The recent liquidation of popular shoe brand Drip has sent shockwaves through the business community, leaving many to ponder what went wrong. Slindile Khanyile, founder of Likhanyile Media, has shared her insights on the importance of rigorous planning and investment in building a successful business.
In a Facebook post, Khanyile highlights the dangers of launching a business on assumptions, rather than solid market research. “We go into business with passion, interests, hope, and faith, but often without defining what we’re selling, our target customer, or the problem we’re solving,” she notes.
Khanyile emphasizes the importance of pricing correctly, managing costs, and breaking even, warning that failure to do so can lead to financial, mental, and emotional strain. She also acknowledges the value of investors who provide more than just financial support, but also strategic guidance and the freedom to experiment and learn from failures.
“Drip’s liquidation serves as a reminder that building a business from scratch requires patience, perseverance, and often, deep pockets,” Khanyile says. “As a country, we need to introspect why we’re always waiting for people to fail, rather than supporting them to succeed.”
Khanyile’s reflections come from personal experience, having navigated similar challenges with Likhanyile Media. She stresses the need for entrepreneurs to balance technical expertise with business acumen and to be willing to unlearn and adapt.
The Drip case study is likely to be closely examined by business analysts and entrepreneurs seeking to learn from the brand’s mistakes. As Khanyile concludes, “Building a business is difficult when you don’t come from money; you need investors with deep pockets and a willingness to support you for the long haul.”
Read the Facebook post here
