The accountant Nigerian Twitter didn't know it needed ๐ | I break down tax, salary & hustle money in plain English | ACA Certified ๐ณ๐ฌ | DMs open
Most ecommerce sellers think they know their profit.
They don't.
They know their revenue.
There's a big difference โ and it's costing you money every single month.
Here's what's actually eating into your earnings (and how to find your real profit) ๐งต
Nobody showed you this math:
โฆ15M investment
Driver absconds with โฆ50k monthly = โฆ600k/year
Maintenance per keke = โฆ150k/year ร 5 = โฆ750k
One accident = โฆ500k minimum
Fuel cost increase = ongoing
Your โฆ100k daily just became โฆ60k.
I'm not saying don't invest oh
Invest in 5 units of Keke Napep at โฆ3 million each that is โฆ15 million.
Rent them out daily for โฆ20,000 per unit, making โฆ100,000 daily income.
Or weekly for โฆ120,000 per unit, that is around โฆ600,000 weekly income.
Your capital is expected to be fully recovered within 5 months.
Signs your ecommerce books need urgent attention:
โ You check your bank balance to decide if business is going well
โ You don't know your profit margin by product or SKU
โ Tax season feels like a crisis every year
โ You're growing in revenue but running out of cash
Most ecommerce sellers think they know their profit.
They don't.
They know their revenue.
There's a big difference โ and it's costing you money every single month.
Here's what's actually eating into your earnings (and how to find your real profit) ๐งต
Step 3 โ Subtract your COGS (what you paid to source the product)
Step 4 โ Subtract your ad spend, shipping and any subscriptions
What's left รท your gross revenue = your true profit margin %
If that number surprises you โ it should.