Magic Johnson Made One Choice Before Retiring . . . and it Made Him Stupid Rich

With the news today that the Buss family is selling the Lakers, I was reminded of this great story about how Magic Johnson became an even better entrepreneur than he was basketball player. If that's possible!

Earvin Johnson Jr. grew up poor, very poor.

,He, his mother and father, and his 9 brothers and sisters lived in a three-bedroom apartment in East Lansing, Michigan. His dad was an assmblyline worker for GM.

And that is all the more reason why his post-Laker career as a world-class entrepreneur was so unexpected remarkable: He had no money mentors growing up. He knew nothing about business; “I didn’t even know what a stock was,” he later admitted.

But it was an assist (if you will!) from an unlikely source that helped transform the young man from business neophyte into an entreprenurial force and one of the richest people in the world.

A Pivotal Moment

In the mid-1980s, Magic knew that he had to begin to prepare for life beyond basketball.

He wanted to know more about business but also knew he definitely needed a mentor.

That first mentor turned out to be Michael Ovitz, the powerhouse founder of Creative Artists Agency (CAA). As magic later recalled,

Ovitz began to mentor Magic and gave him some simple yet life-changing  advice: “Read business magazines and network with people smarter than you.”

Johnson took it to heart, devoured publications like Forbes and Inc., and began to reach out to corporate leaders during Laker road trips.

Clang!

But Magic’s first venture as an entrepreneur was a turnover (and no, I am not done with lame basketball puns yet! 😀)

He launched a sporting goods store called Magic 32. But within a year, he had to shut it down.

His mistake? No one liked his inventory or athletic wear. He thought they would like what he liked. He didn’t listen to his customers.

Mistake, that.

But he kept going, and leaning on another mentor.

Jerry Buss, the visionary Lakers owner, in fact had become a father figure to Magic. Buss taught Magic the ropes of sports management and introduced him to Los Angeles’ business elite.

This mentorship also proved invaluable.

Magic didn’t just learn about deals; he learned how to connect with people, pitch ideas, and find partners.

Partnerships - finding the right teammates - turned out to be his pot of gold.

Game winner

Magic learned well. You have to surround yourself with the right people. And it worked. Over the years, Magic Johnson Enterprises grew exponentially and has included owning

· A dozen 24 Hour Fitness centers

· More than 100 Starbucks locations

· 31 Burger Kings

· And part ownership of the Los Angeles Dodgers

Magic Johnson is now worth an estimated $1.2 billion. His career earnings as a basketball player was $40 million.

And he says, the magic? It comes from – of course - teaming up.

Takeaway

Surrounding yourself with the right teamates really is the difference between having a winning and a losing season.

Steal This Strategy

📖 Book - 32 Ways to Be a Champion in Business
Magic’s great book on small business success.

🎥 Video - Magic Johnson’s Business Tips
Watch Magic explain how he became a successful entrepreneur.

🌐 Website - Magic Johnson Enterprises
Explore his current ventures and business philosophy.

🎙️ Podcast – Magic Johnson interview with Entrepreneur Magazine
Listen to Magic’s in-depth conversation about his business journey.

About Steve

Steve Strauss is the best-selling author of The Small Business Bible (and 17 other books), Inc.’s small business columnist, a lawyer (non-practicing), and an entrepreneur. He sold his last venture, TheSelfEmployed.com to Mark Cuban & Zen Business. Need content, a ghostwriter, or your own entertaining newsletter? Contact Steve!