That's one key takeaway from billionaire entrepreneur and "Shark Tank" investor Mark Cuban, who shared five business strategies, some of which may surprise you.
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1. Do your research
Before starting a business, Cuban does extensive research on an industry to see whether the opportunity is compelling and potentially profitable.
"It really does involve knowing an industry well, which is why I avoid investing in industries I don't know," Cuban posted on the private messaging app Cyberdust on Wednesday. Cuban reposted advice he gave for a class project through the app.
"You need to turn over every rock and open every door to learn your industry. This process never ends," he said.
2. Make your business plan flexible
If you think your business plan is set in stone, think again. Cuban stressed the importance of leaving business plans "open for change."
Related: Mark Cuban: I Would Crush Trump
3. Rethink your funding strategy
Getting cash for your business is essential, but there's a right way to do it.
"You should do everything possible to not raise funds. Sweat equity is the best equity. I would turn to crowdfunding like Kickstarter before I would look for investors."
4. Be better than the competition
"You execute better than they can," he wrote. "Do a better job and have a compelling differentiation that you always build on.”
5. Stay away from over-crowded sectors
Entrepreneurs shouldn't start a business if an industry is already crowded, Cuban said.
This article originally appeared on CNBC. Read more from CNBC:
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