Module 4 of 5
Revenue, cost, and profit. Simple financial tracking. Pricing your product or service.
In eight minutes you'll learn the three numbers that tell you whether your hard work is actually making money — and a simple system to track them.
Busy Is Not the Same as Profitable
1 / 5 · 2 minBlessing, a caterer in Port Harcourt, Nigeria
Blessing caters weddings, corporate events, and birthday parties. In a good month she collects 800,000 Naira in payments. She works six days a week. She is always busy.
She has never taken a salary, because 'it all goes back into the business.' When her accountant friend asks to see her profit margin, Blessing does not know what that means in practice.
She knows she is busy. She does not know if she is profitable.
This is the most common financial blindspot in African small business: confusing revenue with profit, and confusing being busy with being financially successful.
By the end of this lesson, you will have the same financial clarity Blessing needs. Let's start with something you may already sense.
Educational only
This lesson teaches general financial concepts to help you think clearly about your business. It is not professional accounting or tax advice. For decisions specific to your situation, consult a qualified accountant or financial professional.
Olu's business takes in 500,000 naira in revenue each month but he has no money left at the end of the month and cannot explain where it went. What is the most likely root cause of this problem?