Why I Closed a Successful Business to Start Over
Posted on December 15, 2020 | Written by Cheptiony Mutai | Category: Entrepreneurship
In 2020, I was running two registered video production businesses: **Trendline Network Ltd** and **Techtube Video Studio**. While both were profitable, they served different markets—Trendline focused on **local corporate videography and photography**, while Techtube served a **global online audience** specializing in niche services like screencast video, motion graphics, and 2D animations.
The global shift during the Covid-19 lockdown forced me to re-evaluate how I allocated my time and resources. I realized I could consolidate my efforts and serve my clients more effectively by focusing on a single, scalable entity. The decision to close Trendline Network was difficult, but ultimately guided by a clear set of business principles and personal goals:
1. The 80/20 Principle: Focus on Core Revenue
I applied the Pareto Principle (the 80/20 rule) to my revenue streams. The analysis was clear: **Techtube Video Studio was generating 80% of the overall company revenue**, despite Trendline being the older, more established brand locally. The sensible business move was to concentrate all my energy and resources on the 80% market, where the returns were highest and the potential for AI-driven scaling was immense.
2. Eliminating Overhead and Operational Costs
Running a traditional video production business like Trendline in Kenya required significant overhead:
- Mandatory **physical office space** to obtain a city council business permit, a requirement for local corporate clients.
- High operational costs including **tender document preparation, accounting and audit fees, tax filing, and office rent.**
- These expenses were consuming a disproportionate amount of the income Trendline generated.
By closing the physical location and focusing on the online-only **Techtube Video Studio**, I drastically cut these expenses. The global nature of Techtube meant a physical business permit was not mandatory, allowing for a lean, efficient remote operation.
3. Embracing the Future of Work and Technology
I recognized that the world of technology was rapidly changing. Techtube's specialization in **screencast, explainer videos, and 2D animation** served a less saturated, higher-paying global market. This niche also required less technical manpower on the ground (unlike local corporate videography).
Techtube allowed me to:**
- Hire talented freelancers remotely, anywhere in the world.
- Integrate **AI services** into our production workflow for efficiency and scaling.
4. Alignment with Personal Freedom and Happiness
Ultimately, this strategic decision was about **focus** and **freedom**. Operating one, highly optimized company allows me to dedicate my full attention to innovation and growth, rather than being constantly distracted by the logistical and bureaucratic burdens of two entities.
My overarching goal has always been to set myself free to do what I love. Closing the traditional business allowed me to shed unnecessary complexity and align my professional life perfectly with my pursuit of being **free and happy**.
If you're an entrepreneur wrestling with similar decisions—scaling or pivoting—I encourage you to look at where your energy and passion align with your maximum revenue. It might be time to close the door on yesterday's success to fund tomorrow's fortune.