Masters of Scale by Reid Hoffman – Shark Tank’s Mark Cuban
No one knows the fundraising game like Mark Cuban, serial entrepreneur, investor, and star of Shark Tank. For founders, identifying the right source of capital, under the right terms, can provide a thermal updraft.
But as Cuban explains, there are always strings attached when you bring on a financial partner — and those strings can pull you crashing down if you don’t understand them properly. Cuban shares what investors look for in a founder, and what entrepreneurs should be looking for in return.
Find your passion and pursue it relentlessly
Find something that you’re passionate about and make it your life’s work. When you’re passionate about what you do, it doesn’t feel like work.
Quote: “I’m not a big fan of the term “work-life balance.” I think it’s more about “work-life harmony.” “I want to be passionate about what I do, so I don’t have to work a day in my life.”
Entrepreneurship isn’t for everyone
- Success as an entrepreneur takes hard work and perseverance. It’s not just about securing investment, it’s about constantly pushing forward and adapting to challenges like the COVID-19 pandemic.
- Founders should prioritize qualities like hunger, speed, and humility over winning investments. Understanding the mindset of an investor can be helpful for all founders, regardless of whether they seek outside funding.
- Embrace failure, be willing to pivot, and keep learning. Being broke can be an advantage, but entrepreneurship isn’t for everyone. Believe in your vision and seek mentorship to succeed.
Humble and speedy
As a founder or CEO, prioritize your love for the product or service, and be humble and speedy. While ego can be healthy, ensure it aligns with the company’s goals. Investors should assess whether a founder’s ego is an asset or a hindrance.
Founders should carefully consider the potential challenges and negative impact on company culture before accepting an investment. Seek out board members or investors to counteract the influence of egotistical investors, and embrace humility and hustle like Mark Cuban did with MicroSolutions.
Shark Tank showcases the importance of understanding the differences in mindset between entrepreneurs and investors. The show teaches essential qualities such as hunger, speed, and humility, while also encouraging families to watch and children to pursue entrepreneurship.
Before seeking investment, entrepreneurs must have a solid idea, conduct thorough research, build a prototype or MVP, and find customers. Living close to customers can help. Investors look for hunger, speed, humility, and a strong story, rather than just financial success.
When seeking investment, research potential investors to find the best fit for your business. Raising money is not an accomplishment, but an obligation that comes with an ownership tradeoff. Adopt a humble attitude and seek investment only when necessary to accomplish your goals.
Before seeking investment, understand what motivates potential investors and choose wisely based on long-term success potential. Listen to potential investors and do your research to make informed decisions.
I’m not afraid to make mistakes. I’ve made a lot of them, and I’ve learned from all of them. I think that’s the key to success. You have to be willing to fail
I’m always thinking about the future. I know that my businesses are going to change and evolve over time, so I need to have a long-term vision for them. I also need to have a long-term vision for my life.
Start a business!
- To start a business, you need confidence in your ability to solve a problem and a unique idea. It may mean working on it at night and on weekends, but investing in people who started entrepreneurship early is valuable because they understand the hustle and making sales.
- Starting early with fewer obligations makes it easier to have more time to work towards achieving customer goals. Don’t worry if you fail multiple times, all you need is to be right once.
- Embrace failure as a chance to learn and grow as an entrepreneur. Develop qualities of hunger, speed, and humility by learning from both successful and failed ventures. Use resources like Masters of Scale to learn from successful entrepreneurs.