BY BEATRICE DIXON, CO-FOUNDER AND CEO, THE HONEY POT COMPANY
FUBU founder and Shark Tank investor Daymond John shares advice for founders at any stage of business.
FUBU founder and Shark Tank investor Daymond John shares advice for founders at any stage of business.
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00:00Damon John may be best known for his success investing in hundreds of startups as an investor
00:11on Shark Tank, as well as his experience building FUBU into a clothing brand that has grossed
00:16more than $6 billion.
00:18Despite that, Damon John is very honest about his limitations.
00:22I can't help every business.
00:24If that were the case, FUBU would be Nike.
00:27Knowing your own limitations is nearly as important as knowing what makes you successful,
00:31and Damon John has four tips that apply to founders at every stage of building and running
00:36their companies.
00:38Number one, never stop learning.
00:40During the COVID-19 pandemic, John spent his time taking as many digital courses as he
00:45could, saying, I need to know better the cost of customer acquisition these days.
00:50I need to make more informed decisions.
00:52As an investor, he delves into whatever he can find on internet marketing, digital conversion
00:57tactics, and more.
00:59Never stop learning.
01:00That's what true entrepreneurs do.
01:02They learn slowly, and they're in it for the long haul.
01:05Number two, always take care of current customers before trying to find new ones.
01:10John said he learned this tip from spending time with billionaires who've built their
01:13wealth over time.
01:15When he advises companies, he always favors ones that are looking to scale versus those
01:19that are trying to move into new markets.
01:22He likens it to the McDonald's tactic of supersizing a customer's prize.
01:27It's very hard to acquire new customers rather than upsetting them.
01:31Before you look for new customers, take care of your customer complaints.
01:34They're raising their hands and saying, I need more love.
01:37Take care of them, and they'll be your new ambassadors.
01:40Number three, investigate the root of your failures.
01:44Damon John still finds himself reevaluating missteps he made over his career.
01:48This honest self-reflection has helped him realize that his failures typically happened
01:52for one of three different reasons.
01:54In the beginning, his lack of financial intelligence was mostly to blame.
01:58But then once he remedied that shortcoming, he threw his money at too many businesses
02:03without really peeling back the layers to understand them.
02:06Finally, ego can get in the way.
02:08There were times when he thought, because I'm Damon John, obviously I can help because
02:12you stamped my name on a business.
02:14The reality is, Damon John has to get up and get his ass to work like everyone else.
02:19Being honest with himself has meant that he's very careful about how many things he says
02:22yes to.
02:24Number four, understand what makes you successful.
02:27The most fruitful experiences John has had, both as a founder and an investor, share a
02:31common theme, passion.
02:34If I don't truly love an idea, I don't spend time doing the homework to understand it.
02:38And I can't understand who's the best strategic partner.
02:42I don't invest in people I don't have strong passion for.
02:45It has to feel like Christmas every day when we find out a new way of operating the business.
02:51Look for the common theme among your successes and apply that to all of your projects.