Magic Johnson Reveals Billion-Dollar Secrets & Lessons from Failure

0:00This is an iHeart Podcast. Guaranteed human. As a listener, you're looking for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use. ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work. Download the ChatGPT desktop app or contact sales to learn more. They don't realize smart people use smartphones, huh?

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3:31So you've invested in everything from movie theaters, Starbucks, the Dodgers. What is your, obviously you have a great vision. What is your foresight to know something is going to be profitable 10 years, 20 years, a good investment to put your money in? Well, I think first of all.

3:53I was ready that time. First of all, you got to research the industry or the sector. So when you research the sector or the industry that you're investing in, you can see if it's been growing, right? So we'll go back probably five or ten years and see if that sector that I'm going to invest in has been growing. If I see growth, then I said, okay, it looks like it's going to be a good investment for me. But then we have an investment team of people trying to break down the investment, making sure it is the right move for us to make, both financially and align it with our brand. right? Because anything that you bring in, you got to align it with your brand.

4:43So it's very important. So right now we have contracts. So that's so magic. Charles Johnson is doing a wonderful job. Charles, where are you? Yes. Yeah. Charles, brother. Robbie is with him. Donna's here. Yep. So when we think about, we have Morehouse contract, Federal Reserve. We have contracts at the airport, we do Delta, their headquarters, on and on and on. We knew that industry was going to grow because people got to eat. Right? And so we understand that and it has been growing. We're over a billion dollars in revenue now with this small company that just shot up. Hold on, you said a billion dollars of revenue and two people clap.

5:28Can we clap it up? That's not an everyday thing. No.

5:34Well, the reason it's important is that we started from the ground on up. And so we wanted the same thing to happen for all of you, right? Take your ideal, your strategy, start your company and build it, right? And so, and scale it. and we were talking about how to scale but scaling is so hard because you got to have the financial resources and then you got to have the right team in place if anything I can tell you this is so important it's going to hurt a lot of feelings in this audience please do not hire your family

6:18uh oh uh oh unless they have the expertise whoa whoa whoa whoa unless they have the expertise what has made more black businesses fail in America uh oh because you hired your family member and they didn't have the expertise or they thought they could show up instead of 9 o 'clock they showed up at 12 o 'clock I paid mine to stay away here you go the check will be on the way No, I'm just kidding. I'm just kidding. I'm just kidding. I'm just kidding. Make sure, though, if you're going to be in a family business, make sure you spell out roles. And once everybody knows their role, make sure that they over-deliver in that role.

7:07So, so important. We going back? No, I'm going to stay right here. I learned my lesson. You wasn't going to get me again. I was waiting. But you brought up a billion dollars in revenue. And so that word stuck in my head. We have a common theme here at InvestFest. Every year, we've been able to bring a billionaire to the stage. I love that theme. I love that theme. I love that theme. Now, the billionaires that we brought look like us. There you go. There you go. 2025. List comes out. Irving Magic Johnson, a billionaire.

7:55Well, oh. Yeah, stand on your feet for that, right?

8:03I wonder, the kid that's walking on the campus in East Lansing, Michigan, your wife, to the man who's standing here today, hey, was that on the vision board? And what was that moment like? Quick one before you jump back in. You're listening for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use. ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work.

8:50Download the ChatGPT desktop app or contact sales to learn more. Earners, what's up? Look, on Earn Your Leisure, we're all about smart money moves. And here's one that most people skip. Car insurance renews on autopilot, the rates creep up, and nobody tells you. That's what Insurify fixes. In about two minutes, completely free, you can see rates from more than 120 top insurance companies. And if there's nothing better today, they keep watching and notify you when there's a better rate. So go to Insurify.com. That's I-N-S-U-R-I-F-Y.com. Insurify.com. Ernest, what's up? Look, if you're building a business today, your website matters.

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10:40Seeing through BS they thought was going to slide. Download TextNow because it cuts out clownery. You can literally activate it from your couch. Nationwide 5G with the same towers the other companies use. Pay what you want or not at all. You're in control. Show these ridiculous carriers we ain't paying for stupid. because we're way too smart to pay dumb. Free app-based talk and text via the TextNow app requires Wi-Fi or data connection. Data plans sold separately. 5G where available. When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options.

