Nollywood actor and entrepreneur Williams Uchemba has shared vital financial advice for small and medium-sized business owners, stressing the need to clearly distinguish between profit and cash flow.
In an Instagram video posted on Tuesday, Uchemba explained that investing money into a business does not immediately mean profit until the initial capital has been recovered.
READ ALSO:
- Laide Bakare Slams Eniola Badmus Over Latest Interview
- 17 arrested as witchcraft allegation sparks family attack
- Fire destroys goods worth millions of naira in 15 Ibadan market shops
- Golden Eaglets coach laments WAFU B U-17 Championship exit
- IXPN To Honor ITRealms Founder Remmy Nweke with Distinguished Contribution to Internet Journalism Award @20th
“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 said.
Uchemba noted that many business owners mistakenly equate daily cash receipts with profit, a habit that can quickly drain capital and leave them unable to restock.
“That is why bookkeeping is important,” he added. “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.”
He also highlighted a traditional Igbo financial principle called Isiego, which emphasizes keeping capital separate from profit.
Uchemba, who runs Prosthesis Entertainment and the Williams Uchemba Foundation, further stressed that many small businesses collapse due to poor financial management and failure to maintain proper records.
