Daymond John Shares 4 Tips for Business Success

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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.

Transcript

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.

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