Daymond John — entrepreneur, investor and “Shark Tank” star — turned a $40 budget into FUBU, which is now a $6 billion fashion empire. John’s net worth is an estimated $350 million, and he’s also a bestselling author and motivational speaker known for his no-nonsense approach to success.
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Building wealth isn’t easy, whether you’re starting to invest or saving for retirement, but if anyone knows how to make it big, it’s John. And luckily for aspiring millionaires, he’s outlined a five-step plan to help you join the two-comma club.
Step 1: Set Goals but Let Them Evolve
Like so many ambitious teenagers, John dreamed of being rich. At 16, he set a goal to become a millionaire by 30. This would take a lot of side hustling and maybe, just maybe, a million-dollar idea.
At 22, he found himself buying and selling cars to scrape by. He still had two numbers in his mind — $1 million and 30 years old — but they were just abstract ideas. “I didn’t know how to properly execute goal-setting,” John said. “It’s not just visualizing of a number or a certain age.”
Then he came up with the idea for FUBU and amended his goal to replace money with passion. Instead of becoming a millionaire by 30, he now aspired to design a clothing line that represented the hip-hop community that he loved.
He said, “My goal became doing the best I can for the company I love. The goal changed to my dedication: I want to dress people and enrich their lives, and in return, I will hopefully be compensated.”
And compensated he was … with compound interest.
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Step 2: Master Business Fundamentals To Make Your Passion Pay
John thought he’d struck gold when he secured $300,000 worth of orders after sneaking into a menswear conference in Las Vegas, which prompted his mother to take out a $100,000 loan against her home equity to support his venture.
The problem was, John’s talent outpaced his knowledge of how to run a clothing line, analyze the market, assess competitors or bring products to stores. Mistakes were made and his mother almost lost her house. That’s why today, John won’t fund entrepreneurs who haven’t done their homework, no matter the potential of their ideas. Instead, he works to create a network for teaching entrepreneurship.
“I have to see sales and some proof of concept, and what they learned when they sold 100 units, so they can come back and sell 1,000 units. I need to see somebody at some level where their idea isn’t just a theory, because if it’s only a theory, then you’re using my money as tuition.”
Step 3: Focus on Doing What You Love as Well as You Can
John credits his success to his undying passion for clothing and hip-hop. He believes that if you pursue a high-paying career instead of putting everything into your passion, you’ll run out of steam before you get rich.
“Do what you love, and success will follow,” John said. “Money may follow; I can’t promise that it will. But money’s more likely to follow when you’re doing something you love, because you’ll do it for 10 years or 20 years.”
Step 4: Remember That Your Business Isn’t an ATM — It’s Your Brand
Your company might turn into a cash cow, but if you’re in it only to get rich, that lack of authenticity will shine through and define not only your business but your personal brand.
John stated, “Be very honest with yourself, especially today with social media. At any given time, your employees can see you. So you have to know what the DNA of the brand is. It only takes your employees two weeks to treat your customers the same way they’re being treated.”
Step 5: Keep Going and Keep Growing
Brands come and go when they ride fads, but they become institutions when they evolve with the culture without losing sight of their roots. But the real key is having the grit to fight through the hard times that every self-made millionaire has endured.
“I always said fashion brands are hot for five years and then they’re gone,” said John, “You have to be relentless, nimble, moving ever forward. No matter what.”
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Daymond John’s 5 Steps To Becoming a Millionaire
