Ghada Ismail

Kuwait's largest online classifieds platform, 4Sale, has become a household name in the region's digital marketplace landscape. Spearheading the platform's technological evolution is Khaled Gomaa, Chief Technology Officer at 4Sale. 
 

A seasoned tech leader with 16 years of experience across all stages of business growth, Khaled has a strong passion for creating products that drive business value. He founded his first company at 18 years old and has since contributed to various technology-driven projects, including social media, marketplaces, AdTech, LegalTech, chatcommerce, and e-commerce sectors.
 

Throughout his career, Khaled has worked with systems and platforms handling billions of requests, and startups searching for the optimum product-market fit; providing him with vast experience in developing solutions meeting corporate and customer goals.
 

In this exclusive interview, Khaled shares insights into the platform's journey, its most popular features, and how it has evolved to meet changing consumer expectations. He also discusses 4Sale's innovative use of emerging technologies like AI and machine learning, while offering valuable advice for aspiring tech entrepreneurs in the region.

1.    For those who might not be familiar, can you share the story behind 4Sale and what inspired its creation?

4Sale was founded by our CEO - Tarek Sakr – in 2014, following his memorable – but incredibly frustrating - consumer experience, many years ago, of attempting to purchase a second-hand car in Kuwait.

He found the experience so challenging and non-user-friendly that it sparked an entrepreneurial idea. He took a particular interest in subsequently researching the then-embryonic online car sales market – before launching his own website. This grew into what is now Kuwait’s largest online classifieds platform – a platform where people come together to buy and sell goods and services.

Since its inception, 4Sale has supported over 2 million registered users in listing 14 million items and services. Over 7 million devices have accessed the platform through app downloads or website registrations, driving 30 million page views each month.

Trading is a way of life in Kuwait, and creating an online, localized marketplace was a compelling opportunity. Tarek believed technology could capitalize on these cultural strengths and – with online classifieds - there are also virtually no restrictions on product categories to integrate into the business model.

We are committed to the power of personalization. By using cutting-edge technology, we customize our products to match each user’s unique preferences, creating a seamless and tailored shopping experience. Our mission is clear: to make it easy for individuals to find and access the products they love.

2.    What categories or features are currently the most popular on 4Sale, and why do you think they resonate so well with users?          

Consumer tastes often shift with the seasons and annual events. For example, during Ramadan, our platform sees a major surge in gift sales, amid increased demand for items such as Misbah. This year - we expect the same pattern. Among the top five gifts in Kuwait were watches, Misbah, pens, leather bags, and wallets—each symbolizing enduring elegance and practicality.

Given 4Sale’s heritage in automotive, it is a core part of our DNA and remains one of the most popular verticals on our platform. Last year, our dominance was further cemented via partnerships with car dealerships.

In addition to that, our Contracting vertical grew 7% in revenue year over year, demonstrating shows how we're driving more customers to our service providers, boosting their business and their confidence in our platform.

3.    How has the platform evolved to meet the changing expectations of users over the years?    

We know—by paying close attention to the data—that today’s customers desire (i) highly specific, tailored interactions, (ii) to be genuinely understood, and (iii) easy and seamless access to purchases. By refining our processes through data collection, we can offer timely, relevant recommendations that create a more personal and enjoyable customer experience.

In this context, people are using the platform as a price reference; it has become essential for knowing what is sold where.

This evolution has also allowed local businesses to gain increased visibility—whether offline or online—by highlighting their services and showrooms, including certified listings from trusted sources offered by 4Sale.

As our rapid growth continues, we will scale up our entire infrastructure in line with our 2025 goal of reaching two million monthly active users across additional verticals. This would represent an impressive market share in a country of just five million people—and our infrastructure will be ready for it.

4.    In your opinion, what makes classifieds and e-commerce platforms like 4Sale essential in today’s economy?
People will always trade, even if their methods change. As digitization has increased, we have led in technology. Today’s customers also want effortless experiences - be it buying or selling – and we simplify the buying and selling process for users. Our cutting-edge technology powers advanced algorithms so the process is as tailored and easy as possible.

