Post-Mortem Introspection
A year ago to the day I announced the end of my first entrepreneurial adventure: Benjago. The start-up allowed people who wanted to obtain their driver’s license to find patented monitors at a lower cost, thanks to a complete digitalisation of the registration and booking process. In other words, we were a kind of self-study 2.0.
It was important for me to take the time necessary to take a step back from the events. Time soothes pain and resentment but above all it allows us to have an objective perspective — strangely different from the one we may have in the heat of the action. While a year ago I wanted to blame the whole world for the demise of Benjago, Today I have a different view of events and I have learned to take full responsibility for what happened as, after all, I was the only one responsible for stopping the activity, I was the CEO of the company.
Without going into lengthy explanations, we “ceased all contact” — as it was subtly reported in the press — following an “amicable” arrangement with the traditional-style driving schools to put an end to legal problems that we could no longer afford to deal with.
In reality, to recriminate exclusively external actors would be counterproductive as it was two internal factors, which I am keen to share with aspiring start-ups, which undoubtedly accelerated (if not caused) the company’s demise.
The first, and most important factor, was my inability to share my enthusiasm with my team, and especially with my associates. Undoubtedly, we were on different levels where levels of enthusiasm were concerned. When things are going well, this is not critical, but from the first sign of problems, doubts began to surface, which I was unable to dispel. However, in a start-up, a team that is divided and also in doubt is condemned to die. I believe it is the CEO’s role to build a talented team around him or her, and their duty to share a vision that will inspire those around, even in the face of adversity. That being said, there is sometimes an incompatibility and what is worse — matters can become more complicated when these people become your friends. Many mistakes could have been avoided if I had had the courage to confront certain problems immediately rather than acceding to the political nature of working with people you do not want to upset.
The second mistake was my denial of profitability. Concerned about our struggle to make the driving license accessible to a greater number of people, I lost sight of one critical issue: cash flow. The maths is is childishly simple: revenue must be greater than expenditure (unless, of course, you have bottomless pockets and a very long-term strategy). Regrettably, my lack of rigour in managing expenses was to prove costly, despite periods of significant revenue generation. I learned the hard way that when times are good, put money aside for ‘contingences’ which, in my case, was a costly legal battle. While I believe Benjago’s case was ‘winnable’ there were insufficient funds in reserve to cover the costly litigation.
Finally, if I had to express any regret, it would probably be that I didn’t realize how lucky I was at that time to have been on such a formative adventure. I think that there is nothing more rewarding for any entrepreneur to see their idea, initially abstract, come to fruition. What I do know is that while fights can be hard to win and losing can be painful, nothing beats the excitement of trying to make a business successful!
