Are you the owner of an SME? Do you know who any or all of the following people are? 50Cent? Jay Z? Russell Simmons? P Diddy? Or Master P?
Yes, with the exception of Russell Simmons they are all rappers but importantly they have a business track record that is the envy of most CEOs worldwide.
At least one member of this elite group counts Donald Trump as a personal friend and another claims to have President Obama on speed dial and for once it doesn’t seem like an idle rap boast.
What is the key to their success? We think it could be distilled down to this – a hustler’s mentality – a street corner survival instinct. In more conventional organisational structures we would describe this as pro-activity, relentless enthusiasm, ambition, hunger a desire to remain fresh and to innovate or a will to win.
It is a similar ethos to many of the world’s best athletes and sports people. It is no coincidence that all of these men came from very humble backgrounds where life’s odds were seemingly stacked against them.
Hip Hop is a competitive music genre and there is a lot of ‘knocking copy’.
Business is equally competitive but usually without the overt criticism of competitor’s products or services, but there are clear similarities.
In Hip Hop there is a lot of emphasis on what’s fresh and innovative and in business consumers also value those companies that consistently produce what’s fresh and innovative – Apple being the best example of this.
There are obviously many more rappers than there are listed in this article but this list includes those who have made the most successful transition into business and transformed their braggadocio into a healthy bottom line.
What can SMEs learn from them?
Business Growth Starategies – Top 5 Power Plays of the Hip Hop Moguls
1. 50Cent – Water Took a 10% share of Water-maker Glacéau as part payment for an endorsement deal. The company was later sold to Coca-Cola in 2007 for $4.1 billion- the deal earned 50 an estimated $100 million.
Be bold enough to consider proposals out of your comfort zone or away from your core activity.
2. Jay Z – Sold the rights to the brand Rocawear, the urban-style apparel line he co-founded, for $204 million in cash to the Iconix group. In addition to the $204 million cash component, Iconix has agreed to pay as much as $35 million in stock if the Rocawear brand meets certain targets.
Recognise the right time to maximise your return, you have no right to healthy profits for life.
3. P. Diddy – Is enjoying one of the most lucrative drink endorsement deals ever. His ground-breaking joint venture with Diageo the world’s largest alcohol group, entitles him to half the profits from US sales of premium vodka Ciroc, and is believed to be netting him millions of dollars a year.
Sales of Ciroc trebled during the second half of 2008, thanks to Diddy’s involvement as brand ambassador.
Recognise when you there is an opportunity for a partnership and don’t undervalue yourself.
4. Russell Simmons – Film production – in 1996 Simmons produced Eddie Murphy’s comeback film, The Nutty Professor, grossing over $273 million in sales worldwide.
Keep innovating and diversifying and don’t stop. From music to fashion and then to film production for Russell.
5. Master P– Kept it local – At a time when Hip Hop was predominantly East Coast or West Coast Master P focused specifically on producing music and films for the New Orleans, Louisiana area.
In 1997 his first film, a low-budget semi-autobiographical film called I’m Bout it was an underground hit. Within 5 weeks of its release the film had sold 200,000 video copies and had risen to 26th place on the video sales chart.
Location based marketing – Get to know your local market first and dominate it.
We hope that you have found this information inspiring.We are a leading Marketing Agency in London.
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