Mark Cuban is an American businessman and investor born in July 31, 1958 on Pittsburgh, Pennsylvania. He is the owner of the NBA’s Dallas Mavericks, Landmark theaters, Magnolia Pictures, and he is the chairman of the HDTV cable network HDNet. His business net worth is $2.5 billion dollars, and he is #171 in Forbe’s list of US Billionaires. As a young adult, Cuban enrolled as a full time student at the University of Pittsburgh and then transferred to Indiana University in Bloomington, Indiana, graduating in 1981 with a bachelor's degree in business administration.
Cuban’s critical key components when looking into a business plan are a) the actual consumer need for the product or service, b) the track record of the business and individual owner of the company, and c) the business’ growth prospect. Cuban has a particular interest for internet related business that profit from e-commerce and other web services. As for point A, Cuban looks for business plans that have high-demand and need in its products or service to ensure the number of sales and ROI. He prefers financing a business of PS3 games that consumers can download online for a monthly membership fee where there is already a market and need, rather than a local store of hand-drawn prints for T-shirts. About point B, Cuban explores through the company’s and individual owner’s financial backgrounds the level of responsibility and commitment of the business. Studying someone’s financial background helps understand individual and corporate habits in the way money is spent and saved. Ultimately, point C is a view at the possibility that the business can expand and branch out. As a business man, Cuban likes to finance businesses that can stand on their own and automatically create new assets. An example is HDNet, which is a network that builds its audience based on new seasonal content.
Barbara Corcoran is an American business woman, investor, business consultant, and television personality born in March 10th, 1949 on Edgewater, New Jersey. She graduated from St. Thomas Aquinas College in 1971 and started her own real estate business, The Corcoran Group, with a $1000 loan in 1973. She is a columnist for “More Magazine”, “The Daily review”, and “Redbook”. She became also a “Shark Tank” show personality and investor on ABC in 2009.
Corcoran’s critical key components when looking into a business plan are a) a great executive summary that answers a.1) what is the business owner trying to make happen with his/her business?, a.2) why is the individual owner suitable for the job?, a.3) Is it a good business?, a.4) What is it going to cost? And a.5) How long is it going to take? Also b) presenting the total revenue that the company could generate if it captured 100% of the market rather that presenting the total market or overestimating its size, c) presenting the true company risks rather than downsizing these to not scare investors, d) and answering what makes the company’s product or service different? Ultimately, Corcoran’s emphasis is in the executive summary: let the executive summary reflect the gold mine a business truly is including its risks and potential problems along the way.
References:
- Barbara Corcoran (2011). Official Website. Retrieved November 27th, 2011 from http://barbaracorcoran.com/
- Green, Penelope (2005). "The Real Estate 'Queen' in Her Hive", The New York Times. Retrieved November 27th, 2011 from http://www.nytimes.com/2005/09/25/realestate/25habi.html
- Expert Views on Business Plans (2011). Steven Burhoe’s Blog. Retrieved November 27th, 2011 from http://bpexpertviews.blogspot.com/
- Mark Cuban Profile Page (2011). Forbes.com. Retrieved from http://www.forbes.com/profile/mark-cuban/
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