Mark Cuban’s Advice To Entrepreneurs – Risk, Energy, and Funding

According to online dictionaries, an entrepreneur is “a person who starts a business and is willing to risk loss in order to make money” or “one who organizes, manages, and assumes the risks of a business or enterprise.”

Well, I get a check for both of those. My past venture into the fashion industry was fraught with risk and cost me plenty. Now, I have little to show for it, save for a closet full of the most amazing handbags EVER CREATED.

I’m normally a risk-averse person, but somehow, when I’m on a quest to find the formula for success in some endeavor, I throw tons at it – money, energy, time – hoping to find the magical components. The problem is, when you invest in something you really don’t understand, you come up empty more often than not. Knowledge is power, sometimes more so than money, and that’s what struck me with this video from Mark Cuban.

The big takeaways?

Seeking funding for a new business venture is failure. It’s an admission that you can’t hack it on your own, can’t find success with the resources you already have, and need to sell-out in order to plunge forth. The question is, how successful will you really be when you are on the hook for millions of dollars to others who believed enough in your idea that you probably could have rocketed on your own first, albeit a little slower??

I never thought of it that way…

My latest venture is challenging, to say the least. And while I’ve researched the concept itself, I’ve thought many times about how I’ll pitch the idea to investors, how I can get into an accelerator, how I can get the attention of venture capitalists…all so I can command funding and leverage expertise from those who have already found success.

But after watching this video, I realize my mindset needs some fine-tuning. Funding is not necessarily the answer. Preparation is the missing element in my formula. It’s where I fell short with my first business. Not taking enough time to learn about the industry before jumping in, spreading myself and my resources too thin to be even slightly effective, not doing enough research in the form of focus groups prior to designing my products. It was a totally ad hoc, fly-by-the-seat-of-my-pants, throw-lots-of-crap-at-the-wall-and-see-what-sticks process, with no tried-and-tested repeatable elements. I had no blueprint, no measurable metrics, and no plans for future execution. So, what did I do? Hired a new, more expensive PR firm (which did squat, btw), designed even more products without customer input, spent more money than I could afford…only to land flat on my face with no answers and lots of anguish.

I never acquired the knowledge, though I did amass mountains (now they’re more like hills) of debt as a result. I could have mitigated the risk with a deep understanding of the business landscape, including potential pitfalls and competition elements. But not me! I’m an instant gratification whore, way too impulsive and impatient to waste time on LEARNING, of all things.

To my own peril. I’ve raised many a glass to that toast, regrettably…

So, Mark. Thanks for the advice. Knowledge is the most powerful tool in your arsenal. The more ammo you have, the more prepared you are for battle. And yes, it IS a battle. But winnable if your head is in the right place.

What Does Success Look Like???

Let’s face it – the unknown is daunting.  Even extensive planning can’t always prepare you for challenges you may face in your entrepreneurial endeavors – whether you’re a startup CEO, a handbag designer or an aspiring indie author. Sometimes you just need to trust in yourself and be confident in your abilities. Obstacles may seem insurmountable at first glance but if you are dedicated to your efforts and you do the proper research, you WILL work through them.

You can’t crush true entrepreneurial spirit. If you have it, it’s only a matter of time before you find your niche. Each “failed” attempt has to be viewed as a lesson learned. The real failure comes about when you don’t take anything away from the experience, when you don’t apply any of your newfound knowledge to your next endeavor.

My advice is simple. Embrace the unfamiliar and power through. You’ll never know the full extent of your capabilities if you don’t navigate outside your comfort zone. We can’t always be the best at everything but we should always strive to be. Don’t let fear of failure hold you back. Sure, you may accumulate a mound of debt in the process (something your husband won’t ever let you forget) but you will have taken control of your future.

Clear strategy concept as a straight road going over confused paths for achieving success in the future as a symbol of business vision and planning to solve the maze.

Be passionate! If you aren’t, find a new goal. You’re not cut out to be an entrepreneur. It takes too much time and effort to launch a new business and if you don’t love what you’re doing, you’ll never get it off the ground. If you’re not willing to work harder than you’ve ever worked before, preserve your sanity and come up with a new game plan.

