LESSONS I HAVE LEARNT FROM 5 FAILED MUSIC BUSINESSES-PART 2

I do not know why failures are more appealing to people. But because people liked it, here’s part 2 of some hard lessons I have learned about business from 5 failed models.

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As always, if you like what we do here, someone else will as well so help us make an impact by sharing this with other creatives. Thanks in advance.

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Invest don't spend

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In my first businesses, had seasons where they made good money. But I generally just blew it. I could have done significantly more with my money.

Let’s consider the example of a new 20-year-old earning net 20,000 per month.

Most entry-level-job for graduates pay around 20,000 ksh. These can be in sales, or whatever. there are better-paying jobs but for this example, we will go with 20,000. Back then, I didn’t know what to do with the money. And before I go on, I’ll say this,

If you do not know what to do with money, leave it alone, because you

Do not know what to do with it.

When my first business started to make money, The first thought I had was, let me maintain myself. I started having weekly barber visits. Spending on some outfits etc. At some point, I bought a shirt for something around 6,000ksh. Now for context, I was able to do this because at the time my expenses were mostly catered for by my parents, plus a Relative who was hosting me. So, my money felt plentiful.

If I was to go back in time, I would invest in my skills. Currently, I am more than willing to invest in a form of skill enrichment opportunity. in fact I am currently looking for such opportunities. in the fields of business, product development, in my case music production, sales, digital marketing, etc. in short, all the skills that I would need on my chosen journey. I would invest in those. Prep up for the tougher weather that is to come. That is responsibility-ridden adulthood.

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Now allow me to review a concept that I preach about often on THREADS

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The compass of spending

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Investing is putting your money in something that makes you more money or saves you more time to make more money. Spending is the opposite. Putting your money in something that has no potential of return in either money or time.

This difference is in the outcome, if I buy a set of clothes today with my 20,000, what determines whether it's an investment or a spend, is what I do afterward. If I buy the outfit to just look and feel good about myself, it’s a spend. However, if I use the outfits to go for a photo shoot for my modeling portfolio, it is an investment. Buying healthy foods is an investment, and junk food, is a spend. If you buy anything in general, you need to assess, if it is a spend or an investment.

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This goes a long way in managing your finances. Couple that with living at the bare minimum level that you can (talked about it in PART 1) and I can guarantee that you will end up with a surplus. Remember, if you do not know what to do with it, do not use it.

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The reason I emphasize this financial management thing so much is because I have seen Faaaar too many Earning but broke creatives. Earning but stressed creatives. The most valuable asset you can get yourself that will allow you to have the most creative output is your peace of mind.

You need to bare the very least pressure possible. If you are feeling stressed by your expenses, consider a downgrade. The more radical the better for you. I can guarantee you will be in a different mind space. Gosh the peace is just... Give yourself the chance to start again faster. You can decide to retain your lifestyle but you will either end up in debt, do some un-you things, and so on to sustain it either way you'll have lost. You built it once. Trust you can do it again. in fact even better.

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okay let's go on....

Now, assuming you have settled on some objective that you would like to try.

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Save with a purpose

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I saved to get a guitar and I saved even more.

During that period, I became so motivated to work, deny, sacrifice, and earn more because I could see where I was going. I actually, remember that day when I went to scout for the guitar I had selected. I was walking from campus, and I decided to let me drop into the music shop and see.

I really do not know what compelled me to bother the poor lady into going to the back of the store to bring me the guitar that was well beyond my budget. But when she brought it. damn!! I was so excitedly motivated. I held it for like 10 seconds. it almost felt like sin. It was like just a little bit more my baby. papa is coming for you soon. I didn't play it, strum it turn it, nothing, i just left there with the scorching motivation that I will buy it the next time I pop in. And that's what happened.

It is not as dope as saying you need to look like the person you want to be, in fact it is nothing like that fake it till you make it typ of thing. And i believe it is applicable to every industry, person or business. If you are making 100,000 a month, spending 20% instead of 60% will get you to your objectives faster and with more room to fail. Along the way, You will fail.

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Failing with an apartment where you pay 100,000 a month will hurt you more than if it was 20,000....I think you get the idea by now.

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Bricks of optimism

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Each phase can be used to prepare you for the next.

It is very easy to say... I work a job I do not like, I am broke now I can't do what I want in life...

Okay. you are the only one who was given the dream you were given, your dream and perception of that dream is unique to you. What that means is when it is all said and done it will be you and God. What did you do with what he gave you? You cannot plead a case of excuses. "my parents didn't have money for music school, oooh my friends did not share my posts, ooh my job was too demanding to..."

