Business, Money, Success

In the world of small businesses, nothing stings quite like looking at strong sales and wondering, “Where did all the money go? I mean, just because your business is racking up sales doesn’t mean your bank account is smiling, so, if you’ve ever wondered why you’re “making money” but still struggling to pay bills, you’re not alone—and you’re not crazy.

The MonieChant, that sharp-thinking, intelligent entrepreneur who understands the real language of money  knows one truth most folks miss: making money does not mean you actually have money. Let’s break it down and help you start thinking—and operating—like one.

Making money in business is profitability. How well your business brings in money while having money is liquidity (your ability to access cash when you need it). A business can be wildly profitable and still fail because it runs out of cash. This is how some startups raise millions and still collapse—they’re asset-rich, but cash-poor. Let us go into each concept:

Are You Making More Than You Spend? (Profitability)

It answers the question: “Is my business making money overall?” As a small business, you want to celebrate your wins and deals, and in the process, you might not even realize that you do not have money in your pocket. Profit is what is left after subtracting costs from revenue, and while you are profitable on paper, you might just have no actual funds to run the business. The money can be tied up in assets, unpaid invoices, and other things like that.

Example: You sell 1,000 units of a product at ₦10,000 each, and you bought it at a total of ₦7,000 per unit. You’ve made a gross profit of ₦3,000 per unit, or ₦3 million total. That’s profit, on paper.

Here’s a tip for every deal or sale you make: Always ask, “Can I access this money now?” not just “Did I earn it?”

When you see terms like gross profit (the money made minus cost of goods sold), operating profit (money remaining minus operating expenses), and net profit (what is left after all expenses, taxes, and interest are paid), no worries, they are the different ways in which profit is measured. Now, let’s move, shall we?

Do You Have Enough Cash Right Now? (Liquidity)

This one answers the question, “Can I pay my bills today?” and is all about short-term flexibility. While profit is important, cash flow is survival. It’s what keeps the lights on, pays your workers, and lets you sleep in peace at night. The MonieChant doesn’t just track sales—they track how and when money enters and exits the business; how does that happen? They:

• Ensure payment terms are arranged so that money is received faster than it is spent.
• Monitor expenses that change against those that stay the same.
• Keep enough stock to meet customer demand, but not so much that it strains your budget.

With these steps, the MonieChant has a positive cash flow and is not only paper-rich. A quick example to understand the whole concept of liquidity is this: You land a contract and have ₦3 million in profits, but if that money is tied up in unpaid invoices, unsold stock, or equipment, and you have ₦1 million in bills due tomorrow, you’re in trouble. You’re profitable but not liquid. Do you understand?

Still confused? Learn the differences at a glance.

Aspect	Profitability	Liquidity
Focus	Long-term income and expenses	Immediate availability of cash
Success time frame	Looks at financial success over time	Looks at the ability to meet short-term obligations
Tools Used	Income statement and profit margin	Cashflow statement and balance sheet
Risks Ignored	Slow-paying customers, delayed payment collection	Does not consider whether the business is earning enough in the long run.

As a good business owner, you should balance the two; as you chase profitability, you also protect liquidity. A negative cash flow can be like cancer to a business and even hurt it more than bad products would, but you can stay on it and keep it all under control by using a few tools:

• Cash Flow Statement: It simply shows how much money moves in and out of the business.
• Cash Forecast: You can make a 12-month forecast to monitor problem areas and predict others before they become an actual problem.
• Budget and Actual Reports: Of course, you create a budget for all the things you need as a business; also, make actual reports as you spend on those things. When you compare the two documents, you can check for overspending or under-performance

Knowing and working with these tools gives you clarity and power to navigate muddy waters.

The MonieChant not only earns, but he or she retains and ensures they always have cash reserves, smart loan solutions on standby, and clear visibility over payment cycles. They do everything to make sure they’re never cash-strapped in a crisis—even when business looks good on paper.

Ready to take your business to the next level? Contact us today at info@marketmonie.com or (+234) 913-6000-833 to learn more about our flexible financing options tailored to support the growth of your small business.