Actor and entrepreneur Williams Uchemba has urged small and medium-scale business owners to clearly distinguish between cash flow and profit in order to sustain their businesses.
In a video shared on Instagram on Tuesday, Williams Uchemba explained that money invested into a business should not be considered profit until the original capital is fully recovered.
He said: “If you invest one million naira into a business, you’ve not started making money until that one million naira has returned from customers.”
According to him, many entrepreneurs often confuse having cash in hand with making profit
This is a mistake that leads to consuming their capital and eventually struggling to restock.
Uchemba emphasised the importance of proper bookkeeping.
He noted: “If you buy something for ₦2,000 and sell it for ₦2,300, you must set aside that ₦2,000 because it is not your own. Your actual gain is ₦300. Don’t make the mistake of spending the entire ₦2,300 thinking it’s profit.”
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He concluded by stressing that financial discipline and accurate records are vital for business growth and long-term survival.
