuban speaks about the importance of consistent working rather than sudden bursts of productivity.
Small steps consistently over a routine period of time will always reap bigger rewards as compared to large steps taken over a jagged timeline. Small steps everyday ensure a healthy balance being maintained mentally, physically, and socially.
Theoretically speaking, if due to the pandemic, your business was hit severely and times are hard, there are supposedly two options in front of you. One, to utilise the time in your hand and overwork yourself to reach targets or rest, recharge and wait for things to stabilize before starting afresh. Cuban believes in a more practical third option.
Instead of choosing between the first or the second option, find a balance between the two. Choose to take small steps regarding your business everyday while giving yourself time to recharge and recuperate the extremely mentally challenging phase. Choosing the third phase will keep you safe from negative thoughts of shame and guilt.
Both the tips from Cuban are evergreen and should be utilised religiously. If carried properly, they will help you build a healthy work relationship with your business and give you the stability of a routine life, when times are this uncertain.
The good news is that every single one of you, reading this blog has dealt with or are dealing with tough times in your business. You are not alone and most importantly, there is no one better equipped than you to carry out your dream business.
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Do you ever think about your dream business and convince yourself that now is not the time to start? Do you start listing off every