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Five alternatives to shutting down a struggling startup

By
Guest Writer
-
Martin Zwilling

By Martin Zwilling

If you are just plain tired of working so hard, or your startup is not getting the traction you expected, should you shut down cleanly, or just file for bankruptcy and walk away? For those who think that bankruptcy is the easy way out, think again. Bankruptcy should always be the absolutely last resort.

The “advantage” of filing for bankruptcy, of course, is that it gets creditors permanently off your back, with no continuing lawsuits, based on funds derived from selling all assets. You can hand the stressful job of liquidating assets and negotiating with creditors over to the court.

The disadvantages are many and long lasting. Your credit rating will be lost for six to ten years, and your business image will likely be permanently damaged. Once declared bankrupt, you as the business owner will likely always face problems opening new business accounts.

To add insult to injury, for a Chapter 7 filing, most courts charge a $245 case filing fee, a $75 miscellaneous administrative fee, and a $15 trustee surcharge, payable in advance (does anyone see the irony in charging for bankruptcy?).

There are many other negative implications to bankruptcy. These include the fact that some loans may not be forgiven, your bankruptcy records are open to public review, and any irregularities spotted later can lead to criminal charges.

The best alternative is always to get the business back on track, and sell it at a reasonable value, or do a normal closedown with full payout to vendors and investors. The next best alternative to avoid the stigma of bankruptcy (and the cost) is to privately negotiate partial business settlements with your creditors.

Making the business healthy may be easier than you think. Usually the top problem is pressing debt or cash flow, so here are five approaches to these problems you should try before giving up on the business and damaging your ability to start future ventures:

Get a short-term loan. Visit some banks for the best rate and repayment plan that will help your business weather the financial storm. Do not rush out and sign for the first loan that is offered to you, or give up after the first bank declines.

Sell assets to raise cash. Now is the time for a thorough inventory of all assets in your business. Chances are that you will find some items you can sell, or property to mortgage, to help alleviate your short-term cash flow problems.

Trim expenses down to the minimum. If you have employees on your payroll, enlist their help. Be honest with them — let them know you might be able to save their jobs, at a reduced salary, if they can help you trim expenses down to the bare minimum.

Find a friend or family-member investor. If they believe in you, there is always someone who will invest additional cash into your business to help you get back on your feet. You just have to find the right one. At this stage, honesty is the best policy.

Merge with another startup or small business. Every startup brings something unique to the table, so look for another business than can benefit from your contribution. Even if you can’t get the value now that you deserve, the combined ideas and assets could pay big dividends later, and save you the emotional and financial stigmas of failure.

As a rule of thumb, only after you have exhausted all these options, and you still calculate that it will take more than seven years to repay your debt, then you should consider bankruptcy. The question is which of the many U.S. bankruptcy filing types you should choose.

For business bankruptcy, there is really only one choice – Chapter 7 liquidation, with partial payments to creditors. Chapter 11 is for large businesses seeking to restructure their debt and continue operation, and Chapter 13 bankruptcy is only for individuals.

But the worst thing about bankruptcy is the emotional impact. It will hit you over the head like a death in the family, a major illness, or a natural disaster. For your own well-being, as well as your business image, I recommend you hand off a running business. It may look like more work, but you will keep your sanity, your integrity, and your will to come back strong.

The writer is a veteran startup mentor, executive, blogger, author, tech professional, professor, and investor. Published on Forbes, Entrepreneur, Inc, Huffington Post.

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Fufa to inspect and monitor coaches in Uganda

By
Our Reporter
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KCCA Asst. coach Morley_Byekwaso

The Federation of Uganda Football Associations (FUFA) has announced that they will start inspecting and monitoring all FUFA certified coaches.

The decision was taken during the 19th FUFA Executive committee which sat on the 14th February 2019.

“Over the past four years, FUFA has intensified technical education programs to ensure that coaches are empowered with modern methodologies in their area of operation.

“However, the FUFA Football Development Department observed that some of the coaches are not implementing the right coaching principles hence resulting in slow signs of gradual development of football on the field of play.

“The 19th FUFA Executive committee which sat on the 14th February 2019 passed the proposal from the FUFA Football Development Committee to conduct a coach inspection and monitoring exercise of all FUFA registered coaches during competition seasons.

“FUFA Coaches’ inspectors will reach out to clubs during training sessions and match days to implement this policy either on notice or without prior notice.” A statement from Fufa reads.

