Is Your Business Eating All Your Money? (Fix this before it eats you too)

Let’s talk about something uncomfortable.

You started your business, pumped in your hard-earned cash, and expected that with time, the business would stand on its own two feet. But now, a few months in, every time you check the bank balance, it feels like someone is slowly siphoning your money through a tiny invisible straw.

If this is you, I hate to break it to you:
Your business might be making losses.

And not the “it’ll bounce back next month” kind of losses.
The “this-thing-is-sinking-and-I-didn’t-notice” kind.

Now, don’t panic. You’re not alone. I’ve seen this happen many times — and most times, the business owner is blindsided.

They think, “Maybe I just need to inject more capital.”

But money is not fertilizer. Throwing more of it at the business won’t make it grow if the roots are already rotten.

So let’s fix this.
If you’re always topping up your business with personal funds and watching your cash disappear, there are usually two main culprits.

1. Your Expenses Are Doing the Most

Some businesses are just extra.
You rent a beautiful office, buy the sleek chairs, get custom packaging, pay for five subscriptions you barely use — and before you know it, your operational costs are eating you alive.

This is what I call financial wastage disguised as ambition.

I’ve seen small businesses spend like they’re Fortune 500 companies — and justify every coin.
A branded water dispenser? Of course! We’re building the brand!
A DSTV subscription? Our staff deserve a break during lunch!

Stop it.
That’s not strategy — that’s sabotage.

Here’s what to do instead:

• Audit your expenses. Every single one.
• Ask yourself: Does this help me generate income or keep operations going? If not, scrap it.
• Compare suppliers. If someone is charging too much for something, find someone else.
• Delay non-crucial spending. You don’t need everything now. Some things can wait.

You don’t need a lean six-pack budget, but you definitely need to cut the belly fat.

2. Your Profit Margin Is Laughing at You

Let’s say you’re selling a product that costs you UGX 10,000 to make, and you’re selling it at UGX 12,000. Congratulations, you’re making UGX 2,000 in profit per unit.

Now, let’s do the math.

To make UGX 20,000 in profit, you’d have to sell 10 units.
But if your profit margin was UGX 5,000 per unit? You’d only need to sell 4 units to make the same UGX 20,000.

See the difference?

Low profit margins = You must sell in huge volume to survive.
But let’s be honest — most small businesses don’t have that kind of traffic.

So what’s the fix?

• Review your pricing. Are you undercharging out of fear? Stop that.
• Add value. Improve your offer so that your price makes sense — and you can charge more.
• Focus on margins. It’s better to sell 5 high-margin products than 50 low-margin ones (unless you enjoy hustling like a street vendor at a festival).

High margins give you breathing space.
Low margins keep you in survival mode.

So What’s the Takeaway?

If your business is always draining money like a leaking tap, check two things:

• Are you spending too much?
• Are you earning too little per unit sold?

Fixing either of those can stop the financial bleeding.
Fixing both? Now that’s how you turn a struggling business into a profitable one.

Don’t keep injecting money blindly and hoping it works out.
That’s not entrepreneurship. That’s emotional damage.

Your business should pay you — not punish you.

Want help reviewing your business costs or profit margins?
Let’s chat. I’ve helped other small businesses plug their leaks and grow healthier profits — and I’d love to help you do the same.