Take a risk. You’ll never have all the answers or the insight you need to feel comfortable in EVERY situation.  But that’s okay, because you have faith, drive and ideas to propel you toward your goal.  Sometimes, that’s all you need to achieve success.

Believe in yourself and what you can do. SEE yourself creating, developing, designing, writing, and selling. The powers of the subconscious mind are astounding. Envisioning success is just more positive reinforcement you can apply to your effort. Never let negative thoughts permeate your mind – they will only hamper your efforts. See yourself hitting #1 on the New York Times bestseller list, see a Hollywood A-lister clutching one of your evening bags as she graces the red carpet at the Oscars, see your gadget in the hand of Mark Zuckerberg as he sings its praises to the press. See it, believe it, and make it a reality.

Don’t be afraid to fail.  That only really happens when you give up on your dreams. Outcomes that don’t match your expectations aren’t an indication of defeat. Think of them as lessons learned, pearls of wisdom to draw upon at a later time, things that need to be tweaked as you progress toward meeting your goals.

Try new things. Be creative. Think outside the box. Do something nobody has thought of before. Find the whitespace and clutter it up with your ideas. Don’t try to create demand; figure out what people need and give it to them. Why waste precious resources building something that nobody wants?

Life is all about taking chances. If you play it safe ALL the time, you’ll never uncover your true potential and untapped talents.

LEAP. Nothing worth having ever comes easily. Even if you crash-land, you can still say you tried.

And finally, never give up… on your dreams or on yourself.

Business woman celebrates successful deal at office. Business People

Take Control Of Your Future And Reap The Rewards

Self-published authors have a pretty steep learning curve if they want to joint the ranks of the bestsellers. And I’m not talking about the Amazon bestsellers, I’m talking about the New York Times and USA Today bestsellers. Not an easy feat. It also doesn’t happen for everyone. Authors can bust their tails for years and years, writing book after book and never make it.

So is it possible to make their dreams become a reality?

Absolutely – through education and execution.

I watched a video tonight, hosted by Nick Stephenson, bestselling fiction author and entrepreneur. His book, Supercharge Your Kindle Sales, is flipping fantastic!! He provides invaluable insight about self-publishing and how to launch a successful author career on his website, Your First 10K Readers. But what I want to point out to you here is a really great point made in the video… one that’s not only applicable to self-pubbed authors but also to aspiring entrepreneurs.

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Here’s the gist. Authors have a choice. They can endlessly spin their wheels, trying to figure out how the publishing industry works while using trial and error to test new ways of gaining traction and visibility for their work.

OR…

They can make an investment in their careers and pay for that knowledge. Learning from someone else’s missteps can save a tremendous amount of time and money. It can also preserve their sanity. =)

Then, they can apply their newfound knowledge and execute their success strategy.

Business training group organization concept. Team of students learning from mentor sharing common vision for education success as gears and cogs shaped as human head on gray background.

Business training group organization concept. Team of students learning from mentor sharing common vision for education success as gears and cogs shaped as human head on gray background.

This advice definitely hits home for me as an author as well as an entrepreneur. What Nick is saying makes so much sense. If you’re looking to build a business – whether it be in publishing or another industry – spend time up front to figure out how to avoid common pitfalls. The intelligence you can gather is worth the investment and it will help guide your decision-making processes. Save the time for doing what you love and apply the tried-and-true methods of building your success. Leverage lessons learned and reap the rewards earlier.

Why put off until tomorrow what you could definitely achieve TODAY?

Guest Blog Post – Gabriel Weinberg, Founder of DuckDuckGo

HAPPY RELEASE DAY!!!! Today is the launch of Traction – How Any Startup Can Achieve Explosive Customer Growth, co-authored by Gabriel Weinberg and Justin Mares and in support of the release, I’m thrilled to host a guest post by Gabriel Weinberg, founder of the search engine DuckDuckGo, that provides insight to what you can expect from this invaluable startup marketing handbook. The concepts are applicable to any startup endeavor and a resource I’d recommend to any entrepreneur. But don’t take my word for it…the reviews speak volumes.  With success stories like Seth Godin and Alexis Ohanian singing its praises, you can’t go wrong. My advice? One-click. NOW.

