"Save your money first" - Shark Tank's Mark Cuban warns against quitting jobs to start a business

Shark Tank investor Mark Cuban has a stark warning for people who want to leave their jobs to start a business. In a segment where he answers questions from Twitter, Mark sat down with Wired. This is when he was presented with a business question.

Oftentimes, entrepreneurs dream of leaving their full-time jobs to pursue business ventures. They have fallen into a belief of replicating the success stories that are constantly highlighted in the media.

Shark Tank's Mark Cuban, the billionaire investor, does not agree with the notion. He says that nobody should quit their job if they do not know what they are doing. He also emphasized the importance of financial security that comes with one's full-time job.

Talking about the same, Mark says that the stories we hear in the media about individuals who have left their jobs to start a successful business are the only aspect of the coin. He says,

"Save your money first. Don't just leave unless you know what the hell you're doing. We hear all these stories about people who quit their jobs, started a company, and made all this money."

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Shark Tank investor Mark Cuban reveals the reality of Entrepreneurship

Shark Tank investor Mark Cuban pointed out that stories about individuals who have left their full-time jobs and started a business and made millions from it are indeed inspiring.

However, what is not reported in the news are the stories of people who started their businesses after quitting good jobs and failing miserably. He says that they ultimately end up going back to the job that they once disliked.

Mark warns,

"What you don't hear are the stories of the people who quit their job, started a company, and failed miserably—now working at a job they hate."

This indicates the fact that entrepreneurship is risky. Even if an individual has an innovative idea, according to Mark, they need proper planning before taking crucial steps such as leaving a job.

They also require proper execution and financial stability. If an aspiring entrepreneur does not have a safety net, they may find themselves struggling to survive instead of focusing on growing their business.

As a solution to the problem, Shark Tank's Mark Cuban advises the viewers to prioritize financial planning before taking any irrational steps. He asks them to save enough money for an advanced period before leaping.

This safety net acts as a buffer to help the new entrepreneurs have security. It also allows them to focus on building their business instead of scrambling to cover basic living expenses.

Mark says,

"Before you quit, be prepared. Know what you're doing. Save your money. Have at least six months to live off if you can, and then maybe you're ready to start your business."

If there is no financial security, Shark Tank's Mark explains, an entrepreneur might be forced to take desperate actions such as abandoning their business and going back to the job they hated.

They may even fall into the traps of an unfavorable deal. However, having sufficient savings reduces stress and increases the chances of making thoughtful and strategic choices.

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Watch Shark Tank season 16 episodes weekly on ABC at 8 PM Eastern Time on Fridays. Later, they can be streamed via Hulu.