HOW TO SPEED UP YOUR BUSINESS AND WHY PEOPLE FAIL – MARK CUBAN
Do you want to learn the EXACT process that Mark Cuban uses to speed up his businesses?
This video break down will make you hustle like a winning player.
If you want to be successful you have to learn from the top players. And at the sport of business there are only a few people who will stand a chance against Mark Cuban. I am going to break down a video interview by Mark Cuban that you can find below.
The problem with watching business videos online is that things are not going to stay in your memory. On top of that, 80% content will be junk and 20% will be EXTREMELY valuable. Unless you learn to focus and write notes on the 20% that matters you are wasting your time.
Fortunately, we are doing that heavy lifting for you here at StartupStrong. For example, in this video interview Mark talks politics and sports A LOT which is fun to watch but not valuable for us in a business perspective.
So I recommend you to read this article as usual, and then watch the video later so that you get to enjoy the video as well as grasp the knowledge 🙂
Table of Contents
- HOW TO SPEED UP YOUR BUSINESS AND WHY PEOPLE FAIL – MARK CUBAN
- IN-DEPTH KNOWLEDGE
- 1 WHAT IS THE NUMBER ONE REASON WHY PEOPLE FAIL ?
- 2 HOW TO INCREASE THE SPEED OF GROWING MY BUSINESS ?
- 3 IS THERE A PROVEN FORMULA THAT WILL MAKE ANYONE SUCCESSFUL AS AN ENTREPRENEUR ?
- 4 IS IT IMPORTANT TO GO TO SCHOOL TO BE GOOD AT BUSINESS ?
- 5 IS IT REQUIRED TO HAVE ANY LEVEL OF PARANOIA IN BUSINESS ?
- 6 WHATS THE DIFFERENCE BETWEEN A MILLIONAIRE AND A BILLIONAIRE ?
- 7 IS IT POSSIBLE TO ASSESS IF A PERSON WILL BE SUCCESSFUL IN BUSINESS BY TALKING TO HIM FOR 10 MINUTES ?
- 8 HOW WAS MARK CUBAN AS A CHILD ?
- 9 HOW DO YOU MULTITASK SEVERAL COMPANIES TOGETHER ?
- WHAT NEXT ?
This article is written in a question and answer format. Please pay close attention to question #2 where Mark talks about his process of building businesses in record speed.
1 WHAT IS THE NUMBER ONE REASON WHY PEOPLE FAIL ?
Lack of brain and lack of effort.
When it comes to business you are never in a vacuum with zero competition unless you are extremely lucky. This means that somebody else knows your industry and customers more than you do when you start.
And when you dive into a competitive industry and if your competitor knows more about your business and customers, you are going to lose.
But most people don’t consider that. They don’t do the work, they don’t learn more about the industry.
YOU HAVE TO PUT THE EFFORT TO KNOW MORE ABOUT YOUR INDUSTRY THAN ANYBODY ELSE.
Mark Cuban often says: “If you are competing with me you better know what you are doing. Otherwise I am gonna kick your ass and you are not going to outwork me.”
2 HOW TO INCREASE THE SPEED OF GROWING MY BUSINESS ?
You have to know your skillset. And you should know how that fits within your companies life-cycle.
Some companies are a slow-grind. And you should understand that and let it grow slowly until it starts to click, and then you can grow with it quickly.
If you are building a product that should be ubiquitous you have to go as fast as you can. You have to be super aggressive and super fast.
The speed of growing your business really depends on the business – is it a barber shop? Or is it an app? Or a service or product?
Typically this is how Mark Cuban build businesses –
- When you start a new company the key is to look for the low hanging fruit. A low hanging fruit is a customer who is willing to write you a check or commit to it. They should be ready to integrate your business into their daily life or daily business. So getting either a commitment in time or revenue is typically what you should look for.
- Since you have a commitment from the first customer you will be able to learn. You can observe how they use the product and stuff like that.
- Also start looking for the second customer. Hopefully you will get the second customer faster than the first one.
- Then look for the next customer. And the next one after that and so on. Also ask for referrals.
- By this time you should have a good understanding of your customers and your sales process. Just keep ramping up the sales from then and the business will speed up.
In terms of speed of growth its all about getting that first customer. Then think what you learned, and reiterate the process. Keep getting more customers and refine the process and you will pick up speed.
As a sidenote, when Mark Cuban first bought the Dallas Mavericks, they had no season ticket holder base. So he took a list of former season ticket holders and started making phone calls –
He made these phone calls himself because he felt that if “He” cannot do it how can he expect others to do it?
You can see Mark Cubans strong work ethic here. He could easily afford a bunch of tele-sales guys to do the job but he hustled himself because he did not want anyone in the Mavericks to think that he is not willing to put the work.
3 IS THERE A PROVEN FORMULA THAT WILL MAKE ANYONE SUCCESSFUL AS AN ENTREPRENEUR ?
There is no default proven formula but there are things you can do to put yourself in the best position to succeed. They are –
- Effort – The one thing you can control in your business is effort. Go and get more sales. Go the extra mile and outwork everyone. Work like there is somebody else working 24 hours a day to try and take everything away from you.
- Skillset – You have to understand what your skillset is. And then you have to find the right places to use those skills and then you have to go for it.
