- ‘I set up businesses that I did not understand much about, and they ALL failed….’
Today, I’d to discuss an issue that has been on my mind for a while, and which I believe affects many of us that look forward to owning our own businesses or perhaps already own one or two.
The LANA experience
My wife and I started a school in 2014 somewhere in Lagos, which survived for just about three years before we were ‘forced’ to shut it down and move on. Here, I’d like to discuss what benefit of hindsight has taught us.
In that failed project alone, we lost about N6 million in 2017, part of which also belonged to my Club (The Inspirati Investment Club – TIIC)
We did run good adverts and an awareness campaign which enabled us start with about 22 students on the first day of opening the school.
So, what are the lessons we have learnt, that I believe all entrepreneurs, especially school owners, should watch out for?
Open-door policy
As entrepreneurs, we had a commendable open-door policy for parents and staff but then, we ensured we were not too familiar with staff or students.
I particularly ensured we put up a proper structure with a system that could run in our absence.
I made sure I was part of the interview panel for every staff, while checking the record of each of them – except for one, the so-called ‘principal’ that was a former colleague of my wife in a mission school. And that was where the problems began.
Nancy actually employed her without my input at the interview.
Bad leadership
The principal was good in recruiting pupils with whose parents she had had regular contact, but them, she proved to be an untrustworthy head, and just as John C Maxwell would say, everything rises and falls with leadership!
She actually deferred our payment of her salaries till a further date, which was strange. She insisted that she would collect it together later, not knowing that she was collecting pupils’ fees into her personal account from parents and guardians!
When I found this out, she owned up but pretended it had only happened once. But of course I knew that was a lie.
A tactical error
My wife, Nancy, then had an NCE from FCT (Technical) in Akoka, Lagos and a BA History and International Relations from LASU, also in Lagos and several years of teaching experience. But we never realized that teaching experience is not the quite same as educational administration experience. Benefit of hindsight has taught that perhaps, we should have hired an experienced Ghanaian principal, and given him a free hand in administering the school, especially the secondary arm.
No too fast a growth
Much against my advice, my wife commenced the secondary arm early rather than taking my preferred gradual approach to organic growth. This compounded our weak administrative strength and soon ran us into fresh challenges.
Unfriendly business environment
Then, there was the harsh business environment to deal with in form of double taxation and constant harassment and extortion by rogue government officials.
Poor location and competition
Again, there was the issue of poor location, as we were situated right in front of an existing school, whose proprietors owned their building, having inherited same from their parents, while we had to struggle with the payment of humongous rent (having hired a large building to begin with).
Serial debtors
There was also the issue of ‘bad’ parents – serial debtors who would owe and then withdraw their wards from your school to another, just as not to pay the due fees.
Sundry comments
Your core competence – major in your major and carve a niche in that sector for yourself.
Kaizen is a Japanese word for continuous improvement. Compete with yourself every new day. Be better than what you were the previous day.
If in a collaboration, then prepare for the day you will separate.
Prepare also to buy out your landlord, partner, etc., if and when the opportunity presents itself.
Ensure you are in good physical and mental health; take good care of yourself.
And finally, the G-factor
Then, also make sure you always acknowledge and give BABA God his due honour in your business and family life, because it is HE who teaches our hands to make wealth without sorrow.
- Until the next time we meet, please stay INSPIRED in His presence!