The Bike-hailing firm has decided to take the bull by the horn and shut their company following the Lagos state govt policy dilemma a ban on Okada on important expresses across the nation.
Months following the coverage, the business attempted to change out of bike-hailing to a Delivery firm, but the earning was not that enticing, therefore the Investor determined on a closed.
But, every second is a lesson for entrepreneurs. So below are some lessons to learn from OPay shut down of operations;
1. Organic Growth Is Very Sequential
One thing I’ve learned from my existence in this life is that”Slow & Steady always win the race”.
That is why even in the music industry almost any artiste that sprouted quickly into the top-level without an extremely good talent and uses the money to purchase his/her way there’ll definitely be nose-dive back to the bottom quicker than he/she gets to the top.
Same principles also apply in the company world, if your advertising budget is more than your earning like 6 months, it’s quite obvious you won’t have the ability to keep up, and you end up using your private money to fund a company not forthcoming.
An organic N5 per day growth is better than N1000 per day un-organic growth. Inorganic growth is when you have to shell out N2000 to make N1000 earnings.
Then publish your N1000 earnings to pepper those making N5 without telling them spent N2000 to make the N1000.
ADVICE:- Don’t be too blinded doing business. Cash is king and working capital matters
If a business is too toxic, don’t be bothered about people saying you’re a failure. Quit it, don’t force it. e no go pay you las!
2. Be Well-informed About Past Government Policy About Your Industry
If just OPay assessed the last policy relating to this bike-hailing sector, then the recently passed Okada-banning policy which short-term their performance should not have come as a shocker for them.
I recalled some years before, the coverage of banning Bikes on the primary express path had been passed, however, I feel that the authorities were not that strict since it currently is.
I believe a correct immunity agreement should have been stricken with the present authorities on how they may enjoy government assistance for a definite number of years prior to any coverage which may sabotage their operation could be passed.
ADVICE:- As a Nigerian entrepreneur, be well-familiarized with the industry you’re starting your business with.
If you’re starting a bus transport business in Lagos, try and check if there is no impending policy about banning some type of vehicles on the express.
3. Over – Expansion Will Kill Your Business (Pick A Niche & Grow)
Please small entrepreneurs, in this life you just should have focus, not only in business, in even overall daily living.OPay doesn’t have a focus, I’m not sorry to state mehn!
Well, Expansion is quite good, but over-expansion kills quicker. A selected niche enables you to focus your best effort on one area of specialization rather than everywhere. It also enables you to stick out in the multitude.
You just started a business and within a year of surgery, you have diversified to over 5 sexy industries in the country. No an! Stuff ain’t done like that.
You earning money from Market A and having to resist competitor supremacy struggle in Industry B, why don’t you use the money made in industry A to enlarge the company in A to a market controlling degree.
ADVICE:- Dear Entrepreneurs, stop doing “Jack of all trade” in Yoruba “Gbogbo Lowo Enterprise” – Pick a niche and grow steadily in it.
4. Lay Low About Your Business Success
I believe that the most important thing that murdered OPay is the over-loudness of the new accomplishments in just a tiny time frame.
But that wasn’t really needed if they began doing this, but I believe they only need to pepper their opponents then; Gokada and Max Ng. Well, it assists them to a particular point, but examine the result they sabotage an entirely booming bike-hailing business, cause they can not simply take off their accomplishments the social websites and allow it to be professional.
ADVICE:- So as a budding entrepreneur it will be very nice of you to learn how to take your little wins off the social media.
It is now a standard for all these Whatsapp entrepreneurs to be posting their credit alert screenshot — Wait! What do you need to gain with this? I want to understand.
So we are able to know you are making sales? No, market why your merchandise or services stands outside rather.
Take Away:- Publicizing your wins will entice more haters than Investors