For every successful story with loans, I'm sure there's 300 failure stories that have never gotten talked about. As a general rule of thumb - Mark has a point. Banks don't care about your business and uncertainty - but paying back the loan is a certainty.
My parent’s started a restaurant business on a loan 10 years ago and it’s striving. It’s really an “all up to you” type of lifestyle. There’s no one size fits all linear path
“I’m working 24 hours a day.” Shut up, Mark. You’re working hard. Acknowledge your hours of sleep before you send other people into suicidal depression.
When you start a business is very bad decision start with a loan. Only when you have established a business and converted it into a corporation and is public, you can get finance or investments, but not in the beginning.
@@carlosRodriguez-vz3ho No money is needed. I've started a few businesses with $0.00 income, and others with around $100. I'm going to create a new business for around $200 that will bring me at least 50-80k by Christmas and starting next year i expect it to be at 6 figures a year.
Miso Hungry: No friend of family of mine would loan me money at no interest. Why would someone let anyone use their money at no interest? It'd be one thing if they loaned a few hundred dollars for a short time if one was short for a while, but a long term loan they should absolutely charge interest.
incorrect, he didn’t start a business. he bought a business that was already running and generating income. then he appraised it… that’s not the same as creating a business off a loan from ground 1.
A lot of people don’t realise that when you start a business you’re starting a fight. You need to fight for your share of the market. You need to either KO your competitors or race them to a spot they haven’t noticed yet
Yeah that's not legally how competing businesses work. They strive to find the one unique feature that they can offer. Yes multimillionaires will say otherwise, but they fail to remember that they are bound by the law as well or they will go to jail and their businesses fail. If they did work as this ass hat claims than Target, Walgreens, Bud's Bargain Basement, Dollar Tree, and others would all be out of business and bankrupt by now. Each one of the businesses I've mentioned have found a way to coexist which is there whole point of competition. On top of that US law protects small businesses as well as the US Constitution.
"We don't just sit back and say the only way we solve problems is by hiring people"Literally 1 second later: "You hire smarter kids, you hire smarter people". Like wtf is he even trying to say, because that was a complete contradiction
The way I gathered, he meant you don't throw more people at a solution, you simply hire smarter...usually meaning scaling down on the manpower, but making who you have contribute much better to the business.
You must not understand what he is saying. Instead of just throwing resources at a problem and thinking that only more man-power will solve your problems, smart business owners need to think smarter, not harder, and hire quality employees that will not only solve a problem but adapt the overall business model to make what was once a large problem something that can be handled with relative ease.
Successful guys like him always forget how they started, a guy pitched an idea to him, he liked it took over, only gave that guy 10% of the business, and another partner supplied the startup money
I wouldn't mind making 10% for an Idea for the rest of my life. I have thousands of great ideas. I can't physically produce all the results myself. 10% ROI for doing nothing, better return than the socialist Canada Pension Plan.
Yeah, I need about 500K to get my business up and running. So I guess I'll just save that up on my 60k a year job. Maybe I can open for business 3 or 4 years before I die. People need loans buddy.
You make someone to invest with you, so if the company fails, the investor lose money but you don't. Of course, I don't think it would work well for only 600k idea businesss.
Yup, more like it. That's why is easier to get loans for construction/real state business projects. The property is the collateral and in the worst case you can walk out the failure just even.
On another take, the money you want to get for an innovative idea is the risk money from investors (angel investors, venture capitalists, innovation funds, etc) who are essentially bidding on your success, but still conscientious about a potential failure and zero R.O.I. (unlike banks)
Your interpretation of his statement makes sense, but he was pretty straight forward with his comment, so it sounds more like don't take out a loan to start a business.
The bottom line is that to be successful in business, you need to be brutally honest, logical, and not emotional or sensitive. If you’re emotional or sensitive, you’re almost never going to succeed in business. You need to be pretty logical, analytical and ruthless tbh
Obviously he was speaking about bank loans and interest rates, borrowing money from a family member or friend is not the same as borrowing from the bank.
@@strauqq1 1:19 he said something like (the bank doesn't care about your business or who you borrow from "UNLESS IT'S FAMILY" he doesn't care about your business. To me family includes friends, so if you have a friend or family member that believes in your dream it's more likely that they're not going to charge you interest rate like a Bank would you won't be in debt for the rest of your life and it won't harm your credit if you start falling behind on your payments.
The most hilarious part about this video is that I left it on auto-play and the next video was "Mark Cuban: How I Became a Billionaire". Around the three minute mark, this guy explains how he LOANED Mark Cuban $15,000.00 so he could buy a bar in Bloomington.
@@elmerluzero3puertastechito501 Except he himself took a loan like every other successful business present. Regardless of the loan or how it was acquired or the parameters surrounding the acquiring of money, they are still loans and they still need to be repaid in some shape or fashion.
Richard Fry Are you aware that most millionaires in this country are first generation wealthy? Most rich people did not inherit their wealth. The "fairy tale land", as you call it, is called reality. And you are living proof that the OP is correct.
kilaz lesliet LOL. Some of them do. Besides all that, people who tell you to value hard work are morons. It actually depends on the occupation you choose. If you work toward an occupation that pays good or find a way to become self-employed then good. But people who tell you that hard work is the key to success are morons. The hardest workers in America are the farmers and the ranchers and they don't make hardly any money. There's just something about a rich guy who works less hard than a farmer or blue collar person telling people that hard work is the only key to success that rubs me the wrong way.
Right?! I know I’m late to the party here but... it’s funny to listen to someone speaks so confidently and be so wrong at the same time. Gotta appreciate the confidence if anything.
You video is helpful despite the fact that I've gotten my SBA grant approval ☺️... Which was awesome, Expect Mighty help me in securing the grant successfully
What were your steps? I've attempted to gain grants, loans, backing, and I've had the door smashed shut with great vigor. I'll never stop walking through the fire.. and I'll look to expand daily.
@@zunnacia7743 Can you recommend me to the Agent that help you out I need his help too. They always reject anytime I try to register my self. Think 🤔 am not getting something right 😩😩
@Karen Diedrick Grant is not a loan! Even billionaires seeks and get grant for their business monthly. Getting a grant is not compulsory but it should be every individual’s priority if they want to hold a solid ground on the financial market.
One step at a time and careful planning of funds. I worked for over a year to save up before I started my company. Put money aside to get it running then it paid it self back.
+Lead it i've also started 2 businesses without loans, or seed money. one i started by being a service provider. starting with labor only, and then adding parts sales once i had SAVED money i had already earned. The other i started by creating intellectual property for which i saw a demand.
I love his advice: "If you find something that you like to do or love to do, be great at it and see if you can turn it into a business; in worst case you going to have fun doing you want you love to do in best case you can turn it into a business."
So true! I've started a small business with only a few hundred dollars but had people on the internet say "you need at least $5000" etc, if you're smart and resourceful you can leverage what you already have.
He says dont take a loan to start your business but 2 of his fellow Sharks took loans to start their business - Kevin Oleary turned a $10,000 loan into a billion dollar business and Barbara turned a $1000 loan into a real estate empire...
Skyler Windmiller Doesnt matter if he agrees with them or not. The fact that they took loans out and became multimillionaires by doing so, proves him wrong.
***** Obviously it takes more than just money to have a successful business, but they wouldnt have been able to act on the plan without the startup money.
+Grindahz Studio As a Real Estate Agent, one of the first things that you are taught, as far as investing goes whether it be in a residence or a business is, use other peoples money (the bank) to make money. In other words, even if you have 250k and you want to either start or purchase a business for say 200k, risk their $ and not yours! (just don't let em' know you got it ;) )
Not everyone can have nothing at all but a fantastic business idea and expect to KNOW EVERYONE IN THE INDUSTRY -- let alone know where all the money people are who are willing to invest. Not everyone grows up in a family of money or a family of connections. SOme people are actually doing everything they can to get out of the part of the country where NO MONEY FLOWS WERE RICH PEOPLE PINCH EVERY MARK FRANK YEN POUND OR RED CENT THAT THEY HAVE and they arent willing to help other. Hell, IM DIVORCED -- but my home is 100% paid off, My Car is 100% Paid Off, My Bills are 100% Paid off and I still cant get a loan of any kind let alone get a loan to start a business. Some of us have to do what we have to do. SOrry we are soooo stupid.
Do you think you have to have all those things to start a business? If so, then don't try. That's the wrong approach. Some of the best businesses were started in garages.
+Marcus Chun I seriously doubt he would have to. He had an extremely sharp mind for business and making money out of air and it was evident from an early age. I think he would be successful one way or another, perhaps if he was not so lucky he would end up being a millionare instead of a billionare.
i agree with Mark Cuban. start a small business with the capital you have and try to sustain it. if you can't start it then keep working until you have adequate amount to start one. taking a loan is a conflict because you have to sustain your business and repay the loan. if you win then you can pay of the loan, if you lose then you lose your business and your debt grows at high percent.
This is ridiculous, there is no way I can save up 100k from my job to start a business without taking out a loan just no way he's two shark friends Barbara took out $1000 loan and turn it into A multibillionaire empire and Damon's mom put their house up for collateral. Get out of here. If people are not ready to take that risk then they're not ready to be an entrepreneur
dont save up 100k generate 100k through multiple avenues of income. investing, real estate, bonds, generating small businesses or even websites that generate a more passive income. start small , think big and then be big, dont complain.
C.R.E.A.M. Oh yea man, I will be expanding into more of like a gaming tournament and gaming clubs here within the next year I am planning it out man. Skys the LIMIT
You don't want to lose money if you have to keep paying the loan after your company fails, you want people to invest with you and get or lose money with you. If it fails, you don't lose anything
+mrtimjitsu And his business was completely useless after the dotcom bubble (luckily he sold it for billions before it burst). He was just born at the right time.
+Dick Tracy lol yeah i know.... I don't like how people assume that there's some secret to being a successful entrepreneur, and if you are a successful entrepreneur like Mark Cuban, you must know everything there is to know! Like the old saying goes, "there's more than one way to skin a cat" There's also more than one way to run a business... There are soooo many opinions on whats the right way, "do this, don't do that" all good advice and it may or may not work depending on the circumstances, and a lot of times it's just down right luck. Because I've personally met quite a few STUPID yet VERY successful entrepreneurs....
