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My Worst Day

A Mistake That Cost A Million A Month

It was a bullet-pocked and bloody road to life as an entrepreneur. Millionaire Cosmas Maduka suffered through grief, poverty and loss; around the corner lurked his worst day that would lose him nearly a million dollars a month.

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Cosmas Maduka is a man who knows a thing or two about overcoming adversity.

By the age of six, Maduka had survived bombs and bullets. It was in the dark depths of that civil war over the failed secession of Biafra – a civil war that saw 30,000 dead and more than a million refugees. His home state of Anambra was right in the thick of it; it was the base for relief flights to the beleaguered Biafran population. This drew airstrikes by Nigerian warplanes.

“We had a bunker outside our house which we ran into during times where the military opened fire and dropped bombs with their fighter jets. We did not know whether we were going to survive to see the following day,” says Maduka.

One day, as the young Maduka walked to the market, soldiers opened fire, killing scores of civilians. Again, Maduka was lucky to escape with his life. Soon afterwards his mother sent him away to safety to live with his grandparents.

In these tough early years, Maduka had no idea who his father was until the day he was led to his funeral.

“The best I knew of my father was the day I saw a man lying lifelessly in a suit… It was like a festival, people were exceptionally kind to me that day and whatever I asked for, I got,” he says.

The sad celebrations faded into struggle and grinding poverty. Maduka became a street hawker to provide for his family. Every morning, at 5AM, Maduka would wake up to sell bean cakes on the streets with his older brother, Pius, to feed his family.

In a small step up from street life, Maduka began life as a lowly apprentice in his uncle’s motorcycle business. It was a sour first taste of the motor industry that was to make his millions decades later.

The motorcycle workshop job was poorly paid and after seven years of service his uncle fired him – the severance package was less than $400. In these difficult times, Maduka hugged to his heart two guiding principles.

“Firstly, no matter how careful you are things are always going to happen that you never anticipated. The second lesson is don’t ever take a risk you cannot discount.”

Both principles were the rich harvest of a bitter and expensive worst day that will forever haunt Maduka.

“Sometime in 2011, I was sitting in the office and my phone rang, it was a kid brother from my state who was in the oil business who said he wanted me to assist him. He had some difficulties in raising money for a project. I tried to talk to him and counsel him and at the end of the day he convinced me to come and see what he was doing,” says Maduka.

“I went with my wife and I was fascinated looking at how far he had built his business. He was looking for a line of credit. I was sitting in two publicly quoted banks owning about 70 percent equity in one of them. I tried to get the bank to support him but they refused, so I said I would guarantee the transaction. I told the bank to put the credit under my name and I parted with over $300 million.”

The approach came from Ifeanyi Ubah, the CEO of Capital Oil and gas, for a loan to import petroleum premium spirit. Maduka took a calculated risk.

“We did things systematically. The first consignment came and within 45 days we cleared the shipment. We did it for the second one too and that went well but I didn’t know he was goading me. Before December 2011, he came with six documents saying if I did this for him he would be eternally grateful. We had done several transactions and they were all successful, timely and he paid at the correct time so I had no issues.”

Maduka opened a line of credit to guarantee the loan for Ubah to secure his goods for the six consignments but, to his horror, the goods never arrived in Nigeria.

“The guy went abroad and connived with the shipping company and sold the vessel offshore. Every month interest of N300 million ($972,000) was dropping into my account,” says Maduka.

He was left liable and had to sell his entire stake in one of the financial institutions, where he was a director and had a controlling share, to pay off that debt.

“My franchise was threatened because this was not something we planned for. That is why when we talk about success, you can never be complacent and say that you have arrived because there are always obstacles you meet along the way. An entrepreneur must continue to reinvest into his business and keep reserve capital because there are shocks that you are going to meet that you never anticipated,” he says.

Today, Maduka is the President and Chairman of Coscharis Group, franchise holders of over eight luxury automobile brands and one of the largest distributors of spare car parts in Nigeria. The company also has interests in real estate, banking, technology, medical equipment, petrochemicals, elevators and agriculture. He stresses the importance of trust and loyalty to his 300 staff. Clearly, he doesn’t want them to suffer as he did in the motorcycle repair shop a lifetime ago.

The lessons from his worst day also led to a wiser, more cautious Maduka whose mantra today is never take anyone at face value.

My Worst Day

My Worst Day with Ghana’s Waste Management Mogul

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Joseph Siaw Agyepong

Ghana’s waste management mogul, Joseph Siaw Agyapong has built one of the most innovative enterprises in the country providing employment for over 250,000 employees in Ghana.

Everything was going well until an accounting error led to the worst day in his business life.

Watch the full interview with Forbes Africa’s Peace Hyde

READ MORE: A Dirty Job That Made A Poor Man Filthy Rich

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My Worst Day

My Worst Day With Atedo Peterside, Founder Of Stanbic IBTC

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Atedo Peterside is one of the most respected bankers in Nigeria.

At 33 he built a billion dollar business and became founder of Stanbic IBTC Bank Plc.

But it has not all been smooth sailing.

Just at the apex of his success, his organisation was hit with a scandal that threatened to not only upend his impeccable reputation but that of the bank he had spent his whole life building.

Catch this exciting episode in an all new season of My Worst Day with Peace Hyde.

READ MORE: Why Entrepreneurs Fail

Watch the full video below.

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My Worst Day

Burned But Not Broken; The Tale Of Fiery fashion

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Don’t be fooled by his infectious smile and designer clothes; beneath his tough exterior is a layered story of depression and despair.