5.    Are there any new products or features in the making to be launched soon?

We are continuously working on new features and are currently preparing some very exciting updates to enhance our primary verticals—automotive and real estate.  These updates will allow users to compare prices and know more about the availability of products, as we are committed to helping service providers gain more market visibility in Kuwait. Obviously, we can’t reveal too much right now - but stay tuned!

6.    How do you see emerging technologies like AI, blockchain, or Web3 shaping the future of marketplaces like 4Sale?

We already use GenAI to identify distinct user groups based on demographics, behavior, cultures, nationalities, and preferences, enabling tailored marketing campaigns for events and cultural festivals. This approach enhances the overall customer experience by considering their interests, pastimes, hobbies, and collections.

We are also enhancing our machine-learning-driven content moderation system. A key challenge we are tackling involves customers either (i) unintentionally providing incorrect ad details or (ii) misusing the ad modification feature. For example, when users edit their listings, they may significantly alter the content—at times, effectively creating an entirely new ad under the guise of an update.

To mitigate this, we are developing a model that evaluates ad modifications, determining whether changes are routine or substantial enough to require blocking. Additionally, the model helps filter inappropriate content across text, images, and other media, ensuring our platform maintains high-quality standards.

As you can see, the use cases of AI are very broad, and we are excited about these developments. They will enhance marketplaces, making them increasingly appealing to customers.

7.    What’s your vision for 4Sale’s future, within Kuwait?
We want to increase the number of verticals we operate in – having now expanded to 197 categories. We will continue to drive innovation - elevating our technology to maintain (and enhance) our status as the leading classifieds service in Kuwait.
As a highly trusted brand that is integrated into users’ everyday behavior, we also want to get closer to transactions and offer even more value-added services during those transactions.  This includes a strong focus on business sustainability for our service providers, helping them get more customers and visibility.
If we can keep doing all these things, as we have been doing, then the future will be very exciting.

8.    Is there anything you’d like to share with aspiring tech entrepreneurs or those looking to create similar platforms in the region?  

I'd start by saying that instead of building from scratch, focus on optimizing and improving what already exists to accelerate development, control costs, and enhance reliability. This approach is crucial for capitalizing on the incredible pace of technological advancements in our region, which has enormous growth potential that can benefit from these developments. This situation is both a privilege and a responsibility. Entrepreneurs need to be hardworking, thoughtful, and creative to capitalize on these trends. Hard work pays off—just be patient and keep going.
 

Kholoud Hussein 

In the dynamic landscape of startups, legal and compliance services play a pivotal role in shaping the trajectory of emerging businesses. These services not only safeguard startups from potential legal pitfalls but also enhance their credibility among investors, partners, and customers. As part of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," this article delves into the profound impact of legal and compliance services on startups, supported by recent statistics and insights from Saudi business owners.

The Crucial Role of Legal and Compliance Services

Legal and compliance services encompass a broad spectrum of activities designed to ensure that businesses operate within the boundaries of the law. For startups, these services are integral in establishing a solid foundation, mitigating risks, and fostering sustainable growth. Key areas include:

• Business Formation and Structuring: Selecting the appropriate legal structure (e.g., sole proprietorship, partnership, LLC) is fundamental, as it influences taxation, liability, and regulatory obligations.
• Regulatory Compliance: Adherence to industry-specific regulations is essential to avoid legal repercussions and maintain operational legitimacy.
• Intellectual Property Protection: Safeguarding innovations, trademarks, and patents is vital for maintaining competitive advantage and preventing infringement disputes.
• Contract Management: Drafting and reviewing contracts with clients, suppliers, and employees to ensure clarity and enforceability.
• Employment Law: Complying with labor laws to foster fair workplace practices and prevent legal disputes.

