Daymond John, CEO of The Shark Group, joined Cheddar News to give advice and tips on how to smoothly run your business. “A lot of times you gotta go to the core of what you're selling and then expand on that,” he said.

Tips to Streamline Your Business with Daymond John

in the new year is a great time to streamline your business. One of our guests today has some tips. He has firsthand experience having turned a $40 budget, just $40 into a $6 billion fashion brand fubu. I know you know this one if that isn't enough. He's also a shark on the Emmy award winning show shark tank as well as the new york times best selling author. So ceo of the shark group Daymond john did join cheddar to offer tips for companies to streamline their business this year. Take a look. There's only two ways to operate business. You either increase sales or reduce costs. Now we know that we are facing a recession or in it whatever the case is. So you have to look at those things, you also have to reevaluate things right? You have to evaluate, you got to try to innovate and you have to make more efficient entrepreneurs. They they act, they learn and then they repeat, but you know what is the core to your business? The core of your business is always going to be your team, your staff, right? And you know the great resignation has not stopped. You know, it is hard to find talent out there and when you onboard somebody, they average out about $4,000, you know per person. So how do we evaluate and how do you train? Because the challenge with staff now is they're all virtual or remote and you're having different issues you know with them and you have to train them and how do you keep culture and how do you keep all that stuff? So you know, there was opposed to went out by a company that I worked with a trainee a last year and they were talking about how a supervisor called you know, a couple of people into an hour meeting to kind of talk about things and when you when you look through the system, the train system that our meeting cost $2000 if you really break down how much people got paid in that room, They didn't cause any more meetings at that point. Right? Because we got to really look at the numbers and that and that and that's the issue and and that's what you have to do, what are you selling and how are you evaluating the team that is selling it? We're speaking of the numbers, you know, a recent survey found that more than 66% of economists at 23 large financial companies believe that the us will have a recession this year. So how should companies really try to get ahead of the curve and prepare for this? Well, first of all, again, going back to that, but you know, a lot of companies get off of, you know, and and you want to try to invest obviously and growing the business, but a lot of companies go off of the core of what they are selling right? A lot of people think that they are selling a lot of other things when they really have a core, right? I mean you're only gonna sell for four different reasons. Only four reasons any consumer ever deal with you. Right? Um, to educate themselves, entertain themselves right to live and or to pay somebody for something that they're too lazy to do themselves. Right. And when you have to look at things, you know, when I sold, why didn't sell shirts, I sold the community, That's what I sold right before social media was out. I sold the community when you sell a gym membership, are you selling real estate? Are you selling a healthy lifestyle? So a lot of times you gotta go to the core of what you're selling and then expand on that. There are basically three ways period that you can ever deal with the customer, you can acquire a new one Upsell the current one or make one by more frequently, that's it. And acquiring a new customer is 22 times harder than up selling one or making one by more frequently. So how do you see super size everybody's fries and that is how you really look at business. And I know I'm not over simplifying these things, but this is really the core of what you have to do to strip away all the extra things you're doing and of course you gotta know your finances. You know, if you're a small business, you're going up a credit card loans and high loans and interest. I mean you have to, you have to, you have to shed a lot of this fat. Yeah, I know a lot of people are trying to do that and trying to figure out what works for them, whether they're trying to get new clients on social media or trying to Upsell those clients on social media. And I know you mentioned that you started before social media and you were selling things out of the trunk of your car in Harlem but you've now regular weird rejiggered and now are doing great on social media. So as we talk about social media and websites, how can people use or kind of step up their social media game to try to get more people get more clients and really affect their bottom line by using that platform. The best way is often quizzes. You know, a lot of people don't realize that a customer wants, they're telling you what they want. Now, first of all, the first thing to do is look at customer complaints. A customer complaint is an investment back. In my days. We call it a focus group, right? We used to put a bunch of kids in a room and uh, and let them look at the clothes, give them $100 apiece and give them some pizza and look through the look through the people at them and all they did was tell us what they like. So they can get more pizza and another $100 today. Now on social media you can hashtag and you can come up with things that, that people are talking about your brand that don't know you're watching and you can look at that as an investment because a lot of times when we complain about a brand that we feel has let us down or product or service, we don't have to, we can go to somebody else. Right? So, So that's really key to social media, asking people giving them quizzes. And there's various other ways of saying it, Hey, which one of these three formats fit you, which kind of buyer are you? And once all of a sudden you capture them in this funnel, then they could tell you more and more about their things and whatever they are when somebody feels like you are listening to them, there are 23 times more apt to become a bigger and bigger ambassador. Okay, great advice there from Daymond john Ceo of the shark group