The entrepreneur behind Italian sneaker brand dropout® on life in a start-up: Kola Tytler (MA Business Administration)

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. 

dropout® has a shop location close to the heart of Milan and an e-commerce website accessible to a global customer base: dropoutmilano.com

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)