Starting your own business is risky, so most people shy away from the experience. Approximately 20% of businesses fail in the first year alone. By the 10th year, that number increases to his 70%. It's a daunting reality to dedicate a year, or even a decade, of her life to something that could be worse than a low-paying job with no income security.
But it's something millions of Americans pursue every year in hopes of achieving the American Dream. Starting your own business allows you unlimited income potential, flexible working hours, and the ability to be your own boss. Like any high-risk investment, there are many benefits if done correctly.
Cuban is a big proponent of this value proposition. “You only get right once,” he said. That is, if you become successful in business, you can immediately change the trajectory of your life for the better. If you find a strong, scalable business and find success, you can quickly expand to millions of dollars in revenue and reap all the rewards and benefits that come with your business. For most Americans, a $5 million withdrawal would be life-changing.
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Many people like the idea of starting their own business, but few take the plunge. If you have a family, they also take the risk, but it's much harder to lose everything when other people are involved. And even if your business doesn't fail, it can take years to build up enough profits to replace your day job salary.
Many people want to start their own business and are therefore wondering when is the best time to start one. “If you don't have anything, that's the best time to start a business,” Cuban said on a recent episode of the Lex Fridman Podcast. If you have a great life and a well-paying job, you could lose it all by starting your own business. But if you don't have anything, much of the risk and opportunity cost of starting a business disappears.
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Cuban started MicroSolutions in the '90s with $500, at the cost of sleeping on the floor of an apartment he shared with six other men. He got money upfront from his first customer. He then sold his MicroSolutions for his $6 million, and with that money he founded Broadcast.com, which he sold to Yahoo for his $5.7 billion.
Fridman and Cuban sat down to talk about entrepreneurship and starting a business. There are risks and rewards, but starting a business is not even half the battle. “It's really all about preparation,” Cuban said.
Starting a business costs money. Depending on your industry, it may not be that expensive. For many industries, it's just a few tools and work vehicles. Many online businesses can be started for a few hundred dollars using pre-built sites like Wix or Squarespace. While it may be difficult to save a few hundred dollars to get your business off the ground, Cuban says, “If it's important enough to you, you'll save money, you'll give up money, whatever it is. You have to give up in order to secure money.”
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This article originally appeared in Mark Cuban became a millionaire by getting fired and sleeping on the floor: 'If you have nothing, it's the perfect time to start a business' is.
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