Mark Joseph I think if there's any experience he learned from his first business is that don't let underage girls enter a wet T-shirt contest in your bar.
+mrtimjitsu Opinions are like assholes.....everybody's got one. And no two are exactly the same. With bio-metrics coming everywhere, pretty soon we will be able to start our cars by sitting on the gearshift knob.
NO LOAN or Finance: I started with a wheel barrow and now my Company has a Dump truck, two HD Pickup Trucks, two dump Trailers, an Enclosed trailer, and all the equipment we need to do anything. And thats only after 2 years. I think if you open your mind to realize anything is possible for anyone and accept yourself for who you are all the negatives and positives and you set a goal and you know that you are going to do whatever it takes with using a smart and planed out process you will get there. Just try and use your GPS to take without telling it exactly where you want to go and you know if you don't decide exactly where you want to go you will probably never end up anywhere you truly want to be. Thats what people like Mark know is exactly where they wanted to go and regardless of a Loan or Financing whatever method you planned out that you know works for you then do it instead of occupying your valuable time thinking of all the reasons you can't do it or why it can't be done. What are you going to do before you die?
Speaking technically, he is correct. The internet, specifically TCP/IP packets and the network infrastructure are designed for burst traffic and not constant high-bandwith streaming (whether up or down). This is why ISPs want to charge Netflix extra for using their lines and why companies involved in video (google, netflix, hulu, etc) have to create content distribution network caches (CDNs) often in-house with said ISPs. Whether or not that's the reason why he said that remains to be seen.
thanks for clarifying, no wonder live streaming is a big challenge for companies like twitch, but is it the same with netflix and youtube when they can buffer much seconds in advance ?
***** I can't believe I didn't think of twitch. No, it's not exactly the same, twitch has to work a lot harder to deliver streaming content live (as Mark was talking about in the video)--especially so when a lot of that source is not their own. Netflix/Google/Hulu have it much easier due to being able to use big data caches to cut bandwidth and distance.
Most small businesses fail within 5 years. That's why banks do not give out loans without the backing of equity. If you have a great idea to sell, either you sell the ideas to angel investors or a rich uncle who will own a lion share of the your business, or you save every penny you have. I am sensing a lot of defensiveness in the comment section. These are the people who have no business doing business, and probably will end up having their houses foreclosed.
Concerned Citizen If people just learn how to not spend money they don't have then they have nothing to fear. The problem with America is that we've let the banks brainwash us into thinking that it's okay to spend money you don't have as long as you pay it back within reasonable time. In fact it's actually SMILED UPON to spend money you don't have and then pay it back (hence building credit). That's some horse shit. Save up. Or, start a business that requires no capital (such as washing cars or mowing lawns or fixing computers or something service based) and then once you HAVE THE MONEY then you can begin fueling your business to try new things.
Hayden Evanoff those service businesses you you just stated do need money to start, you need products to clean a car.. a lawnmower to mow lawns, if you have nothing to begin with sometimes lending money to start something that makes you money is okay within reason. Before anyone says work and buy it- alot of people do work and have no money left over. It's a lot easier to say things when your not in the position.
This is definitely true. Most people often fail and this is exactly why it is difficult to even get a loan in the first place. In the era we live in, there are a bunch of crowdfunding platforms that can get you the money you need for your small business.
That s why I don't buy rich people book, he was right, competition , no way a rich person will tell you how he became rich, cause If he do you will be competition for him
That's why you should watch the business moves that they make instead of their words. Mark Cuban (and any other smart businessman) has a killer instinct when it comes to business. Its about outsmarting your competition.
Carl Icahn gained a personal profit of $469 million after three years in 1991 from TWA which he earlier acquired on an acquisition loan. So Cuban thinks Icahn is also a moron? Check out the mirror Cuban..
He is talking about regular people. 80% of businesses fail so if you fail better fail without debt. There are rare times where this can be a good decision but is better you have a job to pay the bills of your business.
+Stephanie Polanco yes, I agree with that. The whole big business man like him are fearless risk takers are just a sexy concept. All the big successes in business are very conservative. Some of the household name today didn't quit their day jobs until they were well on their to success in their side business. So, start your business and start selling. That's the only way I know.
+Beck Bat To expand upon what you said.. What alot of entrepreneurs who are just starting out don't understand is the correlation that brand perception and equity has with sales. There is reason why lamborghini can sell their cars for $300,000+ each and Honda can't. Brand perception influences the mentality of the customer and how much they are willing to pay for your product. Every entrepreneur should thrive to carefully construct their companies brand to establish brand equity which in term will lead to more sales.
i guess, but it was sorta necessary, because the bar wasnt necessarily a "business". It was necessary to pay for that in the first place, while businesses you personally start, you need to create something before you find the need to get money to fund it.
This guy is always wrong. You need capital to grow, and if you don’t have capital you need a loan. He is the one that said that Trump “would not be president”.
While I am not a big Cuban fan.... so what you are saying is that I needed capital to start a house cleaning business and make millions? By the way, I started that house cleaning business with $3.17. Are you saying I needed capital to start an appliance business and make hundreds of thousands of dollars (company isn;t very old, still too new to have made millions YET, but it will soon)? Yep, started that business with $150. Those are just 2 of my 50 businesses I have started with less than $2000 each and most were started with less than $1000. 95% have been successful. So please tell my bank account how a person needs capital or a loan to make money. Living the high life here! What life are YOU living? Don't lie......
You don’t always need a loan from the banks. I started my business for less than $800. I saved the money by working a job making $10 per hour (working in a daycare). Three years ago, I got licensed as an in home daycare provider (independent contractor from Job & Family Services). I saved more money (reinvest into my LLC) and in September, my child care center will be opened. I said that to say, you don’t have to borrow from the big banks (personal/ business loans). Start from somewhere and reinvest and grow. I will say to keep a credit card handy for emergencies.
@@lilolme69 Yes you need capital to start a business, and yes most people and every other business started with a loan. Even saving for X amount of time and adding it to the beginning capital counts as a loan. This guy is just a well paid PC prop
@@Openreality LMAO You are a joke. I just said.... I made MILLIONS from $3.17. Since that time I have started several profitable businesses on less than $1000. I would never spend over $1k to start a business. Right now I could sink as much money as I needed to in a business but there is no need in it. Maybe, MAYBE 10% of the people who borrow money make it work and become successful. 1% are iconic and will be known forever. 9% made a nice living. But you fail to talk about the 90%++ that ended up killing their self, getting a divorce, started using drugs and alcohol, all due to owing so much money and being in debt because they took out a loan for a business. So how about that 90%+? And since you know so much, let me talk about a business that is now iconic that I have a connection to.... Cabela's. Tell me how much money they borrowed to start that business? You said everyone does it.... so tell me smart guy. You can't, but I can.... $0. That's right! They started that business from their kitchen table in western Nebraska with NO money and NO loans. Actually, they moved to Sydney soon after they started the business. I forget how much they said they started with but it was less than $100. Or how about Merry Maids. Another large, world wide company. Started at their kitchen table in Omaha. They were broke. They actually had another partner for less than 1 day but he was hired by Sears to be a salesman so he backed out. They started basically like I did.... with a hope and a prayer. I know another business that I will not name, it started with $700 (He saved from painting houses). It is a seafood wholesale business and now makes around $5 million profit per year. I know lots of them like that. I also know lots of failures that took out loans when I told them not to. Some are dead..... I think all but 1 is divorced, a few are druggies and a couple are alcoholics. 1 alcoholic has kept a regular job through the years but that 1 loan destroyed her mentally. So tell me more about how great those loans are how how EVERYONE does it. Well let me tell ya.... if you want to be a success, don't follow what EVERYONE is doing because 90%++ of those everyone's will end up failing. You go ahead and screw yourself if you want but don't talk others in to following you in to the porn store.....
@@lilolme69 how 😶 I've watched videos and I've thought about an idea. But I dont make anything, i dont specialize in a skill, and I'm just lost on to where to start. I have big plans for the future but idk how to get the small plans started so then the big plans can get into a working progress. It is cool that you are able to make a busines with about 1k. If you would be so kind and give me a chance to learn it would be greatly appreciated.
Start smaller. Food truck, start selling prepared food at local farmers markets. Eventually offer catering. I started growing mushrooms and selling at farmers markets. Added produce. Opened up my own market, took a leap on buying a corrugated shed and began distributing commercial produce. Now I have a small, small restaurant attached serving breakfast and lunch. We just started doing 8 dinners, fixed price, last year. Things are going well, but I am still holding off on going full time with three services a day. Sometimes going in the backdoor is the most sensible way to reach your actual dream.
Your idea no matter what has to produce enough revenue to cover the loan. Everyone thinks that their business idea is gold and will be profitable but reality shows that a strong majority of businesses fail within a year or two. So plan and analyze the market, step back and look at it from multiple angles. Restaurants are prime examples of tunnel vision planning that leads to failure. They always seem to think that their idea is the solution to a location that has failed numerous times under previous ownership. Always look at how other people fail and do what you can to avoid it. Cuban knows most people who take out a loan to start a business will make the same mistakes as the last guy with a great idea.
Borrowed against my house 20 years ago to start my business. 12 companies and $450 million in revenue later I would say this is completely wrong! Crazy Rich guy that is so far removed from the rest of us that he has lost that perspective.
Obviously hasn't realised that youtube has evolved from cats playing piano and dancing dogs into one of the worlds biggest platforms for communications.
+t-bird shane Maybe you are a poor student but then you go looking into your field of choice , find a mentor(s) that are top in that field in the city(they all want to pass down their knowledge just tell them all work for them for free), come up with a brilliant idea thats lucrative, present your business proposal to your trusted mentor that can seal the cracks in it, find potential investors including your mentor and Booom!!!! You are on your way my son and didn't have to pay 1 cent. Just brought your passion, creativity, drive , loyalty and balls.
+Lasheka Morgan sounds good ....ultimately persepctive business owners want and need capitol not mentorship,I wonder how many people on shark tank sought a mentor prior to the show, idk, but i do know they're all seeking investors who happen to have capitol. These investors are looking for a return/gain on their investment. Never been a fan of the middleman.