Financial Implications of Compliance

Investing in legal and compliance services incurs costs; however, non-compliance can lead to far more substantial financial setbacks. A 2023 report by NorthRow highlighted that, on average, 25% of business revenue is allocated to compliance costs, with 18% of businesses estimating that over 50% of their revenue is dedicated to these expenses.

While these figures may seem significant, the cost of non-compliance—including fines, legal battles, and reputational damage—can be exponentially higher. However, companies that improved their internal controls experienced much lower borrowing costs, ranging between 0.5 to 1.5 percentage points, indicating a favorable cost-benefit balance. 

Legal Compliance in the Saudi Startup Ecosystem

Saudi Arabia's Vision 2030 has catalyzed a burgeoning startup ecosystem, with legal and compliance services playing a critical role in this transformation. The Kingdom has introduced transformative regulations aimed at simplifying business processes, such as commercial registration and trade name management, making it more accessible for entrepreneurs to establish and operate businesses. 

The Saudi Small and Medium-Sized Enterprises General Authority, Monshaat, has been instrumental in fostering entrepreneurship by setting policies and organizing forums like Biban, which connect entrepreneurs, investors, and officials globally. The modernized regulatory landscape simplifies startup and venture capital operations, including a streamlined business registration process and the new Saudi Companies Law, effective January 2023. 

Insights from Saudi Business Leaders

Saudi business owners recognize the indispensable role of legal and compliance services in ensuring business continuity and success. Nasreen Alissa, founder of The Law Firm of Nasreen Alissa, emphasizes that compliance not only protects startups from legal risks and penalties but also builds their reputation and trustworthiness among customers, partners, and investors. 

Such insights underscore the consensus among Saudi entrepreneurs regarding the value of robust legal frameworks in fostering sustainable business growth.

Challenges and Considerations

Despite the clear benefits, startups often encounter challenges in implementing effective legal and compliance strategies:

• Resource Constraints: Allocating sufficient funds and personnel to manage compliance can be challenging for startups with limited resources.
• Complex Regulatory Landscapes: Navigating the intricate web of local and international regulations requires specialized knowledge and continuous updates.
• Rapid Technological Advancements: Keeping pace with evolving compliance requirements, especially in tech-centric industries, necessitates agility and adaptability.

To address these challenges, startups are increasingly leveraging technology. Artificial intelligence (AI) startups offer compliance software to help organizations manage new regulations efficiently and cost-effectively. While this technology can automate tasks like fraud reviews and data security reports, compliance executives remain cautious. Concerns include the potential for errors, lack of clear guidelines, and the effort required to implement AI. Despite some hesitancy, companies are largely moving forward with AI to model risk scenarios and automate repetitive tasks. 

Finally, legal and compliance services are foundational to the success and longevity of startups. They not only shield businesses from potential legal entanglements but also enhance credibility, attract investment, and facilitate sustainable growth. In the context of Saudi Arabia's evolving startup ecosystem, these services are indispensable in navigating the regulatory landscape and capitalizing on emerging opportunities. By prioritizing legal compliance, startups can build a resilient foundation, paving the way for innovation and long-term prosperity.

As we continue our series, "Building Blocks of Startup Success: The Industries Powering Innovation," our next installment will explore the significance of mentorship networks in guiding startups to success. These networks provide invaluable support, knowledge, and connections, enabling startups to navigate challenges and accelerate growth. Stay tuned as we delve into how mentorship fosters entrepreneurial success and contributes to a thriving startup ecosystem.

Ghada Ismail

Many startups enter the market believing that a great product alone will guarantee success. However, statistics tell a different story. According to CB Insights, 14% of startup failures are directly linked to poor marketing. Even with a stellar product or service, startups that fail to connect with their audience risk being overlooked. Without effective marketing, businesses remain invisible in a crowded marketplace, and potential customers never learn about what they offer.

