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Mark Cuban: Only Morons Start a Business on a Loan

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June 14 (Bloomberg) -- Entrepreneur Mark Cuban discusses the U.S. Economy and starting a business with Trish Regan at the Clinton Global Initiative in Chicago on Bloomberg Television's "Street Smart." (Source: Bloomberg) --Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg On Bloomberg Television's "Street Smart," hosts Trish Regan and Adam Johnson bring you the most important market news and analysis affecting the S&P 500, Dow Jones Industrial Average, and the Nasdaq for your last trade of today and first trade for tomorrow. Broadcasting daily from Bloomberg TV's headquarters in New York, this business news show centered around the closing bell on New York exchanges, is targeted to provide the best analysis of the day's leading market headlines with a mix of original reporting, earnings news and expert sourcing from Wall Street's sharpest options traders, equity strategists and company analysts. Trish Regan and Adam Johnson provide actionable insight on the capital markets daily with regular segments such as "Chart Attack," depicting likely market moves before they happen, and "Insight & Action" which explains original trading ideas that can make you money. In addition, "Street Smart" is filled with breaking news, political analysis, and market-moving interviews with exclusive guests such billionaire investor Carl Icahn, hedge fund titan Bill Ackman, automaker Elon Musk and more. "Street Smart" broadcasts at 3-5pm ET/12-2pm PT. For a complete compilation of Street Smart videos, visit: http://www.bloomberg.com/video/street-smart/ Watch "Street Smart" on TV, on the Bloomberg smartphone app, on the Bloomberg TV + iPad app or on the web: http://bloomberg.com/tv Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance. It is available in more than 310 million households worldwide and reaches the most affluent and influential viewers in terms of household income, asset value and education levels. With production hubs in London, New York and Hong Kong, the network provides 24-hour continuous coverage of the people, companies and ideas that move the markets.
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Text Comments (3897)
Berkay Sürmeli (1 day ago)
Who the heck is this guy? Chobani started on a loan, idiot. It’s the fastest growing company in the entire United States. They sell yoghurt. It’s not the matter of how you start. It’s the matter of how you make and sell the product.
Mark your Jewish privilege is how you lucked up. Can’t speak for the gentiles.
Malik McLean (4 days ago)
If I want to start a real estate development company then what do I do?
Using loans is a financing tool that is useful in many situations. There are also many types of loans, some do not cause a business borrower to be personally liable. Plus many businesses are started with just a small amount of capital and the loan is not that large. There have been many successful business owners who started by using credit cards. Not true to say only a moron starts a business on a loan. I was a business consultant turnaround expert and provided management, marketing, and venture capital financing. Cuban, you are wrong!!!!!!
Roy Lange (5 days ago)
Very funny he would say that morons would start money with borrowed money. The founders of YouTube started youtube with borrowed money on a credit card and sold YouTube to Google for 1.9 billion in 15 months!!!! That Was a faster fortune than you ever made Cuban...
Be Cool (6 days ago)
Small and big businesses fail because of lack of cash. That is a universal truth.
Ruben Lopez (8 days ago)
He doesn't hold the government to the same standard.
WRESTLING FEVER (11 days ago)
But return on investment is greater for borrowed capital
patrick hayes (14 days ago)
Don't get a loan you're a moron if you get a loan to start a business says the billionaire who borrowed money to start a business what an arrogant ass hole and I like you Mark Cuban but that was pretty shity thing to say billionaire arrogance
Kevin Barrett (14 days ago)
Not everyone has a silver spoon you cocksucker.
