Mark Cuban is a self-made billionaire from Pittsburgh, Pennsylvania. It's hard to believe that he sold garbage bags door-to-door when he was 12 years old. He obtained a business administration degree from Indiana University. He founded HDNet, MicroSolutions, and Broadcast.com. He now owns the Dallas Mavericks and Landmark Theaters. His extreme success came from his pursuit of business ideas that he developed throughout his career. He lets his money work for him by making investments.
Daymond John is a wealthy entrepreneur from New York City who is best known for is fashion label FUBU. His started out by selling tie-top hats in New York. He designed the FUBU logo and began sewing it onto other clothing and making a great deal of money. He and his mother mortgaged their home in order to get $100,000 start up capital. With the guidance of Daymond, FUBU obtained 350,000 million dollars in revenue in 1998.
Both of these investors look for similar key components when deciding whether or not to make an investment. First, they determine if there is a need for the service or product. If there isn't a need for the product then they will not invest because their goal is to obtain the best ROI. They also decide wether there is a target market for this business idea. This is a key component because knowing who would be interested in this product helps to make projections of future income. The next thing they look at is the history of the person seeking investment money, and if there is a financial record of the business they take that into consideration as well. If the entrepreneur hasn't done well in the past, then the Sharks will not trust them with their money. After they determine if there is potential growth for the business, they then consider there own personal expertise to see how they can financially contribute to the idea. Preparation is also a key element in determining whether they will invest. They most likely will not invest if there are no type of financial projections. The main difference in Mark and Daymond's investment decisions deal with their specific area of expertise. Depending on the knowledge and connections they have in a specific industry, they decide whether they will be able to contribute and control a portion of the company.
Information From:
http://bpexpertviews.blogspot.com/2011/03/march-new-experts.html
http://abc.go.com/shows/shark-tank/bio/daymond-john/276281
http://abc.go.com/shows/shark-tank/bio/mark-cuban/727229
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