"If you've got nothing, it's the perfect time" — When Shark Tank mentor Mark Cuban reflected on starting his first business

Shark Tank mentor Mark Cuban shared insights about his entrepreneurial journey during his appearance on the Lex Fridman podcast, which aired on March 30, 2024. Reflecting on his early days, Cuban explained how he started his first business, MicroSolutions, while navigating challenging circumstances.

The company eventually turned him into a millionaire when it was sold for $6 million after seven years. Cuban’s journey began when he lost his job at a computer software store and found himself sleeping on the floor of a crowded apartment with six roommates.

"If you've got nothing, it's the perfect time to start a business," he said in the podcast.

He talked about how having "little to lose" gave him the courage to take risks. Cuban’s approach focused on his technical knowledge, and learning about the industry to identify opportunities. His startup, MicroSolutions, grew steadily and was eventually sold to CompuServe, marking his first major success.

---

Mark Cuban reflects on building MicroSolutions

Cuban launched MicroSolutions in 1983 after losing his job, turning his technical skills and industry knowledge into a business opportunity. Reflecting on his circumstances, he revealed how there was no downsides.

"I couldn't go any lower. There was no downside for me starting a business."

At the time, he lacked financial stability, sharing a three-bedroom apartment with six roommates and sleeping on the floor.

MicroSolutions focused on selling and implementing software solutions. With Cuban’s commitment to learning about the industry and understanding customer needs, the company grew steadily. Despite early challenges, including a near-bankruptcy caused by a secretary forging checks, Cuban’s remained persistent. He sold MicroSolutions to CompuServe for $6 million after seven years of operation.

When asked by the podcast host about what defined a great entrepreneur, Mark Cuban pointed out that it was curiosity.

"Somebody who's curious, they wanna keep learning, 'cause business is ever changing, it's never static."

According to Bloomberg reports, the entrepreneur and startup investor is currently estimated to have a net worth of $7.79 billion.

---

Mark Cuban’s advice for aspiring entrepreneurs

Mark Cuban said that entrepreneurship comes with "uncertainties", and he acknowledged that not everyone might feel ready to take on such risks.

"Creating a business gives you the greatest potential upside and the greatest leverage on your time, but it also creates the most risk," he stated.

He advised those considering starting a business to save at least six months’ worth of living expenses before taking the leap.

“If you want to take that next step, you have to be able to deal with the consequences of changing your circumstances,” he advised.

With his practical way of managing risks, he advised entrepreneurs to not only plan financially but also to commit to their ideas. Drawing from his own experience, he explained that being comfortable with challenges could build resilience, as confronting struggles helped people build confidence and determination.

“I get emails and approached by people all the time [saying], ‘What kind of business should I start?’ That tells me you’re not ready to start a business,” he stated.

Cuban also suggested that entrepreneurs should invest their own money in their business ideas, as it showed self-belief and commitment.

---

Mark Cuban appears on Shark Tank alongside fellow investors Barbara Corcoran, Lori Greiner, Robert Herjavec, Daymond John, and Kevin O' Leary. New episodes of Shark Tank air every Friday on ABC.