The Importance of Effective Marketing from Day One

From the moment your business launches, marketing should be a priority. Visibility is key, and early-stage startups must work actively to connect with their target audience. Without marketing, potential customers won’t know you exist, no matter how valuable your offering may be. A clear marketing strategy not only drives sales but also builds brand identity and customer trust.

Common Early-Stage Marketing Mistakes

New businesses often make avoidable marketing missteps that limit their growth:

• Ignoring the Target Audience: Some founders market to everyone rather than defining a clear customer profile. Without understanding who you're trying to reach, your messaging may fall flat.
• Relying Too Heavily on Word-of-mouth: While positive referrals are powerful, they shouldn't replace proactive marketing efforts. Relying solely on organic buzz often slows growth.
• Neglecting Digital Presence: In today’s digital world, lacking an online presence is a critical mistake. A simple, well-structured website and active social media presence are essential.
• Trying Too Many Strategies at Once: Some startups attempt to market through multiple channels simultaneously without focusing on what works best. Concentrating on a few effective platforms often delivers stronger results.

Low-Budget Marketing Strategies That Work

Effective marketing doesn’t have to break the bank. Here are proven strategies that startups can implement without significant costs:

• Content Marketing: Sharing valuable content through blogs, videos, or social media can position your brand as an authority in your field. Consistency is key.
• Social Media Engagement: Platforms like Instagram, LinkedIn, and TikTok offer cost-effective ways to connect directly with your audience. Engaging content and authentic interactions build loyal followings.
• Email Marketing: Regular newsletters with updates, offers, or insights help nurture leads and maintain customer interest.
• Partnerships and Collaborations: Teaming up with complementary businesses can expand your reach without hefty expenses.
• Community Involvement: Attending local events, hosting workshops, or participating in industry forums can generate buzz and build meaningful connections.

Wrapping things up...

Marketing isn’t just an accessory to your product, it’s rather an essential factor for survival. Research shows that startups that actively engage in targeted marketing campaigns are significantly more likely to gain traction early on. By identifying your target audience, avoiding common pitfalls, and leveraging budget-friendly strategies, you can build momentum and increase your chances of long-term success. 

In the next episode of this series, we'll dive into another key challenge for startups ‘Pricing Problems: Too High, Too Low, or Just Wrong’, exploring how pricing mistakes can undermine even the most promising startups. Stay tuned!

Kholoud Hussein 

In recent years, Saudi Arabia has undergone a remarkable transformation in women's empowerment, particularly in the technology sector and entrepreneurship. This shift aligns with the Kingdom's Vision 2030, aiming to diversify the economy and reduce dependence on oil revenues. On this International Women's Day, we celebrate the significant contributions of Saudi women in technology and entrepreneurship, highlighting the Kingdom's efforts to become a global pioneer in enabling women.

Historical Context of Women's Empowerment in Saudi Arabia

Historically, Saudi women faced numerous challenges in accessing education and employment opportunities. However, the past decade has witnessed substantial reforms aimed at enhancing women's rights and participation in various sectors. The lifting of the driving ban in 2018 and the easing of male guardianship laws have been pivotal in granting women greater autonomy and mobility. These changes have paved the way for increased female participation in the workforce, particularly in sectors traditionally dominated by men.

Women's Participation in the Workforce

The Saudi government's initiatives have led to a significant rise in women's employment. As of the second quarter of 2024, women's participation in the labor force reached 35.8%, surpassing the government's target ahead of schedule. This surge is evident in various industries, including manufacturing, where women are now integral to operations. For instance, at Johnson Controls Arabia, an air-conditioning plant, women like Rawan al-Harbi are contributing to roles traditionally held by men, reflecting the shifting dynamics in the workforce.

Saudi Women in the Technology Sector

In recent years, Saudi women have transitioned from being beneficiaries of empowerment programs to active leaders in the technology sector. Their role in shaping the digital economy is evident through impressive participation rates and success stories.

