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What to Do When Your Startup is Running Out of Money



What to Do When Your Startup is Running Out of Money

By Damilola Faustino

Running a startup is one of the most fulfilling and yet hardest jobs you can have. It is great to feel like you have full control of your own destiny when you are building a business until you start to see some signs that your startup may be dying. A slower than anticipated sales cycle, an unforeseen competitor, investors that won’t bridge you, the list goes on and on. Here are the top five things you should do when your startup is running out of money.

Don’t panic

First, you should explore whether or not the underlying business issue can be fixed before you run out of money. This could be an opportunity to evolve the business to be self-sustaining or attract more interest. Assuming you did this and came up empty handed, it’s easy to feel like the business is crashing. You only have a couple of weeks of runway left and employees depending on you. Do not panic. This will not help and can lead to irrational actions. You should look for solutions especially if you source your funds from other avenues beyond venture capital. In the grand scheme of things, you are already doing better than most of the population in getting your idea off the ground and into reality. You will survive this, even if the company does not.

Prioritize options

List out your options by creating a Google Doc, so you can share with others such as investors, business partners, and trusted advisors that may be able to help. At this point, you have two main options: a) raise money or b) be sold/merge. List out potentially interested parties and all of the reasons they may want to provide funding or buy/merge with your company, e.g. an exclusive contract offer, amazing technology, world-class talent. Ask others for their suggestions. Prioritize those that would be most likely to invest, buy, or where you have a close relationship.


Set up calls and meetings from your list of potentially interested parties. Be happy when someone says ‘No’ so you can move on to others that may be a ‘Yes.’ Keep updating your list and stay focused on the best outcomes. You may even be able to get two parties interested so they can bid against each other. If nothing is coming to fruition, think of ways to cut back so you can survive another day. This may mean laying off employees while you completely evolve the business model.

Stay level-headed

There will be good calls and bad calls and numerous ups and downs. Don’t get too excited by every positive indication. It’s not over until the deal is done and money is in the bank. It’s also not over until it’s over, so don’t be negative until it is the last second of operations. Be realistic but optimistic, and keep fighting.


There are so many investors and venture capitalists & funds out there. Some of them include Velocity Capital 120m Fintech Venture FundAlgebra Ventures and Endure Capital that both led an $800,000 investment in Egypt’s Brimore, and 500 Startups among others. Hopefully, you found a good investor, merged/acquired, or completely evolved to a business that can support itself or attract more attention. If not and the business died, do a post-mortem. Reflect on lessons learned. Share them so others can benefit and you can demonstrate to the world that you will carry your learnings into the next venture. You will always have another chance. You will thrive.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via


Africa, Election, Democracy: Great Candidate, Terrible President




By Nneka Okumazie

Across Africa, citizens are most disappointed in their governments. Governments are blamed for corruption, underdevelopment, poverty, debt, etc. Some of the nations with democracies often have elections where hope for change is built around a candidate or party, with lots of expectations for development.

But the mandate of any African leader is not development. The maximum and minimum role of any administration in Africa is to prevent internal conflict or, if it happens, to find a solution.

This is the same mandate that the rulers of communities in Africa, hundreds of years ago, had to prevent or stop internal conflicts, nothing more. Some of the kingdoms in Africa conquered others, while some were conquered, but those were external aggressions, not internal.

Development, advancement or adventures were not the main priorities as they seemed to be fine with getting by as they did. Those with skills in art, fishing, hunting, farming etc., worked on new tools or adopted things from neighbouring villages, but in general, the leadership and the people were fine with internal peace.

This is the same with current Africa, where internal peace is good enough for people to live. People often say African leaders are bad, but bad in what sense? There have been horrible leaders across Africa in the last few decades, but the percentage is low.

Most leaders of Africa would do just fine if they were leaders of countries in Europe. There are many things beyond any leader, regardless of will. Though a horrible leader could ruin things and a great leader could change things, for the most part, countries are governed primarily by their ideals, not the individual.

Aside from leaders, some also blame religion for Africa’s underdevelopment; how? What was religious penetration in Ancient Africa hundreds of years ago? How much did local religions factor into decisions? Did the people then have times dedicated to religious festivals and meetings or consultations? What confidence or comfort did religion, then, provide against what should have brought some advancement?

Whatever religion is in Africa, known or unknown, in recent years has to be traced back to whatever religion was hundreds of years ago and its role in the communities.

No president, election or political system can develop any country in Africa. Africa is not developed because development is not the focus there. People live as they want, get things they want not concerned about their collective home or people. The way many try to care is to parrot that government is the problem, or religion or a certain tribe, or foreigners or whatever feels good for others to hear.

Africa is exactly where the people there want it to be.

[Job 8:12, Whilst it is yet in his greenness, and not cut down, it withereth before any other herb.]

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Is Loan Financing The Best For Startups?



