Let’s talk about something that doesn’t get enough airtime in business circles:
Making money is not the same as keeping money.
Every month, I meet hardworking entrepreneurs who have steady sales but empty accounts. They’re moving product, booking jobs, collecting payments — but somehow, they’re always broke, always in survival mode.
So where’s the money going?
Sales ≠ Profit
Here’s what many people get wrong: sales is the headline, profit is the reality.
You can sell ₦1 million worth of goods this month — but if your costs are eating half of it, and you’re spending the rest recklessly, you’ll still feel broke.
For a lot of small businesses, the money comes in today and goes straight out tomorrow. Sometimes it’s hidden expenses, sometimes it’s lifestyle, sometimes it’s simply poor tracking.
Where Most Small Businesses Leak Money
Let’s break it down. From what I’ve seen working with Nigerian entrepreneurs, here are some common ways profit quietly disappears:
- Personal withdrawals: Taking money from the business for every emergency — fuel, food, family requests — without tracking or replacing it.
- Hidden costs: Delivery riders, packaging, cash transfers, bank charges, little fees that add up over time.
- No pricing discipline: Selling without factoring in the real cost of goods, logistics, or your own time — so your margin shrinks before you realise it.
- Waste and spoilage: Especially for product businesses — stock goes bad, gets damaged, or is mismanaged.
- Low reinvestment: All the money goes to daily expenses, with nothing left to buy stock in bulk, upgrade equipment, or build systems.
- No record-keeping: If you don’t know what’s coming in or going out, you can’t fix the leak.
Revenue Feels Good — Discipline Keeps It
When that payment alert comes in, it’s tempting to feel like you’ve made it.
But real business owners know: money made today is not all yours to spend.
Some belongs to stock replacement. Some belongs to future growth. Some belongs to salaries or the next big plan.
Without discipline, you’ll work hard for years but never feel the reward.
So What Should You Do?
You don’t need fancy accounting software to keep better track. Start simple:
- Separate accounts: Have a dedicated business account — even if it’s a second bank app — so personal expenses don’t mix in silently.
- Pay yourself a salary: Even if you’re the owner, give yourself a fixed monthly amount and try to stick to it.
- Track costs weekly: Know your biggest expenses — supplies, logistics, packaging, ads — and watch how they move month to month.
- Price with profit in mind: Don’t just copy competitors. Know your break-even point. Add your margin. Factor in all the hidden bits — delivery, transfer fees, airtime, little freebies.
- Reinvest consciously: Every month, decide what percentage stays in the business — for bulk buying, equipment, staff training, or marketing.
Final Thoughts
Making money is just the beginning.
Keeping it, growing it, and making sure it works for you — that’s the real game.
Your business shouldn’t just feed your hustle today. It should help you build tomorrow’s wealth.
So the next time you ask, “Where did all my money go?” — look closer. The leaks are there. The good news? You can fix them.
