Mark Cuban Tips

Mark Cuban avoids this at all costs
Marguerite Ward | @forwardist  3 Hours Ago
83
SHARES
When it comes to picking business opportunities, it may be tempting to latch onto the next hot thing, but it's also important to invest in industries you know well.
That's one key takeaway from billionaire entrepreneur and "Shark Tank" investor Mark Cuban, who shared five business strategies, some of which may surprise you.

David Paul Morris | Bloomberg | Getty Images
Mark Cuban
1. Do your research

Before starting a business, Cuban does extensive research on an industry to see whether the opportunity is compelling and potentially profitable.
"It really does involve knowing an industry well, which is why I avoid investing in industries I don't know," Cuban posted on the private messaging app Cyberdust on Wednesday. Cuban reposted advice he gave for a class project through the app.

How to think like a millionaire
"You need to turn over every rock and open every door to learn your industry. This process never ends," he said.
Below is a screenshot of Cuban's advice.

2. Make your business plan flexible

If you think your business plan is set in stone, think again. Cuban stressed the importance of leaving business plans "open for change."
3. Rethink your funding strategy

Getting cash for your business is essential, but there's a right way to do it.
"You should do everything possible to not raise funds. Sweat equity is the best equity. I would turn to crowdfunding like Kickstarter before I would look for investors."
4. Be better than the competition

"You execute better than they can," he wrote. "Do a better job and have a compelling differentiation that you always build on."
CNBC PRIME
BILLION DOLLAR BUYER

Tilman Fertitta is the billion dollar buyer
Watch on Tuesdays 10p ET
Watch full episodes
TV schedule

5. Stay away from over-crowded sectors

Entrepreneurs shouldn't start a business if an industry is already crowded, Cuban said.

Self-made millionaires unveil traits of a perfect partner
— CNBC's Sandy Maltzman and Michael Bloom contributed to this report.
Disclosure: CNBC owns the exclusive off-network cable rights to Cuban's "Shark Tank."

Marguerite Ward
News Associate