Key Figures Highlighting Women’s Impact in Tech:

• 28% of Saudi entrepreneurs in the digital economy are women, a significant achievement that showcases their increasing role in the industry.
• 70,000+ Saudi women have benefited from training programs focused on emerging technologies, equipping them with the necessary skills to compete in the global tech sector.
• 35% of employees in the technical sector are now women, reflecting the growing inclusivity in STEM (Science, Technology, Engineering, and Mathematics) fields.
• 52% of Saudi women now hold jobs in the digital economy, marking a substantial increase in workforce participation.

Educational Initiatives

Saudi universities have been instrumental in promoting women's education in technology. The establishment of the Princess Nourah bint Abdulrahman University, the largest women's university globally, offers various STEM programs, fostering a new generation of female tech professionals. Additionally, collaborations with international institutions have provided Saudi women with exposure to global best practices and emerging technologies.

Professional Contributions

Saudi women have made significant strides in the tech industry, taking on roles as software developers, data analysts, and IT consultants. Their involvement has been pivotal in driving innovation and contributing to the Kingdom's digital transformation. Companies such as Aramco and STC have reported an increase in female employees in their IT departments, reflecting a broader trend of gender diversity in the sector.

Leadership and Recognition

Prominent Saudi women have emerged as leaders in technology, earning national and international recognition. Figures like Hoda Al-Ghoson, former Executive Director of Human Resources at Aramco, have been instrumental in advocating for women's inclusion in technical fields. Their achievements serve as inspiration for aspiring female tech professionals in the Kingdom.

Women's Role in Entrepreneurship

Entrepreneurship has become a viable avenue for Saudi women to contribute to the economy, with supportive ecosystems fostering their ventures. The number of female entrepreneurs has increased by over 35% in the last decade, indicating a positive trend toward gender parity in business ownership. 

Government and Private Sector Initiatives Driving Change

The Saudi government has launched several programs to support female entrepreneurs. The General Authority of Small and Medium Enterprises (Monshaat) offers loan guarantee programs and has implemented regulations to reduce administrative burdens on SMEs. Additionally, the Badir Technology Incubators and Accelerators Program provides workshops and training to promote an entrepreneurial culture among women university students. 

The remarkable progress of Saudi women in tech is no coincidence—it is the result of well-structured policies and initiatives. Under Vision 2030, the Saudi government has made gender inclusivity a national priority, introducing numerous programs to facilitate women’s entry and leadership in the digital economy.

Key Initiatives Supporting Women in Tech and Entrepreneurship:

1. “Women in Tech” Training Programs – These initiatives provide technical training, mentorship, and career development opportunities for Saudi women in fields such as AI, cybersecurity, and software development.
2. The Saudi Digital Academy – Established to enhance digital skills among women and empower them to take on leadership roles in the tech industry.
3. Government-Backed Funding for Women-Led Startups – Programs such as Monsha’at and the Saudi Venture Capital Company (SVC) are supporting female entrepreneurs in launching and scaling their businesses.
4. Inclusion of Women in Major Tech Companies – Leading Saudi tech firms, including STC, NEOM, and Aramco Digital, have actively increased female recruitment and leadership roles within their organizations.

These initiatives are not only enabling Saudi women to participate in the workforce but are also positioning them as key drivers of the country’s digital transformation.

Access to Funding

Access to capital has historically been a barrier for female entrepreneurs. However, recent reforms and initiatives have improved funding opportunities. Banks and financial institutions are now offering tailored financial products to support women-led businesses. Moreover, venture capital firms are increasingly recognizing the potential of female entrepreneurs, leading to more investment in women-led startups.

Success Stories

Several Saudi women have established successful businesses, serving as role models for aspiring entrepreneurs. For instance, Alhanoof Alzahrani, co-founder of Scopeer, Saudi Arabia's first crowdfunding company, has expressed optimism about the opportunities available to women in business. She stated, "Amid the economic diversification and push for women's empowerment, opportunities are everywhere. You just must be creative and willing to take risks."

