Mark Cuban’s 12 rules for running a successful startup

Photo credit: Bryan Solis.

The following is an edited excerpt from How to Win at the Sport of Business: If I Can Do It, You Can Do It by Mark Cuban. The excerpt is provided by Diversion Publishing. You can buy a copy here.

Anyone who has started a company has his own rules and guidelines, so I thought I would add to the memo with my own. My “rules” below aren’t just for those founding companies, but for those who are considering going to work for them as well.

1. Don’t start a company unless it’s an obsession and something you love.

2. If you have an exit strategy, it’s not an obsession.

3. Hire people who you think will love working there.

4. Sales cure all. Know how your company will make money and how you will actually make sales.

5. Know your core competencies and focus on being great at them. Pay up for people in your core competencies. Get the best. Outside the core competencies, hire people that fit your culture but are cheap.

6. An espresso machine? Are you kidding me? Shoot yourself before you spend money on an espresso machine. Coffee is for closers. Sodas are free. Lunch is a chance to get out of the office and talk.

There are 24 hours in a day, and if people like their jobs, they will find ways to use as much of it as possible to do their jobs.

1. No offices. Open offices keep everyone in tune with what is going on and keep the energy up. If an employee is about privacy, show them how to use the lock on the john. There is nothing private in a startup.

This is also a good way to keep from hiring execs who cannot operate successfully in a startup. My biggest fear was always hiring someone who wanted to build an empire.

If the person demands to fly first class or to bring over a personal secretary, run away. If an exec won’t go on sales calls, run away. They are empire builders and will pollute your company.

1. As far as technology, go with what you know. That is always the cheapest way. If you know Apple, use it. If you know Vista, ask yourself why, then use it. It’s a startup, there are just a few employees. Let people use what they know.