Despite his successful investing in hundreds of startups as an investor in Shark Tank, as well as his experience growing FUBU into a clothing brand that grossed more than $ 6 billion, Daymond John is very honest about its boundaries. “I can’t help … any company. If that were the case, FUBU would be Nike,” John told the virtual audience at the Inc. 5000 Vision Conference on Wednesday.
Knowing your own limits is almost as important as knowing what makes you successful, John said during an interview with Scott Omelianuk, editor-in-chief of Inc. He went on to offer some thoughtful takeaways that are useful for founders at every stage of the build and apply to the management of their companies.
1. Never stop learning.
During the Covid-19 pandemic, John was stuck at home like everyone else. How did he spend his time? Take as many digital courses as he can.
“I need to know the cost of customer acquisition better these days. I have to make more informed decisions,” he admitted as an investor. So he delves into everything he can find about internet marketing, digital conversion tactics, and more. “Never stop learning … that’s what real entrepreneurs do,” he said. “You learn slowly and are there in the long run.”
2. Always deal with current customers before trying to find new ones.
John said he learned this tip by hanging out with billionaires who built their fortunes over time. When advising companies, he always prefers companies that want to scale over companies that try to enter new markets. He compares it to the McDonald’s tactic of oversizing a customer’s fries.
“It’s very difficult to get new customers instead of annoying them,” he said. “Before you start looking for new customers, deal with your customer complaints. You raise your hands and say, ‘I need more love.’ Take care of them and they will be your new ambassadors. “
3. Investigate the root of your mistakes.
John admitted that at this point in his life he was still reevaluating missteps that he had made throughout his career. This honest self-reflection has helped him realize that his mistakes usually occurred for one of three different reasons. In the beginning, it was mainly his lack of financial intelligence to blame. But when he fixed that shortcoming, he threw his money on too many companies without actually peeling off the layers to understand them.
Eventually the ego bothered. There were times when he thought, “Because I’m Daymond John, of course I can help because you’ve got my name stamped on it [on a business]”The reality is,” Daymond John has to get up and get his ass working like everyone else, “he said. Being honest with himself means being very careful about how many things he says yes to.
4. Understand what makes you most successful.
The most fruitful experiences John’s had as both a founder and an investor have one common theme: passion. “When I don’t really love [an idea]I don’t spend time doing the homework to understand it and I can’t understand who the best strategic partner is, “he said.” I don’t invest in people I don’t have a strong passion for. It must feel like Christmas every day when we find a new way of doing business. “
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