The Shark Tank star wants you to put your money where you are.
5 min read
This article has been translated from our English edition.
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- The opportunities to start a business or invest in a business have never been so great.
- Starting a business or franchise can be daunting, but the good news is that using the knowledge and passions you’ve acquired over the years will get you off to a good start.
Not sure how to invest your money right now? The billionaire Mark Cuban has tips that will propel you in the right direction.
The serial entrepreneur and owner of the Dallas Mavericks has invested in more than 80 companies Shark tank from ABC and has net worth of $ 4.3 billion. The Cuban has made most of his fortune without relying on the ups and downs of the stock market.
As the Cuban reflected in his personal blog posts in 2007, he went from bankruptcy to a billionaire at 32 after selling his first company at 24. At 37, he was a billionaire. What led to such a rapid increase in wealth and continued success?
To incorporate elements of the billionaire’s investment strategy, it is time to implement what Cubans call the “knowledge advantage”.
Use the “knowledge advantage”
Why should you take an opportunity on a stock exchange that you don’t know about when you already have years or decades of experience in a particular industry? Mark Cuban’s areas of expertise and passions included technology, media, and sports. Prior to his tenure at Shark Tank, his three major career acquisitions were related to building a business in one or more of these areas.
Image: Bloomberg | Getty Images
After being fired as a computer salesman, Cuban founded MicroSolutions, a company focused on reselling software and systems integration. Due to his tech sales skills, the company had annual sales of $ 30 million in the seven years prior to its acquisition, making Cuban a millionaire at the age of 32.
The Cuban later combined his knowledge of technology and media with his love of sports and co-founded a sports radio network that later became Broadcast.com. In 1999, the company with 330 employees was acquired for a staggering 5.7 billion US dollars, which is roughly 57 times the company’s annual sales at the time.
Then we saw Cuban acquire a controlling stake in the Dallas Mavericks for $ 285 million in 2000. Knowing about sports, Cubans expected the team to be undervalued. Under Cuban ownership and experience, the franchise is now worth more than $ 2.3 billion.
What is the common thread of these acquisitions? Simple: Cubans had a knowledge advantage that they could use to build a company.
The opportunities to start a business or invest in a business have never been so great. Whether you plan to start something secondary, such as buying a successful franchise model or making small investments in emerging talent through crowdfunding platforms, you create a competitive advantage by leveraging what you already know and love and make good use of this intellectual guarantee.
How to grow what you know
You don’t have decades of experience in a particular industry? You can still be at the forefront of an industry that regularly prioritizes the assimilation of new information. Here are some tips to speed up your lucrative learning endeavors.
Read and absorb information voraciously. You don’t know what you don’t, and as Cubans point out, it only takes a nugget of knowledge to take you and your business to a whole new level. Make it a priority to regularly absorb new information.
Choose material that challenges your brain. A study by the University of Ghent found that learning new and complex information, such as another language, slowed the onset of Alzheimer’s disease significantly more than a control group. Solving complex problems is good practice as you develop the mental resilience that you ultimately need as an entrepreneur.
Stay up to date on industry trends. As markets evolve and change, new opportunities for business solutions arise every day. It’s not just what you know, it’s when you know.
Starting a business or franchise can be daunting, but the good news is that using the knowledge and passions you’ve acquired over the years will get you off to a good start. Take stock of your knowledge, relentlessly search for opportunities, and you will soon see a return on investment and a sense of personal fulfillment that far outweigh a stock portfolio.