7 financial mistakes that my cost you millions

Take Control of Your Business Finances with E3 CART

Managing your business money doesn’t have to be complicated.

With E3 CART, you can easily track expenses, monitor sales, make smarter financial decisions, and avoid common financial pitfalls.

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Why Nigerian Businesses Fail  And What You Can Do Differently

Did you know that 60% of Nigerian businesses shut down within their first three years? Surprisingly, the issue often isn't a lack of sales. In fact, your business could be making money and still be heading toward failure.

No   it’s not your village people either.

The real problem? Most entrepreneurs neglect the fundamentals of financial management. You may think your business is profitable, but if you’re not paying attention to the right numbers, you could be running at a loss. Your store might be full of customers, and your services might be in demand  but without proper tracking, that “profit” could just be a mirage.

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The Good News? You Can Fix These Mistakes

In this article, we’ll cover seven costly financial mistakes hurting Nigerian businesses  and most importantly, how to fix them.

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1. Poor Cash Flow Management

Cash flow is like the bloodstream of your business. When it’s not flowing properly, everything suffers. A major problem for many entrepreneurs is mixing personal and business finances, making it nearly impossible to understand their financial standing.

How to fix it:

• Use a business management app to monitor your spending

• Open a separate business bank account

• Set up reminders for recurring bills

• Implement a digital invoice system

• Review your cash flow weekly

With E3 CART, you can easily categorize your expenses for example:

• Inventory (stock, delivery costs)

• Operations (rent, electricity, data)

• Marketing (ads, fliers)

• Staff (salaries, training)

Snap photos of receipts or enter expenses on the go, and track every kobo effortlessly.

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2. No Emergency Fund

Think back to the COVID-19 lockdowns. Businesses without savings struggled to survive. Yet many SMEs still operate paycheck to paycheck, with no financial cushion.

How to fix it:

• Save at least 10% of your monthly profits

• Automate your savings transfers

• Aim to build up 3 6 months of operational expenses

• Keep your emergency fund in a separate account

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3. Informal Record-Keeping

Relying on notebooks, mental math, or random spreadsheets isn’t enough anymore. Lose that notebook and you risk losing critical financial data like your inventory, revenue history, or even tax records.

How to fix it:

• Switch to digital bookkeeping

• Scan and store all receipts using your phone

• Log expenses daily

• Generate monthly financial reports

• Back up your records automatically

With E3 CART, you can digitally track all your sales, orders, and inventory. You’ll also get performance reports and daily expense tracking all in one place.

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4. Ignoring Profit Margins

Are you truly making a profit on each sale?

It’s possible to sell a lot and still not have enough to sustain your business. That’s because high sales don’t always mean high profit especially if you’re not paying attention to your profit margins.

Your profit margin is what you keep after subtracting all costs. For example, selling a shirt for ₦5,000 that costs ₦3,000 to produce gives you a ₦2,000 (or 40%) profit margin. The higher your margin, the better.

How to fix it:

• Calculate all costs per product/service

• Track which items perform best

• Set alerts when margins drop

• Adjust pricing based on real data

• Review margins monthly

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5. Late Invoice Payments

Unpaid invoices can crush your cash flow. When customers delay payments for weeks or months, you’re left struggling to restock, pay staff, or settle bills.

How to fix it:

• Establish clear payment terms

• Send automated payment reminders

• Offer incentives for early payments

• Accept multiple payment options

• Use digital invoices for faster processing

E3 CART’s Payment Request feature helps you stay on top of this sending your customers a reminder with a payment link so they can pay faster and easier.

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6. No Financial Planning

Running a business without a financial plan is like flying blind. Too many SMEs react to financial issues instead of planning ahead.

How to fix it:

• Create monthly and annual budgets

• Set realistic income and expense targets

• Compare actual results against your plan

• Review and adjust your plan quarterly

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7. Doing It All Yourself

You’re excellent at your craft but that doesn’t mean you should manage all your finances solo. Many entrepreneurs try to handle everything, which leads to missed opportunities and costly errors.

How to fix it:

• Invest in business management software like E3 CART

• Learn basic financial principles

• Automate your financial reports

• Hire a part-time accountant if needed

• Attend finance workshops for business owners

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In Conclusion: Success Starts with Smart Money Management

What sets successful businesses apart isn’t just great products or loyal customers it’s smart financial habits.

With E3 CART, you can:

• Track your cash flow with ease

• Get paid faster with professional invoices

• Make smarter pricing decisions with real data

• Build emergency savings

• Generate instant, insightful financial reports

Don’t let poor financial habits hold you back. Start managing your money the smart way. Download the E3 CART app and take control of your business today!

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