Mark Cuban’s Journey from Broke to Millionaire: Why Hitting Rock Bottom is the Ideal Time to Start Your Business

Mark Cuban’s journey to becoming a millionaire started when he was at a low point in his life. After being fired from his job at a computer software store, he found himself sleeping on the floor in a crowded apartment with six roommates. Yet, it was during these tough times that he decided to launch his first tech startup, MicroSolutions, in 1983.

Cuban believes that starting a business when you have nothing to lose can be a great opportunity. As he puts it, “I couldn’t go any lower. There was no downside for me starting a business.” This mindset helped him push through challenges, including a difficult phase where a secretary almost destroyed his company with forged checks.

After about seven years, Cuban sold MicroSolutions to CompuServe for $6 million, marking the start of his journey as a millionaire. His next venture, Broadcast.com, was an even bigger success, selling to Yahoo for $6 billion in 1999, making Cuban a billionaire.

Today, Cuban is worth an estimated $7.79 billion. He emphasizes that entrepreneurship carries risks, especially for those with jobs, families, or mortgages. But he believes the potential rewards are worth it. “Creating a business gives you the greatest potential upside and the greatest leverage on your time, but it also creates the most risk,” he explains.

To lessen this risk, Cuban advises saving enough to cover at least six months’ living expenses before starting a new business. He also stresses the importance of research: “If you’re asking what kind of business to start, you’re not ready.”

Successful entrepreneurs agree that serious commitment and thorough preparation are crucial. Billionaire Jay Chaudhry suggests, “First, build conviction by learning more about what you want to do. Then, start by putting in your own money.” Investing your own resources helps test your true belief in your idea.

Having faced struggles gives entrepreneurs valuable insight. Jake Loosararian, CEO of Gecko Robotics, shares that knowing what it feels like to hit rock bottom can become a strength. “Those scars allow you to act with confidence, courage, and a will to make your goals become reality,” he says.