6 Common Traction Mistakes and How to Avoid Them

I’ve made every one of these six common mistakes in the pursuit of traction. They’re so easy to make because they’re all counter-intuitive, working against your natural instincts. I hope you can avoid them! Like with a lot of issues, the first step is recognizing and acknowledging you have a problem.

Mistake #1: Not seeking traction early enough.

The secret to a successful launch is to focus on getting traction right from the beginning of product development, by continually pouring a steady stream of cold customers into your product (leaky bucket) while you are building it.

hand holding a tin bucket with holes on black background

That’s the only way to really find out where the leaks are, as your beta customers are too close to you and don’t have fresh eyes. By running fast and cheap traction tests, you also figure out pre-launch what niche to market to initially, what marketing will resonate with that niche, and what marketing channel to use to reach them. In other words, you discover a credible distribution strategy, such that when you launch you can actually get traction right away.

Mistake #2: Not setting an explicit traction goal.

Your traction goal should be enough traction to reach an inflection point in your company. When just starting out, this is usually one of three things:

  1. Enough traction to raise money;
  2. Enough traction to be profitably self-sustaining; or
  3. Enough traction to prove to your extended team that you have product/market fit.

Once you have a hard number, you can measure your traction efforts against this explicit traction goal. If a marketing strategy in its best case won’t move the needle in terms of your goal, then you shouldn’t do it, even if you know it will get you some traction.

Mistake #3: Not considering all 19 traction channels.

cono redondo target con sombra rojoIn talking to and studying hundreds of successful entrepreneurs for Traction (the book), we found that there are 19 different customer acquisition channels companies use to get traction.

A key insight was that often the most successful startups were using under-utilized channels in their industry. In other words, asking what channels are good for B2B or B2C or a particular situation is the wrong question. The right question is how could I possibly use each of the 19 channels, quickly followed by a creative brainstorm. This is the first step in our Bullseye Framework for getting traction.

Mistake #4: Not doing fast and cheap traction tests.

When testing traction channels, the goal is to run fast and cheap marketing tests to roughly answer the following three questions:

  1. How much will it cost to acquire customers through this channel?
  2. How many customers are available through this channel?
  3. Are the customers that you are getting through this channel the kind of customers that you want right now?

Some founders mess up this step by prematurely scaling their marketing efforts. Keep in mind that, when testing channels, you are not trying to get a lot of traction with a channel just yet. Instead, you are simply trying to determine if it’s a channel that could move the needle for your startup. Your main consideration at this point is speed — to get data and to prove your assumptions.

Mistake #5: Not focusing on one core channel.

At any stage in a startup’s life cycle, one traction channel usually dominates in terms of customer acquisition. That is why we suggest focusing on one at a time, but only after you’ve identified a channel that seems like it could actually achieve your traction goal.

The way this step gets most often messed up by founders and marketers is by keeping around distracting marketing efforts in other traction channels, especially earlier efforts that no longer move the needle but once did. This is additionally confusing because oftentimes focusing on your core channel involves channel strategies that utilize other traction channels. One channel is still dominant, but others feed into it. Focusing is the only way to truly become an expert at your core channel, which you need to do if you’re going to uncover cutting edge tactics within it, which often have non-linear rewards.

Mistake #6: Not using a structured approach.

There are nineteen different traction channels, and most founders consider only a few. That’s a big mistake because often under-utilized channels in a given industry have the greatest growth potential. Yet, at the same time, you can’t try all nineteen at once effectively.

You need to apply a framework for getting traction like the Bullseye Framework we present in Traction. It is a simple, three-step framework that involves brainstorming across all channels, testing a few at a time, and then focusing on whatever channel seems capable and most probable of reaching your pre-defined traction goal (you defined one right?). Whether you use our framework or another or your own, please take a structured approach to getting traction.

