Actor and entrepreneur Williams Uchemba has shared an important lesson with small and medium-scale business owners about managing money.

In a video posted on Instagram on Tuesday, Uchemba explained the difference between cash flow and profit. He noted that putting money into a business is not profit until the initial capital is fully recovered.

According to him, in Igbo this is called Isiego, meaning separating capital from profit.

He warned that poor money management and lack of proper record-keeping are major reasons many small businesses fail.

“If you invest one million naira into a business, you’ve not started making money until that one million naira has returned from customers,” he said.

Uchemba added that many entrepreneurs confuse cash with profit, which makes them dip into their capital and leaves them unable to restock.

“That is why bookkeeping is important,” he stressed.

“If you buy something for ₦2,000 and sell it for ₦2,300, you bring out that ₦2,000 because it’s not your own. Your money there is ₦300. Don’t go and start eating the ₦2,000 thinking you’re making money.”