VesselofMercy100 (15 days ago)
Maybe he is talking lessons the learned the hard way. The advice he is giving is the best case scenario. I started my company with no money down. I just put money into equipment needed or rented equipment until I could afford to buy it. Over %70 of businesses fail within the first 2 years. Bringing a monthly note into a business that doesn’t have established customers, or product orders means your starting with no guarantee of income, and a monthly payment. If you went into a business with large amount of work that is promised or contracted. I would feel more comfortable taking a loan. But liquid is the best way to get going.
naturegurl83 (18 days ago)
he didn't even answer the question? so how are we supposed to get the money then? Youre a moron
DarthVadent (18 days ago)
All of these condescending, self-proclaimed entrepreneurs often enthusiastically opine on the virtues of "hard work", flaunting their business acumen by admonishing against those who apply for loans to start their business, as if you didn't need capital to establish one in the first place (Hint: You do) whilst also disregarding and delegitimizing the barriers to entry, as if all that was needed was pure, unadulterated gumption and mind-numbingly vacuous motivational speaking seminars. They never delve into any rigorous, logistical detail on effective strategies based on statistical data or empirical evidence. It's all just "Bob in Pennsylvania left his 9-5 corporate job and did XYZ after reading my book and now he owns 50 businesses and makes 500 gorillion dollars a year." That's nice, but how about presenting some reliable, reproducible and scientifically rigorous analysis on how to start a business instead of citing one personal anecdote after another?
Steven Gupps (18 days ago)
thanks for upload
Yutthasat Srisauy (20 days ago)
My parent’s started a restaurant business on a loan 10 years ago and it’s striving. It’s really an “all up to you” type of lifestyle. There’s no one size fits all linear path
D. A. (21 days ago)
Tbh if you qualify for a business loan from a bank then you definitely should. Not those shark loan companies.
dat boi (26 days ago)
Must be easy to say being a billionaire
Steven Gupps (18 days ago)
hi
Eric DelSordo (29 days ago)
Hey Mark, I listened to your advice. I paid cash for college. Paid cash for my new car. Bought a home, all cash. Now, I am using the leftover funds to start my business. YEAH.....OOOOKAY.
Serenity Love (30 days ago)
Okaaaay so how do I start a business if I'm broke ASF without a LOAN ??😒
The eBattle (1 month ago)
I financed one of my first companies with credit cards. When the company failed is was left with hundreds of thousands of dollars in debt. Bootstrapping your business is the only way to go.
Edward A (1 month ago)
So I guess Mark Cuban is a moron since he started a business with a $15,000 loan himself. Yeah, I'm going to listen to a moron that makes complete sense.
Azriel Leyva (1 month ago)
This advise isn't fair. Mark borrowed $15,000 from his college friend Evan Williams to open his first business, Motleys. He was successful and the college bar became a hit. The lesson is have wealthy friends and family who believe in you. He's a brilliant man but he wont be what he is if he didn't have the network of friends in his early years.
Android VS (1 month ago)
I started doing business from 1$ and after 3 months and now I'm still struggling.
Chad Pru (1 month ago)
Cyban retained capital to start businesses by simply saving. He literally sacrificed he life. He lived with several guys and ate ketchup sandwiches. Instead of getting in to debt he saved. Most people want a big pile of money because we are consumers. Cuban has done the work that most people arent willing to do.
Dy Lon (1 month ago)
Trump started on a loan
Val Heike (1 month ago)
As a writer I'm. branding myself on Youtube. I want my own property raising hydroponic sockeye walley ,produce,wool rabbits on a artist retreat. I can not show whay I know with 32 years experience o. air.
Studio Dankster (1 month ago)
Yeah ill jus save 300k and start a business ok cool
Eric Li (1 month ago)
I do agree with him. You should have some skin in the game too.
Ger Her (1 month ago)
Tell that to Ray Kroc (McDonalds) and Sam Walton (Walmart)
Business & Wealth (1 month ago)
just because he got a loan does that make him any less successful? he needs capital to start a business. He's a great role model and very few people can do what he does!
Marc-André Poulin (1 month ago)
To start a business you may have an income with a % to invest or a big amount on reserve. If you start on a loan there is nothing to save the day if anything happens
LaurensDesigns (1 month ago)
I wish you talked more about start up money. I too don't want to get a loan, however I need a location, I need staff I need supplies...so where and how do I get the money to do this?
