With 1 sentence, Mark Cuban just provided the perfect definition of capitalism

Whenever I write about conversations with entrepreneurs, several people will email asking for some version of "Why do you glorify greedy capitalists?"

I'm used to it, but it still bothers me. On the one hand, while free - I don't write about people, products, or services I don't like - the focus is on what other entrepreneurs can learn from this success. Tips. Strategies. Perspectives. Cautionary Tales.

But what bothers me most is the assumption that achieving massive financial success at any cost - in short, "capitalism" - is the only reason people start and build businesses.

I could never think of a decent answer.

Until Mark Cuban did it for me on Adam Grant's podcast, Re:Thinking:

People don't fully understand the definition of capitalism.

Capitalism is not just about trying to make as much money as possible. Capitalism is the opportunity to get the results you want, which gives you a personal reward. He could make as much money as possible. Have the biggest impact one way or another. You can make this choice.

That's what makes capitalism the best system, but sometimes people get caught up in the money.

No matter how "greedy" you are, you can't make money unless you solve a problem or meet a need first. Money is always a by-product.

Snipe at Jeff Bezos and his billions all you want, but he clearly answered a need shared by millions: wide selection, low prices, fast delivery. Accomplish these goals: fill a genuine and widely shared customer need, and the money follows.

Vuori founder Joe Kudla decided to solve a problem. While women's brands have long made products that can go from the (exercise) studio to the streets, nothing like this existed for men. So he created clothes that men - and now women - can wear to the gym, to the coffee shop, to the grocery store. First, he solved a problem. Only then did the money, including a $400 million investment from Softbank that values ​​the company at $4 billion, follow.

Dharmesh Shah realized that traditional marketing (interrupting customers with advertisements) was not only boring, it was increasingly ineffective. So he and his co-founder Brian Halligan found a better way to "sell to humans": create content that provides value and builds a relationship with potential customers. HubSpot first fixed an issue; only then did the money - HubSpot's market cap is currently close to $14 billion - follow.

Caitlin Crosby met a homeless couple and realized they needed a job, not just food. So she asked them to be partners in her fledgling jewelry business. Today, The Giving Keys has provided over 130 jobs to people coming out of homelessness. While it was certainly a business (the keys are sold at thousands of retail outlets), the cause was the motivating factor; the company backs and supports the cause.

And then there's my friend Ian. He started a construction business which was, by all accounts, a huge success. But he wasn't happy, because success changed the nature of his job: he wrote proposals. He reviewed the quotes and contracts. He coordinated the supply chains. He supervised people who supervised people who supervised people.

He therefore decided not to replace the employees who had left for other jobs, nor to start their own company. He matched the number of new projects he took on with his company's slowly declining capacity. Within a few years, it was down to two crews and could "only" manage two simultaneous builds.

People thought his business was failing. Yet his business is thriving.