Loan financing

By Otori Emmanuel

In setting up a business, various forms of resources are necessary to make the idea a successful one. Businesses require money, time, and human capital for growth. Unlike an established business with traction, startups are like the way they sound – starting from scratch. This business process requires financing from different sources, both internal and external, to get it started. Internal financing includes support from family and friends, personal savings, and other informal giving, whereas external financing can come from crowdfunding, angel investors, startup incubator, venture capitalists, grants and donations.

There are two forms of financing a startup; equity financing and debt financing. Equity financing is a form of financing where investors support the business by buying shares in the business. Capital raised by equity is not repayable because investors purchased a portion of ownership in the business. Equity financing is usually sourced from crowdfunding, venture capitalists, angel investors and the stock market.

Debt financing entails borrowing money and then repaying it over time with interest, and getting a loan is the most typical way to finance debt. Other ways include selling bills, bonds etc. A loan is any financial arrangement in which one or more individuals, companies, or other entities lend money to another individual, company, or other entity. The recipient incurs a debt and is often responsible for both paying interests on the debt until it is repaid as well as the principal amount borrowed. Equity financing may be less risky than debt financing because there is no loan to repay or collateral at stake. Debt also calls for recurring payments, which might hinder a startup’s cash flow and ability to expand.

Startup business loans are any loan used to start a new firm; they are not a particular kind of loan. Funding for companies that have already begun operations but are still in the very beginning stages might also be included in startup loans. Loan financing is one option that can be beneficial for some companies, but it is not appropriate for every business. Bank loans are not usually considered in startup financing as an option due to low or no credit history and collateral to hedge for the startup business. However, there are other types of loan financing to support startups. These loans include a business line of credit, online term loans and other microloans.


  1. Capital – Obtaining loans is a smart approach to get the money needed for the starting and ongoing costs of running the firm. If an entrepreneur is just starting out and doesn’t have enough money, loan financing is a viable choice.
  2. Credit score of startup – Business credit is an advantage to a business if it can fulfil its loan obligation as a startup. Having a good credit history can make way for future financing.
  3. Ownership and control – Loan financing is a technique to keep control of the business since not every business owner would want to sell their idea to a venture capitalist or angel investor. Shareholders are given control of a corporation through equity funding, and they make management decisions. As investors must have a role in how the business is run, this can easily lead to the business departing from the original objectives the owner had in mind.
  4. Choice of funds utilization – Unlike equity financing, a startup entrepreneur can choose how to spend money raised for the company at a pace that would ensure its survival.


  1. No collateral – Banks are cautious about providing loans for young businesses because of a variety of factors, such as a startup’s lack of collateral and experience managing finances. Those with substantial management experience rarely get the chance too.
  2. Interest repayment – Interest rates and repayment penalties that are part of the loan terms are very costly for a startup. Furthermore, because these payments are stretched out over a lengthy time, it will take longer for the business to stabilize, which has an impact on the startup’s financial records.
  3. Assets are at risk because the business runs the risk of turning over its possessions to the bank in the event of a payment default.

All things considered, startups have access to a variety of funding sources, albeit occasionally, it varies depending on the stage of the business. For efficient decision-making, it is also crucial to consider the pros and cons of loans against equity in light of corporate objectives.

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How Much Is House Rent In Abuja? Everything You Need To Know



House Rent In Abuja

Are you thinking of relocating to Abuja? Then you should know the answer to the question, how much is house rent in Abuja? read this article to find out.


Renting a house in Abuja can be tricky, and with the high cost of living, many potential tenants are left wondering how much is house rent in Abuja.

The answer to this question is not straightforward and depends on various factors, including the area you are looking to rent and the type of property you are interested in.

If you are looking for a place to rent in the city and don’t know where to start, don’t worry. We’ve given you an overview of the average house rent in Abuja and provided useful information on renting a house. So if you’re ready to get started, read on to find out more about house rent in Abuja!

A Summary Of The Housing Cost In Abuja

People looking to make Abuja their home can choose from an extensive selection of rental houses.

The average cost of a rental house in Abuja can be as high as ₦2,500,000, making it a city only accessible to the affluent.

Nevertheless, those on a tight budget may also find options, with the least expensive rental house costing only ₦20,000.

On the contrary, those seeking luxury and exclusivity can find rentals with an unbelievable price tag of up to ₦50,000,000.

Therefore, regardless of one’s budget, Abuja’s rental market has something to offer everyone.

The following image from Numbeo illustrates the cost of renting a house in Abuja. Below is a pictorial representation of house rent expenditure in Abuja by Numbeo.

While living in the city, most of your resources will go to the rent then, followed by markets which mean various foods and edibles you buy for sustenance, as shown below.

A Summary Of Cost Of Living in Abuja

A family of four in Abuja would need an estimated N920,316.0 each month on essentials such as food, transport, and healthcare, not including the rent.

For an individual, the projected monthly expenses are N251,978.9 without the rent. So, you can imagine when you add rental costs in each case, the value and expenses skyrocket.

Food in Abuja tends to be more expensive than in other parts of the nation, with basic groceries costing more.

