Mark Cuban is an American entrepreneur, famous for amalgamating philanthropy ideas into business ventures. Spearheading successful startup ventures, Cuban has devised 12 essential rules to be followed by startups, during their incubation.
The following are the 12 essential rules for startups, devised by Cuban:
- Don’t start a company unless your heart is in it – A strong willingness and desire for success should be the force behind the inception of startups. Individuals should have a drive for entrepreneurship within them. Large sums of money and strong connections, won’t contribute much towards the success of a startup, in the long run.
- Don’t obsess for an exit strategy – Businesses might face failures. In such scenarios, entrepreneurs can sell off their company for a large sum of money. But, according to Cuban, this shouldn’t be a hindrance in the scaling of the company.
- Hire people who fit your company’s culture – Hiring the right person for the right position, are imperative to the success of any organization. Thus, while hiring, one should aim at building a team with individuals with diverse perspectives and qualities. This contributes to the overall success of the enterprise
- Sales cure all – For Cuban, the success of an enterprise starts with the effective identification of the target audience. Targeting a niche consumer base has a positive effect on the sales. Thus contributing to the growth of the company
- Know your competencies and focus on them – It’s essential to spend liberally on the employees who are advantageous for the company. Companies should focus specifically on the employees who are the core competencies.
- Don’t worry about perks – Employees are always drawn towards the variety of perks, whether monetary or non-monetary. In the case of startups, the entrepreneurs shouldn’t emphasize much in providing. Instead, should use the finances for other operational purposes
- Use open offices – Office environment exerts a lot of influence in the productivity of the employees. Thus, they should be provided with a comfortable environment and not clustered spaces.
- Use technology you are comfortable with – technology plays a very important role in the success of a startup, building its brand visibility and resulting in lead generation. But the misuse or wrong usage of technology brings greater consequences for the business. thus, entrepreneurs should make use of known technologies, for the growth of the startups
- Keep the organization flat – employees prefer working in a flat organization, where one doesn’t need to report to another. Thus, a flat organization enjoys greater success compared to the one with hierarchy
- Never buy swag – Too much of show-off is a major setback for any startups. Merchandise branding for the employees is a good initiative, but one shouldn’t have the desire for doing so for anyone outside the organizational perimeter
- Don’t hire a PR firm – According to Cuban, PR (Public Relations) team does no good for promoting an organization or contributes to its success in the long run. Thus, a PR firm tends to be of no use to a startup and there is no justification in paying for one
- Make working fun – Finally, it’s important to keep in mind that happy employees are the asset of an organization. Therefore, startups should go that extra mile to ensure that their employees are happy and satisfied with their work.
The rules devised by Cuban help in formulating a pathway to success for startups. Thus, these rules are essential for entrepreneurs who are foraying into the world of business, with their innovative ideas and aim to achieve long-term success.
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