Blog + Diamonds
VIDEO SUMMARY
From Zero to Billionaire: The Unbelievable Steps You Need
Hey there, future moguls! 🚀
Ever wondered how that dude who used to live in his car became a BILLIONAIRE? 🏠💰
Or how sipping tequila led to a billion-dollar empire? 🍹💸
Well, grab your curiosity and get ready for a wild ride! 🎢
We’re spilling the secrets on going from ZERO to BILLIONAIRE, with a twist of humor and a dash of motivation. 🤑🌟
Hint: It involves living off $2.50 a day, a whole lot of REJECTION, and turning an everyday chat into a MULTI-MILLION dollar idea. 🙌💡
Your journey to success starts here, so stay tuned! 📈💼
#BillionaireBlueprint #CuriosityUnleashed #GetInspired
Step-by-Step Guide
Step 1: Secure Initial Investment for Your Business
Description:
In this step, you need to secure the necessary funding to start your business.
Implementation:
- Identify potential investors who can provide the capital you need.
- Make a clear and compelling pitch to potential investors, explaining your business idea and the potential for growth.
- Offer a reasonable equity stake in your company to attract investors.
- Ensure that the terms of the investment agreement are clear and agreed upon by all parties involved.
Specific Details:
- In the case mentioned, the entrepreneur needed half a million dollars to start a hair care company.
- He and his partner each took 30% equity, leaving 40% for the investor.
- The investor was found through a friend’s connection, demonstrating the importance of networking.
Step 2: Commit Fully to Your Business
Description:
To succeed, you must be fully committed to your business venture.
Implementation:
- Prioritize your business above all other commitments and jobs.
- Be prepared to make personal sacrifices, including leaving your current job or consulting work.
- Invest all your energy, time, and focus into building and growing your business.
Specific Details:
- The entrepreneur quit all his previous commitments to focus on the new business venture.
Step 3: Prepare for Unforeseen Challenges
Description:
Businesses often face unexpected challenges, and being prepared is crucial.
Implementation:
- Build a financial safety net or have savings to support yourself during tough times.
- Develop contingency plans for various scenarios, such as changes in the economy, inflation, or unforeseen events.
- Stay flexible and adaptable in your business strategies.
Specific Details:
- In the case mentioned, the investor changed his mind due to economic factors, leading to the loss of initial funding.
Step 4: Seek Help When Needed
Description:
Don’t hesitate to seek assistance when you face difficulties.
Implementation:
- Reach out to friends or family who may be able to help during tough times.
- Connect with mentors or advisors who can provide guidance and support.
- Be humble and willing to ask for help when necessary.
Specific Details:
- The entrepreneur didn’t initially ask for help from his family, but this is an option to consider.
Step 5: Seek Help from Family or Friends
Description:
Don’t let pride prevent you from seeking assistance from loved ones.
Implementation:
- If you find yourself in a tough situation, approach family or friends for financial help.
- Be honest about your circumstances and explain your need for temporary assistance.
- Make a clear plan for how and when you will repay them.
Specific Details:
- The entrepreneur approached his mother for financial assistance when he needed it but initially hesitated due to pride.
Step 6: Learn to Live on a Tight Budget
Description:
During challenging times, it’s essential to manage your finances wisely.
Implementation:
- Create a budget that accounts for all your expenses, including food, transportation, and other essentials.
- Look for affordable dining options, such as daily specials or deals, to minimize food expenses.
- Be frugal and avoid unnecessary expenses.
- Keep track of your spending to ensure you don’t exceed your budget.
Specific Details:
- The entrepreneur learned to live on just $2.50 a day by finding affordable meal options and being mindful of his spending.
Step 7: Optimize Food Expenses
Description:
Find cost-effective ways to meet your nutritional needs.
Implementation:
- Seek out restaurants or food places that offer budget-friendly meal options.
- Take advantage of special deals, happy hours, or promotions to get more value for your money.
- Prioritize basic nutrition and avoid unnecessary indulgences.
Specific Details:
- The entrepreneur mentioned finding a restaurant with a 99-cent margarita and complimentary chicken wings during happy hour, which helped him save money on meals.
Step 8: Show Gratitude and Pay It Forward
Description:
When you succeed, remember those who helped you during tough times.
Implementation:
- Once you overcome your challenges and achieve success, express gratitude to those who supported you.
- Consider giving back to individuals or organizations that assisted you in your time of need.
Specific Details:
- The entrepreneur returned to the restaurant where he used to have affordable meals and left generous tips for the staff who had helped him during his difficult days.
Step 9: Focus on the Quality of Your Product or Service
Description:
Your product or service should be of the highest quality to ensure long-term success.
Implementation:
- Dedicate time and effort to creating a superior product or offering a service that genuinely meets customer needs.
- Continuously improve and innovate to stay ahead of the competition.
- Strive for excellence in all aspects of your business, from product development to customer service.
Specific Details:
- The entrepreneur emphasizes the importance of having the best product possible to succeed in sales.
Step 10: Build Strong Relationships with Partners
Description:
Successful partnerships can significantly boost your business.
Implementation:
- Seek partners who complement your skills and strengths, allowing you to cover more ground effectively.
- Maintain clear communication and a shared vision with your partners.
- Collaborate on marketing efforts and promotional activities to expand your reach.
Specific Details:
- The partnership between the entrepreneur and Paul Mitchell worked well because they had separate roles and lanes in the business, allowing them to focus on their respective strengths.
Step 11: Master the Art of Selling
Description:
Selling involves more than just promoting your product—it’s about understanding the customer’s needs and providing solutions.
Implementation:
- Learn to identify your customer’s pain points and needs.
- Tailor your sales pitch to address those specific needs.
- Be persistent and willing to negotiate to close deals.
- Provide exceptional customer service to build trust and loyalty.
