Are tech startup breaking even with nigeria recession on the rise

i have been wondering and and having a mini chat with my friend that intends to launch is idea but the question is , is this moment the right time? i believe in a recession if you are not sloving pain then its a waste of time.

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I doubt if any startup ‘sloving pain’ ever made a sale. #messingwithyou

Some startups are born out of the notion of a recession. Cheaper place to get X or Y, cheaper way to do Y or Z. So it depends on what you’re trying to launch.

Mincing the words of a popular lady; ‘when they go into recess, we go leaner’

You should also read: Eric Reiss - Leaner startup.

Not yet out, though. :smiling_imp:

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Indigenous startups or businesses will always break even… The only businesses that won’t break even are the ones that rely on forex or imported products/services…

That’s why Nigeria has to create indigenous versions of any foreign business instead of allowing the foreign business to create branches in Nigeria…

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@Godmode hit the nail… Startups that depend on direct or indirect imports to run will hardly break even. If your materials and labour can be fulfilled using indigenous resources, you certainly needn’t worry about not breaking even.

Ermm…Sorry to say but do you guys understand what it is to Break Even?

The break-even point is achieved when the generated profits match the total costs accumulated till the date of profit generation. Establishing the break-even point helps businesses in setting plans for the levels of production which it needs to maintain be profitable.

Meaning that Companies with or without recession may take less to break even or more depending on the products or service and market they play in. Just because Fx fluctuates doesnt stop firms from making profits or importation from happening, life goes on.

Tech Startups are by instance like any other business but use tech as an Enabler and a distribution channel, so basically they would look at CAPEX, OPEX over Revenue and see if theres a balance or Ratio is 1:1, it can take some 15 years while some 1 year.

Lets take a look at US Tech Giant Amazon, upon billions of dollars in Revenue yearly it had , it broke even 7 years later in 2002 from launch in 1995 and reports losses currently making it cash negative yet investors are pouring money, Bezos has said it would be cash positive in 2020 thats another 4 years from today an 18 year timeline from 2002!!!, so i mean if a Tech giant of that size can or couldnt have broken Even even with a well educated and buying populace and a matured market how do you expect any of the current guys to have done so? at most you get Cash positive firms who are yet to break even…Even non-traditional companies dont break even till like 3-5 years.

So recession isnt making them not break even, Operational diligence is! to answer your question.