Popular Nollywood actor and business mogul Williams Uchemba has issued important business advice to Small and Medium Enterprises (SME) owners, urging them to clearly understand the distinction between cash flow and profit margins.
In an Instagram video shared today, the actor-entrepreneur emphasised that financial inflows into a business should not be mistaken for profit until the startup capital has been entirely recovered. These SME business tips focus on basic financial principles.
“If you invest one million naira into a business, you’ve not started making money until that one million naira has returned from customers,” he explained.
The entrepreneur highlighted a common mistake among business owners, noting that many confuse handling cash with actually making a profit. This misconception often leads them to dip into their capital and eventually run out of funds for restocking, demonstrating poor business management.
“That is why bookkeeping is important,” he emphasised. “If you buy something for ₦2,000 and sell it for ₦2,300, you bring out that ₦2,000 because it’s not your own. Your money there is ₦300. Don’t go and start eating the ₦2,000 thinking you’re making money.”
Uchemba referenced the Igbo business concept of ‘Isiego’, which refers to the practice of separating capital from profit, a fundamental principle he believes every entrepreneur should master.
The founder of Prosthesis Entertainment and the Williams Uchemba Foundation concluded by identifying poor money management and disregard for proper record-keeping as the primary factors responsible for the collapse of many small businesses within a short timeframe. His advice underscores the importance of financial discipline and proper accounting practices for sustainable business growth.
