Mark Cuban’s Guide to A Successful Business

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Today’s Highlights:

• 🧑‍💼Mark Cuban’s Guide to A Successful Business💼

• 🛍️Favorite Product of The Day: Octane AI🛒

How To Start Your Business, Courtesy of Billionaire Entrepreneur Mark Cuban

The long period of time during the pandemic that made people stay at home created a burst of entrepreneurship, and plenty of individuals started their own businesses. According to the U.S. Census Bureau on Business Formation Statistics, that burst wasn’t a one-time thing, and over 5 million new businesses were formed in 2022.

This entrepreneurship boom might just be a long one, with 2023 being an even better year for entrepreneurs and professionals to turn their passion into business.

Pennsylvania-based Mark Cuban, mostly known as an investor on ABC’s “Shark Tank”, has shared some insights on business building as a billionaire entrepreneur who started a tech company using his own money.

Personal Savings

During his “Unleashing The Entrepreneur in Everybody” panel with SBA Administrator Guzman at SXSW last March, Cuban asserts that raising capital funding isn’t the ideal nor the best way to start your business.

By raising external funds, you have an obligation to someday return that money, and you are, to an extent, under someone else’s control. For Cuban, using personal savings for your business helps you retain control and avoid a kind of responsibility that is tied to others.

Start with Profits

In an ideal world, your business would earn profits instantaneously. Achieving profits quite early on isn’t impossible, but it surely isn’t undemanding either.

Cuban expressed in a “Bi Eats World” life science podcast earlier this month that his business venture ideals are always geared towards profitability and never about getting his funds raised externally. Hence, he contends that the sort of business or side hustle you pursue must be one that can be profitable from Day 1.

He applies this “rule” to the two businesses that he has launched. MicroSolutions, for example, is a tech company that Cuban launched using his own money and managed to sell in 1990 for $6 million.

4 years after, Cuban and his friend Todd Wagner invested in a small startup, Cameron Audio Networks, and offered a buyout, which they then turned into Cuban’s second company, Broadcast.com.

Is Cuban’s Way Your Way?

Cuban’s way of running and starting a business may seem unorthodox and certainly challenging to some, but it seems to be one Cuban indisputably believes in. Though it might be worth a shot, some experts find that it is easier said than done.

According to the host of the finance podcast “Capitalism.com,“ Ryan Moran, it is crucial to know what you have but also to be aware of what you need from others. Moran recommends using your own funds for unpredictable expenses and outside funds for more stable expenses, such as payroll or inventory.

Moran argues that using your own money for anything consistent and predictable is a mistake many professionals have made. Based on his experience and of others he has observed, investing in multipliers that could create exponential ROI* would be a better use of your personal funds.

So, in the end, how you start and run your business depends on your needs and the resources you are willing to use, whether it be your own or others.

*ROI: Return on investment, a financial metric used to measure the probability of profiting from an investment, comparing the gain or loss from an investment relative to its cost.

Favorite Product of The Day

Octane AI

Wouldn’t it be amazing for retailers to personalize the shopping experience for each of their customers? That would certainly offer a great time for everyone, and you can with Octane AI!

Octane AI offers two major features friendly to both consumers and retailers, the Insights Analyst and Quiz AI.

Insights Analyst allows retailers to analyze product reviews using AI. With hundreds of thousands of product reviews, it sure would be time-consuming to read through them one by one. With Insights Analyst, retailers can simply import their data, provide a research task, and a report will be given in only 30 seconds.

Quiz AI is a personal shopper quiz that can help customers find the right product. Quiz AI highlights products that fit each customer’s needs and preferences and allows retailers to instantly generate personalized recommendations.

To learn more, check out Octane AI’s website.

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