Mad Hatter (2 months ago)
Easy for him to say only morons get loans. Did he forget where he came from? I have a few awesome ideas but don’t even know where to go to get started
PereL Sports&Lifestyle (2 months ago)
Borrow is not a loan
Eva neaky Green (2 months ago)
I got a western Union MTCN of 6000$ in my name successfully, without paying any upfront fee. I got the help from an old friend who introduced me to the western Union offers. He also picked up 10,000% successfully, the risk was worth trying. And it was amazing, until now I've been earning monthly. All thanks to Thepromptcybers@gmail. Com They are legit. I stopped wasting my time with non professionals
John Smith (2 months ago)
This is glorious, I been tryin to find out about "starting a home business" for a while now, and I think this has helped. Have you heard people talk about - Bavordcon Business Bohemian - (search on google ) ? Ive heard some interesting things about it and my brother in law got great results with it.
Moto Foto (2 months ago)
Come on Mark, no loan at all? Little Capital to Start? Can we get numbers? It took my 5k and thousands of hours to get Blueray restored and an other 5k I could pay for my supplies and labor to restore second one.
Chingkhiulung Gangmei (2 months ago)
He is the purest Moron
Mary Obasi (2 months ago)
Wow, So glad I stumbled across this video! Subscribed!!
Reza Younesi (2 months ago)
Is he serious?!!! Makes no sense what he says. How to start a business without capital
MrBobDug (2 months ago)
.... he said small business owner. Further, by loan he means for example an above 40k bank loan... what he means is that a loan won't make you successful or scalable. You need many other elements added into the formula...He has exaggerated the statement on purpose. That's why he's a billionaire, people are not even catching the play even though he spelled it out for them in the last sentence he spoke
MILWAUKEE WISCONSIN (2 months ago)
I tried to get a loan from the bank they shot me down. Now the same bank wants me to open a checking account and open a credit card 🤔🖕🏼
814chappy (2 months ago)
Typical liberal hypocrisy
King Czar (2 months ago)
Made 12k last month from a 60,000 loan
Nyufly35 (2 months ago)
If you're a small business owner who is at there wit's end, and your being denied by you're bank for the working capital you need for your business I can help you. I'm a certified independent business loan broker with 5+ years experience and partnerships with over 30 lenders. I can get you the working capital you need for your business. Just go to my website and fill out the questionnaire. US and Canada Only. Caldwellfinance.com
Daddy Cool The Pimp 7God (2 months ago)
If you get approved, get that loan. Invest with other people's(banks) money whenever you can!! Fuck what this guy is talking about..
Demon-鬼 (2 months ago)
Does the name MOTLEY’s ring a bell?
Shair Khan (2 months ago)
I will borrow money Earn money Find investor I will start business
Me Tube (2 months ago)
I started my own business with only a dream and 12 million dollars from my parents.
Perla Colomer (2 months ago)
Love mark cuban
stezothewhitenegro (3 months ago)
I don't care how rich this Liberal Lunatic is he still looks like Lurch from the Adams family .  Hes probably knocking off children like the rest of the Freemason Devils he runs with .  Warren Buffet , Obamas , Clintons, The Bushes, etc etc.
Camui Hideaki (3 months ago)
Mark Cuban started his first business with a loan. WHAT A DUMBASS
FAIL or BAIL (3 months ago)
Well he just established he is a lucky moron lol, personal loan $15,000 on first business which got shut down for a minor being in a wet t-shirt contest there. Great guy but everything is circumstancial, not one person has all the right answers. What works for him will not work for everyone. Just a comment.. im a big M.C. fan btw.
Super Simp (3 months ago)
Every participant that goes on Shark Tank effective immediately, is now a moron. -Mark Cuban
Steven Clara (3 months ago)
Mark is wrong about the internet it just show he doesn't understand the potential of the internet
Raejean Montoute (3 months ago)
Fast forward to 2018, he was so wrong about the internet, video and going live.
