"Before you quit, be prepared" — When Shark Tank mentor Mark Cuban shared his advice for first-time entrepreneurs

In a YouTube video published by WIRED in October 2023, Shark Tank mentor and entrepreneur Mark Cuban responded to questions from Twitter followers. Cuban offered tips for anyone thinking about leaving their jobs to pursue full-time entrepreneurship as well as insights on a number of business subjects.

Cuban noted that although there are a lot of success stories of entrepreneurs quitting their jobs to start successful enterprises, the failures are hardly talked about.

"Before you quit, be prepared. Know what you're doing, save your money, have at least six months to live off if you can, and then maybe you're ready to start your business," he advised.

His major insight was that before launching a business, planning and financial stability are important. In addition to talking about entrepreneurship, Cuban addressed several business-related questions, such as how to create jobs, and what it meant to be a billionaire, among others.

Cuban also discussed his thoughts on the importance of sales, typical mistakes made by business owners, and the challenges of managing a company.

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Shark Tank mentor's advise on the importance of preparation before quitting a job

According to Mark Cuban, leaving a full-time job to begin a startup needs careful preparation. Before making the move, he advised aspiring business owners to save money, research their field, and be completely ready. He shared how eventually many people end up in fields they do not like after quitting their jobs, starting enterprises, and struggling to make ends meet.

Cuban advised having a well-defined business plan and at least six months' worth of living expenses saved in order to prevent this. The Shark Tank star also highlighted that sales skills are crucial for any business. If someone were down to their last $500 and only had a phone, he suggested finding a sales job.

"I am really, really, really good at sales. I'm going to find a sales job because I already know that if I'm on to my last $500 and all I have is a phone, I am going to get that job," he said.

He explained that proving their capabilities in sales could lead to better pay or even an opportunity to start their own business. Sales, in his view, is an essential part of business success, regardless of the industry. Additionally, Cuban mentioned that many businesses fail due to a lack of preparation.

"No business has ever succeeded without sales. Period. End of story," he stated.

Shark Tank star talked about how important it is to know one's competition, target customers, and profitability before starting a business. He explained how without this knowledge, entrepreneurs risk making mistakes that end up costing them a lot of their money, time, and energy.

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Other business insights shared by Mark Cuban

During the Q&A session, Shark Tank mentor also addressed various topics beyond entrepreneurship. When asked if billionaires create jobs, he responded that entrepreneurs, not billionaires, are responsible for job creation.

"The answer is no. Entrepreneurs create jobs," he said.

Shark Tank's Cuban talked about luck being involved in becoming a billionaire, and that even the most successful people depended on things they could not control. He also agreed with the idea that billionaires should pay more taxes as public infrastructure was important for business success.

When asked if having a stake in a sports team was an investment or a gamble, he chose the latter because minority owners did not have much power. He also answered a question about whether the customer is always right by stating:

"No, the customer is rarely right. That doesn't mean you don't have to keep them happy."

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Shark Tank episodes air every Friday on ABC.