On a rainy autumn morning in Johannesburg in March, we meet Adrian Furstenburg in the small affluent suburb of Parkhurst.

Ironically, he is dressed in black – a symbol of grief – to recount the day when his design studio, including stock and equipment worth R70,000 ($5,800), burned and was razed to the ground.

“The damage was so painfully clear in the bright, winter morning light,” says Furstenburg.

To get to this story, it is important to start from the beginning.

Furstenburg was only four years old when he first said he wanted to become a fashion designer.

“I was at my granny’s house and we were watching a fashion show on television, and as we were watching, that is when I decided that this was what I wanted to do with my life,” says Furstenburg.

However, his father, a farmer, had, other plans – he wanted him to pursue law.

Somehow, Furstenburg found a way to persuade his father to allow him to enter a career not so distant from the fashion industry.

“It was the early 2000s and it was pretty cool to study graphic designing, so he said ‘that’s okay, I will pay for you to study graphic designing’,” he says.

In his last year at college, he specialized in textile design, which led to him crafting a career as a handbag designer.

“I think that is one of the wisest decisions that I have ever made, there are definitely no regrets,” says Furstenburg today.

As part of a college assignment, he was required to do a practical project.

“I weaved this beautiful piece of fabric and then I actually made a handbag. This project is where my passion for handbags started,” he says.

After he graduated, he started freelancing as a designer and stylist, set on his journey of one day being a fashion mogul selling swanky handbags.

But his worst day was lurking around the corner, ready to throw him into a state of melancholy.

It was June 6, 2012.

“The day isn’t etched into my memory. I recall it from a much deeper, more visceral part than that,” he says.

He and his business partner at the time, Nkululeko Msibi, of 2souls clothing, had recently set up a small studio just off Gandhi Square in central Johannesburg, where they produced every kind of clothing and accessory to keep their bank balances and ambitions afloat.

“We landed one of our biggest projects producing costumes for a major dance production. We spent hours planning, designing, sourcing, selecting, sewing, stitching. Their budget was strict and the schedule was even tighter with virtually no room for error,” says Furstenburg.

But a disaster that would discredit him and Msibi was about to blaze through their studio.

READ MORE: They Can Burn My Face, But They Can’t Burn My Voice

Furstenburg was picking up materials from a supplier before heading to the studio that Wednesday morning when he received a frantic phone call from Msibi.

“Fire was really the only word I got from the conversation,” says Furstenburg.

He describes how surreal everything felt in the bright, winter morning light when he arrived at the studio.

“The thick smell of smoke hung throughout the building. Inside the studio, sooty black licks ran up the walls where the fire had devoured our machines, stock and the rails of costumes for the production,” says Furstenburg.

This was just three days before they had to deliver the costumes to their client. They were also not business savvy-enough at the time to have insurance.

“We sat sobbing on the ashy floor. The nausea swam in my stomach as the reality of the situation gained momentum in my head.”

“I called the client, trembling. The shouting started on the telephone and didn’t stop until they left our charcoal pile with a few pieces that had escaped the flames while stored in another studio,” Furstenburg recounts.

They were livid – understandably so.

“They were so outraged, because I was dealing with their dream as well. It was a costume production. They had a look of utter hatred and disgust on their faces,” he says.

They lost the clients.

“I spent two weeks in a blur of fear and guilt… Almost no one trusted us with their work and the landlord suspected that we were to blame for negligence,” says Furstenburg.

He went home, depressed for weeks, not knowing what his next move would be.

“I don’t have children but my business is my child. I have fought very hard for it. Seeing it die was the worst day of my life. I took about two weeks where I didn’t know if I was going to be able to do this anymore,” he says.

Fortunately, it was soon established that the fire was caused by old wiring. They salvaged what they could and Furstenburg decided to change his focus from production to styling – that is how he slowly managed to recover from what was his worst day.

He started from scratch, working on freelance projects making very little money.

“It was far from ideal and barely sustainable but somehow my resolve strengthened not to allow this incident to raze me permanently,” says Furstenburg.

The passion for designing handbags ignited within, in 2013, he equipped himself with business training at the Branson Centre of Entrepreneurship.

When he completed the three-month training, the center placed an order with him for 70 small, original-design messenger bags to be given as gifts to guests at an event held during one of FORBES AFRICA cover stars Richard Branson’s visit to South Africa.

“It could be said that someone else spotted what I had to offer before I had known exactly, and acting perhaps more in response to a veiled instruction than personal confidence at the time, I started making bags,” he says.

“Amusingly, whatever I might have lacked in self-belief was effectively offset by a desire to wow anyone and everyone and so I almost simultaneously entered the Independent Handbag Designer Awards of that year [in New York],” says Furstenburg.

It took four years of applications before he was accepted in 2016 into the All About the Logo by Guess Handbags category. He was the first South African applicant accepted – and the first to win. This opened doors for him locally and internationally.

READ MORE: From Football To Fashion

Furstenburg is currently working on a procurement deal with an international airline. If successful, it will be the golden game changer that takes his business to the goal of netting an annual profit of $1 million by 2019.

Six years after his worst day, Furstenburg is not without challenges. But he is continuously taking it one step at a time, ensuring that the fire he has for designing world-class handbags never burns out.

“I must admit that I get a little breathless reflecting on the trajectory that the business has followed in the last 15 months, not least because of the risks we’ve survived and the gratitude I feel to those who’ve guided and supported me,” he says.

Adrian Furstenburg. Photo by Motlabana Monnakgotla.

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