Mark Cuban Says These are the Dumbest Things Entrepreneurs Do Whatever you do, don't do the first thing on this list. Or the second. Definitely not the third.

By Jason Fell Originally published

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images

By nature, entrepreneurs are intelligent, passionate, ambitious people. But all of those smarts and drive don't always mean every business owner makes all the right decisions all of the time. Hopefully the blunders that are made aren't big enough that the business fails.

We reached out to tech billionaire and Dallas Mavericks owner Mark Cuban to find out the things that entrepreneurs do that absolutely drive him bonkers. As a longtime investor on ABC's hit TV show Shark Tank, alongside Daymond John, Robert Herjavec and Lori Greiner, Cuban has encountered his fair share of entrepreneurs who've made some serious missteps.

Related: What Would Mark Cuban Change About His Career?

Whether you're looking for investment money or quietly growing your business, Cuban says to avoid making the following mistakes at all costs.

Not understanding business basics.

One thing that drives billionaire Mark Cuban crazy is when entrepreneurs lack the basics. A prime example, he says, is when entrepreneurs "don't know the difference between a product and a feature." Before an entrepreneur begins looking for investment money, starts producing a product, even before research and development, they need to have this fundamental understanding.

In other words, if a competitor sells only blue shirts, and your shirts are blue and red, you've merely created a feature. Products or services solve problems and people want to purchase them. Features are characteristics that add value to products.

Related: Mark Cuban Shares the Best Advice He Ever Got

Successful companies are founded on products—not features, Cuban says.

Thinking competition equals validation.

Creating something from nothing is no easy feat. Convincing people that you're providing a valuable service and to buy your products sometimes requires a lot more. The Indiana University alum says it's a big mistake to think that a big competitor moving into your market validates your business.

Related: 10 Inspiring Quotes From Billionaire Entrepreneur and Shark Tank Star Mark Cuban

What it does—or should do—is make smart entrepreneurs extremely uneasy. "It means you are in deep trouble unless you can out-innovate and outsell them," Cuban says.

Pegging your success on one 'star' employee.

As the old saying goes: Don't put all your eggs in one basket. The same goes for hiring and team building.

Too often, business owners believe that "their next hire will solve their biggest problem," Cuban says. Hiring the best marketer in the industry doesn't mean you'll magically figure out how to sell your stuff and everyone will live happily ever after, he says.

If your star employee leaves or fails, then so does everyone else. Growing a successful business requires all hands on deck, meaning everyone on the team needs to be pulling their weight—together.

Jason Fell

VP, Native Content

Jason Fell is the VP of Native Content, managing the Entrepreneur Partner Studio, which creates dynamic and compelling content for our partners. He previously served as Entrepreneur.com's managing editor and as the technology editor prior to that.

Editor's Pick

Related Topics

Business News

'Bar Tab Was Almost 80%': Restaurant Slams Well-Known Columnist After He Goes Viral For Claiming His Meal Cost $78

A photo of a burger and fries from 1911 Smokehouse BBQ at Newark Airport went viral for its alleged price, but the restaurant says the man didn't factor in his many alcoholic drinks.

Business Culture

Why Recent Layoffs and Unaddressed Employee Grief Are Hurting Your Company's Bottom Line

Communication can go a long way in creating trust, stability and vision in an organization's very unstable time of grief. This will, in turn, improve the company's bottom line as well.

Business News

Opening a New McDonald's Franchise Will Be More Expensive in 2024

Starting January 1, franchise royalty fees will rise from 4% to 5% for new locations in the U.S. and Canada.

Business News

'An Absolute Prize': Rare Great Depression $10,000 Bill Sells For Nearly $500,000

The $10,000 bill is from 1934 and was never in circulation.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.