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This weekend my peers and I talked about failed businesses and what we as business people learnt from it. Its been 8years since I birthed @UrbanLegendNA and after closing the doors 5 years later, The following is what I learnt that I cant get in the text books...
1. If it doesnt make cents, it doesnt make sense.
We were driven to be the best street wear store in the country; we signed up as many brands as we could,just because it had a "street wear" affiliation, through that we burnt through our inventory funds. We didnt study the market
We were driven to be the best street wear store in the country; we signed up as many brands as we could,just because it had a "street wear" affiliation, through that we burnt through our inventory funds. We didnt study the market
2. We didnt study the market.
We knew about Stussy, Evisu, Undefeated & other popular brands, but they were new to Namibia, thus had to spend a lot of time and money teaching local street wear consumers of these new brands. Where we should have concentrated on what was popular
We knew about Stussy, Evisu, Undefeated & other popular brands, but they were new to Namibia, thus had to spend a lot of time and money teaching local street wear consumers of these new brands. Where we should have concentrated on what was popular
3. Study the Market
We were so sure in ourselves tht what we would bring out would sell. We used to sell out Jordan sneakers before they even hit the shelves, but only those with high end cash could buy, most bought by Angolan market, so we cashed on them...
We were so sure in ourselves tht what we would bring out would sell. We used to sell out Jordan sneakers before they even hit the shelves, but only those with high end cash could buy, most bought by Angolan market, so we cashed on them...
But the profit margins were low. we launched Vans, cheap and easier to stock, got more profit out of them than Jordans. Vans were available in masses,cheap so people would buy 3 pairs at a time, and they were easier to source from suppliers. we should have stuck with selling Vans
4. Team Lacking in Experience
As a start-up, what we needed was a team that knows the job. We were all new to it and i must say the team i had was hard working but we definitely reinvented the wheel by learning from scratch. We should have hired an expert to carry us...
As a start-up, what we needed was a team that knows the job. We were all new to it and i must say the team i had was hard working but we definitely reinvented the wheel by learning from scratch. We should have hired an expert to carry us...
You can’t afford to have people who are going to be learning on the job. Keep this in mind while recruiting your staff.
5. Stick to your Business Plan
We started reacting to our competition instead of pushing what we had desired to create in the 1st place. Some people never really understand the importance of having a business plan before they take up any endeavor.
We started reacting to our competition instead of pushing what we had desired to create in the 1st place. Some people never really understand the importance of having a business plan before they take up any endeavor.
A business plan is like an instruction manual on when, where, how and when to take any action. So having wrong/no plan and doing things at impulses is like wandering aimlessly in a jungle without any map or compass. You bound to lose yourself.
6. Save for the future.
When the Angolan Market crashed @UrbanLegendNA like all other retailers felt it hard. Angolans used to buy from the stored in suitcases. We thought that well would never run dry so what did we do, we expanded instead of running lean. We tanked!
When the Angolan Market crashed @UrbanLegendNA like all other retailers felt it hard. Angolans used to buy from the stored in suitcases. We thought that well would never run dry so what did we do, we expanded instead of running lean. We tanked!
7. Quit while ahead.
"Quitting while ahead is not the same as quitting. We saw the signs, shops were closing left/right. But we were to proud shut down soon enough. As much as you think this is your baby you gotta hold on to it and pray it stays up; if its not working, shut it!
"Quitting while ahead is not the same as quitting. We saw the signs, shops were closing left/right. But we were to proud shut down soon enough. As much as you think this is your baby you gotta hold on to it and pray it stays up; if its not working, shut it!
You are only a failure in business if you dont learn from the failures, yesit sounds cliche but this is VERY true. No MBA will teahc what I went through running @UrbanLegendNA. I would do it again and even better with what I know now.
So dont be afraid to fail!
So dont be afraid to fail!
