This Is the Most Important Part of Starting a Business, According to Daymond John, an Entrepreneur Worth $350 Million

Daymond John is the laminitis of Fubu, a clothing marque he started successful his mother's location successful 1992 that has now sold over $6 cardinal worth of products. He has a nett worthy of around $350 million and has invested close to $9 million successful emerging companies arsenic an investor connected Shark Tank.

But he wasn't ever a millionaire and has admitted to not having financial intelligence successful the early days of Fubu erstwhile 27 banks rejected him for a loan. That's why John says it's important to build beardown financial intelligence early on.

"That's the astir important part: the financial intelligence, creating a building and a business truthful that erstwhile you do want an investment, I tin really put successful you," John told CNN Business. "[If] your receipts are successful a shoebox, really americium I going to get paid back? Where is my money going?"

Related: These Are the 3 Things That Make Daymond John Want to Give You Money

In 2022, John explained that, erstwhile he was starting arsenic an entrepreneur, 27 banks rejected him because he didn't cognize what he was doing financially. He didn't cognize what forms to capable retired and had nary collateral.

"I look backmost astatine those times and say, 'How stupid was I?" John said. "Because I didn't person financial intelligence and I deliberation that is thing we should beryllium school kids successful the 3rd grade, not erstwhile they get to college... We don't talk astir money astatine all."

Daymond John. Photo by Paras Griffin/Getty Images

Use Other People's Money

John said the "power of broke" tin thief businesses too, aliases the thought that they don't person thing to lose, truthful they'll fig it retired nary matter what it takes. And he's a large instrumentality of utilizing "other people's money" aliases what he calls, OPM. The "M" tin besides guidelines for different resources, he says.

"It's usually astir reasoning extracurricular the container and utilizing OPM, which should beryllium different people's money, manufacturing, mindpower, manpower, marketing, and mentorship," he stated.

John said that if he were starting a business today, he would pat into different people's resources first earlier utilizing his ain money.

John told Entrepreneur successful an question and reply past period that he looks for founders to reply 3 questions earlier he invests successful them: Why me? Why now? And why this?

Related: How Daymond John Went From Selling T-Shirts connected the Street to Running a $350 Million Company