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Imagine you see a shop that is always busy. Customers are coming in. People are buying things. Money is entering the business every day. You may look at the owner and think: “This person must be making a lot of money.” But that is not always true. A business can sell a lot of products […]
Why Some Businesses Sell a Lot but Still Lose Money Read More »
You have bought something to sell. Now you need to answer one very important question: “How much should I sell it for?” Many people simply look at what they paid and add a small amount. For example: “I bought it for $10. Let me sell it for $12.” But how did you arrive at $12?
How to Calculate Your Selling Price Read More »
Imagine you want to start selling clothes. You buy one shirt for $20 and sell it for $30. You may quickly think: “I made $10 profit.” But is that really your profit? Not necessarily. There are other costs that may have been involved before that shirt reached your customer. Maybe you paid for transportation to
Cost of Goods: The Money You Spend Before You Can Make Money Read More »
You have an idea. Maybe you want to sell clothes. Maybe you want to sell food. Maybe you want to start a small provision shop, sell phone accessories, repair phones, sell building materials, or start a business from your home. You may be thinking: “People are buying this thing, so if I start selling it,
How to Know If a Business Idea Can Make Money Read More »
Why Profitable Businesses Still Run Out of Money Imagine two businesses. The first reports a healthy annual profit. The second reports a much smaller profit. Most people would immediately assume the first business is stronger. Yet a few months later, the profitable business closes its doors, while the second continues growing. How is that possible?
Cash Flow Explained Read More »
Why a Company Can Make Billions and Still Lose Money Every year, companies announce impressive financial results. “We generated ₦500 billion in revenue.” “Our sales reached $20 billion.” “We recorded our highest turnover ever.” To many people, these statements sound like proof that the company is highly profitable. But there is an important question that