Specific Details:
- The entrepreneur emphasizes the importance of having a great product but also highlights the need for effective selling techniques.
Step 12: Strive for Reorders and Customer Loyalty
Description:
Your goal should be to create a customer base that continues to reorder your product or service.
Implementation:
- Focus on customer satisfaction and ensure that your product or service consistently delivers value.
- Implement loyalty programs or incentives to encourage repeat business.
- Stay engaged with customers through marketing and communication to remind them of your offerings.
Specific Details:
- The entrepreneur mentions the importance of being in the “reorder business” rather than just the selling business, highlighting the significance of customer retention.
Step 13: Continuous Improvement
Description:
Always look for ways to enhance your product, service, and sales techniques.
Implementation:
- Encourage feedback from customers to identify areas for improvement.
- Invest in research and development to stay ahead of market trends.
- Adapt to changing customer preferences and market dynamics.
Specific Details:
- The entrepreneur advises continuous improvement and innovation to remain competitive.
Step 14: Reinvest Profits
Description:
To scale your business, reinvest the profits wisely.
Implementation:
- Instead of taking out substantial profits for personal use, reinvest a significant portion of your earnings back into the business.
- Use the reinvested funds to expand your product line, improve operations, and support growth initiatives.
- Continuously assess where reinvestment can have the most significant impact on business growth.
Specific Details:
- The entrepreneur emphasizes the importance of reinvesting profits rather than personal spending.
Step 15: Diversify and Expand
Description:
Diversification and expansion into related fields can significantly boost revenue.
Implementation:
- Look for opportunities to diversify your product or service offerings, especially if they complement your core business.
- Expand into new markets, regions, or customer segments.
- Consider offering educational services or related products to enhance your brand and revenue streams.
Specific Details:
- The entrepreneur expanded their business by starting over a hundred schools, the Paul Mitchell Schools, to train new hairdressers and promote their products and knowledge.
Step 16: Continuously Innovate
Description:
To maintain growth, stay ahead of the competition by innovating.
Implementation:
- Invest in research and development to create new and innovative products or services.
- Adapt to evolving customer preferences and market trends.
- Encourage a culture of innovation within your organization.
Specific Details:
- The entrepreneur emphasizes the need for continuous innovation to stay competitive.
Step 17: Support Education and Training
Description:
Investing in education and training can create a loyal customer base and boost sales.
Implementation:
- Offer educational programs or training related to your industry or products.
- Promote the value of education to your customers and how it can benefit them.
- Create partnerships or schools that provide specialized training in your field.
Specific Details:
- The entrepreneur expanded into the education sector by establishing Paul Mitchell Schools to train future hairdressers and promote their products and knowledge.
Step 18: Maintain a Strong Brand
Description:
A strong brand can drive sales and customer loyalty.
Implementation:
- Invest in branding efforts to create a recognizable and trusted brand identity.
- Ensure consistency in branding across all products and services.
- Leverage your brand’s reputation to attract new customers and retain existing ones.
Specific Details:
- The entrepreneur’s brand, Paul Mitchell, played a significant role in their success, and they maintained a strong brand image.
Step 19: Identify a Niche Business Idea
Description:
Identify a niche business idea that aligns with your interests and expertise.
Implementation:
- Brainstorm potential business ideas that you are passionate about.
- Research the market to assess demand and competition.
- Consider the profitability and scalability of the chosen niche.
Specific Details:
- Seek inspiration from personal experiences or market gaps.
- Conduct thorough market research using online resources and surveys.
Step 20: Build a Network of Business Partners
Description:
Connect with potential business partners who can complement your skills and contribute to the business’s growth.
Implementation:
- Attend networking events and conferences related to your niche.
- Reach out to individuals who share your business interests.
- Build strong relationships and collaborations with like-minded professionals.
Specific Details:
- Look for partners who bring different skill sets and perspectives to the table.
- Leverage your existing contacts and social networks.
Step 21: Secure Funding and Resources
Description:
Secure the necessary funding and resources to kickstart your business venture.
Implementation:
- Create a business plan outlining your goals, financial projections, and resource requirements.
- Explore funding options such as personal savings, loans, or investors.
- Allocate resources wisely to cover initial expenses.
Specific Details:
- Seek advice from financial experts or mentors.
- Consider crowdfunding platforms as an alternative funding source.
Step 22: Product Development and Testing
Description:
Develop your product or service and conduct thorough testing to ensure its quality.
Implementation:
- Create a prototype or sample of your product.
- Gather feedback from potential customers and make necessary improvements.
- Ensure your product meets industry standards and regulations.
Specific Details:
- Iteratively refine your product based on user feedback.
- Conduct market research to determine pricing strategies.
Step 23: Market Research and Branding
Description:
Conduct comprehensive market research and create a strong brand identity.
Implementation:
- Identify your target audience and their preferences.
- Develop a branding strategy that resonates with your audience.
- Create a marketing plan to promote your business.
Specific Details:
- Use social media, surveys, and focus groups to understand your target market.
- Consistently reinforce your brand message through visuals and content.
Step 24: Sales and Distribution
Description:
Establish sales channels and distribution networks for your products or services.
Implementation:
- Identify sales channels that align with your business model (e.g., online, retail, wholesale).
- Build relationships with distributors, retailers, or online marketplaces.
- Implement effective sales and marketing strategies.
Specific Details:
- Optimize your online presence through an e-commerce website or marketplace listings.
- Consider offering special promotions or discounts to attract initial customers.
Step 25: Persistence and Adaptation
Description:
Stay persistent and adapt to challenges and changes in the market.
Implementation:
- Monitor business performance and gather data for continuous improvement.
- Be prepared to adapt your business strategy based on market feedback.
- Stay committed to your goals and persevere through obstacles.
Specific Details:
- Regularly review financial statements and adjust budgets as needed.
- Stay informed about industry trends and competitors.