Mark Cuban is a smart guy... but I have to totally disagree with his statement "YouTUbe is not about conversation". It is the 3rd largest social media network in the world, and I see 590 people having a conversation about this video as I type this comment. By 2015, over 90 percent of all Internet traffic is expected to be video. I think that it is safe to say that the internet was made, and will continue to be made for video.
All good points except about Video on the internet. I don't get it this video was live for me when I watched it 8 months & 2 days later. If the rest of society believe Cubin is wrong about this topic then Cubin is wrong. If I watch live TV pay per view MMA or tune in later on You Tube not having talked to anyone about which guy won the experience is the same for me. One difference is Pay per view usually is a social gathering at whom ever house it was bought.
Chad Westover Only truth determines if Cuban is right or wrong. Whatever "the rest of society" says doesn't matter, it's simply majority opinion. TH-cam videos are not live, unless it's a live stream. There is no such thing as "live for me;" it's either live or it's not. Discussing a live PPV event or awards show as it happens is quite different from discussing a recording that already happened. This is what Cuban is talking about.
I am not sure about that Alexander....you might be right. But, it is interesting to me that right now that TH-cam and Netflix alone account for 50.31 percent of the downstream traffic during the peak part of the day on the internet in the USA alone. And 80% of TH-cam viewers are outside of the USA. It will be fun to see what happens over the next few years.
So true Mark, I started a business the first five years on a loan, and it was hell making the payment. I have just finished paying off a $150k loan. Now everyone and there brother want to become partners, nope ! been there and done that . Now going corporate!
*sigh* To all the people below who are saying he's lying and that he's an idiot and what not, you don't understand what he's trying to say/do. He's simply saying that it's much better to start on a small investment and no loan and then have that business grow and become bigger than to have an unsuccessful business (started on a loan) and then owe a lot of money.
jagjit bhatia I find it quite amazing people think they know more then him. I'm not saying he should be the perfect role model but he has proof, real world examples i think people just love hating.
5:08 "the internet was designed for everything but video, and television was designed specifically to deliver video" as we watch Mark on our "Internet Boxes" while Google implements LIVE broadcasts onto TH-cam.
Mark Cuban is a moran, just an athletic manager, these are skills unrelated to being a political candidate or running an industrial enterprise. A person with a reasonable loan, skills, commitment, education and keeping nose to the grind stone. Now that he has money, he will buy his way into the next opportunity.
Doug Taylor That's still taking out a loan, even if the truck, equipment, and/or office supplies are lent to you by a good friend or mentor. I think Cuban's comments in this interview are all over the place and shouldn't be taken literally.
Fan Made Videos I agree with you. The success of business is little more complicated than effort. First, it's the type of business or industry I involve myself. Second, where's my market and audience? Third, is it a"meals on wheels" operation or a physical business? Fourth, how easily can you produce products or services? Fifth, how do you generate financing to start your business or when your profits slow after you started? Sixth, what happens during an unseen and unfortunate events that cost? Seventh, if you are a stickler for legality, what type of licenses do you need to operate your business? Eighth, are you familiar with tax laws and commerce regulation? Ninth, who is your competition? Tenth, does your business require employees or expensive machines? Eleventh, how will you pay for them?
For people wondering what is the alternative to a loan, it's easy. If you have a feasible business plan, there will be many, mnay people wanting to invest in you, basically hoping to make profits off of your efforts. This could be, friends, family, acquaintances or any other contact for that matter. Or you could even use a site such as 'fund circle' in which random people invest in your start up online. By doing this, if your business fails, they lose their money, you do not have to pay them back, let alone with interest. I think his point should be, try this method, as it is really not all that hard, and if you are to take out a bank loan, they will want their money back, with interest.
It doesn't matter how rich or successful someone is you always take anyone's advice with a pinch of salt. Different business models for different people. I know a CPA and dentists who started out their practice taking out business loans and successed. Granted they work in a professional services industry where they just need a few titles after their name and they get customers. But it goes to show it can be done and in this paticular industry is the norm.
guys to let me tell ya what most of you probably already know. b4 you get into a business do your home work on the how, the where, and the what.. perfect example a few years back I started my own snack vending machine business. and the first individual I approached said to me " could I see your brochure? I said to myself SHIT! right then and there I lost the individual and there goes my opportunity. so just do your home work b4 the approach. and never mind what this billionaire is saying. " that only a moron would start his own business " he can say that because he already climbed the ladder of success. opportunities are always there just don't expect to climb them with your hands in your pockets. the key to success is not location location location. the key to success is knowing your home work.
The guy that founded Fedex had to take out a loan and purposely gambled with the money to raise even more money just to keep his new business afloat. Just this very fact negates the Mark Cuban theory of never taking out a loan to start a business. When you take out a small loan, you are liable for the success of the business, but if you take out a large loan, the bank is liable and desperately needs for you to succeed to pay off the loan. Moral hazard gets assigned differently depending on the ability to pay which is why many large businesses get away with stealing money, assets, and not paying for liabilities.
Moron is a strong word but I think his point about using a loan is pretty accurate. The problem is, he's speaking from the position of an investor looking for an equity stake, rather than the individual looking for the actual investment. It's the traditional debate between taking on debit or giving up equity.
Winners vs whiners. You absolutely can start a business with $0 in capital. I did a very successful lawn care business with no money in it. What I did have was a plan and spirit. Matched with time and talent. Now folks will be saying I have neither of those either. Well, where do you think I found it. I watched the masters. Read books from the library. Bought audio cassettes of Tony Robbins at garage sales missing tapes. Repeatedly practiced and honed my schpiel. Even today I was working to refine it down to with a smoother touch. You must emulated them, make your own style through trial and error. Now I run 3 of the top business groups and networking sources in all of South Texas. Narrow minded folks will say there is no way and make excuses forever. Those are the guys that fill the jobs for the entrepreneurs. If I can do it, you can, and better. I want to see it and assist. #bamm #smartbizbuddy #starrfish #b2bnetworker #14yrawardwinner
I love/hate TH-cam, because it shows me how much there is to "catch up" to learn about the world. But worst case scenario, I'm enjoying learning about fascinating world-class concepts in the process.
This is a stupid advise. Many comments here cited, he started off with a business loan. If you know what you are doing with calculated risks, skills/knowledge/experience, timing and most importantly, the instinct - Business loan is probably the best first step of many successes to come.
get 10 k and start your biz there. (85% of fortune 500 comp started at or below 10k) If u can work on a small scale u will be retardedly effective on a large scale. Especially if you attained the capital on your own rather than thru a loan. it has more value. Oh an thanks Nate.
Nate Morrison A lot can be said about new businesses, including that most fail, but to conclude that since most took out a loan, and most failed, the cause of failure is the loan would be silly. It would make just as much sense to say "most business owners in the US own cars; most fail, therefore getting rid of your car will improve your chance of success". A far more reasonable conclusion anyone who understands marketing will inevitably come to is that businesses most often fail because their marketing fails, and marketing fails most often for reasons which are preventable for prudent start-ups that take the study of marketing as seriously as they do the study of their main skill. The biggest reason the marketing fails is the business owner doesn't place a high value on the skill and body of knowledge that must be studied and practiced in order to achieve predictable growth. The success of their enterprise hinges more on the quality of their marketing than any other factor, including the quality of their product/s and/or service/s. It's a truism in marketing that a mediocre (often even substandard-think golden arches) product with great marketing, will always beat the pants off a great product with poor marketing.The history of business failures is littered with people who had great products and services, but sadly no idea how to market themselves effectively without going over their budget. I suppose it makes for compelling viewing for a guy who makes some of his money as a television reality show star, to be "outrageous" by calling people morons, but it was an absurd statement (he probably knows better), that his success in no way qualifies him to make. If you look at the risk factors, taking out a business loan can be far more prudent than a typical car or home loan. Most people consider it normal and prudent to take out a huge house loan, on the strength of a good stable job and a good credit rating; not even Mark Cuban would call you a moron for that. But ironically, the person typically considered an excellent candidate for a fat loan, is someone with a job working for a stable company, who will have a heck of a time paying if that job goes away suddenly, which it can at any time, and there is nothing the borrower can do to prevent that. On the other hand, someone who takes out a business loan, has studied their market and competition carefully, has identified low cost, effective ways of direct response (trackable) marketing, understands how to test, track and optimize campaigns, and knows all the numbers they can get their hands on, such as the average sale amount, and profit margins of the competition, the average lifetime value (or as close an educated estimate as possible) of a customer in their niche, what it will cost them to deliver better quality, etc, is far more in control and assured of the ability to pay the loan back than the person who simply has to hope their job doesn't disappear.
Tree service business. Me and a friend started a tree service on $300. Chainsaw, rope and ladder is all we had starting out. We were making 5k a week in the summer months. It’s pretty hard sometimes, but if you would rather be your own boss then it might be worth it to the right guy.
I just started a business without a loan and it was probably the best decision I could have made. I am debt free and the business in flourishing. Listen to what this man has to say.
Agreed, I did the same thing 5 years ago. Now, I’m making like $230,000 personal income (profit after expenses) from it a year, with NO DEBT, and me and my wife own 3 rental townhomes generating even more passive income…
Move to a small town of 30000 and start up a business thats never been in that town and the people want ! The best place in tbat town should be on the interstate or major highway thru that town !
By not thinking so small. Extra jobs, odd jobs, side hustles. Sell the shit you don't need and I mean everything you can live without. Utilize savings. Buy things you can sell for a profit and when you've reached the amount you need to start up your business, you will have worked so hard and sacrificed so much for it, that you will have no choice but to succeed because it is your passion now. Your baby.
The problem is that if your start up business fails then you will have to pay back asap (with interest) the bank or person you owe money to. As opposed to starting a business where you use your own money, which means that there are no strings attached.
I know a 5-10K loan right now would help me get moving on my venture. Unfortunately I don't have friends or family that have that have that kind of money to spare. While I kind of get his point, there are a lot of successful businesses that were started with friends and family rounds OR maxing out credit cards. Very risky, but sometimes you gotta do what you gotta do.
