Lessons from Selling My First Business in Africa

Exciting News! 🎉
A few weeks ago I sold my first business, East African Fashion Collective.

Started as a lifestyle, events & fashion marketplace, it was acquired by a stealth Fintech startup building software for individuals & small businesses.

Introduction

What started as a small business of 3 people organising luxury fashion events 6 years ago is now an acquired business, with significant opportunity to grow and scale past our wildest dreams.

Selling your business is a dream come true for many entrepreneurs, including myself. This journey has been filled with invaluable lessons about the complexities of business acquisitions, especially in Africa.

When we started, our goal was to create a platform that would revolutionize the lifestyle, events, and fashion industry in Africa. We grew into a thriving business, attracting a loyal customer base and significant partnerships.

About the Business? Plus achievements.

Like most similar deals, the business details and assets are private and under NDA. What I am allowed to share is that we built a community of fashion businesses, some of whom became customers. We we’re fortunate to close some remarkable partnerships and built multiple sub brands for different audiences and partner segments.

Why Sell?

The decision to sell was both easy & difficult. Easy because the business was not very active. Difficult because it still needed “wrapping up”, ensuring it was clear what value the business offered to a new owner years later.

Lessons Learned

1. Default alive: The business has been inactive for over 5 years, with the brand being inactive for 3+ years. However, we never shut it down and just let it pickup dust, allowing an opportunity to exit.

2. Acquisitions Are Complex: One of the key lessons I learned is that businesses are both bought and sold. It’s not just about finding a buyer but also about ensuring that your business is ready for sale. This involves having clear financial records, a solid customer base, and a strong brand presence.

3. Emotional Aspects: Stepping away from a business you’ve built can be emotionally challenging. Luckily, this was fairly easy for us as the business had been “silent” for a while.

4. The African Context: Selling a business in Africa comes with its own set of challenges and opportunities. Mainly, how valuable is a business over time? Is it more or less valuable with more competition in some segments while less in others? Impact of the tax regime and an evolved economy were also considerations to be made.
   

Moving Forward

I’m filled with a sense of accomplishment and excitement for the future. The experiences and lessons learned from selling my first business will undoubtedly shape my future endeavors. For anyone considering selling their business, especially in Africa, my advice is to be prepared, stay resilient, and embrace the journey.

Thank you for being part of this incredible journey!