BusinessDay
NigeriaDecides2023

Adequate finance is critical for start-ups survival — DFET founder

Jacob Onyobi, the founder and CEO De-Future Elite Technology, has said that adequate finance is critical for start-ups survival.

Onyobi, whose business is an information technology company said that finance is the engine of any business.

According to him, the failure rate of startups within the first five years is higher than 50percent, owing to inadequate capital or lack of funds.

He noted data from the U.S. Bureau of Labor Statistics (BLS), saying, “20percent of new businesses fail during the first two years of being open, 45percent during the first five years, and 65pecent during the first 10 years.”

“Only 25percent of new businesses make it to 15 years or more,” this means it would take lots of resourcefulness and dynamism for entrepreneurs to keep their great business ideas afloat.

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He described business as the human anatomy made of many structures. “Your business is a system, like a living body, with flow and timing that has to work day in and day out. Having cash on hand for mundane and critical expenses keeps things moving forward, and it can also give the power to invest in business growth opportunities.”

He further said that a business owner is the head of the system, and its job is to keep the flow going without disruption.

“The product or services you are rendering to the public is considered as the heart of the system, because that is where the motivation in the first place to work comes from. All this cannot function without the blood in the system wherein the investors come,” he said.

He noted that cash flow is the blood line of any business – meaning that businesses can be ruined with inadequate capital.

He stated that successful startups are the ones that have sufficient capital to run their business operations.

In a closing statement, Onyobi further said that for startups, attracting investors is key, and some of the ways include – having a clear roadmap, a target of the right investors, and creating networks.

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