Doing Business With A Shark

Over the last 20 years, Daymond John has evolved from one of the most successful fashion icons of his generation to one of the most sought after branding experts, business authors, and motivational speakers in the country.

Daymond’s creative vision and strong knowledge of the marketplace helped him create one of the most iconic fashion brands in recent years.

FUBU, standing for “For Us By Us,” represents a lifestyle that was neglected by other clothing companies, and realizing this need in the marketplace, Daymond created the untapped urban apparel space.

Currently, FUBU has amassed over six billion dollars in global sales, and at its peak, grossed over $350 million dollars in annual worldwide sales.

In 2009, FUBU creator John joined the cast of the ABC entrepreneurial business show, Shark Tank, produced by acclaimed TV producer Mark Burnett.

As one of the “Sharks,” Daymond and four other prominent executives listen to business pitches from everyday people hoping to launch their company or product to new heights. Investing his own money in every project, Daymond becomes partners with the entrepreneurs, helping turn their dreams into a reality.

It’s an opportunity that hundreds of people will be hoping for when they attend the “N’DIGO Business Shark Breakfast” on Friday, March 16, 2012, when Daymond will not only be the featured speaker, but also evaluate six business proposals from audience members.

The Shark Breakfast will be held at Chase Auditorium, 10 South Dearborn, from 7:30 a.m. until 11 a.m. Tickets are available online at ndigosharks.eventbrite.com.

“This is a business breakfast for the serious entrepreneur hoping to move to the next steps,” says N’DIGO publisher and breakfast founder Hermene D. Hartman.

Opportunities Galore!

“The breakfast is a true business opportunity.  Daymond will be there to look at possible investments.  Representatives from Walmart will be there to tell people how they can become a vendor at Walmart.

“Chase Bank is the largest small business lender in the city and they will be there to talk about banking opportunities at Chase and will have officers on hand to handle applications for business loans.”

Hartman explains that six breakfast participants will have the opportunity to present five-minute pitches to Daymond, in hopes of securing investment funding.

“Presenters may be from any size company, from startups to an established business, and they will be groomed on how to present by someone who’s presented on Shark Tank for real. Then the presentations will be followed by business evaluations,” Hartman says.

Daymond John

“Daymond may be interested in investing; Walmart could put you on their shelves or give you a critique to say you need to do this, that, or the other to strengthen your business. Or your business may already ‘be there’ and they’ll just say, hey, you’re the one, here’s your opportunity.

Hartman calls John a superb person to look to.  “He’s been extremely innovative with his start on the streets of Queens, New York with a fashion line,” she says.

“He saw a niche unfulfilled.  He did successful marketing with hip hop celebrities and personalities, and sold his product.

“He did bootstrap financing –– going to Vegas and not being able to afford a booth in the Expo, but he was able to afford a room, and innovatively and creatively, he got people to come to his room and he garnered $300,000 worth of orders.

“The he has parlayed from one successful point to another and stair-stepped his way to a successful empire. His is a story that’s very right for now to be told.”

Before the business proposal presentations, Hartman will interview John on his success, challenges, innovations, business issues, and so forth.

“From this business morning, which will be a real working morning, there will be some real business opportunities,”  Hartman says.  “You get an investment opportunity, and you get a shot at Walmart, and Chase Bank. And of course, breakfast will be served!”

The John Interview

“The Shark” himself, Daymond John, is looking forward to the opportunity.

Daymond grew up in the community of Hollis, Queens, which was quickly becoming known as the birthplace of a new genre of music called hip hop, with local acts like RUN DMC and Salt-N-Peppa rapidly making names for themselves. Being surrounded in this influential neighborhood helped spur the inspiration for his clothing line that would ultimately change the fashion world.

John provided N’DIGO with a brief taste of some of the things he’ll talk about at the breakfast.

N’DIGO:  When you started FUBU, was it out of a fashion sense or a business sense?

