Homeless to Billionaire: 2 Rules for Success | John Paul DeJoria

From Homelessness to Founding Billion-Dollar Brands [0:00]

• John Paul DeJoria's extraordinary life story began with homelessness and living in his car.
• He co-founded iconic brands such as John Paul Mitchell Systems and Patron Tequila, building them into multi-billion dollar enterprises.
• Despite immense success, he emphasizes humility and generosity.

  "Imagine going from living in your car and being homeless to becoming a billionaire. It doesn't even sound real when you say it out loud, but it's actually his story."

The Power of Words and Intentions [1:00]

• DeJoria highlights the profound impact of spoken words and thoughts on one's reality.
• He contrasts "trying" to achieve a goal with the definitive statement of "I am going to," explaining how the universe responds to clear intentions.
• Examples include losing weight or learning a new skill, where "trying" leads to perpetual effort without results.

  "Whatever you think, whatever you say is more than likely going to happen. People have to understand that."

Compressing Time for Entrepreneurial Success [1:50]

• Many small business owners lament a lack of time, but DeJoria measures time differently.
• He describes a method of compressing his day into three distinct "days," effectively creating 21 days in a week.
• This time compression strategy is crucial for entrepreneurs aiming to achieve significant growth and avoid wasting valuable moments.

  "My first day is 6 a.m. to noon. My second day starts at noon and goes till 6 p.m. And my third day, 6 p.m. to midnight. I now get 21 days a week."

The "Reorder Business" vs. "Selling Business" [3:00]

• DeJoria distinguishes between selling a product once and building a loyal customer base that reorders.
• The focus should be on creating products or services of such high quality that they naturally generate repeat business and referrals.
• This approach applies to both business and personal relationships, emphasizing lasting value over superficial appeal.

  "You want to go into the reorder business. What does that mean? It means that, for example, in business, your product or service is so good, people will want to reorder it again."

Embracing the Past and Forgiving Yourself [4:30]

• DeJoria stresses the importance of not dwelling on past mistakes or regrets.
• He states that yesterday's events cannot be changed and holding onto them prevents moving forward.
• Forgiving oneself for past actions is crucial for personal growth and peace.

  "I can't change it. And if it wasn't for all those steps, I wouldn't be who I am today. So my answer is quite clear. I wouldn't change the thing."

Preparing for Rejection as a Key to Success [5:30]

• Rejection is an inevitable part of any entrepreneurial or personal endeavor.
• By anticipating rejection, individuals are less likely to be derailed when it occurs.
• Understanding that rejection is a common hurdle allows for greater resilience and perseverance.

  "Be prepared in life. And all of you get to that point for rejection."

The "Success Insurance Failure" Book and Kindness [7:00]

• DeJoria authored "Success Insurance Failure" to share how to build companies with little to no money, emphasizing kindness.
• He believes that kindness is a powerful strategy that works even in difficult situations.
• An example is his negotiation with Omar Gaddafi, where kindness helped facilitate a positive outcome.

  "How can I tell others in the world how they could still do it today for little to nothing, but with kindness involved, how you could grow companies with kindness."

Building John Paul Mitchell Systems on a Shoestring [8:30]

• The initial funding for John Paul Mitchell Systems fell through, forcing them to start with only $700.
• DeJoria lived in his car during the early weeks to manage expenses.
• The success of the brand was built on the merit of the product and the salon retail strategy.

  "We started it on a shoestring of $700, even lived in my car for the first several weeks, just to be able to make it."

Revolutionizing Salon Retailing [10:00]

• When Paul Mitchell launched, salon retailing was not a significant industry practice.
• DeJoria educated hairdressers on how to effectively recommend and sell products to clients, enhancing the salon experience.
• He promised to always keep the brand within the professional beauty industry, a commitment maintained even during challenging times like COVID-19.

  "We introduced success to salons through recommendation. People are in a salon's chair and the salon knows your hair better than anybody else."

Launching Patron Tequila Against All Odds [12:00]

• The initial distributors were hesitant to carry Patron because its price point ($37.95) was significantly higher than the average tequila ($5).
• They faced rejection from major distributors, eventually partnering with a wine-only distributor.
• Early success came from high-profile restaurants like Wolfgang Puck's Spago.

  "When we launched Patron, nobody would take us. Nobody, Ed, would take us on."

Overcoming Distribution Challenges with Patron [13:30]

• After initial struggles, Patron partnered with Jim Beam, but sales remained modest.
• They then moved to Seagram's, increasing sales but still not reaching their full potential.
• Ultimately, they took distribution in-house, a bold move that allowed for greater control and growth.

  "After about a year and a half or so, they were only selling 12,000 cases a year."

Marketing Patron: "Treat Yourself" [14:30]

• The marketing strategy for Patron shifted to focus on the bottle and the message "Treat yourself to the best there is."
• This positioned Patron as a premium product, encouraging consumers to upgrade from cheaper options.
• The brand's success defied initial predictions, reaching millions of cases sold annually.

  "You want a margarita? We make a good margarita, but for $2 more, you can treat yourself today to Patron, the best akela in the world."

The True Definition of Success: Happiness [16:00]

• DeJoria contrasts wealth with happiness, citing J. Paul Getty Jr.'s regret over prioritizing wealth over personal joy.
• He shares his own childhood dream of owning a house and earning $150 a week, which would have made him happy.
• Happiness is defined by inner contentment and fulfillment, not solely by financial accumulation.

  "He said, but would I change something different in all that time? He said, yes, I would give up the majority of my wealth and the majority of all my power to have been happy in my life."

The Importance of Character: What You Do When No One's Watching [18:00]

• DeJoria recounts an experience working at a dry cleaner's where his meticulous cleaning, even in hidden areas, earned him a raise.
• This illustrates that true character is revealed in actions taken when unobserved.
• Performing tasks with excellence, regardless of supervision, builds integrity and respect.

  "He says, you're cleaning this place as if I'm watching you all the time. And then he stopped talking, just looked at me."

Never Knocking Competitors [20:00]

• DeJoria advises against disparaging competitors, even when launching new products.
• He advocates for focusing on the unique features and benefits of one's own product.
• For Bandero tequila, he emphasizes its quality and encourages consumers to taste and decide for themselves.

  "Don't knock your competitor. There's no need. Just say, I can appreciate that. However, here's the feature and benefit to you with my product."

A Life of Purpose, Never Quitting [21:30]

• DeJoria has never considered quitting, even when faced with immense challenges.
• He continues to work on multiple projects, including those aimed at helping orphans, foster children, and the homeless.
• His motivation stems from a deep love for what he does, who he does it for, and who he does it with.

  "I will never stop. I, I, my daughter, Michael Lane, who is brilliant. And she's a chief executive officer, just a little, I think she's 41 now."

The Energy of Success [23:00]

• Ed Mylett emphasizes that success has an energy, frequency, and rhythm that makes one magnetic.
• This energy is crucial for transferring belief and passion to others.
• DeJoria possesses this "special sauce" that makes his message resonate deeply.

  "You might want to go back and listen to it again. And just even at this advanced age, this man's energy, his frequency is the success frequency."