4 Important Lessons Young Entrepreneurs Can Learn From OPay Business Shutdown

Posted by E.L.E.X on July 02 2020 under Tech/Cybersecurity

It’s with a heavy heart and anguish we broke the news of OPay business closure today – READ NEWS HERE

The Bike-hailing company has finally decided to take the bull by the horn and close their business after the Lagos state govt policy issue a ban on Okada on major expresses around the state.

Months after the policy, the company tried to switch from bike-hailing to Delivery company, but the earning wasn’t that enticing, so the Investor decided on a closure.

However, every moment is a lesson for entrepreneurs. So here are lessons to learn from OPay shut down of operations;

1. Organic Growth Is Very Sequential

One thing I have learned from my existence in this life is that “Slow & Steady always win the race“.

That’s why even in the music industry any artiste that sprouted swiftly to the top level without a very solid talent and uses the money to buy his/her way there will surely be nose-dive back to the bottom faster than he/she gets to the top.

Same rules also apply in the business world, if your advertising budget is more than your earning for like 6 months consecutively, it is very obvious you won’t be able to keep up, and you end up using your personal morning to fund a business not forthcoming.

An organic N5 per day growth is better than N1000 per day un-organic growth. Inorganic growth is when you have to spend N2000 to make N1000 earnings.

Then publish your N1000 earnings to pepper those making N5 without telling them you 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 las!!!

2. Be Well-informed About Past Government Policy About Your Industry

If only OPay checked the past policy about this bike-hailing industry, then the newly passed Okada-banning policy that short-lived their operation shouldn’t have come as a shocker to them.

I remembered some years ago, the policy of banning Bikes on the main express route was passed, but I think the enforcement wasn’t that strict as it is now.

I think a proper immunity agreement should be have been stricken with the current government on how they can enjoy government support for a certain number of years before any policy that can sabotage their operation can 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 need to have focus, not even only in business, in even general day-to-day living.

O’Pay doesn’t have a focus, I’m not sorry to say mehn! Well, Expansion is very good, but over-expansion kills faster.

A chosen niche helps you to focus your best effort on one area of specialization rather than everywhere. It also helps you stand out from the multitude.

You just started a business and within a year of operation, you’ve diversified to more than 5 hot industries in the country. No na! Stuff ain’t done like that.

You making money from Industry A and using to fight competitor supremacy battle in Industry B, why not use the money made in industry A to expand the business in A to a market controlling level.

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 think the main thing that killed OPay is the over-loudness of their brand achievements within a little time frame.

However, that was not really needed when they started doing it, but I think they just want to pepper their competitors then; Gokada and Max Ng.

Well, it helps them to some certain points, but look at the end result, they sabotage a whole booming bike-hailing industry, cause they can’t just take their achievements off the social media and make it 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’s now even a norm for these Whatsapp entrepreneurs to be posting their credit alert screenshot – Wait! What do you want to gain with that? I need to know.

So we can know you’re making sales? No, advertise why your own product or services stands out instead.

Take Away:- Publicizing your wins will entice more haters than Investors.

So Entrepreneurs