Being Married to Bono Still Doesn’t Guarantee Success

At least on the business side...Jeremy Waite posted this article in his blog, "Sex,Brands & Rock ´n' roll"

I was delighted to read an interview this weekend about Ali Hewson and Bono’s ethical clothing company Edun, which is preparing to be ‘re-launched’ after a couple of years in the wilderness.  They launched the company in 2005 after a visit to a clothing collective in the African town of Lesotho and soon had the fashion world at their feet.  You’d expect nothing less would you?  Married to the most famous celebrity in the world and co-founder of Product (RED), how could it not work?  But the thing was, it didn’t…

Two years after it’s initial launch in Vogue, the company hadn’t made a profit and owed $3.6m in bank loans.  It also owed the 3 shareholders over $7.9m (Ali Hewson, Bono and Bono’s brother Norman).  Not that you think they’d be short of the cash, after all U2′s recent 360 Tour grossed over $311 from just 44 concerts.  Still, with all their contacts you’d expect a certain degree of instant success.  What was refreshing from the interview I read with Ali though was that she insisted that it was a very ambitious business model, and it didn’t expect to make any money during the first 5 years, despite their celebrity status.  Only hard work and determination was ever going to make it succeed.

But even as Edun was haemorrhaging money, they still continued to support it because they believed in it.  They’d been to Africa and seen the kind of difference that supporting the workers could make.  And despite consultants advising otherwise, giving 100% of wholesale profits to the actual people who made them seemed like a great idea.  Of course with all their money they couldafford to believe in it, but surely it’s proportional and all the lessons here are still the same?

I’ve spent over $79,000 trying to grow my own business so far – that’s 1% of the $7.9m that the Hewson’s have lost and no way are they only 100 times richer than me. Jeremy Waite

Famous brands face exactly the same kinds of problems that everyday entrepreneurs like me and you face, only with a few more 000′s on the end.  The point is, at what point do you choose to pull out of a business deal, no matter how much you believein it?

95% of entrepreneurs quit at this point, fearing failure and damage to their reputation.  Only 5% continue inspite of the odd’s, fighting for “The Dip” to start to go upwards until it reaches a tipping point.  For two years, Edun hardly traded at all, due to factory problems in Africa and having to part company with their New York designer Rogan Gregory, yet they still chose to chase the cause they were so passionate about.

I didn’t want my four children wearing clothes that they didn’t know where they came from.  Edun clothes are made with respect for the people who made them. Ali Hewson

In 2007 they chose to pour more money into the company until luxury goods conglomerate Louis Vuitton Moet Hennessy (LVMH) recently bought a 49% stake and ex-DKNY Chief Exec Janice Sullivan was hired.  What I think is beautiful about this story is that the Bono’s actually had more to lose reputation-wise than they had to gain.  Who know’s what a failed business may have done to Bono’s credibility in political circles, charity fundraising and with Product (RED)?

The Moral of the Story…

The key is knowing when to quit and when to fight.  When to decide that, no matter what, you’re NOT going to give up.  Everyone gets excited about an exciting new idea, but two years down the line when the going get’s tough, if your vision and belief isn’t strong enough then nothing will carry you through your dip.  If you are totally passionate about what you do and committed to a vision, then carry on at full speed – ignoring ALL criticism.  Your day with come and your brand will shine, because every good idea has its day eventually.  xx

Way to go Mr and Mrs Hewson!!! Don´t give up and May EDUN and its goal live for a long, long time!!




source:http://jeremywaite.wordpress.com/