5-10k... could try making some cutbacks at home, try to save some money by spending less, have a garage sell or two and I bet that before you know it you'll be very close to your goal of having that 5-10k where you might only need a 2k loan at most. Smaller loan=less possible collateral damage at worse.
If you can't come up with 10K there's something wrong with you. You are probably living way beyond your means, instead of BELOW your means. Maxing out a credit card? How moronic is that??! I have a c credit rating, because I owe money? NADA. I PAY CASH for what I want. I totally agree with Cuban. Your business will be successful depending on how much EFFORT you put into it.
Waileka Pakalolo Wow really? Something wrong with me huh? HAHA! How about you invest 10k in what I'm doing and let me prove you wrong. Bet that would never happen and THAT'S why you're not in the real world. And no, I'm not living beyond my means.
nightlifekingcom Mate, why would someone invest in you if they believe you're living beyond your means? There's no betting on that, it's silly to even imagine someone investing in someone else with only reassurance that "they will be proved wrong!" It's a lose-lose situation for the invester. On the one hand he loses dignity, on the other he loses 10 k. Perhaps you should consider that before throwing around the words "real world" so lightly.
Cheers for the video content! Excuse me for butting in, I would appreciate your opinion. Have you tried - Chireetler Become Athletes Rule (do a search on google)? It is a great one off guide for understanding how to get bank funding for your business without the hard work. Ive heard some super things about it and my cooworker at very last got cool results with it.
It’s shocking how some people are so out of touch. He did a terrible job of explaining alternatives other than taking out a loan to start a small business.... he doesn’t realize some people really don’t have a choice and calling someone a moron for it just shows his immaturity and ignorance
Well said by Mark Cuban. What are the chances for you to succeed after taking a loan to start your Business? Like Cuban said the Lender don't give a damn if you are struggling, they are going to get their money back with interest. Use your own money to start your own Taco Stand Business or whatever comes to mind. Taking a Loan is a big risk.
not really. Taking a loan is not so bad. You are asking the bank or the SBA to take a risk with you, you are able to pay off the loan, your landlord likes the fact that you are getting support from the bank (that's good).....it's the people that drain their kids college funds for their business...without a business plan....that is a real problem. Most small businesses need more than Taco Stand money to get started.
So basically, he is just re-stating a piece of business advice once given by Christopher Wallace: A strong word called consignment Strictly for live men Not for freshmen If you ain't got the clientele, say "Hell, no." 'Cause they're gonna want the money rain, hail, sleet, or snow.
Surely he's speaking about a vast majority of small/home based business that should never get loans at startup. However, some business require large upfront capital to get started. For example, what if you were and experienced doctor and wanted to start up a medical or veterinary clinic? You may have to buy SOME medical equipment. That stuff's not cheap. Certainly there probably are better examples.
If you were a doctor and wanted to start your own clinic you will have some experience under your belt from working for other hospitals and clinics, and would have acquired the capital through savings because everyone knows doctors are paid alot of money.
+Here Comes A New Challenger! You meed to expand your vision if you think doctors are always paid a lot of money and/or don't have a lot of obligations like student loans to spend their earnings.
I love how people who've never started businesses before think they know more than a successful buinessman billionaire. As someone who has started multiple businesses since I was 17, I completely agree with him!
So as a person who knows nothing about business but what’s to start a skincare company I’ll need 30k-50k to start . I should start saving now while planning the business and working on product development .
I read his book...learn how to sell. His first company he sold was a software company. He said all he did was read the manuals which very little people did and he was able to look smart and sell software or consulting....both of which costs relatively little.
Real Estate investor here. Loans worked just fine for me.
For every successful story with loans, I'm sure there's 300 failure stories that have never gotten talked about. As a general rule of thumb - Mark has a point. Banks don't care about your business and uncertainty - but paying back the loan is a certainty.
needs trips shiyet
@@dang579 paying back loan is nothing, paying back INTEREST is what's going to kill you
@@dang579 thats just statistic for every single business, regardless they take a loan or not 🤦♂️
Loans are great I want to borrow as much money as possible.
My parent’s started a restaurant business on a loan 10 years ago and it’s striving. It’s really an “all up to you” type of lifestyle. There’s no one size fits all linear path
“I’m working 24 hours a day.” Shut up, Mark. You’re working hard. Acknowledge your hours of sleep before you send other people into suicidal depression.
Nate Jones 😂😂😂
Why are you not rich yet?
@@boxerpete4261 "WhY ArE You NoT RicH yeT?"
Are u a human ???
Boxer Pete rich in calories???
A lot of successful business owners who started off with a loan really don't care about this guy's opinion.
Define successful tho, I saw a lady saying she was rich and a life coach making 160K a year...😂
Jan Kostadinov Rucks rich is relative
And most business owners who failed wished they did.
how would you classify being rich ? this guy worth millions of dollars. Not small time businessman
Most businesses fail.
Your loan goes on.
Either take out the loan or keep saying hi to a boss everyday.
That's why you aren't a billionaire.
You're an idiot my friend. Please do more research before you make any big decisions
cuban took out at loan to start his bar while in college
Premium fuel only For lmao
@@carryeveryday910 And neither are you. So what's your point?
“Don’t get a loan!” Says man who offers no other advice on how to raise capital.
💀 well idk whut he meant but im working on that
When you start a business is very bad decision start with a loan. Only when you have established a business and converted it into a corporation and is public, you can get finance or investments, but not in the beginning.
@@DeviaNZe So how do you funded it then? a job?
@@carlosRodriguez-vz3ho No money is needed. I've started a few businesses with $0.00 income, and others with around $100. I'm going to create a new business for around $200 that will bring me at least 50-80k by Christmas and starting next year i expect it to be at 6 figures a year.
Ever heard of selling? Raising capital is not business selling is business.
A small loan of a million dollars
+zapspiders92 donald trumps loan
+zapspiders92 for a business thats not alot
***** depends how you look at it
Most not all
+indian gamer What business did you start if you think one million dollars is not a lot?
I love Mark Cuban but he did get a loan for his first business which was a bar called Motleys. He borrowed the money from his coach. maybe he forgot.
Jason Graystone I think he's talking about don't get a loan from A bank
Maybe that's how he know its a moronic idea?
Jason Graystone Hes obviously speaking from experience.
Loan from family or friend is different since there’s no interest
Miso Hungry: No friend of family of mine would loan me money at no interest. Why would someone let anyone use their money at no interest? It'd be one thing if they loaned a few hundred dollars for a short time if one was short for a while, but a long term loan they should absolutely charge interest.
"You're a moron if you get a loan from a bank. Instead come on shark tank so I can take your good idea."-Mark Cuban
Hahaha THANK YOU!
- Mark's first business was started on a $15,000 loan. Doesn't seem like much of a moron now. More like a financial genius.
Would like more info about this.
Lol, He did start on a loan, but he paid it with 49% of the Bar, he awarded Evan with a Stock Certificate, so....
Maybe his experience taught him that was a bad idea.
incorrect, he didn’t start a business. he bought a business that was already running and generating income. then he appraised it… that’s not the same as creating a business off a loan from ground 1.
@@sorryshed wasn’t Disney started on a loan?
A lot of people don’t realise that when you start a business you’re starting a fight. You need to fight for your share of the market. You need to either KO your competitors or race them to a spot they haven’t noticed yet
Yeah that's not legally how competing businesses work. They strive to find the one unique feature that they can offer. Yes multimillionaires will say otherwise, but they fail to remember that they are bound by the law as well or they will go to jail and their businesses fail. If they did work as this ass hat claims than Target, Walgreens, Bud's Bargain Basement, Dollar Tree, and others would all be out of business and bankrupt by now. Each one of the businesses I've mentioned have found a way to coexist which is there whole point of competition. On top of that US law protects small businesses as well as the US Constitution.
Yeah ill jus save 300k and start a business ok cool
LMAO
@Lithuanian European Dhalt yeah seriously it's like I always ask myself if you wanna be rich do you have to sacrifice your humanity?
You don't need that much to start a business dude I started a painting business with $600 now I keep me and 3 other's busy 40 hours a week
Mere peasant
@@johnsmith-hl7hi depends on the business. You aren't going to be opening something like a bar with only $600
"We don't just sit back and say the only way we solve problems is by hiring people"Literally 1 second later: "You hire smarter kids, you hire smarter people". Like wtf is he even trying to say, because that was a complete contradiction
The way I gathered, he meant you don't throw more people at a solution, you simply hire smarter...usually meaning scaling down on the manpower, but making who you have contribute much better to the business.
efficiency
if you didn't get it you need to study more.
You must not understand what he is saying. Instead of just throwing resources at a problem and thinking that only more man-power will solve your problems, smart business owners need to think smarter, not harder, and hire quality employees that will not only solve a problem but adapt the overall business model to make what was once a large problem something that can be handled with relative ease.
how could you not fathom what he was intending to say? you trying to catch mark Cuban contradicting himself? lol
Successful guys like him always forget how they started, a guy pitched an idea to him, he liked it took over, only gave that guy 10% of the business, and another partner supplied the startup money
Sounds like a loan to me!
That's pretty similar to his story, but definitely not everyone's. Cuban is basically a frat bro that got lucky (not saying he didn't work hard).
Ricky Stafford
he would have been a millionaire not doubt, but he sold at the peak of the tech boom
I wouldn't mind making 10% for an Idea for the rest of my life. I have thousands of great ideas. I can't physically produce all the results myself.
10% ROI for doing nothing, better return than the socialist Canada Pension Plan.
walperstyle oh yeah, Cuban is brilliant but he would never mention how he got started, and that it wasn't his idea cause hes a narcissist
Yeah, I need about 500K to get my business up and running. So I guess I'll just save that up on my 60k a year job. Maybe I can open for business 3 or 4 years before I die. People need loans buddy.
You make someone to invest with you, so if the company fails, the investor lose money but you don't. Of course, I don't think it would work well for only 600k idea businesss.
Rent a business and then if there’s huge potential growth then get a loan and buy the business don’t just jump right in.
