🚀 Starting a Business

Daymond John's Retail Rule for New Businesses

Shark Tank's Daymond John just signaled a major shift in retail. Here is how solo owners can use it to protect their margins.

By MyBizNerd Team · Published

Key Takeaways

  • Focus on 'choosing' your business model instead of reacting to customer demands that don't fit your budget.
  • Slash overhead by using a 'pop-up' model or online testing before signing a commercial lease.
  • Verify your business name is legal via the USPTO before spending a dime on retail signage.
  • Open a dedicated business bank account to separate personal assets from retail liabilities immediately.

In August 2024, a local florist in Georgia told me she spent $4,200 on a retail lease before she had sold a single bouquet. She thought the physical storefront was the proof she needed to be 'real.' She went bust in four months because the rent ate her inventory budget. This is the exact trap retail veterans are warning against right now.

Medardo Delos Santos recently shared a post from Shark Tank's Daymond John that cuts through the noise. John asks his followers to 'RT if you're a chooser.' While it sounds like a simple motivational quote, for a small business owner, it's a survival strategy. Being a 'chooser' means you dictate how your product reaches the customer. You don't let the traditional retail 'rules' choose your path for you.

5 Ways to Choose Your Way Into Profit

  1. Start with a digital-first footprint. Don't look for a storefront until you've proven people will buy your product online. A solo candle maker in Ohio saved $1,800 a month by staying in her garage and selling through a simple website instead of renting a downtown stall. (Disclosure: we may earn a commission if you sign up through our links.

  2. Run a pop-up experiment. Renting a table at a local market for $50 for a weekend gives you more data than a six-month lease. You see which products people actually touch and buy. This is how you 'choose' your inventory based on real numbers, not guesses.

  3. Lock down your intellectual property early. Before you print shirts or hang a sign, search the United States Patent and Trademark Office database. You don't want a cease-and-desist letter three months after your grand opening.

  4. Negotiate 'kick-out' clauses in leases. If you must have a physical business, try to get a clause that lets you break the lease if sales don't hit a certain number. A small print shop in Tampa used this to exit a bad location without a $20,000 penalty.

  5. Apply for a microloan instead of using credit cards. If you need equipment, look at SBA microloans which often have lower rates than a standard business credit card. This keeps your interest costs from ballooning while you find your footing.

The Trap of Looking Successful

Too many new owners confuse 'looking successful' with 'being profitable.' They want the nice office or the fancy retail display. Daymond John's advice to be a 'chooser' is about choosing your over your ego. If you can sell $5,000 worth of product from a van, you're more successful than the guy selling $5,000 from a business that costs $4,000 in rent.

If you haven't done it yet, claim your EIN and open a business bank account. This is the first step in acting like a professional chooser. It keeps your books clean and makes tax season less of a nightmare.

Is retail dead for small businesses?

Not at all. It just changed. The new winners use retail as a marketing tool, not just a storage space for boxes. They use small spaces for 'experiences' and do the heavy lifting of sales online.

What's one 'traditional' business expense you can choose to cut this month?

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📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.