Daymond John Explains How a Restaurant Job Financed FUBU’s Rise

Daymond John, best known today as an investor on ABC’s “Shark Tank,” says the steady income he earned as a waiter at Red Lobster was critical to transforming his clothing startup FUBU into an international brand. His experience highlights the role a traditional paycheck can play in funding a fledgling venture and underscores why many entrepreneurs postpone leaving their day jobs until their businesses reach firmer ground.

Balancing Shifts and Sewing Machines

John co-founded FUBU—short for “For Us, By Us”—in 1992 from his mother’s house in Queens, New York. The company began with only $40 in seed money, forcing the 23-year-old founder to rely on external income to purchase fabric, cover household expenses and test early sales strategies. He continued working multiple shifts at a Red Lobster location for several years, channeling each paycheck into raw materials and modest marketing efforts.

The restaurant position not only paid bills but also exposed John to day-to-day operations such as inventory control, customer service and upselling. According to the entrepreneur, those workplace lessons later informed FUBU’s merchandising and distribution tactics. By maintaining the job, he avoided taking on costly debt or surrendering equity at an unfavorable valuation during the label’s infancy.

From Music Videos to a Samsung Deal

FUBU’s fortunes improved as the hip-hop scene expanded in the early 1990s. John leveraged local connections to place his apparel on emerging rap artists at music-video shoots, generating grassroots visibility without a large advertising budget. In 1996, he placed a classified ad seeking outside capital, which ultimately led to a distribution agreement with Samsung Textile. The partnership enabled FUBU to scale production quickly; sales reportedly reached $30 million within three months of the deal.

Over time, the streetwear label grew into a global enterprise. John’s website estimates cumulative revenue above $6 billion to date. Now 56, he remains chief executive officer of the company while continuing his television role evaluating startup pitches.

Keeping the Paycheck Longer

John’s trajectory illustrates a broader principle echoed by financial planners: many new businesses benefit when founders retain primary employment until the venture achieves consistent cash flow. Certified financial planner Kevin Lao, who established advisory firm Imagine Financial Security, recommends securing a clear business plan and sufficient personal savings before resigning. Lao himself accumulated one year of living costs and three months of business expenses before launching his practice, emphasizing the importance of a well-defined mission and manageable risk.

The U.S. Small Business Administration likewise advises prospective entrepreneurs to develop detailed financial projections and identify target customers prior to operating full time. Such preparation can reduce pressure to generate immediate profits and allow founders to reinvest early earnings rather than funding daily obligations.

Day Job as First Investor

For John, the Red Lobster position functioned as an informal seed investor that required no equity stake and offered reliable weekly funding. He views the arrangement as evidence that entrepreneurs do not need to abandon traditional employment at the first sign of opportunity. Instead, he encourages building “slow if necessary,” using wages to test concepts, refine products and validate demand before seeking large-scale capital.

Imagem: imagem internet 19

John’s perspective aligns with common startup advice to delay outside fundraising until a venture demonstrates traction. Self-financing during initial stages can preserve ownership and bargaining power, making later negotiations with distributors or investors more favorable. His Samsung agreement, for example, occurred only after FUBU had developed brand recognition and proven sales potential, enabling a larger payout and wider distribution.

’Shark Tank’ and Ongoing Involvement

Since 2009, John has served as one of the investors on ABC’s “Shark Tank,” analyzing hundreds of pitches from small-business owners each season. The reality program, for which CNBC holds exclusive off-network cable rights, has become a prominent platform for entrepreneurs seeking capital and mentorship. On the show, John often references his early days of juggling shifts and shipments when advising founders about valuation and growth pacing.

Although his primary exposure now comes from television, John retains direct oversight of FUBU’s strategic direction. The brand continues to release limited-edition collections, partnerships and legacy items that appeal to both longtime supporters and new consumers drawn to 1990s nostalgia.

Takeaways for Aspiring Founders

John’s example underscores several practical considerations for people contemplating a side venture:

• Maintain a reliable source of income until the business generates consistent, repeatable sales.
• Apply lessons from traditional employment—such as inventory control and customer relations—to the startup environment.
• Develop a comprehensive plan that identifies target markets, revenue streams and funding requirements.
• Accumulate sufficient personal savings to cover living expenses during the transition phase.
• Seek strategic partnerships or distribution agreements after establishing market validation.

While the notion of abruptly quitting a nine-to-five role can be appealing, John’s career suggests that patience and disciplined reinvestment can yield substantial long-term benefits. His decision to keep a waiter’s apron within reach provided the financial runway and operational knowledge necessary to transform a $40 concept into a multibillion-dollar enterprise—a path many contemporary entrepreneurs may consider emulating.

Crédito da imagem: CNBC