Ventri
19 posts
@ventrihq
📊 Simple finance tracking for Nigerian businesses
Do you know that your business profit is not your money? Yes, the profit you make from your business is not your money to spend This is the reason most small businesses in Nigeria never grows You are suppose to pay yourself from the profit of the business And invest the rest of the profit back into the business
Running a business in Nigeria is not for the weak. This week you buy a product a particular price the following week its another price😩 Making it very challenging and discouraging for small business owner to continue business. May God grant everyone hustle with divine blessings and favour. We won't labour in vain🙏
Qn: I make money in my business, but i cant keep it, what should i do? Reasons why you are not keeping the money (negative cash flow) 1. Spending more than what the business makes 2. Lack of budgeting/no cash flow planning. You spend as the money comes in. 3. Too much overheads, some not linked to businesss 4. Too much debt eating your cash flow 5. The business doesnt make enough money. The business is not growing quick enough to catch up with growing expenses. 6. Your payables outrun your receivables 7. Some expenses are above your weight but you force them. (Big office, Big team, flashy advertising, etc) What to do 1. Do monthly/quarterly/annual cash flow planning. Track them monthly to keep things in check. Check your bank balances regularly. - When the ATM asks “do you want the receipt?”, Say Yes. 2. Separate business from personal finances. Have a personal bank account, and pay urself there 3. Start new income streams in your business (new product, new customer category, new market, premium features, digital products, etc) 4. Hike your prices (smartly) 5. Track every expense that takes at least 10% of your revenue, and see if any can be reduced to 5% (office rent, utilities, advertising, etc) 6. Dont outspend your business revenue 7. Dont take a debt whose cost is more than your operating margin 8. Chase big contracts (80/20 rule) 9. Take % of your profits and invest in financial markets to build cash reserve.
Most founders don’t fail because of bad ideas. They fail because they misread their numbers. Profit looks good on paper. But cash keeps your business alive. If you don’t understand finance, you’re scaling blind. Here’s your Business Finance Cheat Sheet:
As a small business owner, you need four simple records: 1. Cashbook—This shows all the money coming in and money going out. It helps you know exactly how much cash you have at any time. 2. Sales book—This helps you track all your sales, so you know what you sold, to whom, and for how much. 3. Purchases book—This helps you record all the items or services you buy for your business. It shows how much you spend and helps manage costs. 4. Debtors/Creditors list—You need to know who owes you money (debtors) and whom you owe money (creditors). With these four records, you can easily track your business performance, plan your finances, avoid losses, and make better decisions. #NjakweOnFinancialLiteracy
