Daymond John knows a thing or two about starting a business.
While waiting tables at Red Lobster, he founded streetwear brand FUBU on the side, building it into a company worth $6 billion. Now a judge on ABC's "Shark Tank," John identifies up-and-coming ventures and helps new founders get their businesses off the ground.
But the landscape of entrepreneurship is changing. With heavyweights like Facebook, Amazon and Google dominating several industries, new ventures often end up selling to larger companies for a profitable exit, rather than sticking out the competition.
Recently on CNBC's "Squawk on the Street," John was asked his thoughts about the type of entrepreneurs who found businesses with visions of one day selling to an industry leader. John says he doesn't advise adopting that mindset. Entrepreneurs should be focused on what their company is doing right now.