In Texas – and especially in Dallas – Mark Cuban is a bit of a legend. He was an early online innovator and after selling his original business for billions, he’s started many others, including buying the local Dallas Mavericks basketball team.
In a recent interview with Inc. magazine, Cuban laid out the four big areas in which small companies fail and what they can do about it. It’s a lot simpler than you would think;
- Sales: Many start-ups and entrepreneurs fail to understand the key role sales can play in their success. “In essence, (sales) skills are communication skills. Think of selling as explaining the logic and benefits of a decision and everyone -- business owner or not -- needs sales skills: to convince others that an idea makes sense, to show bosses or investors how a project or business will generate a return, to help employees understand the benefits of a new process, etc.” Cuban says before starting any business you should take a job in sales, even if part-time. “Learn how to sell.”
- Preparation. “We hear all of these stories about people who quit their jobs, started a company, and made all of this money. What you don't hear are the stories of the people who quit their jobs, started a company and failed miserably, and are now working at a job they hate." Cuban says don’t quit your current job and “go all-in.” Be prepared, including financially prepared. “When money is tight, horizons shrink -- and so do the choices you can make. So make sure you're mentally and financially prepared.”
- Effort. It's the great equalizer, Cuban says. “You may not be smarter. You may not be as talented. You may not have the same connections, the same background, or the same education. If you're on the downside of advantage, you may have none of those things. But you can always, always, alwayswork harder than everyone else. Effort can not only keep your business in business, it can also be your competitive advantage.
- Brains: A big studier, Cuban says, "If you're not reading, you're [screwed], because you're not expanding your mind. I tell my kids, 'Somebody who doesn't read lives one life. Somebody who reads has an unlimited number of lives.'"
Pretty simple recommendations but they sure have worked for Mark Cuban.