Entrepreneurs are, by default, smart, enthusiastic and very ambitious individuals. However, all these traits and drives don’t necessarily mean that all of them make all the correct decisions at all times. Let’s hope the mistakes that are made by them aren’t large enough for the company to fail.
We’ve reached out to tech entrepreneur Mark Cuban to find out what are some of this stupid stuff the businessmen are doing and are very annoying to him. As a long-standing partner in ABC’s popular Television show Shark Tank, Mark Cuban has met its good share of entrepreneurs who have taken some significant missteps.
If you’re searching for investment capital or quietly expanding your company, Cuban says you should refrain from making the below mistakes at any and all costs.
Not knowing the fundamentals of business.
One thing driving Cuban nuts is the lack of fundamentals for entrepreneurs. A prime example, he notes, is that “entrepreneurs don’t know the difference between a feature and a product.” Before an entrepreneur begins searching for investment capital, they should start creating a product, before even research and development, they must have this basic understanding.
In other terms, if a rival offers just blue shirts, and your shirts are red and blue, you’ve just created a feature. Services or products fix challenges and customers want to use them. Features are attributes that bring value to the product. Good businesses are focused on products — not features, Cuban states.
The thinking rivalry is equivalent to validation.
Creating anything out of nothing is not really a straightforward task. Convincing customers that you are delivering useful resources and purchasing your products often takes a lot more. Cuban claims it’s a huge mistake to believe that a big rival who moves to your market affirms your business.
What this does — or can do — is to make intelligent entrepreneurs incredibly uncomfortable. “This means that you’re in serious trouble until you can reinvent and outperform them,” says Cuban.
Pegging your success on a “hero” employee.
As the old saying goes, don’t place all of your eggs in one basket. The very same goes for recruiting and creating a team.
Many times, entrepreneurs imagine that “their next recruitment will fix their toughest challenge,” he notes. Hiring a professional marketer in your sector doesn’t mean you’re going to magically find out how to sell your products, and everybody’s going to live comfortably ever after, he adds.
When the hero employee exits or fails, that’s what everybody else does. Expanding a successful company involves all hands on the deck, ensuring that everyone on the team has to pull their own weight — around each other.