Producer and entrepreneur Eugene Mbugua has opened up about losing Ksh. 10 million after making a wrong investment as he tried to expand his bar franchise.
Talking about the whole ordeal on Singleton Stories with Biko Zulu, Mbugua revealed that while his famous Monrovia street club ‘Number 7’ has been one of his most lucrative investments, it also led to massive losses.
“From day one huge success um but also Number 7 also led me to the biggest loss that I’ve ever experienced to this day business-wise because we set this up and you know, you open a business and from day one people flock in and you start to think it’s you who’s done it.
After the success of the first Number 7 club, Mbugua and his partner looked to expand to Westlands, which at some point was the hub of Nairobi’s nightlife. His bet didn’t pan out like he hoped.
“There’s a quote which says success tricks smart people into thinking they can’t lose and that’s what happened so very quickly we went around getting a second space in Westlands, signed the lease, started the construction and then I flew off on holiday in Europe, came back when it was complete and we had a huge launch party and then nothing. Month one goes by and it was very clear it was it was not going to work. Month two goes by, month three goes by then I start pumping in my personal money because I still think I’m smart enough to turn the whole thing around eventually I did not. I kept digging the whole deeper and deeper, throwing good money after bad money, and then eventually, very humbling I had to shut it down,” he said.
The super producer saw his miscalculation for what it was, terming the error as a location error in which he didn’t do enough research into.
“The location was wrong, the setup was wrong, we were wrong about Westlands as a party destination, it was on its deathbed at the time. We lost money in the double-digit millions in a period of about six months,” he said.
We win some, and lose some, that’s life.