Tony Montana (3 months ago)
Do what ever you need to do to start your business. Don’t listen to this ass clown. Mavericks SUCK btw
British Boxer (3 months ago)
wow, he started with a loan? his dad?
king piece (3 months ago)
That's only if they cannot pay it back
Edward van Grootel (3 months ago)
Mark Cuban is such an arrogant asshole. He is not an inventor/entrepreneur at all. He was just like many people at the right place at the right time.
Jacob Gibson (3 months ago)
Invest
Jacob Gibson (3 months ago)
Yaaaaaaaaqqqaaaas
Mike Mike (3 months ago)
Didnt President Trump get a million dollar loan to build a billion dollar business.. Now hes the president lmao
James Knox (3 months ago)
HE IS AN IDIOT. 'most small businesses do not fail because of lack of capital'? and ....'if you get a loan to start a business, you are an idiot' ?? This guy is out of touch
Josh P (3 months ago)
What a asshat
Water box (3 months ago)
Other people's money is a must! This guys is full of sh*t.
M P (4 months ago)
that's the most nothing advise I have ever heard.
Arlie Hopes y (4 months ago)
I got a personal automobile loan approved from my bank for a vehicle. I was going to use this vehicle for my business as a commercial driver. Only to find out I'm not allowed to do that with a personal loan. I have to obtain a business loan which for a startup who will be a sole proprietor is absolutely impossible to do. I've called 10 companies all over the country and they have all said the exact same thing "do you have your business set up already"? I said no I don't, I'm a start-up I want to start a business. well we can't loan you any money unless you've been in business for at least 2 years. Well if I've been in business already I probably wouldn't need a startup loan now would I? The last young lady I spoke to told me to get a loan from a family member or save up the $25,000 I need on my own. It's like the system is rigged to steer you one way or the other.
Ali Harb (4 months ago)
He started his business on a $15,000 loan to open a bar.
Frame of Mind (4 months ago)
He was living of credit cards when he started his business oh boy
BajaFist (4 months ago)
I used to think he was funny but maybe he just don't know, My parents just BARLEY scrape by every month. Literally 10 dollars in a 50 year old mans bank account and he works on Sundays and never takes a break. He is about to buy the cabinet store that he has been working at for 12 years and we need some type of money for that. How does he expect us to do anything? So what he is trying to say is don't even try you poor, dumb, retard I'm the best? That's all i get out of this video.
Clint S (4 months ago)
These guys are just about making bold statements. They don't care if they're right or wrong... Typical spotlight hungry businessmen.
MisterWhite (4 months ago)
Only morons do not understand - that when you come from a poor background, a loan can sometimes be the only chance to ever start a business and become self employed. But what is needed if the right mix of possibilities to ensure making at least the loan back. Pure economists call it the break even point. Well...based on that a businesswoman or - man needs to come up with the mix in where you can pay the loan back, and still live of the income after all costs are payed. This also needs vision and chance. And no single business owner build out his business without any forms of credits. No business owner ever made no mistakes either. So also in the mix should be the right person and personalities so call it the right character to run a business in responsible manner we call it a potential employee before the person started lol. Not everyone should start a business, but that is a very different thing than the title assumes. So sure call him a guru, I call it a dumb fuck.
Jamaal McCoy (4 months ago)
Whatever you do, just be smart about it.
Juan Carbutt (4 months ago)
I started my business on a loan. And I'll admit it, he's right.
Parker (4 months ago)
Oh really I don't need to take out a loan so how am I going to get the $350,000 that is absolutely not avoidable for my business? Let me phone a friend oh wait I already tried they don't have that either and they would want half partnership or more thank you Mark Cuban you're the best
JJ G (4 months ago)
What an idiot
Matt Vliet (4 months ago)
What
Tariq Freitekh (4 months ago)
Idiot. Absolutely a big idiot. I suffered and struggled so much and worked days and many nights. Did not go out except once or twice a month for coffee and couldn't find a way out except after I took a 200k loan. Yes that's 200,000 dollars from family and friends and banks. I started a business that I knew well (I was employed in that field) and I paid back my 200k in 2 years. I am my own hero. Screw Cuban. You guys can do it too. Just go for it like I did. I was scared as hell but I did it.
