Launching your own business can seem glamorous if you focus on success stories like Google or Airbnb. But the truth is that 20 percent of small businesses fail in their first year, and 50 percent fail by their fifth year.
So what separates the successful founders from the flops? According to Dallas Mavericks owner and “Shark Tank” investor Mark Cuban, it all boils down to work ethic.
Cuban tells the entrepreneur-focused YouTube channel Valuetainment that the No. 1 reason people fail is “lack of brains [and] lack of effort.”
“They don’t do the work,” he says.
When launching a business, explains Cuban, you're guaranteed to face heavy competition and people who know the industry just as well as you do, if not better. It’s your job, he says, to educate yourself and out-learn your competitors.
“If you walk into a competitive environment and they still know more about the business than you do and more about your customers, you’re going to lose,” says the billionaire.