I Copied Someone's Business Idea and Lost Ksh400,000. Here's What I Learned 

In early 2023, a friend of mine started a wines and spirits shop. I remember him sharing updates about how well his business was doing after just three months—he was profiting over Ksh70,000 monthly after expenses. 

I was genuinely happy for him, but there was also a part of me that felt a pang of envy. I wish for my own successful business. 

Around the same time, I had lost my job. I spent months applying for positions, going through endless interviews, and hearing nothing but silence or rejections. 

The stress of job-hunting was exhausting, and as time went by, my emergency fund began to shrink. I had enough money to sustain me for two more months, but after that, I would be forced to dip into my savings.

I wasn’t ready to do that. I kept thinking about how my friend’s business had taken off so quickly, and I began to see it as a way out of my financial predicament. "If he can do it, why can’t I?" I thought. I figured that I could replicate his success and avoid burning through my savings in the process.

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Starting My First Business

I had never started a business before. I was a novice, but the thought of being my own boss and making money on my terms was appealing. 

So, I started asking around and looking for business ideas. Friends suggested everything from starting a general shop and driving for Uber to getting into the mtumba business. But none of these ideas piqued my interest like the wines and spirits business did. I saw my friend’s success firsthand, and it made me believe that this was the right choice.

After making up my mind, I hurriedly found a shop in South C, a busy estate where I thought there would be plenty of foot traffic. Within a month, I had already secured the location, and I was in business. 

The total investment was Ksh500,000—most of it went into the initial stock, which cost Ksh300,000. I spent Ksh100,000 on branding the shop and Ksh90,000 on a three-month security deposit for the shop.

I remember standing in my shop on opening day, looking around and feeling a sense of pride. I was confident that with time and effort, I could replicate my friend’s success. 

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The Slow Start and the Competition

But things didn’t go as I had planned.

In the first three months, I was barely breaking even. I kept telling myself that it was normal for a new business to take some time to find its footing. 

I focused on small wins, like getting regular customers and trying to build relationships with them. Yet, deep down, I was worried. The expenses were mounting, and the profits were nowhere near what I had hoped.

Then came the fourth month, and things took a turn for the worse. A new wines and spirits shop opened directly opposite mine. It was bigger, better stocked, and to make matters worse, they were selling at wholesale prices. I felt blindsided. 

How was I supposed to compete with that? My sales, which were already low, plummeted further.

The Downward Spiral

I had exhausted my emergency funds and was relying on the business to cover both its expenses and my household's, which totaled to Ksh55,000 monthly. I felt the pressure mounting.

My first idea was to relocate to escape the competition. However, the landlord refused to refund my three-month security deposit, citing my lease terms which required me to give a three-month notice before exiting the premises.

Over the next three months, sales dropped further, forcing me to dip into business revenue to cover personal expenses. At the end, my stock value shrank from Ksh300,000 to Ksh120,000, and the branding and displays I had invested in were worth just Ksh50,000. 

Relocating wasn’t feasible anymore due to the costs involved. My remaining option was to sell the business and recover whatever I could. After weeks of searching, the best offer I received was Ksh100,000, far less than the business’s worth of Ksh170,000. With time running out, I accepted the offer.

From an initial investment of Ksh500,000, I walked away with just Ksh100,000—losing Ksh400,000. 

The loss was painful, but it forced me to confront the mistakes I had made. In hindsight, I realised that my failure stemmed from my weakness including the fear of missing out and failure to conduct market research.

Looking back, I have learnt the importance of planning and strategy and conducting market research. On top of that I now know that copying someone else’s idea without adding any originality or tailoring it to one’s situation is a recipe for disaster.

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WRAPPING UP

Copying someone else’s business idea cost me Ksh400,000, but it gave me something far more valuable—experience and wisdom. 

After the collapse of my first venture, I was fortunate to secure a 9-5 job two months later, which has helped me rebuild financially. However, I haven’t given up on my dream of owning a business. 

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When I’m ready to try entrepreneurship again, I’ll approach it differently. I’ll have a solid plan, choose a business I’m passionate about, take time to understand the market, and apply the lessons I’ve learned as a former business owner. My past mistakes won’t define me—they’ll guide me.

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