ABC’s hit television series Shark Tank is heading to Las Vegas as part of WWDMAGIC Feb. 18th to 20th. WWDMAGIC is a premier trade show destination for fashion designers and fashion brands. WWDMAGIC has been a breeding ground for some of the world’s most successful brands in women’s apparel and accessories. As the centerpiece of MAGIC MARKET WEEK, WWDMAGIC is the industry powerhouse for driving commerce, cultivating discovery and creating connections within the womenswear market.
The critically acclaimed business-themed show Shark Tank is continuing the search for the best entrepreneurs with innovative business concepts and products. Throughout the three days of MAGIC MARKET WEEK, representatives from Shark Tank will be scouting for startup and emerging fashion brands, across all categories, in search of potential show participants. Exhibiting brands will have the chance to pitch in front of show producers.
Shark Tank co-star Daymond John, who created one of the most iconic fashion brands in recent years, FUBU, offers words of wisdom and warnings about launching and building a successful brand. In addition, he shares some of his behind-the-scenes experiences working on Shark Tank.
In 2009, John joined the cast of the ABC entrepreneurial show produced by renowned TV producer Mark Burnett. As one of the “sharks,†John and four other prominent chief executives listen to business pitches from everyday people hoping to jettison their company or product to new heights. Investing his own money in every project, John becomes partners with the entrepreneurs helping turn their dreams into a reality. Some 7 million viewers tune in to the show every Friday night as John demonstrates his marketing prowess and entrepreneurial insights.
In an interview leading up to the event, John weighs in on launching a successful brand, MAGIC, and Shark Tank:
What do you feel are the two most important elements needed to launch or build a successful brand?
The first thing you absolutely need is strong and laser-focused communication that is able to tell a powerful story to their customer base. When you have a great a story that resonates with customers, they quickly become a part of your brand and transform from customers into brand ambassadors. Then, they tell your story to all of their friends and cost-effectively broadcast your messaging. The second thing you need is to always deliver and continue to over-deliver to all of your stakeholders. In my mind any sort of promise is a verbal contract that you cannot go back on. That could mean to continue delivering great, quality products to your customers. It could also mean that you have the strong ability to finance and deliver your product to retailers on time. If you continue to live up to your statements and consistently deliver, people will be knocking down the door to do business with you.
As the founder, president, and CEO of FUBU, what advice would you give to someone starting out in fashion? And how did MAGIC MARKET WEEK help FUBU grow?
If you’re going into fashion now, even more now than ever, it’s all about sales and proof of concept. Remember that even if you have a great idea, it’s not a business until you’ve tested the product on the market and had sales from real customers. Sorry, but sales from just your grandma don’t count! You can get started on this at a small level by producing a small run of product and setting up an e-commerce site through Shopify. You’ll be able to receive incredibly valuable feedback and continue improving your product.
Regarding MAGIC MARKET WEEK, it’s by far one of the most effective ways to grow and define your business. While people attend MAGIC with the mindset of just selling clothing, it’s way bigger than that. You have one room filled with people from all over the globe that can help grow your fashion brand. There are manufacturers, distributors, financiers, and many other people that you can network with. That’s what happened to me. Even though I had originally been contacted by my Samsung partner after taking out an ad in the newspaper, it was when they saw me at MAGIC and saw the incredible buzz around the FUBU brand that they knew we had to work together.
Any advice you can share that’s specific to fashion startups?
The biggest mistake people make is stacking up on inventory before you have any sales. Start small and create demand. The worst thing any entrepreneur can do is stack their garage full of 10,000 units of product and think to themselves, “How am I going to sell all of this?â€
What advice would you give to startups in need of financial backing?
First, bootstrap as long as you can, and do not take in other funding until you learn all the benefits and the hurdles of the brand. Secondly, take small, affordable steps in regard to selling your product. And finally, look for strategic partners: people that know aspects of your business that you don’t know and can accelerate your company’s growth quickly. Not only will you be able to accomplish things you couldn’t have otherwise, but it’s also the cheapest way to learn.
What do you wish you would have known when starting your own career?
I wish I had a better grasp on financial literacy. I created an amazing company and brand and almost lost it all due to the lack of my financial intelligence. It’s the cornerstone of every business, and not something to disregard.
What do you look for when selecting brands for the show?
No. 1, you have to have a great operator. You need that CEO at the end of the day that
can make it happen. No. 2, you need a business that is scalable. I’m all for small businesses that are self-sufficient and supporting their family, but from an investor standpoint, scalability is crucial. No. 3, I need to see a proof of concept. You need to show me that you have an idea or concept that works and complete strangers have already given you their own cash to buy your product. This way I’m able to help to turn your spark into a fire.
Is there anything that’s an automatic turnoff for you when hearing a pitch?
I hate when I hear how the individual will hire all the people and the assets that they need once they receive this great amount of funding. Also, I’m immediately turned off when the individual states how huge the market is and if they only get 1% of that several billion-dollar market. That’s not a justification that you will get business because the big players in your industry will spend millions and millions of dollars to keep that 1%.
Who has been the show’s biggest success story?
I believe it’s Lori Greiner and the Scrub Daddy. Last time I heard, they’ve done $15 million in sales. She’s killing it with those little sponges!
Source: Advanstar Global LLC