The Value Equation

Chapter 2Daymond John and the First Variable

Growing up in Hollis, Queens, Daymond John was just 10 years old when he started working after-school jobs, such as handing out flyers for $2 an hour. By the time he graduated from Bayside High School, he had significant entrepreneurial experience and a strong work ethic. Juggling jobs and a desire to work for himself, he began selling t-shirts and later turned to the emerging hip-hop culture for clothing inspiration. In 1989, he began to sell headwear, and then shirts branded with his company's name, FUBU, which stands for “For Us By Us.” Early on in this endeavor, Daymond's mother taught him to sew, and when he received his first big orders for $300,000 from a single Las Vegas retailer convention in 1994, he returned to their home to set up production. But he needed cash to pay for the means of production—sewing machines, fabric, employees. With orders in hand, Daymond approached banks to obtain a loan, and was declined 26 times.¹ So, he and his mother took out a $120,000 mortgage on their house to enable him to acquire the eight sewing machines and the material he needed to fulfill his orders. He also hired eight tailors. For the next two years, the home he shared with his mother would become his factory.

Daymond John (bottom left), Carl Brown, J. Alexander Martin, and Keith Perrin, the entrepreneurs behind FUBU, pose for a photo ...