- Be smart – If you want to make big money reselling travel plans and making 3$ in affiliate commission, its not going to happen. You have to be smart, you can pick the wrong things.
- Winning – Only care about winning. You have to try to be a winning player.
But is there a proven formula that works all the time and make you a millionaire or even make a quarter million? No. Because you don’t know who you are competing with. It depends on what industry you pick.
But whatever industry you pick if you outwork everybody, if you try to be a little smarter than everybody, if you try to be a better sales person than everybody, if you try to be better prepared than everybody, you get the best chance. Because if you don’t do it and if somebody else does you lost.
Example: Dirk Nowitzki may not be the most talented guy in NBA but his discipline and focus to do what is necessary to be successful, combined with being 7 feet tall and being skilled makes him an amazing basketball player.
4 IS IT IMPORTANT TO GO TO SCHOOL TO BE GOOD AT BUSINESS ?
Getting a degree is not important. But the knowledge that you learn by going to a school is very important.
If you want to run a business you must understand accounting. Yes, you can hire someone but they have to still communicate to you. There are people who don’t understand the difference between profits and cash. Your accountant might tell you that you are profitable but your cash is going down, but you have to understand the break down.
If you are so self motivated that you can take a course online in accounting and teach yourself everything you are way ahead of the game anyway. But most people aren’t and that is why school is important.
Two reasons why you should go to school –
- Your cost of opening up a new business drops – Accounting, sales, marketing, finance .etc. are languages of business. It is possible to hire people but when you start a new company you might not have money to hire. So you can learn all these in school. You probably don’t need a lawyer to incorporate because you can probably figure it out yourself.
- You will learn how to learn – Its important to learn. If you are not continuously learning, if you are not absorbing as much as you can, somebody else is going to kick your ass.
5 IS IT REQUIRED TO HAVE ANY LEVEL OF PARANOIA IN BUSINESS ?
Absolutely. Whichever business you are at there is somebody else who is trying to take a bite out of your business or trying to run you out of business. You have to be paranoid. You have to anticipate other peoples moves.
The greatest source of your paranoia must be your knowledge. If someone else knows more than you do, if you are not learning, if you don’t know how to learn, if you don’t have a thirst for learning and acquiring information, you are out of luck.
Mark Cuban always works so hard for all his businesses that he would try to do things that would kick his own ass.
6 WHATS THE DIFFERENCE BETWEEN A MILLIONAIRE AND A BILLIONAIRE ?
Its like the difference between a penny and a 1000 dollars.
What you can do and the opportunities you get have no comparison. Its crazy.
7 IS IT POSSIBLE TO ASSESS IF A PERSON WILL BE SUCCESSFUL IN BUSINESS BY TALKING TO HIM FOR 10 MINUTES ?
Its possible to tell by seeing your passion, focus and preparation.
There are a 1000 things that will influence if you are going to be successful. Mark Cuban can put himself in your shoes and come up with 900 out of 1000 things that you will have to deal with to be successful based on his experience. How many of these issues were you able to address already? That will give a sense of how hard you are willing to work.
Also, if you ask questions that are too basic, and something that you should have known it shows that you are not prepared and disqualifies you more than anything.
8 HOW WAS MARK CUBAN AS A CHILD ?
There was no chance for any of his friends to think he will be rich.
But he was a hustler. And he was always competitive.
At age 9-12 he used to buy and sell baseball cards and stamps. And he learned a lot of business that way.
He was into sports but he was not good.
He used to read business books all the time. He knew that he was wired to be excited about business.
None of his parents or family were into business. But his father always told him that if you want something you have to earn it. And even if he was selling baseball cards, garbage bags or stamps his father never stopped him.
Sometimes if you are 9 years old (Or 15 or 21 or 24) the failures are irrelevant and all you do is learn. Even at age 24 he was sleeping on the couch, and he had a car with a hole in the floorboard. He was living like a bum, so what does he have to lose?
9 HOW DO YOU MULTITASK SEVERAL COMPANIES TOGETHER ?
Mark Cuban is pretty good at multitasking between several companies. On top of that here are some tips –
- No meetings, no phone-calls, no sit-downs as much as possible.
- All communication is through one or two channels (Mark Cuban uses CyberDust and Email).
WHAT NEXT ?
I should rename this article as the “Success Manifesto” for entrepreneurship.
If you just skimmed through this article and then moved to the next shiny thing on the internet, you already lost.
The concept of finding a low-hanging fruit and then ramping up your sales is so powerful that it can save you years of frustration. I made this mistake several times, and so did many of my business buddies.
If you did not find a low-hanging fruit and plan to sell once things are fully ready, you might end up with a product no one wants. And if you cannot find a low-hanging fruit fast enough its going to get even harder later on.
And did you realize the importance of thinking like a winning player? Nearly everyone who I know who makes big money are top players in their industry. You do not have to be running a big business, even if you have a little niche Amazon shop, are you aiming to be the Top 5% in that niche? If you are an UpWork freelancer are you trying to be the top 5% freelancer on the platform?
Go deep and break down your own business to see where you can improve it through advises from Mark Cuban.
Do let me know which book or video you want me to break down in an upcoming episode in the comments below. Hope you found this note to be useful. Later!