Going out for dinner can be costly as well, with prices for a meal at a budget restaurant around N1,500. This is why it would be nice to prepare meals and eat from home if you are on a budget.

Transportation expenses can also amount to a lot, with fuel prices being relatively high and public transportation not being widely available.

Regular monthly expenses on transportation can be as much as N15,000. Medical care in Abuja is also higher, with private healthcare being the norm.

It is critical for ex-pats and travellers to have adequate insurance coverage to pay for any medical expenses.

Despite the high expenses, the city offers many advantages and activities for its inhabitants.

However, it is important for individuals and families to carefully consider their budget and expenses before deciding to live in Abuja.

Types of Housing You Can Rent In Abuja

With the city’s diverse population, many housing options are available, from high-end apartments to affordable single-family homes.

Explore the different housing types available in Abuja, and you will find the perfect place to call home!


A bungalow is a single-story house that typically features a simple design and a small footprint. These houses are popular in Abuja for their affordability and ease of maintenance.


An apartment building is a multi-unit residential building with multiple separate homes stacked on top and next to each other, each unit acting as its dwelling.

They offer less privacy than other housing types but have access to shared common areas like green spaces and rooftops.

They are becoming increasingly popular in Nigeria due to the population becoming more urban and the cost-effectiveness of building vertically.


Penthouses are spacious luxury units on the top floor of a building. They are great for singles, couples, and families with kids.

One thing that makes penthouses desirable is the unique view of the surrounding city they offer. They are often located near luxury shopping, dining, and entertainment areas.

Semi-detached houses

Semi-detached houses are single-family homes that share one wall with the neighbouring house, differentiating them from detached houses with no shared walls and terraced houses which share walls on both sides.

They can be single or multi-story, and building costs are typically lower than a fully detached house, offering more space for the same or less money. Some modern designs in Abuja are very pleasing.

Detached houses

Detached houses are popular in Nigeria, particularly in the affluent areas of major cities like Lagos, Abuja, and Kano.

They are affiliated with the wealthy and feature great architecture, luxurious amenities, and privacy. Often you will find detached houses with private gates leading to a private compound, making them ideal for people who value privacy and have larger families.


A mansion is a large, luxurious house with impressive architecture. Owning a mansion speaks a lot about you and your family; one thing that always comes out is that you are wealthy and well-established.

Mansions have many rooms and large grounds and may include features such as a swimming pool, tennis court, and stables.

Terraced houses

A terraced house is a type of residential building that form a part of a row of identical houses, sharing walls with the adjacent houses.

Typically, such houses have a small outdoor area in the front and back. In many cases, terraced houses are found in medium-density areas in Abuja.


A duplex in Nigeria is a house that has two units on different floors, and each floor acts as a separate house for different tenants.

These houses are a popular choice for groups of friends who want to live together in terms of location but still be in separate spaces.

Factors Affecting House Rent Prices In Abuja

Renting a home in the city can be daunting, as the prices vary greatly depending on several factors.

To make an informed decision when searching for a place to rent, it’s important to understand the factors that affect house rent prices in Abuja.

By understanding these factors, you can better navigate the housing market and find a place that fits your budget and needs.


Properties in the city centre or popular neighbourhoods are more expensive than those outside the city.

And the reason for this is quite straightforward, the closer you are to town, the easier it is for you to access the many services offered in the city.

Size and amenities

The size and amenities of a house also play a significant role in determining its rent price. Larger houses with more bedrooms and bathrooms will be more expensive than smaller ones.

Properties with amenities such as a pool, garden, or garage will also command higher rent prices simply because of the value they offer.

Age of the property

Generally, you should expect newer properties to have higher prices than older properties because they may have more modern amenities and be in better condition.

However, older properties may have more character and charm, making them more desirable to some renters, especially the old-school type.

Additionally, the age of a property can also affect its maintenance costs, with older properties requiring more repairs and maintenance than newer properties. This can also impact the rent, with landlords charging higher rents to cover these costs.

Market conditions

The overall state of the housing market in an area determines the rental prices. During high demand, rent prices may increase, while rent prices may decrease during low demand. In other words, rent prices also abide by the law of demand and supply.


Security is very important, and many folks always want to know how safe they are before renting in an area.

Areas with lower crime rates and better overall security will always have higher rental prices, as they are considered more desirable places to live. Conversely, areas with higher crime rates often have lower rental prices.

Additionally, properties with better security features, such as gated communities or buildings with security personnel, will typically have higher rental prices than those without such features.

Remember that the highest form of insecurity in Abuja is robbery, followed by theft; areas with measures to prevent such are highly-priced.

House Rent prices In Abuja


The question of ‘how much is house rent in Abuja’ is important to those looking to move to the city.

The price of leasing a house in Abuja can differ significantly depending on multiple variables that were already discussed.

Exploring different rental properties and neighbourhoods is crucial before determining where to rent a house in Abuja.

Considering your requirements, budget, and lifestyle, you can constrict your alternatives and find the ideal home to rent at a cost that fits your budget.

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