Step 26: Identify a Unique Product Opportunity
Description:
Identify a unique product opportunity in the market that has the potential to stand out and offer something exceptional.
Implementation:
- Research the market to identify gaps or niches that are underserved.
- Consider creating a product that offers a unique value proposition.
- Evaluate the feasibility and demand for your product idea.
Specific Details:
- Look for opportunities to improve existing products or create entirely new ones.
- Analyze consumer trends and preferences to guide your product concept.
Step 27: Product Development and Quality
Description:
Focus on developing a high-quality product that sets a new standard in its category.
Implementation:
- Invest in product development to ensure exceptional quality and taste.
- Conduct rigorous testing and refinement to achieve perfection.
- Use premium ingredients and materials to create a superior product.
Specific Details:
- Collaborate with experts or professionals in the industry.
- Pay attention to detail and prioritize quality control.
Step 28: Initial Promotion and Networking
Description:
Build relationships and promote your product to influential individuals and businesses in your industry.
Implementation:
- Connect with key influencers and industry leaders who can endorse your product.
- Offer your product for free or at a discounted rate to gain initial attention.
- Attend industry events and network with potential partners and customers.
Specific Details:
- Leverage your network and connections to gain access to influential circles.
- Use social proof from endorsements to build credibility.
Step 29: Market Research and Branding
Description:
Conduct thorough market research and create a strong brand identity for your product.
Implementation:
- Understand your target audience’s preferences and needs.
- Develop a compelling branding strategy that aligns with your product’s uniqueness.
- Create a marketing plan to reach your target market effectively.
Specific Details:
- Use consumer surveys and feedback to refine your product and messaging.
- Consistently reinforce your brand message through marketing materials.
Step 30: Distribution Strategy
Description:
Establish a strategic distribution plan to make your product accessible to a wider audience.
Implementation:
- Identify distribution channels that suit your product category (e.g., retail, online, partnerships).
- Build relationships with distributors, retailers, or partners who can help you reach your target market.
- Implement effective sales and marketing strategies tailored to each distribution channel.
Specific Details:
- Consider exclusivity agreements or partnerships with key distributors.
- Monitor and adjust your distribution strategy based on market dynamics.
Step 31: Persistence and Adaptation
Description:
Stay persistent, adapt to market challenges, and believe in your product’s value.
Implementation:
- Continuously monitor market trends and customer feedback.
- Be open to making necessary adjustments to your product or strategy.
- Maintain a strong belief in the uniqueness and quality of your product.
Specific Details:
- Embrace feedback and use it as an opportunity for improvement.
- Keep your focus on long-term goals and stay committed to your vision.
Step 32: Success and Opportunities
Description:
Embrace success and seize new opportunities that arise as your product gains recognition.
Implementation:
- Be prepared for growth and scalability as demand increases.
- Consider strategic partnerships or acquisitions that align with your brand.
- Explore diversification and expansion into related product categories.
Specific Details:
- Stay agile and open to exploring new avenues for your brand.
- Continue to innovate and maintain the high quality that defines your product.
Step 33: Identifying Your Passion and Belief
Description:
Before starting any venture, it’s crucial to identify your passion and what you truly believe in. This forms the foundation of your journey towards success.
Implementation:
- Take some time for introspection and self-discovery to identify your true passions and beliefs.
- Consider what genuinely excites and motivates you, both personally and professionally.
- Reflect on your core values and what you stand for in life.
Specific Details:
- Your passion and belief should align with the goals and ventures you pursue.
- Success is not just about making money; it’s also about finding fulfillment in what you do.
Step 34: Choosing the Right Product or Venture
Description:
Selecting the right product or venture is crucial for success. This step involves finding a product or service that resonates with your passion and belief.
Implementation:
- Research various products or services that align with your interests and beliefs.
- Evaluate the market demand and potential for the chosen product or venture.
- Consider how your product can solve a problem or meet a need in the market.
Specific Details:
- Ensure that your chosen product or venture has a target audience and a viable market.
- Focus on quality and excellence to make your product stand out.
Step 35: Connecting the Product with the End User
Description:
This step involves identifying the end users or customers for your product and establishing a connection between the product and its audience.
Implementation:
- Determine who your target audience is and what their needs and preferences are.
- Explore distribution channels or platforms to reach your audience effectively.
- Customize your product or service to better cater to the needs of your target customers.
Specific Details:
- Use marketing and branding strategies to create a strong connection between your product and its audience.
- Consider partnerships or collaborations to expand your reach.
Step 36: Managing Finances and Resources
Description:
Managing your finances and resources effectively is essential for sustainable growth. This step involves budgeting and resource allocation.
Implementation:
- Develop a budget that outlines your expenses and income projections.
- Consider incorporating initial investments into your pricing strategy.
- Look for creative ways to minimize costs without compromising quality.
Specific Details:
- Ensure that you have a financial plan in place to support your business or venture.
- Be prepared for fluctuations in cash flow and have contingency plans.
Step 37: Steady and Sustainable Growth
Description:
Achieving success is about steady and sustainable growth. This step involves a gradual and methodical approach to expansion.
Implementation:
- Focus on organic growth by consistently delivering value to your customers.
- Continuously gather feedback and make improvements to your product or service.
- Explore opportunities for expansion or diversification when your core business is stable.
Specific Details:
- Avoid overextending yourself or your resources in pursuit of rapid growth.
- Keep an eye on market trends and adapt as necessary to stay relevant.
Step 38: Hard Work, Dedication, and Persistence
Description:
Success requires hard work, dedication, and persistence. This step emphasizes the importance of consistent effort.
Implementation:
- Develop a strong work ethic and commit to putting in the hours required for your business or venture.
- Stay dedicated to your goals and maintain your passion, even during challenging times.
- Don’t be discouraged by setbacks or failures; learn from them and keep moving forward.
Specific Details:
- Success often comes after overcoming obstacles and setbacks.
