“Magic Johnson made a $200,000 mistake that turned into a great lesson”: How the Lakers legend built his $620 million empire based on a customer first approach

Magic Johnson was incredible as an NBA player, but he’s also a great businessman. Well, outside of one $200,000 mistake that is.

Johnson has made a series of investments over his career and post-career which have helped him retain a massive net worth and be one of the prominent business-men in today’s landscape.

The Lakers point guard is widely regarded as the best point guard to have ever played the game. He’s won five NBA championships, been Finals MVP three times, and has a whole list of other accolades including being a three time MVP, a 12 time All Star, and a nine time All NBA First Team member.

Magic was also part of the storied ‘Dream Team’ in 1992 that won gold for the US in dominating fashion. The stories around Magic are also incredible.

Right from his rookie year, you knew he was going to be great. He showed that much when he filled in at center for Kareem Abdul-Jabbar in game six of the 1980 Finals against the 76ers. Magic posted a statline 42 points, 15 rebounds, and seven assists to guide the Lakers to a series clinching win.

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Magic Johnson made a $200,000 mistake early in his career

Starting a business is hard, and Johnson had to find out through experience. One of the biggest rules about running a business is that you have to value your customer’s needs.

So, even if you think something may be valuable and would sell well, you can’t sign off on it until your customer really approves. Magic Johnson didn’t get this memo right away.

He was starting up his Magic 32 Shop, and he decided to sell sports apparel including hats, jackets, and other team merchandise. He bought $200,000 worth of product before realizing his customers may not like everything. That’s when he realized a customer-first approach was needed. Now Magic is one of the most successful NBA players turned businessmen to go around. Now, he has a $620 million net worth filled with business ventures, forming his empire.

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