Many Nigerian-owned businesses in the UK don’t fail because they lack customers — they fail because the financial systems can’t support growth. If you want your business to scale smoothly (and survive the taxman or a funding pitch), here are seven financial areas you need to sort out first.
🔑 Key Takeaways:
- Revenue growth without financial structure = chaos.
- Poor pricing, dodgy reporting, and late invoices kill momentum.
- Fix the back end before chasing funding, loans, or expansion.
1. Accounting: The CAT Check
You can’t manage what you can’t measure. Yet many business owners rely on their accountants only for tax returns — not to actually understand how the business is doing week-to-week.
Use the CAT test:
- C – Completeness: Are all transactions recorded? Every sale, refund, expense, and invoice?
- A – Accuracy: Are they properly categorised? Revenue aligned with delivery? Or lumped in wherever?
- T – Timeliness: Are your books closed within 10–15 days of month-end? Or are you seeing results too late to act?
UK Tip: If you’re VAT-registered or applying for a loan, sloppy books = red flags. Use tools like Xero, QuickBooks or Sage — and make sure your accountant is more than just HMRC-compliant.
2. Receivables: RCC Framework
Revenue is useless if the cash isn’t collected. Many businesses have money on paper but are broke in reality because they don’t follow up payments properly.
The RCC framework can help:
- R – Revenue Linkage: Are invoices tied to clear milestones (delivery, service, etc.)?
- C – Collections Process: Do you follow up formally? Use reminders? Assign ownership?
- C – Credit Policy: Do you have standard payment terms or just “trust” each customer?
Naija Note: Chasing payments isn’t disrespectful — it’s survival. Use software (like GoCardless or Stripe) for auto-reminders and recurring payments.
3. Budgeting & Forecasting: The 13-1-3 Model
A lot of UK-based Nigerian businesses wing it monthly — no forecast, no runway planning. That’s risky in a high-cost environment like the UK.
Here’s what works:
- 13-week Cash Flow: Know what’s coming in/out every week for 3 months.
- 1-Year Budget: Monthly plan with real targets (staff costs, sales goals, breakeven).
- 3-Year Forecast: Big picture — when will you need more staff, more space, more capital?
Tool Tip: Try Float, Futrli, or even Google Sheets with cashflow templates.
4. Capital Raising: The FUND Checklist
Before you start looking for loans or investors, ask:
- F – Figure Out the Need: Are you raising based on real runway or just vibes?
- U – Understand If You Need It: Maybe you just need better systems, not money.
- N – Nail the Prep: Is your pitch deck, model, and financials investor-ready?
- D – Don’t Just Chase Valuation: Focus on value — not flashy figures.
UK Angle: If you’re applying for a startup loan or pitching to angel investors, unclear numbers and mismatched projections can ruin your credibility.
5. Reporting: The DSA System
Too much data is just noise. Too little is dangerous. Build 3 layers of reporting:
- D – Detailed (Team Level): Project costs, expenses, staff performance.
- S – Summary (You): Monthly income, margins, cashflow, budgets.
- A – Analytical (Advisors/Investors): LTV/CAC, profit per product, growth trends.
Pro Tip: Set up a monthly finance review session — even if it’s just with yourself and your accountant.
6. Tax & Compliance: ACT It Out
If HMRC ever audits you, can you confidently provide every return and payment breakdown?
Use the ACT framework:
- A – Accuracy: Are taxes matching your books?
- C – Consistency: Do you file on time, every time (VAT, PAYE, Corporation Tax)?
- T – Traceability: Can each tax payment be traced back to your business records?
Don’t Wait: Get your accountant to create a compliance calendar — no more March madness.
7. Pricing & Costing: The 3S Rule
Pricing is a system, not a guess. Here’s how to avoid undercharging:
- S1 – Strategic Positioning: Are you pricing for value or just trying to be cheaper?
- S2 – Sustainable Margins: Know the cost to serve each customer or product.
- S3 – Scalable Structure: Can your pricing flex as you grow?
Naija UK Reality: Underpricing just to “win customers” leads to burnout. Know your worth — and build margin into your model.
🚀 Final Word:
You don’t rise to the level of your dreams — you fall to the level of your systems. If even one of these pillars is cracked, it can stall your growth.
You don’t have to fix everything at once. But start with the one giving you the biggest headache. Because scaling in the UK as a Nigerian business owner is tough enough — don’t let your finances be your weak link.
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