The FUFA Human Resource and Capacity Building Manager Jackson Nyiima said he is happy with the development.

“We shall coordinate with the coaches at the 16 Clubs in the StarTimes Uganda Premier League to get their specific days of training sessions so that we make the visits. We are hopeful this will make a change in our football” Nyiima told the fufa media.

The FUFA coaches’ inspectors are issued with FUFA identifications and will provide reports to the FUFA Football Development Department about coaches’ performance about the training sessions and matches played.

The four coaches’ instructors are; Mujib Kasule, Asuman Lubowa, Jackson Nyiima and Livingstone Kyambadde all the Level of CAF.

Uganda currently has 3509 coaches certified by FUFA from beginners to CAF A License.

Coaches Certified by FUFA/CAF

CAF A – 40 Coaches

CAF B – 64

CAF C – 46

FUFA Level One – 859

FUFA Beginners – 2500

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Manchester City face potential Champions League ban

By
Agencies
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Man City

Manchester City could be in line to face a ban from Champions League football after Uefa opened investigations for alleged financial fair play violations.

Uefa said the investigation “will focus on several alleged violations of FFP that were recently made public in various media outlets”.

German news magazine Der Spiegel has published a series of claims, based on leaked documents, that Premier League champions City have violated FFP rules.

City said: “The accusation of financial irregularities is entirely false.”

The club added: “Manchester City welcomes the opening of a formal Uefa investigation as an opportunity to bring to an end the speculation resulting from the illegal hacking and out of context publication of City emails.

“The club’s published accounts are full and complete and a matter of legal and regulatory record.”

Uefa previously found City had breached FFP rules in 2014.

The two parties reached a settlement, with City paying a £49m fine – £32m of which was suspended – while their Champions League squad was reduced for the 2014-15 season.

The Football Association is looking into claims City made a banned £200,000 payment to Jadon Sancho’s agent when the England winger was 14 years old.

That allegation was also made in documents published by Der Spiegel last month.

Uefa says it will make no further comment while the investigation is ongoing.

FFP rules are designed to ensure that the amount clubs spend on their players and wages is approximately equal to what they earn in commercial revenue and prize money.

In November, Der Spiegel alleged City had “deceived” European football’s governing body.

It claimed City and their sponsors manipulated contracts to wipe out a £9.9m shortfall in 2013 and circumvent FFP regulations.

After those claims, Uefa said it would reopen FFP investigations on a “on a case-by-case basis” if there is evidence of “abuse”.

In December, there were reports that City could be banned from European competition if Uefa found they had contravened FFP rules.

City manager Pep Guardiola subsequently said he had been assured by chairman Khaldoon al-Mubarak and chief executive Ferran Soriano that the club would not be banned.

However, in January, Uefa’s chief FFP investigator Yves Leterme said City could face a Champions League ban if the claims are proven.

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South Africa wins bid to host 2023 Netball World Cup

By
Agencies
-
South Africa announced that Netball World Cup will be hosted

The International Netball Federation (INF) has announced that South Africa will host the 16th staging of the Netball World Cup in 2023.

South Africa beat a rival bid from four-time world champions New Zealand to win the hosting rights.

The tournament will be held in the International Convention Centre in the heart of the iconic city of Cape Town, widely renowned for its international reputation in hosting sports and other major events.

This will be the first time the Netball World Cup is going to be held in Africa. The 16-team World Cup will be held over 10 days and will feature 60 matches.

INF President, the Hon. Molly Rhone, OJ, CD, said: “On behalf of the Board of the International Netball Federation, I am delighted to announce that Netball South Africa has been awarded the rights to host the 2023 Netball World Cup.

“We were delighted to receive two exceptional bids and the INF Board was satisfied that both Netball New Zealand and Netball South Africa would be capable of hosting a successful and thrilling NWC2023. The INF Board decided that the significant investment that the South African Government and Western Cape were prepared to make over the next four years in netball facilities and coaching programmes in South Africa, the African continent and beyond would deliver a greater impact on the development of global netball.

“It is an exciting time for netball right now. Our sport is growing in popularity at an unprecedented rate throughout the world. There is increasing competitiveness between the top nations and now three teams from Africa feature in the top 10 of the INF World Rankings. We look forward to working with the Organising Committee to bring the INF’s most important event to South Africa in 2023.”

The tournament is contested every four years. The 2015 World Cup was won by Australia in Sydney, while the 2019 tournament will be held in Liverpool in July.

