When Growth Brings More Problems
Aminu thought he was ready.
For over a year, he had been selling authentic spices from Kano to Lagos, and demand was steadily growing. Sales were coming in, and quitting his job as a motor boy started to feel like a real possibility. No more late nights on the road. No more carrying heavy loads under the scorching sun.
So, when his boss made yet another impossible demand one morning, Aminu made up his mind—it was time to go full-time as a businessman.
But reality hit fast.
Sales were up, but cash? That was a different story.
To keep up with demand, Aminu started buying stock on trust—a common practice where suppliers provide goods upfront, and payment is made later. It seemed like a great deal at first. He could sell now and pay later.
Then his customers started doing the same thing.
“Bros, I’ll pay you next week.”
Or, “Business is slow. Let me turn this stock over first, and I’ll settle you.”
One week turned into two. Then three.
Before he knew it, his pockets were empty. His supplier was demanding payment, but the money he had counted on hadn’t come in.
Aminu was stuck.
A Desperate Solution
Aminu’s business was expanding. He had opened a new trade channel in Onitsha. He also made it a habit to visit Sule whenever he was in Lagos.
As he sat down, Sule, sitting beside him, said,
“You look like a man carrying the world on his shoulders.”
Aminu sighed, shaking his head. “My money is tied up, Sule. I have customers, I’m making sales, but I don’t have any cash. I owe my supplier, and I don’t know how to fix this.”
Sule listened quietly, then asked, “How much do you need?”
“Fifty thousand,” Aminu replied, almost embarrassed.
Sule excused himself, went inside, and came out with a bundle of cash.
Aminu blinked. “Wait—you have that kind of money?”
Sule chuckled. “You think because my business is small, I don’t plan properly?”
Sule’s Simple Rule: Pay Yourself First
Sule leaned back and explained, “Every time I make a sale, I take a small portion and put it aside. I don’t touch it, no matter what. That’s how I always have something left.”
Aminu frowned. “But how do you manage to buy stock, pay rent, and cover expenses if you’re always saving?”
Sule smiled and pulled out a small notebook. Flipping through the pages, he pointed at a simple system.
“For every sale, I set aside 10% for myself first. The rest goes to expenses. If the remaining amount isn’t enough, I don’t stretch it—I cut costs instead. I reduce restocking but always make sure I replenish the fast-moving goods. That way, I never run out of what the customers need.”
Aminu was taken aback. Such a simple approach, yet so effective. Instead of paying for everything first and hoping something was left over as profit, Sule prioritized his own profit first.
“That way, I never find myself in trouble,” Sule added.
Aminu shook his head. “But I don’t even have enough money right now.”
Sule shrugged. “That’s why I’m lending you this fifty thousand. But on one condition—you start doing what I do.”
A Wake-Up Call
That night, Aminu couldn’t sleep.
For so long, he had focused on making more sales, believing that the more he sold, the more money he would have. But it wasn’t a sales problem—it was a cash flow problem.
The next morning, he said his goodbyes, promising to pay back the loan as quickly as possible. But this time, he wouldn’t make the same mistakes. Sule told him he trusted him but to remember to always pay himself first.
He grabbed a notebook and wrote down a new rule for himself:
✅ For every sale, set aside a small portion first.
✅ Use what’s left for expenses.
It wasn’t going to be easy. But if Sule could do it with a tiny provisions stall, then so could he.
Kunle’s Costly Assumption
Kunle knew he was onto something.
People loved his suya, and his side hustle was bringing in extra cash. Encouraged by growing demand, he decided to scale.
He took out a small loan, convinced it was the smart move. With better equipment, more stock, and a marketing push, he believed he could double his income in no time.
But there was a problem—his projections were based on assumptions, not actual numbers.
At first, things seemed fine. But soon, the gaps started showing:
- Some customers were occasional buyers, not regular ones.
- He assumed sales would be steady, but they fluctuated.
- Business peaked in the summer but dropped when the weather cooled.
By the time he realized his mistake, loan repayments had kicked in.
Money was going out faster than it was coming in.
And despite making sales, he was constantly short on cash.
One evening, as he stared at his account balance, it dawned on him—he had been focused on revenue, not cash flow.
And now, he was paying the price.
The Hard Truth About Cash Flow
Aminu and Kunle made different mistakes, but they both led to the same problem—a business that looked successful on the outside but struggled behind the scenes.
Many small business owners fall into this trap.
Sales and revenue don’t guarantee survival—cash flow does.
What is cash flow?
Simply put, it’s the movement of money in and out of your business. You can have high sales, but if cash isn’t coming in fast enough to cover expenses, you’ll always feel like you’re struggling.
Managing cash flow isn’t just about making more money—it’s about controlling when and how money moves.
The Small Business Cash Flow Checklist
A business doesn’t fail only because people don’t like the product. It also fails because it runs out of cash.
It’s easy to focus on revenue. But if money isn’t flowing properly, you’ll always feel like you’re running in circles—selling more but never really getting ahead.
Here’s what I’ll suggest:
- Use the “Sule System” (Profit First Method)
Most people follow this formula:
Sales – Expenses = Profit
But the smarter approach is:
Sales – Profit = Expenses
✅ Every time you make a sale, set aside a percentage as profit first.
✅ Then, use what’s left for your business costs.
✅ If expenses are too high, cut costs instead of dipping into your profit.
- Stop Relying on Trust and Delayed Payments
✅ Only give goods on credit to customers with a solid track record.
✅ Set clear payment deadlines and follow up consistently.
✅ Offer small discounts for early payments. - Build a Cash Cushion
✅ Set aside at least one month’s worth of expenses as a backup.
✅ Plan for slow months—business won’t always be steady. - Invest Beyond Your Business
✅ Start setting money aside for investments outside your business.
✅ Consider stocks, real estate, or other assets that can grow over time.
✅ Build multiple income streams so you’re not fully dependent on one source.
The Cash Flow Lesson Every Small Business Owner Must Learn
Aminu’s mistake is common among small business owners.
They assume more sales mean more money. But if cash flow isn’t managed properly, you’ll always feel like you’re running on empty—no matter how much you sell.
Now, over to you:
What’s one cash flow mistake you’ve made before? And what will you do differently starting today?
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