- Surround yourself with a supportive network of mentors, advisors, and peers.
Step 39: Understanding the True Meaning of Success
Description:
Success isn’t solely about financial wealth. This step highlights the importance of recognizing and appreciating the broader aspects of success.
Implementation:
- Reflect on what success means to you personally.
- Consider factors such as happiness, health, and fulfillment as essential components of success.
- Understand that being rich in life is not just about money but also about well-being and contentment.
Specific Details:
- Keep your definition of success aligned with your values and beliefs.
- Strive for a balance between achieving your goals and maintaining a fulfilling life.
Step 40: Being Passionate and Willing to Work Hard
Description:
Success requires passion and a strong work ethic. This step emphasizes the need to be passionate about your endeavors and willing to put in the effort.
Implementation:
- Cultivate and maintain your passion for what you do.
- Be willing to work hard, even when faced with challenges or adversity.
- Continuously seek ways to improve and excel in your chosen field.
Specific Details:
- Passion fuels motivation, which is crucial for long-term success.
- Success often requires going the extra mile and pushing through obstacles.
Step 41: Financial Management and Resource Allocation
Description:
Effective financial management is essential for success. This step focuses on budgeting, financial planning, and resource allocation.
Implementation:
- Create a detailed budget that accounts for all expenses and income.
- Consider reinvesting profits into your business or venture for growth.
- Explore ways to minimize unnecessary costs and maximize resource utilization.
Specific Details:
- Maintain a clear financial strategy to ensure your business’s sustainability.
- Monitor your financial health regularly and make adjustments as needed.
Step 42: Gradual and Sustainable Growth
Description:
Success is about steady, sustainable growth. This step highlights the importance of gradual expansion and development.
Implementation:
- Prioritize organic growth by consistently delivering value to your customers.
- Seek feedback and make incremental improvements to your product or service.
- Explore opportunities for expansion or diversification when your core business is stable.
Specific Details:
- Avoid rushing into rapid growth that may lead to instability.
- Keep a watchful eye on market dynamics and adapt accordingly.
Step 43: Hard Work, Dedication, and Perseverance
Description:
Success requires dedication and perseverance. This step underscores the importance of consistent effort and resilience.
Implementation:
- Cultivate a strong work ethic and commit to the necessary work hours.
- Stay dedicated to your goals and maintain your passion throughout the journey.
- Embrace setbacks and failures as opportunities for growth and learning.
Specific Details:
- Success often comes after overcoming obstacles and adversity.
- Build a supportive network of mentors, advisors, and like-minded individuals to help you stay motivated and focused.
Step 44: Embracing the Broader Meaning of Success
Description:
Success encompasses more than financial wealth. This step encourages recognizing the holistic aspects of success.
Implementation:
- Reflect on your personal definition of success, considering factors like happiness, health, and fulfillment.
- Align your goals and actions with your values and beliefs.
- Strive for a balanced life that encompasses both achievements and well-being.
Specific Details:
- Success should be a reflection of your core values and beliefs.
- Aim to lead a life that brings not only financial success but also contentment and a sense of purpose.
Step 45: Embracing Hard Work and Dedication
Description:
From a young age, Jean Paul Mitchell learned the value of hard work and dedication. This step emphasizes the importance of a strong work ethic.
Implementation:
- Start working as early as you can, even if it’s a part-time job.
- Be committed to your work, whether it’s delivering newspapers or any other task.
- Understand that having a job, no matter how small, can bring happiness and independence.
Specific Details:
- Hard work forms the foundation for success in any field.
- Embrace the opportunity to work and contribute to your own and your family’s well-being.
Step 46: Maintaining a Positive Attitude
Description:
Jean Paul Mitchell maintained a positive attitude throughout his journey. This step focuses on the importance of staying optimistic and hopeful.
Implementation:
- Cultivate a positive outlook on life, even during challenging times.
- Believe in the possibility of success and maintain a “can-do” attitude.
- Surround yourself with people who uplift and encourage you.
Specific Details:
- A positive attitude can help you overcome obstacles and persevere.
- Stay motivated by focusing on the potential for a better future.
Step 47: Managing Regrets
Description:
Jean Paul Mitchell shares that he has no regrets but acknowledges that everyone has things they would do differently. This step addresses how to deal with regrets.
Implementation:
- Accept that everyone has moments they wish they could change, but dwelling on regrets is counterproductive.
- Focus on learning from past experiences and using them to make better decisions in the future.
- Embrace the concept that you can’t change the past, but you can shape your future.
Specific Details:
- Let go of regrets and avoid carrying the burden of past mistakes.
- Use regrets as lessons and motivation for personal growth.
Step 48: Identifying the Right Mentor
Description:
Jean Paul Mitchell mentions that he didn’t have a mentor but wishes he did. This step highlights the importance of finding a mentor or guide.
Implementation:
- Seek out individuals who have experience and knowledge in your field or area of interest.
- Approach potential mentors with humility and a genuine desire to learn from them.
- Value the guidance and wisdom mentors can offer in your journey.
Specific Details:
- Mentors can provide valuable insights, advice, and support.
- Look for mentors who align with your values and goals.
Step 49: Recommended Book: “How to Win Friends and Influence People” by Dale Carnegie
Description:
Jean Paul Mitchell recommends a specific book that had a significant impact on his life. This step introduces the book and its relevance.
Implementation:
- Read “How to Win Friends and Influence People” by Dale Carnegie.
- Apply the principles and strategies from the book in your interactions with people.
- Share this book with others who may benefit from its teachings.
Specific Details:
- The book offers valuable lessons on building relationships and effective communication.
- It can help you improve your interpersonal skills and influence others positively.
Step 50: Building Strong Relationships with Kindness
Description:
Jean Paul Mitchell emphasizes the importance of kindness in building strong relationships. This step focuses on practicing kindness in interactions with others.
