Mark Cuban Says 'If You're Starting A Business And You Take Out A Loan, You're A Moron' – 99% Of Small Businesses Can Start With No Capital

Mark Cuban never holds back, especially regarding his blunt advice on entrepreneurship. In a Bloomberg video from almost a decade ago, Cuban dropped some golden wisdom that still resonates today: "If you're starting a business and you take out a loan, you're a moron."

That's classic Cuban – cutting straight through the noise. He explains why borrowing money to launch a business is risky, especially with the uncertainties of a startup. "There are so many uncertainties involved with starting a business, yet the one certainty you'll have is paying back your loan," Cuban says. He emphasizes that banks and lenders don't care about the success of your business – they care about getting their money back, making it a lopsided deal.

Don't Miss:

• ‘Scrolling to UBI': Deloitte's #1 fastest-growing software company allows users to earn money on their phones – invest today with $1,000 for just $0.25/share
• Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $100.

His message to aspiring entrepreneurs? Focus on what you can control: your effort and knowledge. "99% of small businesses can start with next to no capital. It's more about effort … businesses don't fail for lack of capital, they fail for lack of brains, they fail for lack of effort," Cuban remarks. He insists that hard work and understanding your industry inside and out are the real keys to success. Cuban warns that competition won't just roll over. If you're going up against him, he says, "You better realize that I'm working 24 hours a day to kick your a**."

Trending: The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.

His advice might be tough to swallow, but it's rooted in reality. The stats back him up to some extent – while many businesses do rely on loans, they aren't always necessary. About 43% of small businesses apply for loans and around 29% fail due to running out of capital. Cuban's message is that borrowing isn't the only way to launch a business and starting lean can often be more sustainable.

And while Cuban is the star of Shark Tank, it might be easier for him to advocate this approach given his resources. Still, there are other ways to fund a business without debt. Approximately 78% of small businesses use personal savings rather than loans to get started. Alternative funding options like crowdfunding, angel investors, or grants are available for those who want to avoid debt. Cuban may have a unique vantage point, but he's onto something when he emphasizes avoiding debt – especially since nearly 70% of small businesses carry some form of debt.

Mark Cuban's take on starting a business without relying on loans is practical and refreshing. He's not just throwing out harsh words for shock value; he's speaking from years of experience. 

Read Next:

• This Adobe-backed AI marketing startup went from a $5 to $85 million valuation working with brands like L'Oréal, Hasbro, and Sweetgreen in just three years – here's how there's an opportunity to invest at $1,000 for only $0.50/share today.
  A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.