Saturday, May 12, 2012

The Value of Business Plans: Oprah Winfrey and Mark Cuban


Venture Capitalists and billionaires Oprah Winfrey and Mark Cuban both are known for their full pockets and contagious personalities. Each has their business hands in various industries, and each is very successful.
Oprah Winfrey is a huge media mogul and an inspirational leader to the world. Born in a very rural town of Mississippi she overcame much adversity in her life to reach the level of success she has (Oprah, 1991).  After being a talk show host for many years, she began diving into various realms of business as her popularity grew. Oprah used all these business opportunities to contribute to the building of the empire she leads today.
 Oprah is a venture capital investor that almost all investors wish they had access to because of the “Oprah Effect” (Investopedia). Oprah’s track record of investments has seemed to primarily focus on the self-help and educational realms. In a business plan I imagine she looks for something that is powerful, captivating. These components are key in a business plan because they grab the attention of the investor, and also create an energy that is exciting. If an investor’s attention is gained, there are no limits to where a potential business deal can go with them. She explains that you must do your homework before creating a business plan (Brewster, 2007) and by doing this your business plan will be something ready to captivate, and it will also ensure you don’t sound like a broken record to an investor.
Mark Cuban may be best known for owning the NBA team the Dallas Mavericks, but in the entrepreneurial realm he is known for taking chances and supporting business ideas he loves. Raised in a middle class family in Pittsburg, Pennsylvania, Mark Cuban began working at the age of 12 selling garbage bags and has always been known as a “go-getter.” (Biography) In 1990, he sold his first company CompuServe for 6 million dollars. (Biography) Since, Mark has grown his empire to become a billionaire. Being a venture capitalist has played a large role in the growth of his empire, a role he flaunts on ABC’s show “Shark Tank.”
On Shark Tank, budding entrepreneurs present their business plans in a presentation. If moved, Mark Cuban, one of the 4 “Sharks,” invests in the business. (Shark Tank) After watching seasons of the show, I have noticed that a key component Mark Cuba looks for in a business plan is previous successes (if any) and if the plan has the potential to be more than mediocre. Mark Cuban is fiery, and looks for passion when it comes to start-up businesses. Mark states, “Don’t start a company unless it’s an obsession and something you love.” (Cuban, 2012) This tells us that a sense of commitment and dedication is a must to be present in business plans that he may be investing in.
Although Mark Cuban and Oprah Winfrey are very different investors, they both have what it takes to help a business succeed and they each have their ways of telling if they want to do so or not.
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