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Heres a look at his mistakes andwhat you could learn from them.
Mistake No.
Years later, Cuban learned that this was not the case.
Nice sells, he told viewers.
Nice makes you more money.
The Rise of Kindness in Leadership
Cuban is one of many entrepreneurs who made this observation.
In 2023, Martin Port, founder of BigChange, wrote about the emerging culture of kindness in entrepreneurship.
He observed that decades ago, people saw business as a battlefield, and ruthlessness reigned.
Today, good leaders understand that negativity has a toxic effect onbusinesses and workplaces.
Leading through fear is unsustainable, and people need positive feedback to thrive.
That doesnt mean avoiding criticism entirely, but it does mean approaching things more kindly.
How Meanness Hurts Companies
Research backs up Cubans appreciation for kindness.
Being kind is better for business, plain and simple.
Research indicates that when people in the workplace are critical and mean, the team feelsmore stress and fatigue.
Being among nasty people is draining and makes productivity more difficult.
Meanness also limits innovation and collaboration, both essential to entrepreneurial success.
If the company leader is hostile, that toxicity dribbles down to everyone.
It damages morale, causes widespread stress and kills motivation.
Anunmotivated, stressed-out teamcant perform at its best.
Cultivating Gentleness as an Entrepreneur
Cuban was right embracing kindness as a business leader is strategic.
However, as the online business learning center INSEAD recently noted, the advice can be frustratingly vague.
James Rhee, chair and former CEO of Ashley Stewart, agrees.
He sees kindness in business as demonstrating genuine concern for people around you.
Its about showing understanding, giving people grace and believing in good intentions.
With that approach, its no wonder Cuban saw better results.
Mistake No.
Revenue is the total amount a business brings in from customers.
If you sell a $500 couch, youve earned $500 in revenue.
Profit is how much of that you keep after expenses.
The Limits of Revenue
High sales numbers are encouraging for any business owner.
Revenue growth is important.
you’re able to only have a healthy business by bringing money in.
But if that revenue doesnt cover your costs, your business wont be as successful as you think.
Why Profit Matters More
Imagine you own a startup with skyrocketing income.
Youre making more every month, so you take that money and invest it back into the business.
You hire dozens of employees and start developing more products.
Those products earn you more revenue, so you repeat the cycle.
Your numbers look great on social media, but what does your balance sheet look like?
Your business is shaky if you earn a high amount but cant meet expenses.
Thats a risky place to be, especially in an economy that most people view as unstable.
Start tracking profits as soon as possible, and your business knowledge will skyrocket.
And, remember to be kind!
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