11:14So why wouldn't we compare rides? Personally, I always check Lyft before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. For us in our minds, we already thought you were there. But now that it's been reported, what was this moment like for you? Well, when I first started, no, it wasn't on the vision board. It was just being successful.

11:47See, my whole business thesis was to be successful for other people of color could come behind me. Okay, now, remember this. See, when I went to 10, 9, 10 banks, they all turned me down. They wanted the picture, they wanted the autograph, but they didn't want to loan me the money. Then I went up to CalPERS, this pension fund, to get money because I was going to start my real estate fund, and they turned me down three straight years, same thing. see this hasn't been easy a lot of you think that oh he magic johnson so it was easy no that actually worked against me but I love the challenge see I'm not going to run away I knew my business thesis was strong I knew my people I knew what they wanted and what they like so all I had to do was deliver it and then over deliver to them once I started my business and so as I became successful first the Starbucks the the theaters Magic Johnson theaters and then I said hey I got to really get into bigger business so I needed somebody else's money to do that to grow and have sustainability so once the finally the bank said yes I took that $100 million and turned it into what it is today.

13:23But stop, stop, stop, stop, stop. Anything that I've done is not just for me. It's so that you can come behind me because now they say, oh, that black man was successful. We'll take a chance on another one. Because if I fail, then they're not going to take a chance on another one. So that's what it's about. So when you build your business, you don't even understand it's not just about you. You're giving another young person, young lady, young man, a chance and an opportunity to say, wow, if she made it or if he made it, I think I got a chance too. So what I always have my theme is I turn the impossible into possible.

14:15that's what it's all about right that's what it's all about so i'm still on the basketball court i just don't have the little hot pants on no more i'm wearing suits but i just want to win and be successful man and nobody's gonna outwork me nobody i'm a smart guy because i'm smart because because I put smart people around me. And then I pay them to do their job. That part. Always remember that. Hire smart people, pay them to do their job, and they'll help you become successful. Clap it up for that.

15:00So some other deals that people may not know you were involved in that didn't necessarily go your way, but great learning experiences, I'm sure. 24-Hour Fitness. Is it Plant? No, 24-Hour Fitness. TGI Friday. TGI Friday. Can you tell them about that experience? Yeah, because some has failed, right? Every business is not going to be successful. We had the number one TGI Fridays in the West, in Los Angeles. and we were able to really do a fantastic job of over delivering to the community. Then I built a second one here in Atlanta and Atlanta supported me like crazy but we were not ready for the volume of customers that came through our door and we made a lot of mistakes and we had to close that Friday because it was on us, not on the people of Atlanta.

16:01And I learned a valuable lesson that we got to make sure we hire the best and talented people and they can drive unbelievable customer service. And we did not deliver that to the people of Atlanta. But the next businesses, you learn from that one and make sure the next businesses that you do a better job. And we've been better because of those mistakes we made back then. So every business has not hit the home run. And then also, too, a lot of businesses I own hit singles and doubles. And that's okay. If you get enough singles and doubles, you're going to make a lot of money anyway. So I think for me, it's learn from your lessons, learn lessons from your failure, excuse me, and then make sure that it doesn't happen again.

16:54Amen. Amen. Before you sign off, you tuned in for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use. ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work. Download the ChatGPT desktop app or contact sales to learn more. When traveling for events or festivals throughout the country, every dollar matters.

17:34We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check lift before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. Earners, what's up? Look, on Earn Your Leisure, we're all about smart money moves. Here's one most people skip, and it starts with Insurify.

18:06Most of us never shop our car insurance. The policy renews every year, the rate creeps up a little at a time, and nobody calls you to tell you. You stay with the same company because it's easy, and that convenience costs you real money. That's what Insurify fixes. Real quotes from more than 120 top insurance companies side by side. About two minutes, free, no phone calls, no pressure. And if there's nothing better for you right now, Insurify keeps watching and tells you when that changes, so you're never stuck overpaying. Millions of people have used Insurify to shop for their car insurance. So insure with Insurify.

18:41Go to Insurify.com. That's I-N-S-U-R-I-F-Y.com. Insurify.com.

19:30We'll be right back.

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