Entrepreneurs are always looking for advice and a leg up over the competition. They want to be certain that their business will succeed before pouring their life savings into a new venture. One of the best ways to gain confidence about a business plan is to view other people who have succeeded mightily in business. Warren Buffet, Bill Gates, and Mark Cuban all have lessons they can teach even the most junior entrepreneurs.
Warren Buffet
Warren Buffet’s long career as an extremely successful investor can give entrepreneurs a number of lessons. According to David Urban, one lesson is the importance of fundamentals and an old-fashioned approach to building wealth. Buffet has made his career through a strategic approach to valuation and investment. He takes massive risks without resorting to gimmicks or other cheap tricks. This philosophy is best shown through the numerous ventures that his company, Berkshire Hathaway, has embarked on over the past few decades. The company moved into real estate in traditional markets and with standard homes.
They offered a unique stock approach where each share is extraordinarily expensive. This system is based off of established models on how to price products and how to sell luxury goods. Buffet’s experience should teach entrepreneurs that they need to take risks more with their planning and size than with their ideas. A functional way to make money is to simply introduce a new product into an established field and sell that product according to a proven model. Such an approach can be effective with a little luck and years of hard work.
Bill Gates
Bill Gates’s career shows the value of taking risks. Gates dropped out of college in order to push his entrepreneurial dream and found Microsoft. David Urban notes that without a college degree, Gates may have been penniless. Now, he is often atop the list of the richest people in the world. Entrepreneurs should follow Gates’s path by always staying up-to-date on trends and potential market openings. If an extremely profitable business path opens up, they cannot delay in embracing it. A delay of a few months or a year can lead to another competitor swooping in and taking the same opportunity.
Mark Cuban
Mark Cuban shows the potential benefits of being a new entrant into a small field. Cuban made most of his money in computers and digital streaming. He entered into the field of PC sales early on. Cuban make a pioneer of broadcasting over the internet and marrying digital networks with sports. He has mostly worked in new fields and ventures with profitable partners. Cuban’s experience should teach entrepreneurs the possible benefits of entering into a new field with their business.
There are always a host of fields that are particularly popular and attractive to venture capitalist investment. Cuban’s experience shows the benefits of working in that field and becoming extremely familiar with all of its underlying concepts. Cuban also made his money through a number of profitable partnerships. These partnerships were mostly with higher-level executives such as billionaire Ross Perot. Cuban focused closely on fostering networks and relationships. Eventually, he was able to parlay his relationships into new companies and funding deals.
Conclusion
Not all entrepreneurs will be like the aforementioned billionaires. But they were not completely beneficiaries of blind luck. Instead, they made certain smart decisions that have propelled them into their successful positions. Following their lead may at least lighten the load for anyone attempting to pursue the life of an entrepreneur.
