Formed in 1987, Magic Johnson Enterprises (MJE) is one of the best known African American owned and operated brands dedicated to serving ethnically diverse, urban communities. Below are a few key questions and answers with Earvin “Magic” Johnson about his growing company.
- You’ve been in business for over 25 years now, how have you been so successful?
Johnson: I think I’ve just had a great vision for Magic Johnson Enterprises. I was able to see what I wanted to do, I could see the opportunity, even when others could not, and I stay committed to doing it and doing it well, no matter what. I opened my first business in 1979. It was sort of successful but more than anything, it was the first of many great learning experiences. I think that’s another reason why I’ve been so successful—I’m constantly learning from every experience and building on that knowledge to make something better. - What makes Magic Johnson Enterprises so unique?
Johnson: We are a company that lives and breathes a philosophy that’s centered on not only making sound business decisions but also personally and professionally finding ways to contribute to the well being of society. We are also a company that understands community. We live by the notion of being the communities we serve. That means that we stay rooted in our respective communities and have a commitment to knowing their concerns, likes and dislikes. I think most companies fail because their leadership isn’t based in reality—they lose touch with their customer. - Why should companies invest in diverse communities?
Johnson: I think the question we should all be asking ourselves is how can companies afford not to invest in diverse communities? The data is out there—we all know that ethnic communities have tremendous spending power, we all know that the demographic makeup of our country is increasingly diverse—so how can any company afford not to find ways to reach these communities. Every corporation should increase efforts tenfold to hire more diverse executives, have diverse board members, and spend more money with diverse vendors that authentically know these communities. These things just make good business sense. - What’s one of the main things companies need to know about doing business in diverse communities?
Johnson: Companies need to be flexible—you have to be willing to do some things that may be new or different in order to speak to that community. You really have to be committed to providing culturally sensitive trainings to management and staff, and find ways to meet the consumer where they are, in their own community. This means you have to know the consumer. You have to know what they like, don’t like, what they read, listen to, where they spend their time and many other things. That’s one of the things I’ve gotten really good at—listening and learning. - What makes all of this worthwhile for you?
Johnson: Being able to touch so many people through my businesses and make money while doing it, is a huge blessing. I remember at my TGI Friday’s grand opening, an older woman came up to me, hugged me and said, ‘I’ve lived here for 25 years and until today, I’ve never been able to eat a salad at a restaurant in my own community so thank you. Or having some of my staff tell me the same type of story about how when they were growing up, they didn’t have stores and movie theatres in their communities until I started developing properties and opening that door for others to follow. It’s been extremely rewarding to know that I’ve impacted the growth and development of cities across the country and have found a way to bring the pride back into communities. - What’s the one thing you think people should know about you?
Johnson: I really want people to know that I’ve worked hard, very hard, to get to where I am today—this didn’t just happen overnight. I started in business over 25 years ago and have found a way to build on what I’ve learned through every partnership and opportunity. I’ve tried a lot of different things—some have worked out well, some have not—but I’ve stay committed to my goal to develop and grow a successful business and in the process I’ve found a way to give back through the Magic Johnson Foundation, which has meant all the difference. - You were one of the first businessmen to really grasp the importance of being a socially responsible company. Tell me more about that.
Johnson: Doing business and giving back really go hand in hand. It’s the best way to truly create a win-win situation for everyone. If the community is happy, then they support your business and if your business is doing well, then you can give back even more to the community. We’ve been strategic about aligning business opportunities with opportunities to create key community-based programs and services because we know it makes a difference. - What’s different about business today than just ten years ago for you?
Johnson: The neighborhoods and demographics of our country are changing quickly and that means businesses need to adapt. We used to only say that we focused on urban communities which meant the inner-cities and underserved, and we still do but the reality is, there are opportunities and key communities in the suburbs too. With all the real estate development going on across the country and the changing ethnic makeup of our country, we’ve had to expand our own understanding of where we’re trying to focus and who we’re trying to reach. I like to say now that we’re focusing on efforts related to ethnic diversity and emerging markets.