James Mason (4 months ago)
So sick of Cuban he got rich selling a internet sports radio show to Yahoo!. It ended up completely failing. He pretty much won the lottery. Remember when he tried to scare anyone from voting for trump by saying the stock market will definitely crash if he wins. He is a fucking idiot
Gerald J Walls (4 months ago)
Mark Cuban Everybody Does Like to Lie Cheat and Steal like you Trish Regan You are taking advice From a Con Artist He Probably didn't even By the Clothes on his Back
tim gong (4 months ago)
Mark is stupud
Paul Albert (4 months ago)
Didn't Cuban start his business on a loan ?
Alden Buyer (4 months ago)
Imagine how stupid Mark would feel if a company as big as Walmart was started with a loan. Oh right, Walmart *was* started with a loan. Now the Walton's collective wealth makes Cuban look like a welfare recipient.
Juan Sanchez (4 months ago)
not true, many million dollar co. started by ... borrowing.
Juan Sanchez (4 months ago)
cmon Cuban
Fernando Martinez (5 months ago)
Thats what he did and doesnt want you to have the same success so he says dont do it.
Gary Gagnon (5 months ago)
Innovation cream cream Highest science in Manufacturing I am great I was attacked while I worked I caught them ? What and how can I get capital I need without Mark must have a steak in GE thats work I can do I can make proven so They attacked ME 100% I have a value I am strongest In R&D no start up cash ?Banks will work against you And ? we get our cash from other Businesses ? I know there's a skills shortage I have brains advanced equipment.With Mark working 25 hours a day to kick my ASS ? Hows anyone ever going to start a business ?
ron troy (5 months ago)
I know its not alot but i made $45,000 last year before taxes without a loan. im saving to open a shop like my xfriend. im thinking outside the box to triple my profits. Yes im scared to go forward but if i dont try now i might regret it later
Ryan Huncho (5 months ago)
I knocked on doors for 4 hours a day even during winter. I made 100k in 6 months
SkankHunt42 (5 months ago)
Mark Cuban is a moron. He started a business on a loan.
aviv s (5 months ago)
never take loans
Nathan c (5 months ago)
Depends on the business. Leveraging is powerful for certain businesses.
Returns On Investment (5 months ago)
"Only Morons Start a Business on a Loan" - I totally agree! Only people with above average in terms of smartness would understand his comment, while the rest of you can disagree and pay high interest on your loan.
KYLE SWARTZ (5 months ago)
"the internet was designed for anything but video" ....2018 is laughing at this guy (YouTube, Netlfix, Twitch...)
Hashan Sampath (5 months ago)
Didn't Jack Ma start out with a loan
FinanzFerdinand (5 months ago)
She can sit on my face
dave0z96 (5 months ago)
Mark Cuban is clearly out of touch with reality.
Callum Tait (5 months ago)
Is anyone here from transcribeMe?
William James Rapp (6 months ago)
Not everyone can have nothing at all but a fantastic business idea and expect to KNOW EVERYONE IN THE INDUSTRY -- let alone know where all the money people are who are willing to invest. Not everyone grows up in a family of money or a family of connections. SOme people are actually doing everything they can to get out of the part of the country where NO MONEY FLOWS WERE RICH PEOPLE PINCH EVERY MARK FRANK YEN POUND OR RED CENT THAT THEY HAVE and they arent willing to help other. Hell, IM DIVORCED -- but my home is 100% paid off, My Car is 100% Paid Off, My Bills are 100% Paid off and I still cant get a loan of any kind let alone get a loan to start a business. Some of us have to do what we have to do. SOrry we are soooo stupid.

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