I feel like his opinion is more of “if ur gonna get a loan, know about the risks of being able to pay it back”
Yup, more like it. That's why is easier to get loans for construction/real state business projects. The property is the collateral and in the worst case you can walk out the failure just even.
exactly
On another take, the money you want to get for an innovative idea is the risk money from investors (angel investors, venture capitalists, innovation funds, etc) who are essentially bidding on your success, but still conscientious about a potential failure and zero R.O.I. (unlike banks)
Your interpretation of his statement makes sense, but he was pretty straight forward with his comment, so it sounds more like don't take out a loan to start a business.
The bottom line is that to be successful in business, you need to be brutally honest, logical, and not emotional or sensitive. If you’re emotional or sensitive, you’re almost never going to succeed in business. You need to be pretty logical, analytical and ruthless tbh
Mark Cuban started his first bar business on a $15,000 loan.
From a friend and not a bank...
Aviaction At least if Mark was handy around houses and cars, he could perform $15k worth of repair work for his friend, in return.
Aviaction its still loaned money
No, he gave 49% of the company for $15,000. That's not a loan
Aviaction but he says that you shouldn't borrow from friends as well....
Didn't Cuban start his bar on a 15k loan from his friend?
Yep from what I've herd. Hes just a well paid PC prop for a voice piece of the employers' opinions.
Obviously he was speaking about bank loans and interest rates, borrowing money from a family member or friend is not the same as borrowing from the bank.
@@JohnnyJuarez1 That's not what he said though.
@@strauqq1 1:19 he said something like (the bank doesn't care about your business or who you borrow from "UNLESS IT'S FAMILY" he doesn't care about your business. To me family includes friends, so if you have a friend or family member that believes in your dream it's more likely that they're not going to charge you interest rate like a Bank would you won't be in debt for the rest of your life and it won't harm your credit if you start falling behind on your payments.
The most hilarious part about this video is that I left it on auto-play and the next video was "Mark Cuban: How I Became a Billionaire". Around the three minute mark, this guy explains how he LOANED Mark Cuban $15,000.00 so he could buy a bar in Bloomington.
he learned from his mistake
If you listen closely, Mark clearly says not to borrow money "unless" it's friends or family.
That bar failed. It was while he was in college
@@mankupexec Bullshit idea lending to friends or family.
This guy is just a well paid PC prop. Most businesses in the world started with a loan regardless of how it was achieved.
Generalizations are stupid because not every circumstance is the same.
+foreigncarsrule You're generalizing that generalizations are stupid.
+Zach Allen To think that, in itself, is a generalization is an error of the way we use language. Wittgenstein would tell you to fuck off.
foreigncarsrule true indeed
These guys are just about making bold statements. They don't care if they're right or wrong... Typical spotlight hungry businessmen.
@@jensenraylight8011 did you censor the word bastard? what an idiot.
@@elmerluzero3puertastechito501 he also capitalized the first letters of 'assumption' and 'fact'
@@Generatorsarefake lol
Yep pretty much. This guy is just a well paid PC prop, just paid for his "opinions" and he wants a monopoly.
@@elmerluzero3puertastechito501
Except he himself took a loan like every other successful business present. Regardless of the loan or how it was acquired or the parameters surrounding the acquiring of money, they are still loans and they still need to be repaid in some shape or fashion.
1 thing I realized in life. The poor complain and complain. Rich take actions. period.
How do the wealthy children that inherited all their money, fit into your fairy tale land?
They dont stay wealthy
kilaz lesliet you are right man they complain that they are living paycheck to paycheck...sucks do something about it.
Richard Fry Are you aware that most millionaires in this country are first generation wealthy? Most rich people did not inherit their wealth. The "fairy tale land", as you call it, is called reality. And you are living proof that the OP is correct.
kilaz lesliet LOL. Some of them do. Besides all that, people who tell you to value hard work are morons. It actually depends on the occupation you choose. If you work toward an occupation that pays good or find a way to become self-employed then good. But people who tell you that hard work is the key to success are morons. The hardest workers in America are the farmers and the ranchers and they don't make hardly any money. There's just something about a rich guy who works less hard than a farmer or blue collar person telling people that hard work is the only key to success that rubs me the wrong way.
Mark couldn't have been more off-base about television vs. Internet video. Hopefully he's changed his tune.
Right?! I know I’m late to the party here but... it’s funny to listen to someone speaks so confidently and be so wrong at the same time. Gotta appreciate the confidence if anything.
@@changwufeinataku He is very much right. Just because you don't like the sound of it, doesn't mean he is wrong.
@@21berkyx How much TV have you watched this quarantine?
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What were your steps?
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@Karen Diedrick Grant is not a loan! Even billionaires seeks and get grant for their business monthly. Getting a grant is not compulsory but it should be every individual’s priority if they want to hold a solid ground on the financial market.
@@williamsjawanzas2047 You can contact The team of Agent Mighty on
No loans but it's hard work and planning. It can be done.
***** you guys are a good example, and glad to see you on here too.
how did you do it without loans. money had to come from somewhere
One step at a time and careful planning of funds. I worked for over a year to save up before I started my company. Put money aside to get it running then it paid it self back.
Wow that's what I want to do with another type of business but I don't make much a year. This gives me a lot of inspiration. Thank you.:)
+Lead it i've also started 2 businesses without loans, or seed money. one i started by being a service provider. starting with labor only, and then adding parts sales once i had SAVED money i had already earned. The other i started by creating intellectual property for which i saw a demand.
I love his advice: "If you find something that you like to do or love to do, be great at it and see if you can turn it into a business; in worst case you going to have fun doing you want you love to do in best case you can turn it into a business."
So true! I've started a small business with only a few hundred dollars but had people on the internet say "you need at least $5000" etc, if you're smart and resourceful you can leverage what you already have.
He says dont take a loan to start your business but 2 of his fellow Sharks took loans to start their business - Kevin Oleary turned a $10,000 loan into a billion dollar business and Barbara turned a $1000 loan into a real estate empire...
Skyler Windmiller Doesnt matter if he agrees with them or not. The fact that they took loans out and became multimillionaires by doing so, proves him wrong.
Grindahz Studio We should see stats on what percentage of small business loans ended up creating a successful business and then we will know.
***** Obviously it takes more than just money to have a successful business, but they wouldnt have been able to act on the plan without the startup money.
+Grindahz Studio As a Real Estate Agent, one of the first things that you are taught, as far as investing goes whether it be in a residence or a business is, use other peoples money (the bank) to make money. In other words, even if you have 250k and you want to either start or purchase a business for say 200k, risk their $ and not yours! (just don't let em' know you got it ;) )
+Grindahz Studio yea but they are 2 in millions to tell the truth
Trust me, you cannot start your business idea without money, I've been trying for 32 years and it doesn't work.
That's a lie, I have.
dommafia
oh ya what kind of business did you start without money lol.
dommafia
What kind of business?
JamesD567 IT consultant, on my third employee in 2 years.
dommafia Agreed... You can start one without a loan! We did with ahWriting.com
Not everyone can have nothing at all but a fantastic business idea and expect to KNOW EVERYONE IN THE INDUSTRY -- let alone know where all the money people are who are willing to invest. Not everyone grows up in a family of money or a family of connections. SOme people are actually doing everything they can to get out of the part of the country where NO MONEY FLOWS WERE RICH PEOPLE PINCH EVERY MARK FRANK YEN POUND OR RED CENT THAT THEY HAVE and they arent willing to help other.
Hell, IM DIVORCED -- but my home is 100% paid off, My Car is 100% Paid Off, My Bills are 100% Paid off and I still cant get a loan of any kind let alone get a loan to start a business.
Some of us have to do what we have to do. SOrry we are soooo stupid.
Do you think you have to have all those things to start a business? If so, then don't try. That's the wrong approach. Some of the best businesses were started in garages.
mark started his first business off a 15k loan from a friend, without that loan who knows where he would be today...
McDonalds
+gage lundgren from a friend, not from a bank.
+Adam Jones EXACTLY!!!
+gage lundgren He'd be hustling getting money from someone else
+Marcus Chun
I seriously doubt he would have to. He had an extremely sharp mind for business and making money out of air and it was evident from an early age. I think he would be successful one way or another, perhaps if he was not so lucky he would end up being a millionare instead of a billionare.
i agree with Mark Cuban. start a small business with the capital you have and try to sustain it. if you can't start it then keep working until you have adequate amount to start one. taking a loan is a conflict because you have to sustain your business and repay the loan. if you win then you can pay of the loan, if you lose then you lose your business and your debt grows at high percent.
***** Your>>> You're...
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This is ridiculous, there is no way I can save up 100k from my job to start a business without taking out a loan just no way he's two shark friends Barbara took out $1000 loan and turn it into A multibillionaire empire and Damon's mom put their house up for collateral. Get out of here. If people are not ready to take that risk then they're not ready to be an entrepreneur
PrettyPetite1 Donald Trump basically took a loan for a dollar and turned it into 3,000 dollars, (loan for a 1m into 3bill)
dont save up 100k generate 100k through multiple avenues of income. investing, real estate, bonds, generating small businesses or even websites that generate a more passive income. start small , think big and then be big, dont complain.
PrettyPetite1 if you save $1000 a month for 10 yrs, you would have more than enough to start your own business
Coconutwater Tatyana Most people simply can’t put away 1000 a month and not touch it at all.
read EntreLeadership by Dave Ramsey and Business Botique by Christy Wright
I guess I'm a moron for taking a 15 thousand dollar loan and turning into to a 6 digit business
What's your business?
C.R.E.A.M. I own a video game store and buy and sell pre-owned games and retro games as well.
Hell ya, it's all about supply and demand. Figure out what they demand and find a way to supply it and you can do big things!
C.R.E.A.M. Oh yea man, I will be expanding into more of like a gaming tournament and gaming clubs here within the next year I am planning it out man. Skys the LIMIT
USA Clan
what is your business? If you don't mind me asking.
You don't want to lose money if you have to keep paying the loan after your company fails, you want people to invest with you and get or lose money with you. If it fails, you don't lose anything
If i remember correctly.... Mark Cuban started his first business with a loan....
+mrtimjitsu And his business was completely useless after the dotcom bubble (luckily he sold it for billions before it burst). He was just born at the right time.
