Daymond John was in no hurry to quit his day job when he built the business that made him a millionaire. By sticking with it, he says, he became even more successful.
“I worked at Red Lobster for years while building FUBU,” John posted on LinkedIn on Monday. “Not because I didn’t believe in my dreams, but because it was smart.”
In 1992, the Queens, New York native co-founded a clothing brand with the acronym “For Us, By Us” after a modest upbringing with a single mother. John started his company with just $40 and was able to support himself and invest in his business with the money he earned as a waiter at a chain restaurant.
“The job taught me sales and inventory, paid the bills, and purchased fabric and supplies for my business,” John, 56, wrote.
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FUBU became popular in the early 1990s with the rise of the hip-hop and rap scenes. John reportedly brought his own apparel to the music video shoot and had rappers take pictures wearing his gear. He told Business Insider in February 2018 that in 1996 he placed an ad seeking funding and signed a distribution agreement with Samsung. Thanks to that investment, FUBU reportedly generated sales of $30 million in three months.
According to John’s website, the urban streetwear brand has generated more than $6 billion in total revenue to date. John served as an investor judge on ABC’s “Shark Tank” for many years and currently serves as CEO of the company.
“Build slowly if you need to.”
When you’re starting a business or side hustle, you might want to quit your job, especially if you already have some money or are tired of your 9-to-5 job. Experts usually recommend some considerations before taking that risk.
Kevin Rao, a certified financial planner and founder of the advisory firm Imagine Financial Security, says considerations include a strong business plan that clearly describes what your product or service is, who will buy it, and how much money you’ll make, as well as enough capital to support yourself as you establish your business.
Rao told CNBC in January 2022 that he saved up one year’s worth of living expenses and three months’ worth of business expenses before launching the company. He also added that the company’s vision was clear.
“If you don’t have a compelling ‘why,’ it’s very difficult to succeed,” Rao said.
Although his job as a waiter wasn’t glamorous to John, he writes that it laid the foundation for his approach to entrepreneurship and taught him important lessons.
“What people don’t realize is that your day job can sometimes be your first investor,” John wrote. “Don’t be discouraged if you don’t have the means to quit your job right away. Use it as fuel for your dreams and goals. If necessary, take it slow.”
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”
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