During Johnson’s early business ventures, he was self-admittedly an inexperienced entrepreneur who failed to look at the context within which he found himself. For instance, one of his very first deals was in opening up an NBA franchise store. He thought he had the intimate product knowledge and experience to make it successful. But he had made one crucial mistake.
“Everything for sale was stuff I liked, and I figured everybody would like it, too,” Johnson recalls. “Well, I learned you got to find out what the customer wants and satisfy the customer.” It was a $200,000 misstep for Johnson, but a valuable lesson nonetheless.
In 1990, Johnson embarked on a partnership with Pepsi-Cola and Black Enterprise Publisher Earl Graves Sr. Together they purchased a distributorship in Forestville, Maryland.
Graves took on the roles of chairman and CEO, while Johnson was designated executive vice president. It would be Johnson’s first time dealing with business executives as another corporate player.
“The experience was great because it was my first time playing on a major league level,” says Johnson. “I got exposed to the meetings with bankers, dealing with customers, working with a client base. You work all the way from dealing with mom-and-pop grocery stores to talking with the Marriott Hotel chains,” he explains. “We didn't get every account, but we got a lot of them. I learned just how important relationships are.”
Johnson and Graves eventually dissolved their partnership in 1992, since the time constraints of being both a professional basketball player and corporate executive were taking its toll on Johnson. Still, the Pepsi partnership proved a major learning point for Johnson. Although he did not get all of the accounts he was banking on, Johnson used the experience to improve his understanding of business relationships, and of just what kind of commitment it actually took to run a business.
That would not be the last hiccup for Johnson. Aside from his failed television reality show, Johnson also experienced problems with his popular movie theatres. The urban-themed film “Belly” was supposed to be screened at his theatres upon its release, but Johnson vetoed the move and flatly refused to allow it to play. He was worried about gang violence, especially since his theatres were all located in inner-city cities where gangs were known to be prevalent.
“Belly” director Hype Williams accused Johnson of selling out and not supporting black filmmakers. For a time, the flak hurt Johnson’s movie theatre sales. Still, he managed to come back.
“Even that situation helped me to grow, to be a better player,” says Johnson. “So I don't worry about that. If you do what you're supposed to do, people will come – you hope. And we do everything possible to keep our customers happy and keep them coming through the doors.”
“With businesses, you go to the same places because you like the service, you like the people and they take care of you,” he says. “They greet you with a smile. That's how people want to be treated, with respect. That's what I tell my employees - customer service is very important.”
That was one lesson he learned from a bad misstep, and it has helped him grow ever since.
Lesson #2: A Good Rebound Can Come from a Bad Misstep
Like this article? Share it with your friends
 |
Related Articles |
|
 Lesson #2: A Good Rebound Can Come from a Bad Misstep
|
| |
 During Johnson’s early business ventures, he was self-admittedly an inexperienced entrepreneur who failed to look at the context within which he found himself. For instance, one of his very first deals was in openin...
|
|
Lesson #4: Embrace Your Obstacles
|
| |
 “When faced with a business challenge, evaluate or assess the situation, gather the good things in sight, abandon the bad, clear your mind, and move on,” says Stewart.
|
|
When You Say The Wrong Thing
|
| |
 Recently I hosted a dinner with a great group of friends and people I wanted to meet. One of my guests was a particularly good friend, a guy I care about and respect deeply. Until recently, this guy was a high prof...
|
|
Selling swimming pools is the same as selling what you sell
|
| |
6 Lessons about selling
Lesson # 1: Make sure the person the customer talks to on the telephone is a good representative for your business.
Lesson # 2: Never assume you know what the customer’s problems (needs a...
|
|
Getting Rich Is An Exact Science
|
| |
People who do things in this certain way whether they do it consciously or unconsciously get rich. In science in order for a theory to be proven correct and accepted as fact it must always produce like results from ...
|
 |
Related Businesses - Evan Elite Authors |
|
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
Magic Johnson Newsletter
Get our free newsletter to learn more about Magic Johnson and other famous entrepreneurs!
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
