Have You Seen Mark Cuban’s 5 Rules For Starting A Business?

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Financial freedom and being your own boss is a dream among many Americans. Starting your own business can be very stressful and can fail almost instantly.

Mark Cuban is a very successful businessman who has five rules he believes every entrepreneur should follow to avoid failing. He’s accredited most of them to his success.

It was posted earlier this year on the private messaging app Cyber Dust.

1. Do your research. Before starting a business, Cuban does extensive research on an industry to see whether the opportunity is compelling and potentially profitable.

“It really does involve knowing an industry well, which is why I avoid investing in industries I don’t know,” Cuban said.

“You need to turn over every rock and open every door to learn your industry. This process never ends.”

2. Make your business plan flexible

If you think your business plan is set in stone, think again. Cuban stressed the importance of leaving business plans “open for change.”

3. Rethink your funding strategy

Getting cash for your business is essential, but there’s a right way to do it.

“You should do everything possible to not raise funds,” he said. “Sweat equity is the best equity. I would turn to crowdfunding [sites] like Kickstarter before I would look for investors.”

4. Be better than the competition

“You execute better than they can,” Cuban wrote. “Do a better job and have a compelling differentiation that you always build on.”

“You need to turn over every rock and open every door to learn your industry.” -Mark Cuban, billionaire entrepreneur and “Shark Tank” investor

5. Stay away from over-crowded sectors

Entrepreneurs shouldn’t start a business in an industry that’s already crowded, Cuban said. Instead, they should look for gaps in the market where they can add unique value.