Kojo found old Mr. Agyeman sitting outside his small hardware store just before closing time. The old man had owned businesses for longer than Kojo had been alive, and whenever something about money confused him, this was usually where he came. That evening he arrived carrying a notebook and looking frustrated. “I don’t understand something,” Kojo said before even sitting down. Mr. Agyeman laughed. “You never start with greetings when finance is involved.” Kojo grinned and dropped onto the bench. “This chapter keeps talking about treasury management and working capital. Everybody writes about it as if it’s the most important thing in the world, but honestly, it sounds boring.
” The old man nearly choked laughing. “Boring? Ah, my boy, that’s because you’ve never run out of cash while owning a profitable business.” Kojo frowned. “How can a profitable business run out of cash?” Mr. Agyeman pointed toward the shop. “That question almost destroyed my first company.” Kojo blinked. “Seriously?” “Very seriously.” The old man leaned back and folded his arms. “When I was younger, my business was making sales every week. Customers were buying, orders were increasing, and on paper everything looked wonderful.
I thought I was becoming rich. Then one Friday I couldn’t pay suppliers.” Kojo stared at him. “Wait. How?” “Because profits and cash are not the same thing.” The old man smiled when he saw the confusion on Kojo’s face. “That’s the lesson most people learn the hard way.”
A delivery truck rumbled past before Mr. Agyeman continued. “Imagine you sell furniture. A customer buys ten thousand cedis worth of goods today but promises to pay you in sixty days. Have you made a sale?” “Yes.” “Have you made a profit?” “Probably.” “Do you have the cash?” Kojo paused. “No.” “Exactly.” Mr. Agyeman tapped the bench. “Now imagine your supplier wants payment next week.” Kojo groaned.
“Ah… I see the problem.” “You see only part of it,” the old man replied. “While you’re waiting for customers to pay, you still have wages, electricity, rent, transport costs, and taxes.” Kojo shook his head slowly. “Goodness. So a business can be profitable but still struggle because the money isn’t arriving fast enough.” “Now you’re beginning to understand working capital.” A customer walking by waved at Mr. Agyeman, who waved back before continuing. “Working capital is what keeps the engine running every day. It’s the money tied up in stock, customer debts, and cash balances. Ignore it, and the business starts coughing like an old taxi climbing a steep hill.”
Kojo opened his notebook. “So where does treasury management fit into all this?” Mr. Agyeman smiled. “Treasury management is simply making sure the business always has enough money available when it needs it.” “That sounds straightforward.” The old man laughed. “Only until things go wrong.” He pointed across the street at a busy supermarket. “Those shelves are filled with products that were paid for before they were sold. The company had to buy stock, transport it, store it, and display it before receiving a single cedi from customers.
Treasury management is about planning for those cash movements.” Kojo nodded. “So it’s not just about having money today.” “Correct. It’s about knowing where cash will come from tomorrow, next month, and even six months from now.” The younger man thought for a moment. “Kind of like managing water during a long dry season.” “Exactly!” Mr. Agyeman exclaimed. “If you wait until the river dries up before looking for water, you’ve already made a mistake.” Kojo laughed. “That actually makes more sense than the textbook explanation.” “Most real business lessons do.”
The evening breeze carried the smell of roasted plantain from a nearby food stand. Kojo looked thoughtful now. “I’ve always assumed that growing sales automatically solves financial problems.” Mr. Agyeman immediately shook his head. “Sometimes rapid growth creates new problems.” “How?” “Because growth often demands more stock, more workers, larger premises, and bigger operating expenses.” Kojo’s eyebrows rose. “Whoa. So a growing company might need even more cash than a struggling one.” “Very often.” The old man smiled.
“Many businesses fail not because nobody wants their products but because they grow faster than their cash can support.” Kojo sat quietly for a few seconds. “I’ve never heard anyone explain it like that.” “Because people like talking about profits,” Mr. Agyeman replied. “Profits sound exciting. Cash flow sounds dull. Yet cash flow is usually what determines whether a company survives.” A motorcycle roared past, briefly interrupting the conversation. When the noise faded, Kojo laughed. “So all those companies boasting about sales figures…” “May still be worrying about tomorrow’s bank balance,” Mr. Agyeman finished.
The streetlights were beginning to flicker on when Kojo finally closed his notebook. “I think I understand now,” he said. “Treasury management isn’t about getting rich. It’s about making sure the business can keep operating smoothly.” Mr. Agyeman nodded approvingly. “Exactly.” “And working capital is the money tied up in everyday activities that keeps the business moving.” “Correct.” Kojo smiled.
“Funny thing is, I thought this chapter would be one of the least useful.” The old man burst out laughing. “Most people do until they start a business.” Kojo stood and stretched. “You know, the more we talk, the more finance seems less about formulas and more about common sense.” Mr. Agyeman smiled warmly. “The formulas help. But underneath them, finance is often just the art of making sure resources are available when they’re needed.
” Kojo nodded. “And if you ignore that?” The old man pointed toward the darkening street. “Then one day you’ll have customers, products, profits on paper—and still find yourself unable to pay tomorrow’s bills.” Kojo winced. “That sounds terrifying.” “It is,” Mr. Agyeman said. “Which is why smart business owners learn to watch their cash just as carefully as they watch their profits.” And with that, the old man locked his shop door, leaving Kojo with a lesson that felt far more practical than anything he had read in the chapter itself.