+Dick Tracy lol yeah i know.... I don't like how people assume that there's some secret to being a successful entrepreneur, and if you are a successful entrepreneur like Mark Cuban, you must know everything there is to know! Like the old saying goes, "there's more than one way to skin a cat" There's also more than one way to run a business... There are soooo many opinions on whats the right way, "do this, don't do that" all good advice and it may or may not work depending on the circumstances, and a lot of times it's just down right luck. Because I've personally met quite a few STUPID yet VERY successful entrepreneurs....
+mrtimjitsu well he learned from that experience and is warning people not to do that
Mark Joseph I think if there's any experience he learned from his first business is that don't let underage girls enter a wet T-shirt contest in your bar.
+mrtimjitsu Opinions are like assholes.....everybody's got one. And no two are exactly the same. With bio-metrics coming everywhere, pretty soon we will be able to start our cars by sitting on the gearshift knob.
"If your going to compete with me, you better realize im working 24 hours a day to kick your ass." Love it.
NO LOAN or Finance: I started with a wheel barrow and now my Company has a Dump truck, two HD Pickup Trucks, two dump Trailers, an Enclosed trailer, and all the equipment we need to do anything. And thats only after 2 years. I think if you open your mind to realize anything is possible for anyone and accept yourself for who you are all the negatives and positives and you set a goal and you know that you are going to do whatever it takes with using a smart and planed out process you will get there. Just try and use your GPS to take without telling it exactly where you want to go and you know if you don't decide exactly where you want to go you will probably never end up anywhere you truly want to be. Thats what people like Mark know is exactly where they wanted to go and regardless of a Loan or Financing whatever method you planned out that you know works for you then do it instead of occupying your valuable time thinking of all the reasons you can't do it or why it can't be done.
What are you going to do before you die?
"the internet was designed for anything but video"
what year is he living in? 1998?
Speaking technically, he is correct. The internet, specifically TCP/IP packets and the network infrastructure are designed for burst traffic and not constant high-bandwith streaming (whether up or down). This is why ISPs want to charge Netflix extra for using their lines and why companies involved in video (google, netflix, hulu, etc) have to create content distribution network caches (CDNs) often in-house with said ISPs.
Whether or not that's the reason why he said that remains to be seen.
thanks for clarifying, no wonder live streaming is a big challenge for companies like twitch, but is it the same with netflix and youtube when they can buffer much seconds in advance ?
***** I can't believe I didn't think of twitch. No, it's not exactly the same, twitch has to work a lot harder to deliver streaming content live (as Mark was talking about in the video)--especially so when a lot of that source is not their own. Netflix/Google/Hulu have it much easier due to being able to use big data caches to cut bandwidth and distance.
John Galt who are you???
WiredUpDIY lol
Most small businesses fail within 5 years. That's why banks do not give out loans without the backing of equity. If you have a great idea to sell, either you sell the ideas to angel investors or a rich uncle who will own a lion share of the your business, or you save every penny you have.
I am sensing a lot of defensiveness in the comment section.
These are the people who have no business doing business, and probably will end up having their houses foreclosed.
Concerned Citizen If people just learn how to not spend money they don't have then they have nothing to fear.
The problem with America is that we've let the banks brainwash us into thinking that it's okay to spend money you don't have as long as you pay it back within reasonable time. In fact it's actually SMILED UPON to spend money you don't have and then pay it back (hence building credit).
That's some horse shit. Save up. Or, start a business that requires no capital (such as washing cars or mowing lawns or fixing computers or something service based) and then once you HAVE THE MONEY then you can begin fueling your business to try new things.
Get уоur рауdаy loan nоw => twitter.com/3ac3041c00204e45d/status/809350192776347648 Маrk Cubааan ООOnlу Morоns Start а Businеss оn а Lоаn
Hayden Evanoff those service businesses you you just stated do need money to start, you need products to clean a car.. a lawnmower to mow lawns, if you have nothing to begin with sometimes lending money to start something that makes you money is okay within reason. Before anyone says work and buy it- alot of people do work and have no money left over. It's a lot easier to say things when your not in the position.
This is definitely true. Most people often fail and this is exactly why it is difficult to even get a loan in the first place. In the era we live in, there are a bunch of crowdfunding platforms that can get you the money you need for your small business.
well, just worth to point out that there are many more routes other then the few you've pointed out in this comment
BS
I own a gym that revenues almost $10,000 every month and all it cost me was hard work and a $12,500 loan
MXJunky how much do you bring in tho. I’m sure you have employees and plenty of expenses
@Jon Luci I mean, it's a gym. How many positions are available? I'm assuming it's a small time local gym, not a state of the art facility.
S C buddy here doesn’t really own a gym. Someone who owns a gym doesn’t have time to comment on a TH-cam vid flexing about his business
That s why I don't buy rich people book, he was right, competition , no way a rich person will tell you how he became rich, cause If he do you will be competition for him
lolololol. I always find it silly when they pretend to want to tell someone how to get rich..
lolololol. I always find it silly when they pretend to want to tell someone how to get rich..
That's why you should watch the business moves that they make instead of their words. Mark Cuban (and any other smart businessman) has a killer instinct when it comes to business. Its about outsmarting your competition.
As if it's easy to dominate a sector...
Ken M You're right..
I think market share is better..
Plenty have started with a loan. I think Buffett did also. But you will need investors for seed money.
You need to be sure that it's working or going to work.
Carl Icahn gained a personal profit of $469 million after three years in 1991 from TWA which he earlier acquired on an acquisition loan. So Cuban thinks Icahn is also a moron? Check out the mirror Cuban..
He is talking about regular people. 80% of businesses fail so if you fail better fail without debt. There are rare times where this can be a good decision but is better you have a job to pay the bills of your business.
+Stephanie Polanco yes, I agree with that. The whole big business man like him are fearless risk takers are just a sexy concept. All the big successes in business are very conservative. Some of the household name today didn't quit their day jobs until they were well on their to success in their side business. So, start your business and start selling. That's the only way I know.
+Beck Bat To expand upon what you said.. What alot of entrepreneurs who are just starting out don't understand is the correlation that brand perception and equity has with sales. There is reason why lamborghini can sell their cars for $300,000+ each and Honda can't.
Brand perception influences the mentality of the customer and how much they are willing to pay for your product. Every entrepreneur should thrive to carefully construct their companies brand to establish brand equity which in term will lead to more sales.
i needed to hear this. No loans just effort.
I got a Tai Lopez ad
me too
+Said Ali he is a real despo bruh!!!!😂😂😂
+Said Ali he is a real despo bruh!!!!😂😂😂
sketchyou 😂😂😂😂😂😅
did he brag about his lambo? or take you on a tour of a rental house? (not his)
Didnt Mark Cuban take a loan of 15000 to open a bar?
***** very true and in 1979. The bar was later shut down for a wet t-shirt contest as the girl who won was under age.
Mark gave a share percentage of the bar in exchange of the money. It wasn't a loan. I think?
Michael Taylor
good job you watched a documentary, now you're a expert in the subject
*****
we'll that's just a subjective statement
i guess, but it was sorta necessary, because the bar wasnt necessarily a "business". It was necessary to pay for that in the first place, while businesses you personally start, you need to create something before you find the need to get money to fund it.
This guy is always wrong. You need capital to grow, and if you don’t have capital you need a loan.
He is the one that said that Trump “would not be president”.
While I am not a big Cuban fan.... so what you are saying is that I needed capital to start a house cleaning business and make millions? By the way, I started that house cleaning business with $3.17. Are you saying I needed capital to start an appliance business and make hundreds of thousands of dollars (company isn;t very old, still too new to have made millions YET, but it will soon)? Yep, started that business with $150. Those are just 2 of my 50 businesses I have started with less than $2000 each and most were started with less than $1000. 95% have been successful. So please tell my bank account how a person needs capital or a loan to make money. Living the high life here! What life are YOU living? Don't lie......
You don’t always need a loan from the banks. I started my business for less than $800. I saved the money by working a job making $10 per hour (working in a daycare). Three years ago, I got licensed as an in home daycare provider (independent contractor from Job & Family Services). I saved more money (reinvest into my LLC) and in September, my child care center will be opened. I said that to say, you don’t have to borrow from the big banks (personal/ business loans). Start from somewhere and reinvest and grow. I will say to keep a credit card handy for emergencies.
@@lilolme69
Yes you need capital to start a business, and yes most people and every other business started with a loan. Even saving for X amount of time and adding it to the beginning capital counts as a loan. This guy is just a well paid PC prop
@@Openreality LMAO You are a joke. I just said.... I made MILLIONS from $3.17. Since that time I have started several profitable businesses on less than $1000. I would never spend over $1k to start a business. Right now I could sink as much money as I needed to in a business but there is no need in it. Maybe, MAYBE 10% of the people who borrow money make it work and become successful. 1% are iconic and will be known forever. 9% made a nice living. But you fail to talk about the 90%++ that ended up killing their self, getting a divorce, started using drugs and alcohol, all due to owing so much money and being in debt because they took out a loan for a business. So how about that 90%+? And since you know so much, let me talk about a business that is now iconic that I have a connection to.... Cabela's. Tell me how much money they borrowed to start that business? You said everyone does it.... so tell me smart guy. You can't, but I can.... $0. That's right! They started that business from their kitchen table in western Nebraska with NO money and NO loans. Actually, they moved to Sydney soon after they started the business. I forget how much they said they started with but it was less than $100. Or how about Merry Maids. Another large, world wide company. Started at their kitchen table in Omaha. They were broke. They actually had another partner for less than 1 day but he was hired by Sears to be a salesman so he backed out. They started basically like I did.... with a hope and a prayer. I know another business that I will not name, it started with $700 (He saved from painting houses). It is a seafood wholesale business and now makes around $5 million profit per year. I know lots of them like that. I also know lots of failures that took out loans when I told them not to. Some are dead..... I think all but 1 is divorced, a few are druggies and a couple are alcoholics. 1 alcoholic has kept a regular job through the years but that 1 loan destroyed her mentally. So tell me more about how great those loans are how how EVERYONE does it. Well let me tell ya.... if you want to be a success, don't follow what EVERYONE is doing because 90%++ of those everyone's will end up failing. You go ahead and screw yourself if you want but don't talk others in to following you in to the porn store.....
