More money sounds like the answer until the money enters and disappears.
For many SMEs, the real challenge is not just getting funding. It is knowing how to manage, track, and use money in a way that supports growth.
In Renmoney’s Business Mastery session in February, financial expert Kehinde Olomojobi shared practical lessons from over 27 years in treasury and real-world entrepreneurial experience. Her message was simple: the goal is not just to get funding, but to become fundable.
This article breaks down key lessons from the session to help entrepreneurs move from being cash-strapped to becoming cash-smart.
Why SMEs Matter More Than You Think
Small and medium-sized enterprises are not just part of the economy. They are one of its strongest drivers.
According to insights shared during the session, SMEs:
– Account for 98% of employment in Nigeria
– Contribute about 50% to GDP
– Represent over 41.5 million businesses
Despite their importance, many SMEs still struggle to access financing. In many cases, this is not because the business has no potential. It is because the business lacks the structure lenders, investors, and partners need to see.
The Real Problem Is Not Always Funding
Many entrepreneurs believe that if they can just get more money, their business will grow. But funding alone does not fix a weak business structure.
Common hidden issues include poor cash flow management, mixing personal and business finances, lack of proper records, weak processes, and limited financial visibility.
When these problems are not addressed, even large funding can quickly disappear. A business that does not manage small money well may also struggle to manage big money well.
This is why entrepreneurs must focus not only on raising money, but on building the discipline and structure that make funding useful.
Understanding the Funding Stack
Successful businesses do not rely on only one source of funding. They build what is called a funding stack. This simply means using different funding sources at different stages of the business.
A strong funding stack can include:
1. Internal Cash
This includes personal savings, business profits, and support from family and friends. For many entrepreneurs, this is usually the first source of funding.
2. Supplier Credit
Supplier credit allows a business to get goods or services now and pay later. This type of funding depends heavily on trust, credibility, and a good repayment history.
3. Short-Term Financing
This includes revolving loans or short-term credit used to manage temporary cash gaps. For example, a business may need money to restock before customers pay.
4. Investor Capital and Partnerships
This type of funding usually requires a stronger level of structure, transparency, reporting, and business discipline.
The key lesson is simple: the more structured your business is, the more funding options you can access.
The Power of Structure
Structure is the foundation of every fundable business. Without it, lenders and investors may struggle to understand how your business works, how money comes in, and how money goes out.
A structured business should have:
– Separate business and personal accounts
– Proper financial records
– Tax and regulatory compliance
– Defined roles and processes
– Clear visibility into revenue, expenses, and profit
One major mistake many entrepreneurs make is treating business money like personal money. This makes it difficult to track performance, plan properly, and prove that the business can manage funding responsibly.
If your business money and personal money are mixed together, it becomes harder to know whether the business is truly growing or just surviving.
The CASH Model for Financial Success
To make financial discipline easier to understand, Kehinde Omojobi recommended the CASH model.
C: Control Your Numbers
Know your revenue, costs, profit margins, cash inflows, and cash outflows. You cannot manage what you do not measure.
A: Access Funding Early
Do not wait until there is an emergency before building relationships with lenders, suppliers, or partners. Funding works better when it is planned, not rushed.
S: Separate Finances
Keep your business and personal finances separate. This gives you better control, cleaner records, and stronger credibility.
H: Have a Funding Strategy
Do not take funding just because it is available. Match the type of funding to the business need. Short-term needs require short-term solutions, while long-term growth may require more patient capital.
Five Pillars of a Cash-Smart Business
A cash-smart business is not one that simply earns money. It is one that manages money with clarity and discipline.
Here are five pillars every entrepreneur should focus on:
1. Strategy
Choose the right funding for the right purpose. Avoid using short-term loans for long-term projects or using business cash for unplanned personal expenses.
2. Structure
Build a strong financial and operational foundation. This includes proper records, defined processes, and business accounts.
3. Visibility
Know your numbers. Understand what is coming in, what is going out, and what is left after expenses.
4. Liquidity
Always plan for daily operations. A profitable business can still struggle if it does not have enough cash to cover urgent needs.
5. Access
Build relationships with lenders, suppliers, investors, and business partners before you need them. Access to funding is easier when trust already exists.
Smart Ways to Unlock Hidden Cash
Many businesses look outside for funding without first checking the cash opportunities within or around the business. Some practical financing options include:
Sale and Leaseback
A business can sell an asset, such as a vehicle or equipment, and continue using it while unlocking cash for operations.
Cooperative Funding
Entrepreneurs can leverage group savings, cooperative networks, or trusted business communities to access support.
Invoice Financing
A business can receive cash based on unpaid invoices, helping to manage cash flow while waiting for customers to pay.
Revenue-Based Financing
This allows businesses to repay funding as a percentage of revenue, making repayment more flexible.
The important lesson is that modern financing is becoming more data-driven, not just collateral-driven. Businesses with clean records, visible cash flow, and strong transaction history are better positioned to access funding.
Practical Advice for Entrepreneurs
Here are some practical steps every SME owner can start taking:
1. Prepare Before You Need Funding
Do not wait until cash is tight before thinking about funding. Plan ahead for inventory, payroll, expansion, equipment, and seasonal demand.
2. Treat Lenders as Partners
A lender should not only be someone you contact during emergencies. Build the relationship early and maintain trust through transparency and timely repayment.
3. Build Credibility
Pay on time. Keep proper records. Honour agreements. Communicate clearly. Credibility is one of the most valuable assets a business can have.
4. Strengthen Your Network
Your network can open doors to funding, partnerships, referrals, and business opportunities. In business, relationships can be just as important as capital.
The Key Mindset Shift: Become Fundable
Instead of only chasing money, entrepreneurs should focus on building businesses that attract money.
A fundable business is organised, credible, and easy to understand. It has records. It has structure. It separates personal and business finances. It can show how money comes in, how money is spent, and how profit is made.
When the structure is right, funding becomes easier to access and easier to manage.
Successful businesses do not just work hard. They work smart with money.
Final Takeaway
In business, revenue makes you visible, profit makes you successful, but cash gives you power.
The difference between a struggling business and a scalable one often comes down to financial intelligence, discipline, and structure.
So, if you are an entrepreneur, the next step is not just to look for funding. It is to build a business that funding cannot ignore.
To learn more, watch Kehinde Olomojobi share practical lessons in Renmoney’s Business Mastery webinar on our YouTube channel.
