The broke but profitable business ‪- #CashFlow Lessons

Is it possible to run a broke but a profitable business?

Here is a scenario: A retail business buys stock of Ugx400, 000 and sells it on credit for Ugx600, 000. Although this transaction has made a Ugx200,000 profit, unless the credit is paid, the business will have a negative net cash flow of Ugx400,000.
If this kind of a scenario goes on for a while, the business will not be able to meet its obligations as they fall due and the small business may go out of business.

Let's Learn from the ‪#‎GreeceCrisis‬ it is not Greek!

“Thank you for banking with us, based on your account, you qualify for a loan of xxx amount. I will also give you a very good interest rate” the caller said. You may have received such calls from the banks. I remember asking one of them what I would do with the loans and he said I could renovate my house, furnish the house or start a business. “Do you have a business idea I could start with?” Of course he had none! If one is not careful, one could get into a #GreeceCrisis. Let us learn Greek, the lessons that is: