If you have followed this page for at least one year, you wouldn’t doubt this possibility… But you wouldn’t let the figures deceive you too…
We have studied the difference between Networth and liquidity…
We have also studied why your company’s annual turnover is not equal to your company’s revenue. A company can have an annual turnover of 1 Billion Naira but the revenue could be just 50 million Naira.
You also don’t decide to invest in a business because of their turn over – No. A company can make a turn over of 1 Billion Naira but still NOT Profitable.
An example is Tesla….
In 2017, Tesla made a turn over of 3.3 Billion Dollars… But by the end of the year, their books were in Red. They were in the negative with a net loss of over 2.24 Billion Dollars. Imagine if Elon Musk dangled his bank statement showing that 3.3 Billion USD passed through his account without posting that none of that money is available but be even went into a debt of more billions!!!
Bank Deposits and withdrawals going in and out of a business account can be calculated to exceed 1 Billion Naira in a year but if you check the balance on that account, you may not find 10 million Naira.
Chinmark’s bank accounts had annual statements exceeding 10 Billion Naira but when it was time to pay his investors, Chinmark didn’t have upto 40 million Naira in his account. Do you understand?
So I don’t doubt this lady’s claim of 1 Billion Naira turn over…. I know she is now saying that it was a stunt…. I don’t believe it was a stunt… She’s doing damage control… She probably wanted to use her turn over to deceive Gullible potential investors into investing in her business without proving Profitability or Explaining Risks. So I don’t believe she was pulling a stunt – no. I believe she was shocked to receive those figures from her bank and just wanted to share the news. I know that feeling because I’ve once received massive figures of my annual statement from my investment portfolios. I’m talking millions of dollars some years ago. But I didn’t even have that kind of money in any bank. I just wanted to share it with someone that I have crossed bla bla bla milestone. Thank goodness that I had a mentor who helped me master emotional control over figures. There’s no figure I see that excites me to an extent of posting it publicly. I know they are just figures and the real value is in the problems we solve as an organisation.
I’ve said this here before – some of you will be shocked the day you calculate your Networth. By the time they include the value of your house and other assets and then tell you what your true networth is, some of you will realise that you are a Broke Billionaire – and yes, most real Billionaires are actually cash broke.
Most banks in South Africa have an automatic Networth calculator on the bank apps. In South Africa, it is easy to accurately calculate networth because your bank knows the value of your house, your investments and your debts. So your bank apps can easily use available data to automate networth calculations. This may not be possible in Nigeria since most home owners didn’t buy their homes through the bank or are properties registered in a centralised deeds database.
Finally, do you know the basic business of Obi Cubanna which is his cash cow? FMCG or Fast Moving Consumer Goods. #KuliKuli is a Fast Moving Consumer Good. They sell quickly and at low cost and thus can drive high Turn overs. But the losses in the FMCG sector are huge. This is because such goods have short shelf life and mostly perishable. When they are not sold, you can still have high turnover but huge losses.
This should not motivate you to sell kuli kuli. But you should not also doubt her or call her a scammer. For me, I always encourage my followers to use every viral event to Learn something new. Stay away from the dragging especially if you are Growth Conscious like me.
My name is Charles Awuzie and I am a business coach.
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