In the 2019 Netball World Cup, Uganda She Cranes are in group D alongside England, Scotland and Samoa.

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Gen. Museveni to Gen. Kyaligonza: Seek for permission and be deployed in Somalia other than barking at women

By
Geoffery Serugo
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Maj. Gen. Matayo Kyaligonza assaulting the traffic officer.

President Yoweri Museveni has implored Major General (Rtd) Matayo Kyaligonza to seek for permission and be deployed in Somalia other than causing chaos and barking at women.

Museveni was responding to Seeta fracas where Sgt. Esther Namaganda, the traffic police officer was assaulted Major General (Rtd) Matayo Kyaligonza aides RA/221607 L/CPL Bushindiki Peter and RA/230927 Okurut John Robert.

Sgt Namaganda was trying to stop Gen Kyaligonza’s convoy that was making a U-turn at Seeta road junction on Kampala-Jinja Highway. She was confronted by Kyaligonza’s bodyguards, Cpl. Peter Bushindiki and John Robert Okurut.

“If you are angry and aggressive, you can ask for permission and we deploy you in Somalia where aggression is needed, but you don’t have to come here and bark at women and children,” he said at Speke Resort Munyonyo.

Speaking during the high level meeting of ministers in charge of refugees in great lakes region, Museveni said, good enough Gen. Kyaligonza is facing the law and it will take its course.

This is not the first incident where Maj. Gen. Kyaligonza has been involved in a fracas. In the 2001 general elections, he beat up Mr Amlan Tumusiime, a former news editor of Radio Hoima for airing a story he said did not favour him.

According UPDF Spokesperson Brig. Richard Karemire revealed the two UPDF officers who were involved in the fracas were arrested and are currently detained at Military police custody in Makindye.

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Injury rules Denis Iguma out of Afcon qualifier against Tanzania

By
Our Reporter
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Moussa Doumbia of Mali challenged by Denis Iguma of Uganda during the 2017 Africa Cup of Nations Finals match between Uganda and Mali at the Oyem Stadium in Gabon on 25 January 2017 ©Samuel Shivambu/BackpagePix

Uganda Cranes versatile player Denis Iguma has been ruled out of the team’s last Afcon qualifier game against Tanzania Taifa Stars with a twisted knee.

Iguma, who plays professional football for Kazma FC in Kuwait, was among the 15 foreign based players that were called up by national team head coach Sebastien Desabre.

He has been replaced with Kirizestom Ntambi of Ethiopian side Coffee FC.

Nine other stars from the 31 called up locally based players will join the foreign based players in a local camp in Cairo, Egypt from 18th-22nd March 2019.

Uganda is among the fourteen nations to have already secured a place at the 2019 Afcon while Tanzania will need to win and hope Lesotho falter against Cape Verde in the other Group L stage match.

The match will be on Sunday, 24th March 2019 at the Benjamin Mkapa National stadium.

The 15 foreign based players Summoned for camp in Cairo, Egypt: Denis Onyango (Mamelodi Sundowns, South Africa), Jamal Salim (Al Hilah Omdruman, Sudan), Robert Odongkara ( Adama City FC, Ethiopia), Murushid Juuko (Simba, Tanzania), Kirizestom Ntambi (Coffee FC), Nicolas Wadada Azam FC, Tanzania), Herbert Bockhorn Borussia Dortmund, Germany), Moses Opondo (VendsysselFF, Denmark), Joseph Ochaya (TP Mazembe, DR Congo), Khalid Aucho (Church Hill Brothers, India), Faruku Miya (Gorica, Croatia), Edris Lubega (SV Reid, Austria), Emma Okwi (Simba-Tanzania), Karisa Milton (MC Oujda, Morocco), Muhammad Shaban (Raja Casablanca, Morocco).

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NSSF and MTN close to signing 2m shares deal

By
Isaiah Mwebaze
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NSSF Managing Director Richard Byarugaba, is credited with growing the fund.

The National Social Security Fund (NSSF) and MTN Group are in the final stages of agreeing a deal in which the former wants to acquire 2.2 million shares in MTN Uganda, highly placed sources on both sides have told Eagle Online.

“Everything is almost finalised and we should be able to sign an agreement within two months,” a top executive told Eagle Online, though he declined to disclose how much a share will cost NSSF, which has invested in a number of companies as well as running its own investment projects in real estate.

MTN Uganda, is the country’s largest telecommunications firm, controlling a subscriber base of more than 10 million.

In late January, information from President’s office indicated that MTN Uganda was negotiations to sale shares to local investors.

This was after President Yoweri Museveni insisted telecom firms including MTN Uganda need to list shares on the local stock exchange to facilitate domestic ownership of the companies.

The President also thinks this will ensure more of the money foreign companies earn stays in the country.

The statement then quoted MTN Group’s President and CEO Rob Shuter as saying the firm was in negotiations with a state-controlled National Social Security Fund (NSSF) for a possible sale of shares to the fund.

Museveni met Shuter on the sidelines of the World Economic Forum in Davos where he insisted the company should float share on local stock exchange.

“It is important that you float shares on the local stock exchange to allow for local ownership,” Museveni was quoted as telling Shuter, a statement from his office said.

If the deal goes through, it will bring a rise in local proprietorship in Uganda’s biggest taxpayer from the current 5 percent.

MTN Uganda is in negotiations with government for a ten-year extension of its operating license after it expired in October last year but there has been disagreements over the amount of licence fees to be paid.

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Azuri Technologies and Energise Africa launch latest UK crowd campaign to raise £2.5m for solar in Africa

By
George Mangula
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Azuri solar power system

Azuri Technologies and crowdfunding platform Energise Africa on Thursday announced the latest phase of debt financing from UK impact investors to deliver affordable, clean energy and help solve the energy crisis in sub-Saharan Africa.

The Azuri and Energise Africa collaboration plans to raise £2.5 million for pay-as-you-go-solar and help more than 100,000 off-grid people in Sub-Saharan Africa access clean, affordable energy.

The investment will support low-income families in Kenya, Nigeria, Uganda, Zambia and Tanzania.

More than 600 million people across Africa live without access to electricity – limiting their life chances of achieving economic prosperity and improved quality of life. Universal access to affordable, reliable and modern energy services is one of the United Nation’s Sustainable Development Goals and can only be met with access to sufficient investment.

Crowdfunding has emerged as a powerful way of financing the off-grid solar industry and is leading the way in increasing investor interest in the market.

Through Energise Africa, individuals in the UK can invest from as little as £50 in bonds, issued by solar businesses, to provide clean and affordable energy access, while targeting annual returns of 6 percent. Capital is at risk and returns are not guaranteed.

Azuri is a leader in pay-as-you-go solar technology and since 2012 has been supplying affordable solar home systems and products to the millions across Africa living off-grid without access to mains electricity.

In 2018, Azuri and Energise Africa raised £1.7 million from hundreds of UK investors to deliver clean, affordable energy products to more than 16,000 families in sub-Saharan Africa.

Simon Bransfield-Garth, CEO of Azuri said: “Azuri is delighted to extend our partnership with Energise Africa and their community of UK-based retail investors to finance off-grid solar projects. With this innovative financing, thousands more households will be able to access modern solar energy for the first time.”

Lisa Ashford, Managing Director Energise Africa said: “Through Energise Africa, we are committed to providing UK based people with easily accessible opportunities to invest directly in sustainable businesses that can tackle climate change, create long-term social and environmental impact, and also deliver a potential financial return. We’re looking forward to the prospect of working with Azuri Technologies again to help accelerate the achievement of UN SDG 7.”

Energise Africa has been developed by Ethex and Lendahand – two of Europe’s leading impact investing companies and is also supported by UK aid, Virgin Unite, Good Energies Foundation and P4G.

Over the past 20 months the Energise Africa community of investors has generated over £7.57 million for 12 solar businesses to provide 312,000 people in 10 African countries with access to clean energy, which has prevented almost 70,000 tonnes of Carbon dioxide emissions entering the atmosphere annually and also repaid almost £1.8 million back to investors.

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MTN to launch own music streaming service, new apps in bid to stay ahead of competition

By
Our Reporter
-
Robert Shuter MTN-CEO

South Africa’s telecommunications giant, MTN Group, has announced plans to launch its own music streaming service and new applications to increase its revenue and improve the experience for its users as competition in the industry stiffens.

“Key focus areas for 2019 are the launch of our own music streaming and instant messaging applications and extending MTN mobile money from 14 to 18 countries through launches in South Africa, Nigeria, Afghanistan, and Sudan,” Robert Rob Shuter, MTN’s group president and CEO, has said.

The plan was disclosed in a statement of MTN Group’s financial results for the year ended December 2018.

According to the statement, the company achieved all its medium-term targets, reduced its holding company leverage and accelerated service revenue growth driven by the implementation of its BRIGHT strategy.

The company increased its subscriber base by 16 million to 233 million customers across 21 markets in Africa and the Middle East.

The number of active data users increased by 10 million to 79 million and the active mobile money subscriber base rose to 27 million.

This strong commercial momentum drove a 10.7 percent constant currency increase in service revenue to R125,4 billion.

“The service revenue growth rate achieved is ahead of both prior year and our guidance and – more importantly – is above the average rate of inflation in our markets, which means we are delivering real growth in service revenue,” said Shuter.

Meanwhile Group Ebitda rose more than 15 percent and reported headline earnings per share (HEPS) increased to 337 cents from 182 cents in 2017. Adjusting for once-off items HEPS would have been 565 cents per share.

The total full-year dividend of 500 cents is well covered and a final dividend of 325 cents has been declared, according to the statement.

MTN Group also conducted an extensive review of its portfolio to reduce risk, improve returns and simplify MTN.

This review covered not only its subsidiary companies but also its associates and its investments in e-commerce investments and tower companies.

The Group has R40 billion tied up in the value of the e-commerce and tower company investments and has announced that they are not viewed as long-term strategic assets of the group and will be monetized over time.

The Group has committed to the portfolio review realizing more than R15 billion over the next 3 years excluding any proceeds from its R23 billion position in IHS.

It announced that it would be disposing of its associate in Botswana, Mascom, for $300 million where its lack of control position and MTN branding meant that the group is not able to execute on its BRIGHT strategy.

The group stabilized its gearing, bringing the holding company leverage down to 2,3 times in December 2018 from 2,9 times in June 2018 and within the target range of 2,0 to 2,5 times. The group’s overall gearing moderated to 1.3x.

“We have made good progress to improve the holding company leverage bringing it within the medium-term guidance range we set out. Proceeds we receive from the asset realization program will support efforts to further reduce debt and de-lever the holding company balance sheet.” said group CFO Ralph Mupita.

“We believe the holding company leverage is appropriate, and we can well manage the debt and deliver on our 500 cents progressive dividend policy in the future,” he added.

The company overcame several regulatory headwinds in 2018, the most material of which was the Central Bank Central Bank of Nigeria dispute on historical dividend repatriations.

This was resolved and MTN announced in December 2018 that they had agreed to implement a notional reversal of the 2008 private placement and consequently made a resolution payment of $53 million.

The group is committed to further enhancing its risk management and stakeholder management processes.

In the days ahead, President Yoweri Museveni will again meet Shuter after their last meeting in Davos, Switzerland during the World Economic Forum where they discussed wide-ranging issues that have created a rift between the Ugandan government and the telecom company.

They will meet at the Africa Now Summit which will take place at Munyonyo Commonwealth Resort in Kampala.

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Archbishop Odama calls on Christians to repent and reconcile with God

By
Geoffery Serugo
-
Odama

The Archbishop of Gulu, John Baptist Odama has called on Christians to repent and reconcile with God, with self and with the environment during Lent.

Archbishop Odama made the call while leading Mass at Parliament, “This day is an important one for the season because it begins the preparations for the greatest feast in the church which is Easter,” said Odama.

The Archbishop reiterated the Pope’s message for Lent, where he says that the 40 days of fasting were a sacramental sign of conversion with a call for fasting, prayer and almsgiving.

Odama said that the ash on foreheads of the Christians on Ash Wednesday symbolized the fragility and mortality of man, who needed God’s presence to maintain steadfast faith.

“Prayer teaches us to abandon idolatry and acknowledge our need for mercy whereas almsgiving helps us to escape the illusion of hoarding everything to ourselves,” Odama said. He advised MPs to create an alliance with God in a bid to make good laws for the country, adding that Ugandans needed a strong example from their leaders.

Odama also expressed concern over the growing trend of sex education in schools which he observed had influenced kindergarten going children through the new media.

“Lent this year should bring hope of Christ to promote liberation of children of God,” said the Archbishop, adding that “we should ask God to help us seek out the true path of conversion and attend to our brothers and sisters in need.”

Members of Parliament and the congregation contributed Shs44.5 million in cash and pledges towards the Martyrs’ day celebrations that will be led by Gulu Archdiocese.

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