What did I learn from my failure?

When one imagines their first business enterprise - you walk in with hope, aspirations, and maybe even the imagination of a stack of cash at the end of the month for you to be happy about. Sometimes though it's pure luck - I was unfortunately given the long haul struggle. An event curating business that would have usually been super easy to push to the market was hit by the Easter Bomb Attacks in just our second week of formation. A year later COVID-19 spread across the world and by the time our two year anniversary came about I started working out how to place the final nail on the coffin and asked for it to be foreclosed. However, I learnt so much from it that I wouldn't have otherwise. Here are a few:

1)  Figure out the law

By the time I wanted to close Curative - I had consulted over 4 lawyers and 2 company secretaries to figure out what was the most amicable way to do it. I should have done this before even starting it to begin with and have absolutely all of it in writing. Don't rush into registering something - especially when there are partners before you know the legal aspects of it all. Invest in finding out the law (Most company secretaries will give you this information) -

• How do you open a business legally? How much does it cost?
• What do you need to include in an article of association? What are the important terms? How does it affect you?
• What is a company shareholder agreement? again what are the terms? How does it affect you?
• What are your exit terms in a partnership? How much is your partner expecting as a return? How do you close it down if required? How will shares be transferred?
• How do you go into adding investment? What are the conditions? What constitutes a need? What happens if you figure out you can make it work with less investment? What does that change? Will you be adding the investment on day one or will you be doing a payment structure?
• What is the labour law? How do you register for EPF/ETF, Income Tax, TIN, IRD? What is the paperwork? How much is income tax? How do you calculate it all? What are the legal documents you need to provide employees so they feel secure? 

2) Define everyone's roles

While as a start-up you may not have it all in check - you need to have the ground rules of what people are responsible for. While staff or partners may be juggling a lot of aspects of things there have to be core responsibilities that each person has including yourself. Put it down on paper so everyone is clear of everything and there is no confusion. Elena Cardone said it best - ‘Grant and I have built our empire on our roles, our strengths, and weakness not based on our male or female parts, what he should do and I should do but by looking at the actual - what are our strengths and weaknesses and how we can work it together with the sole intention of reaching that heightened level of success.’

3) Have everything in writing

If you have any major conversation or meeting. Minute it, Email it or Post-it. This is for client/employees/partners - basically anyone. This way you have something in writing to fall on. A shared Google document doesn’t count unless you email it to the other party on the finalisation of the document.

4) Have mentors

It's absolutely fine to need help but just get the right help. Think of your business and what it needs for growth and identify the mentor you aspire to gain from in the process. You can have one or more as no one knows everything. Building a company is tough and it's going to really test you but you need to know that there will be people who can guide you. One of my mentors told me at the very beginning - 'Saf, Sri Lanka is a volatile market so in your first year do everything and in the second year look at the 2-3 things that make the most money and stick to it.' I will tell you now - that advice is the sole reason we survived for two years. They've been through it and they know the tribulations you will face today.

5) Invest in yourself

I spent a lot of time on forums, webinars (especially with the pandemic),  message boards, random zoom calls - just learning. I found out a lot about how the US industry works, how they planned strategies for the pandemic as early as December 2019. I had already been on 4 how to manage virtual events webinars by the time the pandemic had struck and gained toolkits on everything you can imagine as a scenario. Someone out there has either gone through it, is going through it or has already made everything available to you online. Use the knowledge that is out there and learn how to find it.

Also, take breaks - you sometimes overwork yourself and lose your motivation. The frequency is up to you but you need to find the balance that works. Don't take a month off now just because I said it.

6) Manage CASHFLOW

This is absolutely vital in your first years - most contracts come in payment plan terms or clients suddenly refuse to pay invoices. The pandemic struck and I couldn't collect 5 major payments till the end of the lockdown. In the beginning, maybe aim for 6 months cash flow and keep expanding it by a month as much as you can. Also, leave the whole idea of you are gonna make huge profits in the first few years out the window - and make contingency for it. Most people take 2 to 3 years to make it sometimes more. I know a friend who took 10 years but his patience now has him living a very good life. Ideally have a sheet that keeps track of planned income and pending payments against cost per month.

7) Invoice first

Unless you have a contract with them that stipulates your payment terms - Send a quote, get an agreement by email, and invoice them immediately. That way from the get-go they know how much they owe you as my experience says some clients try to fudge or delay on what is usually your last payment. If there are any amendments at any time - send an additional invoice or revised invoice within 24 hours of the client request and get acknowledgement. Add annexe to contract if applicable.

8) Don't trust everyone

This was a tough one. I am usually an open book with an open heart where I believe that what you do for others you will get back in return. That is not always the case. Sometimes, you need to shut up and keep to yourself till trust is gained.

9) Understand your own expectations

I had to look a lot inwards on everything when I met failure. I had tried the works of the leadership handbook. Be empathetic and understanding in situations. Be there in person through every work requirement so my commitment is visible. Hands-on approach and democratic decision making. However, I think I failed on this one - even before I began cause I didn't consider what my expectations were and how I expected things to be done. I realised I can't do flat structures in the hierarchy while I can do flat structures in communication. I believe without hierarchy in business - nothing gets done but I believe that I can still be understanding and empathetic in the communication of my expectations.

10) There is a limit to empathy

You can't be a mom. basically. Too much caring, worrying, and trying to be there for everyone will be a sure way of getting you in trouble and also stretch yourself. Ask once if they need help and butt out unless they reach out to you for help.

Remember failing is fine - if you look at every great anyone they have failed. This was my first major one but I will continue to learn from it every day. I will build my empire and I will do it with my fierce convictions, and fierce loyalties.