12-year-old Mark Cuban started his first business so he could buy new basketball shoes. Now he’s one of the most successful people alive. Mark Cuban made his first billion when he sold Broadcast.com to Yahoo in 1999, and he’s been raking in profits ever since. A colorful personality and leading investor on ABC’s hit television series “Shark Tank,” he prides himself on helping entrepreneurs and business owners succeed. Most recently, Mark has taken the Dallas Mavericks from a local NBA franchise to a billion-dollar business.
I am a superfan of ABC’s American business reality television series Shark Tank, and Mark Cuban is my favourite Shark. Mark is a straightforward guy who usually walks his talk, my kind of entrepreneur. His Masterclass is one of the most insightful I have seen in a while, and I have watched loads of masterclas.com sessions.
Favourite takeaways from Mark Cuban’s Masterclass
Lesson from Dad
Your most valuable asset is your time and it is perishable. Once it’s gone, it’s gone. You can’t get it back.
You have to have an unfair advantage (edge). The hard part of starting a business is committing.
Keys to getting started: Foundations for starting a business.
- The fundamentals of business success: Sales, Margins, and Profits
- You have to figure these things out as you go and be optimized.
Continuous Testing/Improvement
A business is a continuous evaluation of all your processes. Every business has indicators that determine its health. You have to evaluate continuously. Rather than worry about your KPIs, always ask yourself what is it I can do to improve.
Business is a process. Business is non-stop; it is constantly changing. The worst thing you can do is to follow your business plan dogmatically.
Always ask: Can I optimize my processes?
What are the things that will get your customers to say yes?
Put in the Work
- What are your costs?
- How much can you sell it for?
- Can you make a profit?
Learn how to sell
Selling is not convincing.
Selling is helping it. is putting yourself in the shoes of the person you are trying to sell to understand their needs and find a way to solve their problems, support them, and do whatever they need to do.
Come up with great ideas and learn, learn, learn.
A disruptor looks at how things are presently done and looks for ways to do it better. Being a disruptor is based on having a specific knowledge that gives you an edge. It is not necessarily about being a great technologist or having some unique skill sets. It is about being someone who absorbs a lot of information, loves to learn and is able to take disparate pieces from different places to solve problems and create opportunities.
In hindsight, the best disruptions always look so obvious.
- Internet Broadcasting: Broadcast.com with Todd Wagner
- HDNET: First, all high-definition tv network
It took taking pieces of technology and integrating them into a whole. One of Mark’s superpowers is his love for learning.
Do It Yourself
- Learn the critical skills that are important to the growth of your business.
Putting It All Together
- Expense and Cost
- Don’t lie to yourself
- Plan for the worst-case scenario
It takes time and effort to be an entrepreneur. You have got to be all in.
The Language of Business: Accounting, Finance and Marketing.
Raising money should be your last resolve. Raising money is not an accomplishment; it is an obligation.
Focused on sales and Marketing
Of the 330 employees they had at the time, 300 were in sales and marketing. Business is the most competitive sport. You have to withstand and know your competition more than they know themselves.
Broadcast.com bought Yahoo for $5.7 billion in Yahoo stock.
Shark Tank: Betting on Great Ideas
The ultimate test of a great idea is having paying customers.
Make does not look at the following businesses that he invests in:
Total Addressable Market:
The revenue opportunity for a product or service.
Potential Market share
Maximum volume of sales available to all companies in an industry.
Elevator Pitch
Brief, persuasive speech that sparks interest in a product or service.
Growing Profitably
Prioritize not spending money. Focus on increasing profit and sales margins.
Gross Margins
Percentage of revenue left after subtracting direct expenses.
Service-Driven vs Product-Driven Margins
Service businesses should aim for margins of 95%.
Margin
Difference between sale price and cost of goods.
Know your demand drivers
Know what your demand drivers are and put that into consideration when pricing your product.
Stairstep Business
A business strategy based on gradual, incremental growth.
Shelf Velocity
How quickly a product sells once placed on the shelf.
Expand Responsibly
Don’t rush the process.
Use Transparency to build trust
No business is a straight line
The cover-up is always worse than the crime, even in small businesses. Your number one product is trust.
Change the game
- How would I change this?
- What can I do better?
- How would I reinvent this?
In any business, you are only as good as your employees.
Hiring: Tips and Tricks
Finding the right person for key positions in a business is hard. Trust is just as important as knowledge.
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Their immersive learning experiences combine incredible video content, downloadable materials, and social interaction with the MasterClass community, all of which users can explore at their own pace.
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All the best in your quest to get better. Don’t Settle: Live with Passion.
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