@@lilolme69 how 😶 I've watched videos and I've thought about an idea. But I dont make anything, i dont specialize in a skill, and I'm just lost on to where to start. I have big plans for the future but idk how to get the small plans started so then the big plans can get into a working progress. It is cool that you are able to make a busines with about 1k. If you would be so kind and give me a chance to learn it would be greatly appreciated.
I started my business with a small loan of a million dollars and now I'm here in my garage with my Lamborghini. KNOWLEDGE!!!
KNAWLEDGE*
Max Gazenko
Who are you? Donald Trump!!?
Max Gazenko how do you get loan I need a loan to open a restaurant but I have a bad credit.
Start smaller. Food truck, start selling prepared food at local farmers markets. Eventually offer catering.
I started growing mushrooms and selling at farmers markets. Added produce. Opened up my own market, took a leap on buying a corrugated shed and began distributing commercial produce. Now I have a small, small restaurant attached serving breakfast and lunch. We just started doing 8 dinners, fixed price, last year.
Things are going well, but I am still holding off on going full time with three services a day.
Sometimes going in the backdoor is the most sensible way to reach your actual dream.
ok ruined my mood
i been saving for 5 years and need a loan to have enough capital for my idea. cant do it without a loan.
don't let this ruin your mood. we all start form somewhere.
Your idea no matter what has to produce enough revenue to cover the loan. Everyone thinks that their business idea is gold and will be profitable but reality shows that a strong majority of businesses fail within a year or two. So plan and analyze the market, step back and look at it from multiple angles. Restaurants are prime examples of tunnel vision planning that leads to failure. They always seem to think that their idea is the solution to a location that has failed numerous times under previous ownership. Always look at how other people fail and do what you can to avoid it. Cuban knows most people who take out a loan to start a business will make the same mistakes as the last guy with a great idea.
try kickstarter or indiegogo for crowdfunding
Mark is just opinionated. Use your capital as collateral for the loan.
***** Agreed! Everyone has to start somewhere.
Borrowed against my house 20 years ago to start my business. 12 companies and $450 million in revenue later I would say this is completely wrong! Crazy Rich guy that is so far removed from the rest of us that he has lost that perspective.
Obviously hasn't realised that youtube has evolved from cats playing piano and dancing dogs into one of the worlds biggest platforms for communications.
^
easy for him to say, if your poor, nothing else matters.
+t-bird shane
That is just an excuse.
+t-bird shane *you're
+t-bird shane Maybe you are a poor student but then you go looking into your field of choice , find a mentor(s) that are top in that field in the city(they all want to pass down their knowledge just tell them all work for them for free), come up with a brilliant idea thats lucrative, present your business proposal to your trusted mentor that can seal the cracks in it, find potential investors including your mentor and Booom!!!! You are on your way my son and didn't have to pay 1 cent. Just brought your passion, creativity, drive , loyalty and balls.
thanks,
+Lasheka Morgan sounds good ....ultimately persepctive business owners want and need capitol not mentorship,I wonder how many people on shark tank sought a mentor prior to the show, idk, but i do know they're all seeking investors who happen to have capitol. These investors are looking for a return/gain on their investment. Never been a fan of the middleman.
"poor and middle class used DEBT to become poor while Rich used DEPT to become more RICH"
Mark Cuban is a smart guy... but I have to totally disagree with his statement "YouTUbe is not about conversation". It is the 3rd largest social media network in the world, and I see 590 people having a conversation about this video as I type this comment. By 2015, over 90 percent of all Internet traffic is expected to be video. I think that it is safe to say that the internet was made, and will continue to be made for video.
All good points except about Video on the internet. I don't get it this video was live for me when I watched it 8 months & 2 days later. If the rest of society believe Cubin is wrong about this topic then Cubin is wrong. If I watch live TV pay per view MMA or tune in later on You Tube not having talked to anyone about which guy won the experience is the same for me. One difference is Pay per view usually is a social gathering at whom ever house it was bought.
Chad Westover Only truth determines if Cuban is right or wrong. Whatever "the rest of society" says doesn't matter, it's simply majority opinion. TH-cam videos are not live, unless it's a live stream. There is no such thing as "live for me;" it's either live or it's not. Discussing a live PPV event or awards show as it happens is quite different from discussing a recording that already happened. This is what Cuban is talking about.
90% of content? Maybe in terms of packet size... Not actual content.
I am not sure about that Alexander....you might be right. But, it is interesting to me that right now that TH-cam and Netflix alone account for 50.31 percent of the downstream traffic during the peak part of the day on the internet in the USA alone. And 80% of TH-cam viewers are outside of the USA. It will be fun to see what happens over the next few years.
All the wonders of the Internet and most of it's usage goes to decade old streaming movies. lol
"next to no capital" for this guy is like 400,000
hahaha
exactly what I was thinking
this guy is stupid!
I think this guy is a bit opinionated. I think it is ok to use credit in a good business plan.
A small loan of a million dollars
So true Mark, I started a business the first five years on a loan, and it was hell making the payment. I have just finished paying off a $150k loan. Now everyone and there brother want to become partners, nope ! been there and done that . Now going corporate!
Congratulations, I wish you the best. I started my business without a loan, and now I'm in the path of a corporation.
@@DeviaNZe I own Mauki Sun Farm corp now. And have products into stores.
*sigh* To all the people below who are saying he's lying and that he's an idiot and what not, you don't understand what he's trying to say/do. He's simply saying that it's much better to start on a small investment and no loan and then have that business grow and become bigger than to have an unsuccessful business (started on a loan) and then owe a lot of money.
I don't think he's trying to mislead people, I think he's just trying to prevent people from making big mistakes.
jagjit bhatia I find it quite amazing people think they know more then him. I'm not saying he should be the perfect role model but he has proof, real world examples i think people just love hating.
Omoiyari23 Ikr, finally someone who gets it.
it's hard to accept your opinion when he directly with intent, accents "you are a moron" regarding loans
Michael Covel He is just really honest and gives blunt advice. I think it's perfectly fine he is not politically correct.
5:08 "the internet was designed for everything but video, and television was designed specifically to deliver video" as we watch Mark on our "Internet Boxes" while Google implements LIVE broadcasts onto TH-cam.
Mark Cuban is a moran, just an athletic manager, these are skills unrelated to being a political candidate or running an industrial enterprise. A person with a reasonable loan, skills, commitment, education and keeping nose to the grind stone. Now that he has money, he will buy his way into the next opportunity.
How do you start a business WITHOUT a loan?
You don't buy a new truck, you keep the old one cleaned up. You don't buy equipment, you lease it or better yet borrow. etc.
VC, angel investor, loan from parents or relatives, crowdfunding.
some business dont even have to use any cent/penny
Doug Taylor That's still taking out a loan, even if the truck, equipment, and/or office supplies are lent to you by a good friend or mentor. I think Cuban's comments in this interview are all over the place and shouldn't be taken literally.
I plan to start a computer repair business soon. I don't need a loan for that.
Fan Made Videos
I agree with you. The success of business is little more complicated than effort. First, it's the type of business or industry I involve myself. Second, where's my market and audience? Third, is it a"meals on wheels" operation or a physical business? Fourth, how easily can you produce products or services? Fifth, how do you generate financing to start your business or when your profits slow after you started? Sixth, what happens during an unseen and unfortunate events that cost? Seventh, if you are a stickler for legality, what type of licenses do you need to operate your business? Eighth, are you familiar with tax laws and commerce regulation? Ninth, who is your competition? Tenth, does your business require employees or expensive machines? Eleventh, how will you pay for them?
For people wondering what is the alternative to a loan, it's easy. If you have a feasible business plan, there will be many, mnay people wanting to invest in you, basically hoping to make profits off of your efforts. This could be, friends, family, acquaintances or any other contact for that matter. Or you could even use a site such as 'fund circle' in which random people invest in your start up online.
By doing this, if your business fails, they lose their money, you do not have to pay them back, let alone with interest. I think his point should be, try this method, as it is really not all that hard, and if you are to take out a bank loan, they will want their money back, with interest.
Work smart!! Best advice right there.
It doesn't matter how rich or successful someone is you always take anyone's advice with a pinch of salt. Different business models for different people. I know a CPA and dentists who started out their practice taking out business loans and successed. Granted they work in a professional services industry where they just need a few titles after their name and they get customers. But it goes to show it can be done and in this paticular industry is the norm.
guys to let me tell ya what most of you probably already know.
b4 you get into a business do your home work on the how, the where, and the what..
perfect example a few years back I started my own snack vending machine business.
and the first individual I approached said to me " could I see your brochure?
I said to myself SHIT! right then and there I lost the individual and there goes my opportunity.
so just do your home work b4 the approach.
and never mind what this billionaire is saying. " that only a moron would start his own business " he can say that because he already climbed the ladder of success.
opportunities are always there just don't expect to climb them with your hands in your pockets.
the key to success is not location location location.
the key to success is knowing your home work.
1st comment I've agreed with. Are you still in the vending business @Hydra Inarms ?
The guy that founded Fedex had to take out a loan and purposely gambled with the money to raise even more money just to keep his new business afloat. Just this very fact negates the Mark Cuban theory of never taking out a loan to start a business. When you take out a small loan, you are liable for the success of the business, but if you take out a large loan, the bank is liable and desperately needs for you to succeed to pay off the loan. Moral hazard gets assigned differently depending on the ability to pay which is why many large businesses get away with stealing money, assets, and not paying for liabilities.
In college Mark opened a bar on a 15K loan. It failed when they found out an underaged girl was in a wet T shirt contest.
Joseph1NJ He regretted that.
Advice comes from failure.
Moron is a strong word but I think his point about using a loan is pretty accurate. The problem is, he's speaking from the position of an investor looking for an equity stake, rather than the individual looking for the actual investment. It's the traditional debate between taking on debit or giving up equity.
Jamal Bradley is it
His first business he had to borrow the money from a friend because no bank would give him the money.