Use where you are to get you to where you want. Ask yourself, how does what I am doing along with what I am looking for?? If you are waiting tables, doing digital social media, graduating with a degree and you got a job in a field you hate… it doesn’t matter.

Here’s a deeper explanation of what I mean. When I started off, I was sure of what I wanted and hence I went for things that I felt served me. Like what would get me to where I want to be fastest? so I am not saying quite the job you hate, I am saying see how you could use it as a stepping cloud into the heights that you want.

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Clients at your palm

Taking contacts in business will save you money and time. i can dig more into this i another article. let me knw if you would like that.

??Suck it up

Never have your ego prevent you from selling. Be it in marketing, cold calling, or content creation. Do it. Business people are competitive because it is the difference between their break-first and their break-last. See what I did there? The point is, business people handle everything with such urgency because it can be the difference between eating today or not. That’s why amongst founders, you will see a very high “negotiative” culture. Because saying no is a luxury that you may not always have. When you have rent hovering over you, you may need that poor sale. But when you are overwhelmed with orders you may have to choose and prioritize your most valuable orders. So adapting to these situations, circumstances and seasons is what will keep it alive.

I once worked under a manager in a parastatal and he told me that managing anything is about putting out fires. That is, you are constantly fighting, adjusting, and moving, to keep your business entity alive. Just like a literal baby. You need to provide things for it that it cannot do just yet.

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Systems and procedures ease things.

-I am yet to reach a place where my business demands for automation, however, I have observed that making systems that allow for replicable results is important. E.g., instead of having to teach new employees from memory, you can document your process and enable your employees to have a reference without the need for you to be physically there to explain everything.

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Earning is a must.

Whether you are doing your passion or not, you need to generate and income. Its not an option. You have to. Quintin Tarantino, an award-winning director in Hollywood, and many other legends worked jobs they did not like until they were able to do what they love for living.

Work whatever job you have been blessed with, and yes, I said blessed. Remember that thing about saying no is a Luxury you might not always have? Yes. You do not say no to a job. Unless you have the luxury of choice.

And I can hear the people who are thinking about how you are not supposed to settle for less. ?And so on… its not about having your ego not hurt, its about doing what will keep you alive to fight another day.

If you do not have money, it’s all over. You cannot play the game anymore. With money, you can invest in things that offer the opportunity for returns. So, if you earned 20,000 and you minimized your bare minimum essential costs to 5000ksh. It leaves you with 15,000 to maybe take a course, buy a new tool that will enable you to make more money or pay for a meeting that has the potential to land you a new job, deal or idea, like without money you can’t.

I made the mistake of stocking up my house yet I could have done so much more. Damn!!!i genuinely get pissed at myself for all the things I spent on. For context right now, if be more than willing to pay someone to teach me skills that they have. I'd be stocking up my head with skills.

Yes, I have a degree, but a degree is not skills/competence. So, I need more, I am hungry for more. ?

?What business will pay me the most passive income.

I used to ask myself, how or where can I put my money so that I can have a PASSIVE income. Following that I used to think that I needed 100 times more of what I had at the time in order to put up a business that can appreciate and give me returns. I understand that currently, it's fairly common knowledge to know this. However, it is poorly portrayed.

When you think of the definition we gave about investment vs spending, it can mean you can invest in literally anything. So long as it gives you a return or saves you time to generate more income.

So, if I have 100 and I able to use that 100 bob to make 20ksh, I am growing my income.

Whoever lied to us about the investment made it very well engrained in us that a good business to invest in is one that gives us 50-150% ROI. To me, I have learnt that any business that gives you 10-20% return on investment (considering time and effort used) is good. The goal is today and not Projections. Have them, they are great, but in real life, it's about making it to the next day.

In relation to that I will say that we need to focus on today for our mental health. It is key to being the best creative you can be.

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Work will NEVER end

I have met successful business people who have talked about how much work can consume. When you are starting, you won’t have enough to do. In fact, you will feel like you are either wasting away or you are just relentlessly grinding to no end.

However, If you understand that you are fighting today and that’s enough. You will enjoy the journey more. There is no Tomorrow to be enjoyed, just today. So ease up, well. Like when it's out of work, you let go of work well enough for you to be optimal when you come back. Easier said than done. I know but yes.

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Let me end it here for today. In case of questions, feel free to drop them below. Happy and healthy creating.

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