Economical stock market graph

Explosive Growth Is The Goal & Traction Is The Key

Most startups don’t fail because they can’t build a product.
Most startups fail because they can’t get traction. 
You may be aware of a book called Traction, penned by Gabriel Weinberg (@yegg, founder of DuckDuckGo) and Justin Mares. What you may not know is that they’re releasing a 2nd edition on October 6, and as part of the re-launch, they’re hosting virtual office hours with local startup communities who collectively order 25+ copies (that’s really not that many). You can pre-order it right now for about $15 on Amazon, which is nothing if it helps your business grow even 1% faster.
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Traction covers each of the 19 marketing channels available to startups (with a full chapter on each), and lays out a simple framework that will help you figure out the channels that are likely to grow your business. The book also includes interviews and case studies from the founders of Reddit, Wikipedia, Kayak and more, where they talk about how they got traction in the early days of their companies, and how they scaled.  The book has been praised by Eric Ries, Fred Wilson, Alexis Ohanian, and James Altucher.  See www.tractionbook.com to for some interesting sound bytes.
If this appeals to you (and you can grab the first 3 chapters for free here http://tractionbook.com/traction.pdf), grab a copy through this link so we can get you some sweet perks:
  • If you buy 25 copies through that link, you get to hold office hours with Gabriel Weinberg.
  • If you buy 250 copies through that link, Justin Mares will come to your city and give a workshop on getting traction.
This is a really great opportunity to purchase a copy of a really helpful book and to get some personal time with two successful startup business founders.
Want to experience explosive growth for your business? Traction is the key.

Whistle While You Work…Or Run…Or Play Foosball

My workspace is pretty standard, very practical, but kind of boring if I’m being honest. Lots of desk space, tons of papers covering said space, cabinets, laptops, ever-present mug of coffee. I try to keep it organized but it’s not easy when ideas are constantly flowing out of my head and onto Post-Its. My name is Kristen and I’m a Post-It addict. Whenever I get a thought, I jot it down and stick it…well, wherever I can find space, which is a commodity.

Post it papers flying out from laptop

I sometimes wonder, how awesome would it be to create a workspace according to my own dream specifications? Like maybe a space where I could take a quick break and run on the treadmill to keep the creative juices flowing? With plush couches where I can plop down when the knots in my neck tighten after being hunched over my laptop for hours on end? One with large, floor to ceiling windows, lots of greenery, light, airy rooms and a fabulous view for inspiration? Maybe one with a nicely stocked refrigerator with lots of champagne so I can reward myself after spending the day agonizing over scenes and plot twists? It would be awesome to have a large-screen wall hanging television for those times I just need a mental break and want to watch re-runs of Impractical Jokers. And of course, a huge whiteboard for all those dang Post-Its would be nice!

modern empty office interior

Well, guess what? There is a company out there that can help me achieve my work zen, called WeWork. You signup to become a member and select from several packages that allow you different levels of access to custom workspaces. You can book a space for a day or longer, depending on your needs. Maybe you just want to have a couple of days a month where you venture off to another location to keep things percolating. You have that option with WeWork. And if you happen to be traveling to another location and need to reserve a spot while you are there, go to WeWork for options! It’s that simple.

The company has space in all the big hubs across the United States, with additional locations in Israel, the Netherlands and the United Kingdom.

So even if you aren’t traveling for business, maybe you just need a periodic escape to recharge your batteries. Comfort + mental calm = PRODUCTIVITY!!!

NOTHING VENTURED IS LIVE! IT’S GIVEAWAY TIME!

It’s LAUNCH day!!!!!! Let’s CELEBRATE!!!! How about a giveaway, in honor of our delicious hero, Chris Camden?????

Glasses of champagne and sparklers on bright background with sparklers

Here’s to Chris, the Adonis and certifiable charmer with more lines than a supermarket before a snowstorm. With a panty-melting smile, ridiculous body that oozes pheromones, and a hot car, he’ll have your knees weak within minutes. I promise. ❤

Click here to enter the Rafflecopter giveaway for a chance to win a $25 Amazon gift card and a signed copy of ‘Unlikely Venture,” Book One of the Venture Series.

The contest closes on 9/22/2015 and the winner will be notified by email. GOOD LUCK!

Buy Nothing Ventured:

Amazon  Barnes & Noble  iBooks  Smashwords

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