NHS Doctor and Entrepreneur Kola Tytler is currently studying a Masters in Business Administration at the University of Birmingham and we caught up with Kola to find out more about the inspiration behind his Milan based business dropout®.
Kola: Launched in 2018, dropout
is an Italy-based business specialized in the sale of authentic limited edition sneakers and streetwear.
After fulfilling my dream
of buying a pair of Jordans (at around age 20), I started learning about the
underground sneaker resale market, to then self-teach to code and wrote a
sneaker bot (2015).
I shortly afterwards met Yiannis (who had launched YEEZY
Mafia, a news outlet about sneakers by Kanye West) and Stefano (my right hand
man, who later launched Outpump).
With Stefano, I later created a software
to collect data and run statistical analysis to determine patterns in price
changes. HypeAnalyzer was born. We used the growing dataset to create
predictive pricing models and a scoring system which would allow products to be
comparable. I then used the tool to invest in sneakers, eventually cashing out
to finance the biggest share of dropout®.
dropout® pricing and marketing are still largely dictated by HypeAnalyzer
algorithms. Output of these include data for pricing, consignment rates
(dynamic and affected by things such as volatility and demand, objectively
calculated) and discounts. This model, simple yet efficient, can be scaled and
reproduced for many other things retail and e-commerce. HypeAnalyzer is covered
by commercial patent in Italy (SIAE, D000014993) and dropout® is trademarked at
continental level.
After yet another failed exam, in 2018 I was diagnosed with dyslexia and dyspraxia. I later
on took two monitored IQ tests that got me a Mensa membership (scoring top 1%
in the population in both the Cattell II and the Culture fair tests, indicating
an IQ of >155 and >132, depending on the scale used). I remain a Mensa
member to this date (membership number 962112, UK Mensa).
I was still in uni when I decided to bring to Italy the ultimate sneaker
shopping experience, where prices, consignment rates and sales were objectively
dictated by an analysis software. My frustration with my studies at the time led to the
business being called “dropout”, also a shoutout to Kanye’s “College Dropout”.
The best thing about
running my own business is that reward is unimaginable: seeing your idea grow
and becoming a viable business is one of the best feeling I experienced (and
still feel!). Overcoming challenges allows to grow as persons and give a more
positive outlook to life in general.
The most challenging aspect of starting a business is still the relative uncertainty of outcomes when
you are dependant on factors outside your control. I am a bit of a
control-freak and I always like to be kept in the loop about most things
relating to dropout, however this is not always possible and the team does an
amazing job with or without my presence. External factors occasionally affect
the market in which we operate (e.g reduction in tourism due to COVID resulting
in a significant hit for the whole Milanese luxury economy) can be very
frustrating to deal with and accept.
I think something I did not
quite realize at the start was the importance of being very patient: I used to
be very inpatient and focused on immediate results and short term goals.
As I
have grown and now dealt with more and more people in the fashion and other
industries I have come to the conclusion that building something lasting most
likely takes time.
Whilst I am sure it is possible to create and generate
overnight successes, I now equate creating a business to building a house
rather than playing the lottery: while you may buy a single ticket, win and
become instantly rich, the chances of this happening are so small that I would
never recommend counting on it. On the other hand, building a house requires
planning, choice of materials and finishes as well as of course strong
fundamentals and several specialists input. One should expect this to take time
and appreciate that things may be slow and occasionally corrective measures may
be required. Even though it took just some months for dropout to get national
recognition and wide exposure, the work behind the concept and the operations
dates back years.
My biggest takeaway is that
planning and trying to have some sort of strategy or at least a plan of action
is very important and what is most likely to determine if a venture is going to
be a one hit wonder or something that will stick in people's mind. I would say
that ensuring that the focus is not 100% on the short term but also on the
bigger picture is a the obvious key to confidently running a profitable
business.
Kola Tytler has featured in multiple articles including Business Insider and Forbes and you can find out more about his entrepreneurial journey on the website: https://kolatytler.com/.
Start-up support is available for University of Birmingham students, graduates and the community. Visit the B-Enterprising website for the latest opportunities.
A new start-up programme is coming to Birmingham in February. Develop your own idea at Let's get this Start-Up started from 16 February 2022.
With thanks to Kola Tytler, Founder of dropout®
Posted by Bob Lee (University of Birmingham)