I was just about to say that. He took A LOAN to start his first business.
Winners vs whiners. You absolutely can start a business with $0 in capital. I did a very successful lawn care business with no money in it. What I did have was a plan and spirit. Matched with time and talent. Now folks will be saying I have neither of those either. Well, where do you think I found it. I watched the masters. Read books from the library. Bought audio cassettes of Tony Robbins at garage sales missing tapes. Repeatedly practiced and honed my schpiel. Even today I was working to refine it down to with a smoother touch. You must emulated them, make your own style through trial and error. Now I run 3 of the top business groups and networking sources in all of South Texas. Narrow minded folks will say there is no way and make excuses forever. Those are the guys that fill the jobs for the entrepreneurs. If I can do it, you can, and better. I want to see it and assist. #bamm #smartbizbuddy #starrfish #b2bnetworker #14yrawardwinner
I love/hate TH-cam, because it shows me how much there is to "catch up" to learn about the world. But worst case scenario, I'm enjoying learning about fascinating world-class concepts in the process.
This is a stupid advise. Many comments here cited, he started off with a business loan.
If you know what you are doing with calculated risks, skills/knowledge/experience, timing and most importantly, the instinct - Business loan is probably the best first step of many successes to come.
I think almost every small biz starts with a loan.
and majority fail within 5 years..
Nate Morrison A loan is a poor choice. Build the capital and protect your business model through endless effort to meet your standards.
I agree
get 10 k and start your biz there. (85% of fortune 500 comp started at or below 10k) If u can work on a small scale u will be retardedly effective on a large scale. Especially if you attained the capital on your own rather than thru a loan. it has more value. Oh an thanks Nate.
Nate Morrison A lot can be said about new businesses, including that most fail, but to conclude that since most took out a loan, and most failed, the cause of failure is the loan would be silly. It would make just as much sense to say "most business owners in the US own cars; most fail, therefore getting rid of your car will improve your chance of success".
A far more reasonable conclusion anyone who understands marketing will inevitably come to is that businesses most often fail because their marketing fails, and marketing fails most often for reasons which are preventable for prudent start-ups that take the study of marketing as seriously as they do the study of their main skill.
The biggest reason the marketing fails is the business owner doesn't place a high value on the skill and body of knowledge that must be studied and practiced in order to achieve predictable growth. The success of their enterprise hinges more on the quality of their marketing than any other factor, including the quality of their product/s and/or service/s.
It's a truism in marketing that a mediocre (often even substandard-think golden arches) product with great marketing, will always beat the pants off a great product with poor marketing.The history of business failures is littered with people who had great products and services, but sadly no idea how to market themselves effectively without going over their budget.
I suppose it makes for compelling viewing for a guy who makes some of his money as a television reality show star, to be "outrageous" by calling people morons, but it was an absurd statement (he probably knows better), that his success in no way qualifies him to make.
If you look at the risk factors, taking out a business loan can be far more prudent than a typical car or home loan. Most people consider it normal and prudent to take out a huge house loan, on the strength of a good stable job and a good credit rating; not even Mark Cuban would call you a moron for that.
But ironically, the person typically considered an excellent candidate for a fat loan, is someone with a job working for a stable company, who will have a heck of a time paying if that job goes away suddenly, which it can at any time, and there is nothing the borrower can do to prevent that.
On the other hand, someone who takes out a business loan, has studied their market and competition carefully, has identified low cost, effective ways of direct response (trackable) marketing, understands how to test, track and optimize campaigns, and knows all the numbers they can get their hands on, such as the average sale amount, and profit margins of the competition, the average lifetime value (or as close an educated estimate as possible) of a customer in their niche, what it will cost them to deliver better quality, etc, is far more in control and assured of the ability to pay the loan back than the person who simply has to hope their job doesn't disappear.
being Jewish helps
Tree service business. Me and a friend started a tree service on $300. Chainsaw, rope and ladder is all we had starting out. We were making 5k a week in the summer months. It’s pretty hard sometimes, but if you would rather be your own boss then it might be worth it to the right guy.
Reinvest the capital gain again an again to expand your business. Learn the tax code and use the system in your favor, you will be rich.
I just started a business without a loan and it was probably the best decision I could have made. I am debt free and the business in flourishing. Listen to what this man has to say.
Agreed, I did the same thing 5 years ago. Now, I’m making like $230,000 personal income (profit after expenses) from it a year, with NO DEBT, and me and my wife own 3 rental townhomes generating even more passive income…
@@charlesg7926 What source of income did you used to start? job?
Pretty sure that's how Steve Jobs and Steve Wozniak started Apple
Nice stuff guys
Move to a small town of 30000 and start up a business thats never been in that town and the people want ! The best place in tbat town should be on the interstate or major highway thru that town !
We are lacking in meth producer here in Bali. Maybe you could try that and go big.
"The Internet was designed for everything but video" - Mark Cuban 2013
Great answers, all true.
how do you get funding for a business without a loan ?
Equity Partner and Crowd Sourcing
U fucking work ur ass off and u don't stop till u can
By not thinking so small. Extra jobs, odd jobs, side hustles. Sell the shit you don't need and I mean everything you can live without. Utilize savings. Buy things you can sell for a profit and when you've reached the amount you need to start up your business, you will have worked so hard and sacrificed so much for it, that you will have no choice but to succeed because it is your passion now. Your baby.
*Wipes tear at the passion shown* lol
joseph...get business credit and do a little at a time...nothing too big that you may be able to pay back
Says the man who gives loans for a living!
Investment and loans ain't same dude
The problem is that if your start up business fails then you will have to pay back asap (with interest) the bank or person you owe money to. As opposed to starting a business where you use your own money, which means that there are no strings attached.
I know a 5-10K loan right now would help me get moving on my venture. Unfortunately I don't have friends or family that have that have that kind of money to spare. While I kind of get his point, there are a lot of successful businesses that were started with friends and family rounds OR maxing out credit cards. Very risky, but sometimes you gotta do what you gotta do.
5-10k... could try making some cutbacks at home, try to save some money by spending less, have a garage sell or two and I bet that before you know it you'll be very close to your goal of having that 5-10k where you might only need a 2k loan at most. Smaller loan=less possible collateral damage at worse.
If you can't come up with 10K there's something wrong with you. You are probably living way beyond your means, instead of BELOW your means. Maxing out a credit card? How moronic is that??! I have a c credit rating, because I owe money? NADA. I PAY CASH for what I want. I totally agree with Cuban. Your business will be successful depending on how much EFFORT you put into it.
Waileka Pakalolo Obviously you don't live in the real world...
Waileka Pakalolo Wow really? Something wrong with me huh? HAHA! How about you invest 10k in what I'm doing and let me prove you wrong. Bet that would never happen and THAT'S why you're not in the real world. And no, I'm not living beyond my means.
nightlifekingcom Mate, why would someone invest in you if they believe you're living beyond your means? There's no betting on that, it's silly to even imagine someone investing in someone else with only reassurance that "they will be proved wrong!" It's a lose-lose situation for the invester. On the one hand he loses dignity, on the other he loses 10 k. Perhaps you should consider that before throwing around the words "real world" so lightly.
Not everyone has rich friends that THEY CAN ROB like you have
Cheers for the video content! Excuse me for butting in, I would appreciate your opinion. Have you tried - Chireetler Become Athletes Rule (do a search on google)? It is a great one off guide for understanding how to get bank funding for your business without the hard work. Ive heard some super things about it and my cooworker at very last got cool results with it.
It’s shocking how some people are so out of touch. He did a terrible job of explaining alternatives other than taking out a loan to start a small business.... he doesn’t realize some people really don’t have a choice and calling someone a moron for it just shows his immaturity and ignorance
"If you find something that you love to do, be great at it and see if you can turn it into business"..
Well said by Mark Cuban. What are the chances for you to succeed after taking a loan to start your Business? Like Cuban said the Lender don't give a damn if you are struggling, they are going to get their money back with interest. Use your own money to start your own Taco Stand Business or whatever comes to mind. Taking a Loan is a big risk.
not really. Taking a loan is not so bad. You are asking the bank or the SBA to take a risk with you, you are able to pay off the loan, your landlord likes the fact that you are getting support from the bank (that's good).....it's the people that drain their kids college funds for their business...without a business plan....that is a real problem. Most small businesses need more than Taco Stand money to get started.
So basically, he is just re-stating a piece of business advice once given by Christopher Wallace:
A strong word called consignment
Strictly for live men
Not for freshmen
If you ain't got the clientele, say "Hell, no."
'Cause they're gonna want the money rain, hail, sleet, or snow.
I read it as "mormons" and clicked, though that mark phase shifted into a savage for a second.
Surely he's speaking about a vast majority of small/home based business that should never get loans at startup. However, some business require large upfront capital to get started. For example, what if you were and experienced doctor and wanted to start up a medical or veterinary clinic? You may have to buy SOME medical equipment. That stuff's not cheap. Certainly there probably are better examples.
If you were a doctor and wanted to start your own clinic you will have some experience under your belt from working for other hospitals and clinics, and would have acquired the capital through savings because everyone knows doctors are paid alot of money.
+Here Comes A New Challenger! You meed to expand your vision if you think doctors are always paid a lot of money and/or don't have a lot of obligations like student loans to spend their earnings.
Do live events.
totally thought the title said "Mormons" not 'morons'. was like, "well okay then"
I love how people who've never started businesses before think they know more than a successful buinessman billionaire. As someone who has started multiple businesses since I was 17, I completely agree with him!
So as a person who knows nothing about business but what’s to start a skincare company I’ll need 30k-50k to start . I should start saving now while planning the business and working on product development .
"Its about killing time, vegetating watching a show" i like how he admits TV just wastes your time
He never answered the question..how do you start a business without the loan?
drug crimes!
I read his book...learn how to sell. His first company he sold was a software company. He said all he did was read the manuals which very little people did and he was able to look smart and sell software or consulting....both of which costs relatively little.
Great remark at the end of the interview by Cuban "TH-cam is about killing time!"
Never loan small. If you gotta loan, do it big
I work for a bank... THANK YOU for saying this Mark!!! I've seen SO many people fail from day one by trying to start a business with a loan!