Implementation:
- Approach every interaction with kindness and empathy.
- Make an effort to look people in the eye and show genuine interest in them.
- Smile and maintain a warm, positive demeanor when communicating with others.
Specific Details:
- Kindness fosters goodwill and positive connections with people.
- Being kind can lead to better relationships and opportunities for collaboration.
Step 51: Prioritize Health and Happiness
Description:
Jean Paul Mitchell defines a great life as being happy and healthy. This step underscores the significance of prioritizing your well-being and contentment.
Implementation:
- Make your physical and mental health a priority in your daily life.
- Cultivate a positive mindset and focus on activities that bring you joy.
- Recognize that true wealth includes both happiness and good health.
Specific Details:
- Happiness and health are invaluable components of a fulfilling life.
- Strive to maintain a balanced and joyful existence.
Step 52: Learn from the Experiences of Others
Description:
Jean Paul Mitchell shares a story about J. Paul Getty Jr., the richest man in the world, who expressed regret about not giving away the majority of his wealth. This step highlights the importance of learning from the experiences of successful individuals.
Implementation:
- Seek out stories and interviews of successful people who have shared their life lessons and regrets.
- Reflect on the wisdom and insights gained from their experiences.
- Apply these lessons to your own life to make informed decisions.
Specific Details:
- Learning from the regrets and experiences of others can guide your path to happiness and success.
- Understand the value of balance between wealth and personal fulfillment.
Step 53: Practice Kindness and Positive Interactions
Description:
Jean Paul Mitchell emphasizes the role of kindness in building strong relationships and achieving happiness. This step focuses on practicing kindness and positivity in your interactions with others.
Implementation:
- Approach every interaction with kindness, empathy, and a warm demeanor.
- Make an effort to maintain eye contact and show genuine interest in people.
- Smile and radiate positivity in your communication with others.
Specific Details:
- Kindness fosters positive connections and contributes to personal happiness.
- Building strong relationships through kindness can lead to a more fulfilling life.
COMPREHENSIVE CONTENT
Introduction
“How did that feel for you when you sold for billions of dollars?” “Oh, it felt great. My son came home one day, and he said, ‘Are we rich?’ They valued the company at over 5.1 billion. This is John Paul DeJoria, the founder of billion-dollar hair care company John Paul Mitchell Systems and billion-dollar tequila brand Patron. Today, I’m at his house to learn how he went from being homeless, living out of his car, to building two of the biggest global business empires in totally separate industries. I think a lot of people are curious: ‘Okay, you get billions of dollars, what do you do with it?’ Well, the first thing that I did was… The very first thing, I wrote a check for 50 billion dollars that went directly… That is awesome. Let’s find out what it takes to go from homeless to a billion dollars.”
Homelessness
“You were actually homeless during the… How Jean Paul became homeless? Stand and did it twice. What happened? How did you become homeless?” “I needed half a million dollars to start a hair care company. So my partner and I made a deal: you take 30, I’ll take 30, we have control that’s 60% of the company, and we’ll give the 40% to anyone that’ll give us an invest, uh, you know, five hundred thousand dollars for those half a million bucks. And we had somebody set up, a fellow named Dick Holthaus, from a corporation called Citicorp. He was overworking in Europe as a friend of mine. He had an investor out of the island of Jersey, which is between England and France, a little bit, you know, there. Anyways, it’s a business island, yeah. So he got to invest the money.
So my relationship at the time was not going well at all, so I left, whatever money I had, said a pretty good job, I quit everything I was doing, left… Right before I started this company, I was a consultant to companies if you wanted to enter the beauty industry, okay? And, uh, you know, that’s what I was doing. But I quit everything. Everything I had, I just quit because half a million dollars is coming… You know, isn’t it? That’s this 1980. So anyways, I left the newer car, I took the older car, and uh, left the house and a bunch of money from my wife and my daughter, so you’d be fine for a few months, right? Went down the hill to get the money. Never arrived. A friend of mine ran me down. Dick Holt house got a hold of him, who got a hold of me, and said, ‘JP, call Dick, collect, pick up the phone, call collect,’ and I did, uh, and he said, ‘We’re snooze. The guy changed his mind.’ And I said, ‘Why did he change his mind?
This is the last minute.’ He goes, ‘Well, inflation in the United States, 12 and a half percent, unemployment ten and a half percent, interest rate 17 percent, and your hostages are still in Iran and haven’t been released. We don’t… You’re waiting in line for gas. We don’t know about the future of oil and gas, and that has a lot to do with petrochemicals and plastics and everything else,’ he said. ‘I’m sorry, just changed his mind.’ So we had zero, and I just had a few bucks in my pocket, a few hundred bucks. That was it. Uh, my mom lived in LA, but I was too proud… Too proud to say, ‘Mom, I’m broke. Can I have my bed back? My room is still available. Feed me.’ I was too proud. So I just went over her house and said, ‘Mom, can I borrow about 300 from you?’ And she says, ‘Why? You make good money.’ I said, ‘Mom, I’m starting a new business. I’ll give it back to you in a month.’ ‘Okay, here you go.’ ‘Hey, you want to stay for a little?’ ‘Yeah, I do.’ Anyways, and I just stayed in my car. I was just too proud to tell my mom that everything went wrong. That’s how we started.”