Saudi Arabia as a Global Pioneer in Enabling Women

Saudi Arabia’s commitment to gender inclusivity has gained international recognition. The Kingdom has taken bold steps to lead global efforts in empowering women, particularly in the digital and economic sectors.

Major Achievements & Global Recognition:

• Saudi Arabia to Chair the UN’s Commission on the Status of Women (CSW) in 2025, reinforcing its role in shaping global policies on gender equality.
• Launch of the “Empower” Alliance during Saudi Arabia’s G20 Presidency, promoting female leadership in the private sector.
• Riyadh Named the Capital of Arab Women (2020), recognizing Saudi efforts in advancing women’s rights and economic participation.
• Saudi Women’s Inclusion in Key Sectors: The Kingdom has prioritized women’s participation in high-impact industries, including ICT, finance, and entrepreneurship.

Key Statistics on Women’s Workforce Participation in Saudi Arabia:

• 54.5% of Saudi women are now engaged in economic activities, a sharp rise from previous years.
• 40.6% of leadership roles in government and private sectors are held by women.
• 35.4% of Vision 2030 employment targets for women have already been achieved, ahead of schedule.

Policy Reforms

The Kingdom has implemented several policy changes to promote gender equality. These include allowing women to travel without male guardianship, granting them the right to register births, marriages, and divorces, and providing equal access to employment opportunities. These reforms have significantly enhanced women's autonomy and participation in public life.

International Recognition

Saudi Arabia's progress in women's empowerment has garnered international attention. The Kingdom's efforts align with global initiatives to promote gender equality, such as the United Nations Sustainable Development Goals. By championing women's rights and participation, Saudi Arabia is setting a precedent for other nations in the region to follow.

Challenges and the Road Ahead

Despite Saudi Arabia’s remarkable progress in empowering women, several challenges remain on the path to full gender equality in the workforce, technology sector, and entrepreneurship. Addressing these challenges will be crucial to sustaining the momentum and ensuring that Saudi women continue to thrive in their careers and businesses.

Cultural and Social Barriers

While societal perceptions of women in the workforce have evolved significantly, traditional views on gender roles still pose challenges in some industries. In certain conservative circles, there remains resistance to women holding leadership positions or working in mixed-gender environments. However, government-backed awareness campaigns and the increasing visibility of successful Saudi women in various fields are gradually changing these perceptions.

Access to Funding and Investment for Women Entrepreneurs

Although funding opportunities have improved, women-led startups still face more difficulties in securing venture capital and business loans compared to their male counterparts. According to recent reports, women entrepreneurs in Saudi Arabia receive only a fraction of total VC funding, a challenge seen globally. Initiatives such as Monshaat’s loan guarantee programs and the introduction of women-focused investment funds are promising steps toward bridging this gap.

Balancing Work and Family Responsibilities

A common challenge faced by women worldwide, including Saudi Arabia, is balancing professional aspirations with family responsibilities. While Saudi labor laws now offer more flexibility, including extended maternity leave and remote work options, further advancements such as subsidized childcare facilities and enhanced parental leave policies can further support working women.

Encouraging More Women in STEM and Tech Leadership

Although Saudi Arabia has made great strides in promoting women’s participation in STEM fields, there is still a gap in the number of women reaching senior leadership positions in the technology industry. Tech giants and startups alike must continue to prioritize mentorship programs, networking opportunities, and leadership training to equip women with the skills and confidence to take on executive roles.

Looking Forward: Sustaining the Momentum

Saudi Arabia has positioned itself as a regional leader in women’s empowerment, but continued progress requires ongoing reforms, investment, and cultural shifts. Government policies must evolve alongside economic and societal changes to ensure that women are fully integrated into the Kingdom’s ambitious Vision 2030 goals. By addressing existing challenges, Saudi Arabia can further cement its status as a global model for gender inclusivity and economic transformation.