Daymond John:  Absolutely out of a fashion sense and a love of a culture, a music, and a great time in our history.  I was making money out of it because I was doing it on a very small scale –– not making it myself –– but I was going and getting stuff and selling it to other kids who loved the culture.  We were on the road just selling stuff.  I was making just enough to live and support my trips on the road.

Then I said, can I really make money off of this, and also do something that I love, which is, you know, be a part of hip hop?

On Shark Tank, I’ve read somewhere that you’ve invested maybe $700,000 on some of the show’s projects.

I think it’s a little higher than that.

How are the projects you’ve invested in working out?

A couple are working out great.  Some have failed.  But a lot of them need a little bit more time because, especially in a rough economy like this, you’re not going to turn a business in two minutes.

But when we invest in these things, we’re in it for the long haul and I’m absolutely optimistic that many more of them will flourish.

Daymond John with the Shark Tank cast, (from left): Robert Herjavec, Kevin O’Leary, Barbara Corcoran, and Kevin Harrington.

Is there a favorite that you have that you’ve invested in on the show?

You’re trying to get me to tell you that my first-born is my favorite and my last-born is not!  I gotta love all my kids.

How do you know what to invest in?  What are the factors you look for?  On the other hand, when do you know immediately that something is not going to work?

I know immediately when something is not going to work…for me.  The good thing about Shark Tank is that we highlight people who got deals by the sharks and people who did not get deals by the sharks, and they said, “Forget you, sharks, I’m going to go out and make it without you.”

What makes it not for me is when the person doesn’t know their business well enough; when the person is very interested in only what’s in it for them; when the person is saying to me, “I want you to invest your money and I want you to give me advice and let me damn near call you everyday.”  That means not only am I investing money, but I’m working as well.

Those things are not interesting to me.

On the flip side, that’s why I wrote The Brand Within book.  It was after my first season on Shark Tank and I realized something about people and investing and pitching.

Usually what’s attractive to me is the person in a business.  If the person is a great person, we may fail in the business, but this is going to be an asset for me in the future because me and that person are going to find other businesses and other ways to make money.

The next thing that makes it attractive to me is when the product, or whatever they’re representing, fits my portfolio.  So, if I have an urban clothing brand, I don’t want another urban clothing brand.

I may want a skate brand because when I go to the store, I’m not cannibalizing myself with the same urban brand, but I’m saying to the buyer, hey I see that skating wear department over there and I don’t have anything in there from FUBU, but I have this other company called Drunken Monkey, and can we get some of that real estate?

So, does it add to my portfolio?  Number three:  is the person self-sufficient and not only are they not going to ask me a lot –– I’m going to help them when they need help –– but when that guy calls me and says listen, I’ve tried 10 ways to figure this out and that’s why I’m calling you.

I like to know that they’re problem-solvers, because problem-solvers like that, not only do they run the business, but I learn from them as well.

I’m learning every single day and I can’t know every business, but a lot of times when they fix their challenges, we learn together.  They call me and say, here’s what I tried to do and here’s what’s not working –– what do you think?  I’m going to learn from all those things he tried to do, as well.

Those are all the elements of businesses that I like.

So once you’re in it on an investment, you’re pretty accessible.

Like I tell people, if I’m not going to be accessible, I might as well just throw my money over at Apple because, trust me, I highly doubt that they’re calling me to ask how to build the next computer.

Was it hard for you to get investments when you first started out?  Did people believe in you?

If I tell you that, I’m going to ruin the breakfast, but what I will tell you is that when I speak at engagements, I don’t speak about all my wins, I speak more about my losses. �

What do you hope happens at the breakfast?

I hope that I give people that small information that’s big information that can curtail their businesses and their pitches to the point where they can make it attractive to other investors and to find funding.

By the way, have your readers check me out on my Twitter– @thesharkdaymond –– so that as I’m talking about when I’m coming out and what I’m speaking about, they can get their head mentally around it.