Living off of $2.50/day
“Then I learned… I learned how to live off of two dollars and fifty cents a day. 99 Cents went to the freeway Cafe for what they called the biker or I’m sorry the trucker special. If you went there after nine o’clock, where nobody went after nine o’clock, it was right by the freeway and before 11 o’clock, the lunch crowd for 99 cents, it was called the freeway Cafe. You got one egg, your choice of one piece of bacon or one sausage, I took the sausage, it was bigger, one piece of toast, and then your choice of orange juice or coffee, and that was my breakfast. And then I learned how to… And those 99 cents, right? And then I learned to… And it’s one of these places you walk up, they give it to you, walk outside and you eat it. And then I found a way to be able to eat off of a dinner for like a dollar, a dollar and a quarter, and what I did was somebody called El Torito, big restaurant chain, yeah. Anyways, started something called happy hour, virtually no business from four to five thirty in the afternoon. So they started this thing where 99 cent margarita, it wasn’t Patron, but it wasn’t… It was a big Margarita for 99 cents. And because Patron wasn’t invented yet. Anyway, so 99 cents for the margarita and… It was okay, but what was great was they gave you all these little chicken wings or the salsa, and they would switch up, well, you know, you’d get about two or three bowls of salsa and 20 chicken wings, and you are just full as can be. And my kid or a friend of mine was helping me watch her come down with me, you know, and eat at the same time, and uh, it went really well. Then after three or four days, they kind of caught on, and the waitress came over and said, ‘You guys are doubling out our show.’ We said, ‘Yeah.’ And I told her this story. Pretty soon…”
Overcoming Rejection
“enchilada would arrive, sip on our Margarita, but I remembered them, and I came when we started making some money. Several years later, I was able to afford it. I came back, and I tipped everyone in that restaurant the biggest tips they’ve ever had in their life for helping me out when I needed a helping hand.”
“What were you telling yourself during that time when you had no money, you’re living in your car? Like, what were you telling something? How’d you get out of the situation?” “Well, when you’re really down and out, the next thing you should think about is not why you’re down and out and how bad things are because that’s yesterday’s newspaper. If you do that, you’re stuck in the past. You can’t change yesterday’s newspaper. So what I just did was I just thought ahead of what’s the next thing to do tomorrow? What’s the next thing after this? Who do I call next? How do I make another sale? That was all on my mind. And I would say the same thing to anyone that’s down and out or homeless: you can’t change yesterday’s newspaper. And what slows most people down is they’re stuck in the past. Something happened to them. They got fired. They got a divorce. Somebody said something to them that hurt them, you know, or today over the Internet, they just destroy people, unfortunately. But, uh, all of a sudden, stuck in the past. It’s on their mind before they go to sleep. It’s on their mind all the time. Well, now your thinking power is behind you. You can’t change it. You’ve got to think ahead. What is next? And forgive everyone that’s done you wrong. Forget every jealousy that’s ever in your mind, for every regret that ‘I wish I would have done that differently.’ You can’t change it. Forget it all. When it comes to your mind, just forgive it. Forgive yourself. Forgive Joe Blow. Forgive everybody in your mind. You don’t have to tell them personally if you don’t want to. Just forgive them. ‘You’re a jerk. That was in the past. I’m not going to carry you around anymore.’ And if it comes to your mind again, you’ll say, ‘Nope, that’s my past life. Get out of here. Let’s move on.”
From $0 to $1 Million
“How did you go from zero to annoying knocking on doors, and then after six months, I was out of hire? We had just enough to hire a secretary, really cheap. Shirley Wong, she was wonderful, didn’t mind helping us out, and she did 10 jobs. My first field guy was a year and a half later. So we just kept on building the business and reinvesting everything, everything we had. We reinvested. Never changed my lifestyle. I had an apartment been living after that, but never changed my lifestyle until I had enough money to be able to survive on what I have, my bills paid in full, and no bills for me personally, and enough money to put down on something.”
“Do you remember any specific knocking on door experiences or stories that stick out during those early days?” “Oh, yeah, lots of it. Oh, of course, yeah, but anyway, they were nice. Some of them were like, ‘No, you know, talk to my salesman, not to me.’ ‘Well, I am your salesman.’ ‘We don’t have a salesman.’ ‘Right, yeah, so…’ But it was good. People were usually pretty friendly. Hairdressers are very friendly people. You know, there weren’t that many that were… There were rude. Very, very few, if any, you know. Just the experiences were just really, really nice people, and many of them became some of my best friends and some of our best educators for the company. What’s also interesting, I like the guarantee, I like the classes. One thing, I don’t know if it’s talked about, is your sales… The positivity and your persistence, I guess. I’m trying to think, for the other entrepreneurs and people on their business journeys, like, what would you recommend for them, and this, like, ‘Hey, I got a discount. You don’t like this, I’ll do this.’ And that’s the perfect question to ask me, and it’s the perfect thing that I’d like to contribute to everybody. Number one, understand that we made a hell of a good product. We made the best product we possibly can. So your product or service has got to be the best, that’s number one. Okay, you don’t want to be in the selling business; you want to be in the reorder business. Most people put something together, the package, ‘Can I sell it? Can I sell it?’ Mine was all about, ‘I want them to reorder it.’ So the product has got to be so good, and the person that’s using it, the hairdresser, has got to really know it’s good. Hairdressers know; they are the best people in the world to get advice for hair, period. They’re just none better. So they would know how good it is. So we knew that the product we had.”
Partnering with Paul Mitchell
“The second thing is, and probably is equally as important, is be prepared for a lot of rejection because you’re going to get it. If you’re prepared for it, it’s not going to affect you. It’s like when I sold encyclopedias. The average age or time of an encyclopedia salesman after they were trained for no money, training is free, right? You don’t get paid a dime, was three days. It’s door-to-door, commission-only. But they told me something that made me successful in three and a half years, and I believe what they said. They said a lot of you aren’t going to make it; some of you will. Those that will will overcome rejection. A lot of doors will be closed in your face. But on door number 50, you have to be just as enthusiastic as door number one to have that same motivation. Those are the guys who’ll make it. Well, for me, it was to order.”
