How my first business venture failed!
Maphuthi Jacob
Digital Learning Consultant ?? Helping hotel leaders Onboard, Upskill, and Inspire operational teams. < Lobster Ink Top Performer of the year 2023>
It's 31st December 2016 I met up with my friend? xolisani earnest dada , he had a business idea he wanted to discuss with me. This was our first in-person meet-up, we were virtually introduced to each other by his younger sister “Nox”, a long-time friend of mine. Within just a few years we had built a strong solid friendship having never met in person. We just clicked, and connected — It felt like we had grown up together under the same roof.
Fun fact, before we actually exchanged numbers he used to high-jack my calls with Nox, and that would be the end of it we would discuss everything under the sun. :)
During those years, we discovered the shared passions that still resonate with us:
Our major difference is that he is a visionary, the ideas guy who wakes up with ideas every morning. While we working on this idea he has another idea. And on the other side is me “the ideas killer”, the pragmatic guy, the guy you call to build the bridge to get to the other side (the future state). This dynamic has worked well for us.
By the time we did our in-person meeting, it was just a normal meet-up — nothing out of the ordinary. Our business journey would be founded on solid foundations of covenant friendship. This would be extremely critical and valuable as we would go through tough times in our personal lives and in business.
The business Earnest was pitching simply put “an Uber for the mini-bus taxis”.?Uber was still new in the South African market, they were only 3 years — having first launched in South Africa in 2013. At this time uber had proven the opportunity of ride-sharing, there were also new players that had also joined this market.
Our venture came from a genuine concern for the Mini Bus Taxi industry. After observing the struggles faced by taxi operators and drivers due to intense competition and the emergence of technology-based transport services, we wanted to make a difference.
Having grown up in the township we’ve seen firsthand how trading businesses flourish when there's a taxi rank. We observed that
each mini-bus taxi employs a minimum of 10 people e.g. taxi operator, Taxi driver, route marshal, rank administrator, rank cleaner, fruit stand stall, mobile store of snacks, container tuck-shop by the rank, car wash linked to the rank, hair salon, barber shop, and more.
As they say, “numbers don't lie”, this was already an?R50 Billion industry?back in 2016.
Mistakes we made
This was our first business venture, we had never started anything from the ground. Prior to this, we had been involved in organizations where structures and systems were already in place.
Lessons #1:
* I am now a firm believer that business plan is no neccessary in ideation, early stages. We developed one because we were sold this idea of getting business government funding, which demands a full business plan. I subscribe to the?Simon Sinek Golden Circle?model, its visual, easier to understand and end result is idealy no more than 5 pages (even that is a lot) of clear, focussed, intential, actionable details about the business venture.
* Business registration is okay, there’s not much effort in term of times required for the process and the cost, it only cost R175. Registration done on this government company registration platform called?Bizportal.co.za
* Bank accounts and all these other things are not necessary if you don't even have a product to sell, it's all this mindset that has been created of getting funding from some agency for an idea on a business plan.
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Lesson #2:
* In hindsight, we did not know better at the time. Not that I know that ideas are cheap and common everybody has them, but the quality execution is what separates boys from men.
Lessons #3:
* First-time entrepreneurs — Do one thing only one. Give all your blood, sweat, and tears to it. When it does not work, after you’ve tried it all, then walk away.
* Us, we did some of these simultaneously, we would go to two meetings one after the other for different early-stage businesses.
* By all means, build your business to a systems operation level, then take on another venture — following the cycle. I think multiple businesses on the same stage are a red flag, early-stage businesses burn the same energy. I was in a business when it was at a scaling stage — that too burns different energy from the person.
* This is the reality of many young entrepreneurs even today some are making these very same mistakes.
Lesson #4:
* It was about a year after we had closed that chapter, when this business venture had failed, that I came across a? Vusi Thembekwayo interview. He mentioned that his father had gifted him a book called “The Richest Man in Babylon”. As I normally do, I wrote down the book, bought it, and read it from cover to cover a couple of times. It was one of those moments where I thought,?“Why did I not know these things before this disastrous rollercoaster venture?”?The book hit home when the character “Bansir” gives all his years’ savings to a charlatan, a novice merchant, to buy diamonds that they could resell for a higher price. Instead, he comes back with worthless glass that looked like gems.* The major lesson here is to “be dangerous enough.” Consequently, in everything I get involved in, I make it my mission to theoretically and, most importantly, practically know and understand the ins and outs. I constantly explore platforms like Udemy, LinkedIn Learning, and specific YouTube channels, all aimed at continuously learning and improving by 1% every day.
These are just a few mistakes and lessons we learned in the particular venture.
I haven’t even mentioned the exciting part: I resigned from a job I had held for six years, just six months after that initial meeting on December 31, 2016. We were filled with passion and drive, ready to conquer the world. Haha, you might ask, “What world?” This is a coming soon tell-all story, an adventure that involved sleeping at church and so much more. :)
Opportunities from failure
Business Acumen —?When we took that leap of faith, we knew the textbook business and watched motivational YouTube videos. The amount of selling, pitching, networking, and traveling to meet stakeholders in the mini-bus taxi industry was immense. We experienced backstabbing, disappointments, and rejections that no video motivation could match in terms of the lessons they taught us. Early on, we learned to prioritize progress over getting caught up in the emotions of whatever was happening or not happening our way.
Builds or breaks character?— I can now freely tell you that entrepreneurship is a calling; it’s not for everyone. Through my own experiences, I understand why every entrepreneur in the world has at least one addiction that keeps them sane. Whether it’s fast car racing, extreme sports, outdoor camping, fitness, fishing, gambling, or, unfortunately, even substance abuse, entrepreneurs often turn to these outlets to find balance and maintain their well-being.
Personally, I continue to pursue entrepreneurship despite the challenges it brings because I genuinely enjoy the thrill of creation and the game of business. The process of building something from scratch and navigating the complexities of the business world brings me great satisfaction and fulfillment.
Makes You Valuable —?After the failure of the business, I returned to employment and faced the responsibilities of supporting my family. Reality hit me hard, but I emerged from the experience as a born-again man, fundamentally changed by the journey of entrepreneurship. I had experienced both the exhilaration of success and the disappointment of failure. As a result, I became highly employable, armed with valuable lessons, new skills, and a resilient character. With the favor of God at work, I quickly found a job without much struggle, ready to apply all that I had learned and contribute to the workplace.
But without Faith —?During this first business venture, we endured incredibly challenging times, and the extent of our struggles remained hidden from everyone except our innermost family circle. Depression had been knocking on my door — If it was not for my faith, and my strong belief system in Jesus Christ, I would have found myself an addiction of choice just to escape the inner man's struggles. I firmly believe that as human beings, we consist of a body, soul, and spirit, and it is essential for these three aspects to find balance. Any imbalances within ourselves manifest as external symptoms of profound internal struggles.
Let's be kind to one another.
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The mini-bus taxi business idea remains alive and has undergone several iterations. We simplified it and created an MVP prototype. Although it won’t revolutionize the entire industry, it aims to enhance operational efficiency, providing a competitive advantage.
I am excited about what the future holds. Efficiency is key, and I believe this venture will make a significant impact.
Want to hear more about the MPV prototype? sure, let's connect.
Siyabulela.