Drip’s Downfall: “I Warned Our Dear Brother Lekau Sehoana About Keeping Overheads Low, He Rejected My Advice”

by Ephraim Leboane

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As the once-celebrated sneaker brand Drip faces liquidation, a series of revelations have surfaced, shedding light on a conversation that took place three years ago between entrepreneur Makuni W. Ganya and Drip founder Lekau Sehoana. Ganya, having faced his own business challenges, had shared his concerns with Sehoana about the dangers of unchecked growth and rising overheads. However, Sehoana seemed confident in his trajectory and dismissed the advice. Now, with Drip’s collapse, Ganya’s words are coming back into focus.

Makuni W. Ganya had seen it all before. Speaking from experience, he cautioned Sehoana about keeping overheads low as Drip was beginning to take off. He referenced his own painful lessons from 2011 when his first business crumbled under similar circumstances. At the time, Sehoana was riding high on Drip’s early success and responded to Ganya’s concerns by saying, “Please don’t subject your mistakes and fears to me.” Confident in his decisions, he pushed back against Ganya’s well-intentioned warnings.

In hindsight, Ganya’s advice was clear: Sehoana was expanding too quickly. One specific instance involved the purchase of a fleet of brand-new vans, which Ganya believed was a risky move for a fledgling business. “I didn’t want him to repeat the mistakes I made,” Ganya reflected, now watching as Drip’s sudden closure unfolds.

Ganya’s reflections extend beyond the financial implications of Drip’s downfall. For many South Africans, a job isn’t just about individual survival; it’s about supporting entire families. In local communities, one working family member often provides for five to eight people. The closure of Drip doesn’t just mean job losses for those directly employed—it has a ripple effect across households, leaving more people vulnerable. “It’s sad to see such a promising venture closing down,” Ganya shared, highlighting the broader social impact of business failures like this one.

Drawing from his own hard-earned wisdom, Ganya laid out the lessons he tried to impart on Sehoana, hoping they might serve as guidance for others: keeping overheads low, don’t try to grow too quickly, understand the numbers in your business, minimize or avoid brick and mortar, list your product/brand with established retailers, and invest in assets and not liabilities.

First and foremost, he stressed the importance of understanding the financial health of a business. Making sales isn’t the same as making a profit, and it’s crucial to know the daily numbers needed to break even.

For entrepreneurs who struggle with financial management, Ganya urged them to seek help from professionals who can ensure they stay on track. Ganya also pointed out the risks of traditional brick-and-mortar models. High rent and operational costs can quickly sink a business.

In today’s digital age, there are smarter ways to grow. Online platforms like Amazon or Takealot offer vast opportunities to establish a brand without the heavy overheads of physical stores. Taking a business online allows for greater reach at a fraction of the cost.

In addition to moving online, Ganya recommended collaborating with established retailers. By listing products with well-known stores, businesses can tap into larger markets while saving on the expenses typically associated with running a standalone operation. It’s a more sustainable way to grow, without stretching resources too thin.


Drip’s story, from its meteoric rise to its sudden downfall, serves as a cautionary tale about the risks of rapid expansion. While Lekau Sehoana’s ambition and entrepreneurial spirit were admirable, the importance of sustainability in business cannot be overlooked. Makuni W. Ganya’s advice, once dismissed, now reads like a roadmap that might have helped Drip avoid its fate.

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