Enthusiasm and Starting a Business
101 okay but I did, I kept up the same enthusiasm as you do, that you learn more how to do things better, how to say things differently, and you get better and better and better, and the enthusiasm just never left. That’s how I started Paul Mitchell, the same way during the door with salons, and that’s what I would say to all entrepreneurs. The two biggest things you’ll ever need are a quality service or a quality product. A quality service if it’s a one-time sale or a product if it’s a one-time sale for whatever reason. If it’s really good, they’ll tell others. If it’s something they could repeat, you’ve already put that into it. It’s so good they’ll want to repeat the order. Now you’re in business.
Facing Rejection and Educating Customers
I think one of the things that uh definitely sticks with me that I think other people can definitely benefit and learn from you is just like one facing rejection but also finding a product you believe in and putting yourself out there to educate. I think you say sales, and you’re an excellent salesperson. It’s interesting even how you walk through selling Paul Mitchell, but it was educating people. It’s like, let me teach your class, let me guarantee that you’re gonna do exactly that’s being part of the reorder business because I can’t be in there selling it for it’s something on the shelf nobody knows. I needed the hairdresser to use it and know how to show it to their customer.
Demonstrating Product Use
For example, when I went and gave a presentation, they didn’t know what I was showing them. I’d show them shampoo one, shampoo two, let them smell it a little bit, right? And then when I got to the conditioner, uh, wow, the conditioner. Okay, this is my first product, right? This is 43 years old, right? Now what I would do was this. I would take, and I’d say, let me show you something amazing, watch this. I’d put it in my hand, right, may I have your hand, please? Yeah, figure it out. To watch, now don’t have a clue what to do with that, say, now let me tell you about this conditioner, right? Now I’ve got your attention, right? And I would always hold it like a gem because it was a gem product. I’d say, let me tell you about the conditioner, and then I would hold it here and like this, and they don’t know what the heck to do with this, right? But I got their attention, okay? I’d say the conditioner is a moisture treatment, a protein treatment, a nucleic acid treatment that lets you cut the hair easier and slip, and then it’s instant. You put it in your hair; it’s incredible for your skin, by the way, unbelievable for your skin, especially as a hairdresser with all the chemical things you may be using. You’re, by the way, rub it in your hands, very good for your skin, rub it on in there, very, very good for your skin, no, really, you know, it’s just nice, yeah, there you go, you know. All of a sudden, they’re part of my presentation. So when I would go in there and hold the glass, I would explain to the hairdresser when they’re at the back base and say on your hair because it’s fine hair, we’re going to use shampoo one, that’s what we’re going to use on your hair, is shampoo one because it’s a special shampoo for you. So now the customer thinks the hairdresser really thinks they’re special, and then when they’re sitting in the chair, get your customers here, put a little bit in there and tell them what this does, and at home, they can do the same exact thing, and it’s good for your skin, yeah. I’m incorporated them into it.
From $1M to $1B
But it’s interesting to involve your customers there, but one thing, you know, the jumps are still pretty insane going from $1 million to a billion. How did you go from a million to eight? I think you guys do a billion dollars a year now selling product like how did you guys to go from a million to a billion a year? Reinvest all the money they came along, we reinvested and did good things for the hair stylists and then started schools. We have over a hundred schools, uh, Paul Mitchell Schools. So, you tune the new hairdresser how to be a great hairdresser and be successful, well, of course, we’re doing with Paul Mitchell products and our knowledge, and we also went into education besides the education of how to use our products. We went nationwide at one time; we had, I think, 850 what we call Associates that worked for us part-time top hairdressers that we taught to be stylists. They would hold classes for everybody on the latest hairstyle, the latest techniques, the latest business ideas, so we kept ourselves involved in the company to help our customer become more prosperous because we’re there to be better hairdressers, better business people, and that certainly contributed to our growth tremendously.
Patron Tequila Origin Story
Oh, the late ’80s, uh, 1989 just sitting around with a friend of mine Martin Crowley, and I’d put him in the architectural business. He was an architect and it just went bankrupt. A friend of mine turned me on to him; he’s just a nice guy. Turned went bankrupt and Hospitality business JP’s a great architect. He’s got a good idea for a business: go to Mexico, buy pavers and Furniture, come back and sell it to restaurants or uh, architects for their Model Homes, a little niche business, right? We were doing okay on it, and I was starting to build a house for my whole family in California in Malibu, a big one, uh, because we start, we were making some good money at that time. So I said Martin when you go down, you got to buy some papers for me, so about some stone for this house, uh, while you’re down there. Martin found out because we’re drinking a little bit of tequila at the time, right? But it wasn’t Patron tequila where you know we take a shot, you know, where’s the library, where’s the salt. It wasn’t quite as tasty, shall we say, or beneficial to the throat as the tequilas are today, the newer ones anyway. So Martin came back with this long bottle, uh, you know, nondescript, had a horseshoe on it, and uh, he said this is what they’re a lot of them are drinking down there, and I thought, wow, that’s the smoothest tequila I’ve ever had; you could actually sip this a bit. He goes, yeah, but it ran across this guy named uh, Francisco alcarez. He’s a chef of tequilas; he could make it smoother. I
said, well, let’s check it out. He went back down, probably some back it was live, man; this is smoother, right? So I said, okay, I’m gonna bankroll this, Martin; let’s order a thousand cases, that’s 12,000 bottles, and let’s see what we could do with it, right? And then Martin found this bottle which is still at the Patron bottle of today found it out of recycled glass; it was a gift bottle, right? And I said if we made these in quantity where we have recycled glass and it’s in recycled cardboard boxes, you know, so we’re really into it, he goes, yeah, we could probably arrange that, and we did. We were able to pull it off, anyways. But the interesting thing was nobody would take us, nobody wanted Patron at first, nobody wanted the product.