A Future Driven by Women’s Success

As we celebrate International Women’s Day, Saudi Arabia’s strides in empowering women in technology, entrepreneurship, and the broader economy are undeniable. Women in the Kingdom contribute to economic diversification and shape the future of industries once dominated by men. With strong government support, shifting societal norms, and the growing presence of female role models, the path forward is promising.

However, sustaining this progress requires continued investment in education, funding opportunities, and leadership development to ensure that women are not just participants but key drivers of Saudi Arabia’s economic future. The Kingdom’s journey inspires the region and beyond, proving that when women are empowered, economies thrive.

Ghada Ismail

For most new businesses, the first year is a financial tightrope walk. Even with a great idea and a strong market need, cash flow problems can bring everything crashing down long before the business gets a chance to succeed. In fact, running out of money is one of the top reasons startups fail in year one, not because the product was flawed, but because the money ran out faster than expected.

From overestimating revenue to underestimating expenses, many first-time founders fall into the same financial traps that have sunk countless startups before them. In this episode, we’ll break down the most common money mistakes, the cash flow strategies that can make or break a business, and how to secure funding without falling into dangerous spending habits.

Common financial mistakes in the first year
Many founders underestimate how much capital they need to reach profitability, while overestimating how quickly they’ll generate revenue. The result? A dangerous gap between income and expenses that drains cash reserves faster than expected.

Spending too much too soon is another frequent mistake. From fancy office spaces to costly marketing campaigns, early-stage businesses often spend like established companies without the revenue to match. On the other side, some founders underinvest in critical areas—like marketing, product development, or customer acquisition—leaving the business unable to grow fast enough to survive.

Cash flow management strategies
Surviving year one requires tight financial discipline. Startups need realistic budgets that account for slow sales cycles, unexpected expenses, and a longer-than-expected path to profitability. Smart founders track their burn rate weekly, understanding exactly how long their cash will last at current spending levels, but what is a burn rate?

In business, burn rate refers to the speed at which a company spends its available cash before it starts generating positive cash flow (profit). It’s basically a measure of how fast a startup is "burning through" its funds.

There are two main types of burn rate:

1. Gross Burn Rate – This is the total amount of money a business spends each month to cover operating expenses like salaries, rent, marketing, and product development.
2. Net Burn Rate – This is the actual monthly cash loss, meaning how much money the business is losing after factoring in any revenue. It’s calculated like this: 

Net Burn Rate=Monthly Expenses−Monthly Revenue

Setting up clear financial controls, like approving all major expenses, separating personal and business finances, and avoiding unnecessary debt, helps avoid reckless spending. Cash flow forecasting should be part of the regular business routine, helping founders anticipate shortfalls well before they become emergencies.

How to secure funding and make sure you don’t run out of money too soon
Securing funding is only part of the equation as managing that capital wisely is what keeps businesses afloat. Whether funding comes from personal savings, friends and family, angel investors, or VCs, startups need to manage their cash like it’s their last riyal!

Founders should also diversify revenue streams whenever possible, so the business isn’t overly dependent on a single customer or product line. Building an emergency fund—a few months’ worth of operating expenses—can make all the difference when unexpected costs hit or revenue growth slows.

For founders seeking external funding, the key is raising the right amount at the right time. Raising too little leaves the business vulnerable to cash flow crises. Raising too much, especially at inflated valuations, creates pressure to spend aggressively, often before the business model is fully validated.

In the end, cash flow is king in year one. Even the best ideas fail if they run out of money before they find their footing.

Wrapping things up..

At its core, startup survival depends on financial discipline. Founders who track their burn rate, control expenses, and plan for funding gaps give their businesses a real chance at making it past year one. Those who ignore these basics? They risk becoming another statistic in the long list of startups that ran out of money before finding success.

But cash alone won’t save a failing business. Even startups with healthy funding collapse if their business model is weak or unsustainable.

In our next episode, we’ll dive into another key reason startups don’t survive year one, so stay tuned!