5 Tips for Managing Cash Flow (Why Profitable Businesses Still Go Broke)
PwC surveys show that delayed payments, electricity costs, and limited finance access are the top cash-flow constraints for Nigerian MSMEs. Many profitable businesses collapse overnight from cash shortages. Our article highlights five critical tips: 1) Understand profit ≠ cash—timing matters more than profit numbers; 2) Review cash flow weekly; 3) Create a 13-week cash flow forecast tracking income/expenses, reveals gaps before emergencies; 4) Track key metrics; 5) Plan for seasonal variations (save during profitable months, 3-month reserve, track patterns). Financial management requires discipline, not complexity. Weekly 30-minute review protects businesses from crises.