Everyone we ran across said I’ve never tasted anything like this, but it’s way too expensive. The average tequila in 1989 was around five dollars a bottle. The, I think the best one was 14 if you could find it; we had to sell ours for 39.95, way more than anybody else. They said no. I walked into Spago’s restaurant. Wolfgang Puck was a friend of mine, and Spago’s was the restaurant in Beverly Hills to go to, and I gave him some, JP, this is good stuff. I
said, would you serve it to your celebrity friends? He said, of course; it’s the best because they were known as the best of the best. So Wolfgang Puck gave me a great break; he brought it in, served it to all the celebrity guests; pretty soon, I knew Bruce Springsteen is on the road, and with his uh, the main uh, saxophone player, they’re bringing the case of Patron with them on the road on every concert; they want to do well, that was pretty cool. And then Martin knew the guys to Bob Cantina Marina Del Rey; he got them, so we finally went to a wine company. So, wine company, all they saw was wine; we said would you take on our spirit, and they said we don’t sell spirits. Well, they sell wine; we said well, the other guys don’t really want to get into it because it’s really an unknown name; they don’t.
On Success and Work Ethic
I wasn’t any jobs for kids then, you know when I was in high school. So, I was successful, Jenner because I cleaned it better than anybody else. And Stewart was a tightwad, he wouldn’t give you anything, but he saw it without me even telling him. So, success is how well do you do what you do, especially when nobody is looking. Do you wake up an extra half hour early because you find yourself working through midnight?
Do you go to bed watching TV for the last two hours to get your mind off things which is going to stop you from going to sleep? That TV has got to be off an hour before you go to sleep. Or would you read a book about success and go over what you could do the next day a little bit better than what you did before? Or how to knock on two more doors? Will you do it? Yeah, end of the day, no sales. What am I going to do? Knock on two more doors. Keep on going. That’s success. Successful people do all the things unsuccessful people don’t want to do.
Advice for People Starting Out
Do you have suggestions or how do you think people can find the things they want to work on or how do they get their customers? Like maybe some of the first steps because I think there’s a lot of people and maybe for you it’s intrinsic, you’re like, well, yeah, you find a great product. I guess I’m curious for that early stage.
Well, if people find a great product, the first thing is who’s going to use it. So, you got to carry a product here, right, that you invented. But now, the next thing is who is your end user? Okay, who’s that going to be? Now, all you got to do is connect the two. Is there a distributor out there that I could sell to that will sell directly to the end user?
Or what do I have to do to get on the internet to be able to sell to the end user? So, you find the product, who the end user is, and try and customize it more for that end user. And then in between, figure out how the heck you’re gonna get to them.
Another thing is money. The big deal is money. I had no money when I started. I needed money. I worked into my price a five percent discount already. I already had in mind, right? Because someone’s going to say no, we’re not going to give you money upfront. You’re working in the price. And this way, people give you money on the spot. Now you have money to operate off of.
Is the American Dream Alive?
Do you think the American dream is alive just as much now as it was back then?
The American dream is very, very alive today. There’s more of an opportunity. For example, for me to get stationary, I would go to a print shop where they would type set for three dollars and fifty cents, name our P.O box.
That cost me sixteen dollars at Universal City. So, we’d have that typeset for us and three dollars and fifty cents. And then they’d make a copy and then for other copies for stationery, it was four cents a copy in those days off of a Xerox machine. And then envelope, same thing. You bought the envelope and they would run them for you and they’d charge you just a few cents each just to run them there for you. Today, you have computers. There we had nothing. We didn’t have cell phones in those days. They were just being invented. They were gigantic things. So, what do we have? An answering machine. So, I had like a regular answering machine I bought and they used a friend’s phone. And that was her office. And brought this English lady who was a dear friend of mine, a beautiful lady Caroline. And she was so kind and wonderful. She put her voice on her machine.
So, we looked bigger. It wasn’t just a hairdresser limited to Hawaii and his girlfriend in JP in LA, you know? We had an actual with an English accent where she would go, “Hello, John Paul. Oh, thank you for calling. We’re all out now. These are so busy. But I’ll try to see if I can get JP to call you back later.” You know? Goodbye. Thank you so much. Well, of course, I’m gonna call back later. There was nobody to call about me. So, that’s a very, very… Excuse me. So, today, that’s how we started. But we had the passion to work. And I see today many young people don’t have that passion to work. Uh, I’ve been working since… Well, part-time at seven years old, more full-time, part-time job from 11 till today. I sold newspapers in the morning or delivered them for the LA Examiner. And then I would go to school. And then when I was old enough to get a job after school, I had a job after school. We’ve been working since.
On Regrets
What regrets do you have?
Difficult to working too much. Do you have any regrets around your career?
Zero regrets. There’s a lot of things in life I would have done differently. We all would have done different things in life differently. But you can’t change yesterday’s newspaper. And that’s something you gotta get off your shoulder. All those regrets. “God, I wish I didn’t say so and so to so and so. Or I wish I would have done this differently.” And everything would be changed. You can’t change it.
And that’s why you got to get off your… off your back. And I didn’t know that at the time when I started the business because I was so focused on how am I going to eat? How am I going to get money to pay this bill? And I’m four days late, you know, that’s my focus. But later on, I learned that you gotta get all this stuff off your shoulder. All this stuff’s got to get off your shoulder. Then you go forward with no past thoughts at all. We wouldn’t be who we are today if it wasn’t for the past. You want to be somebody different? You can’t change the past, but you can change the future. We had a saying in the ’60s and that was this: “Today is the first day of the rest of your life.” Those are saying, and it is. Today’s the first day the rest of your life. What changes do you want to make?
Book Recommendation
When you were starting out, even today, what books or resources or people did you turn to?
I wish I had a mentor and I didn’t. I wish I had Ventures. I did it okay. And I wish I did. My mom was the closest thing to a mentor. Always encouraging us. But when I sold encyclopedias door to door, it was the best training I ever had because it’s hard. It’s hard. If you don’t do it, you don’t make any money. But there was a book there that I think is one of the greatest books everybody should read. Everybody should read this book.
