Dear Zimbabwean Entrepreneurs,
One of the most painful lessons in business is simple: do not spend money that you have only been promised. Until funds are in your account or cash is in your hand, that money does not belong to you. Yet many entrepreneurs fall into this trap and end up in serious trouble. They make plans based on verbal commitments, promises of payment, or expectations of deals that have not yet materialised. When the money fails to come, the results can be devastating.
The Promise That Never Arrives
It usually begins innocently. A client promises to pay at the end of the month. An investor pledges to release capital after “final approvals.” A friend or relative assures you that money is coming your way for partnership. Encouraged, you start making commitments—you order more stock, take on debt, or expand operations—because you are certain the funds are as good as yours. But business is unpredictable. Promises get delayed. Deals fall through. Clients change their minds. And suddenly, you are stuck with expenses you cannot cover.
Why This Matters in Zimbabwe
In Zimbabwe, where cash flow is already a daily struggle, this mistake is even more dangerous. Entrepreneurs operate in a fragile economy where customers often delay payments, banks move slowly, and suppliers demand upfront cash. Depending on promised money is like building a house on wet sand. One delay can collapse everything. The sad reality is that many businesses fail not because they lacked customers, but because they mismanaged expectations.
Consider the entrepreneur who supplies uniforms to a school. The school promises to pay in two weeks. Confident, the supplier orders more material on credit, expecting the promised money to settle the debt. When the school delays payment for another month, the supplier is left unable to pay the fabric supplier. Trust is broken, relationships are strained, and the business reputation suffers—all because of spending money that was never received.
The Illusion of Certainty
We like to convince ourselves that promised money is guaranteed. After all, the client looked us in the eye and said, “Do not worry, your money is coming.” But words do not pay bills. Until money clears, it is nothing more than potential. Too many entrepreneurs fall into the illusion of certainty, forgetting that circumstances change. Even well-meaning clients sometimes fail to pay because of their own struggles. When you spend before receiving, you are assuming perfect conditions—and in business, conditions are rarely perfect.
The Discipline of Waiting
Financial discipline means waiting until money is actually received before making financial commitments. It requires patience and sometimes humility, because the temptation to act early is strong. You see opportunities that seem urgent. You want to impress clients by moving fast. You want to look successful to family or friends. But discipline says: hold on. Protect your business first. Secure the funds, then act.
This discipline builds resilience. It ensures that even when payments delay, your business does not collapse. It keeps you free from unnecessary debts and broken promises to your own suppliers.
Practical Strategies to Avoid This Trap
1. Never budget on promises. Create budgets based only on cash in hand, not verbal assurances.
2. Use contracts, not casual words. Where possible, put agreements in writing. While it may not guarantee instant payment, it gives you leverage to follow up and reduces the risk of outright loss.
3. Build a cash flow buffer. Always keep a reserve, no matter how small. Even a week’s worth of operating expenses can save you when promised money is delayed.
4. Communicate carefully. When clients or investors promise funds, acknowledge politely but avoid making commitments based on their timeline until you actually see results.
5. Prioritise essentials. If you must act before receiving money, do not take on large obligations. Limit commitments to what your current cash flow can safely handle.
Stories That Repeat Themselves
Across Zimbabwe, the same story plays out daily. An entrepreneur celebrates a promised contract, spends money to prepare, and then is left stranded when payment is delayed or cancelled. These situations often end in debt, damaged credit, or even closure. Yet the lesson remains the same: promised money is not real money.
Think of how many small businesses would have survived if owners had waited for actual payments instead of chasing shadows. Many of us have scars from deals that collapsed at the last minute. Let those scars remind us, not mislead us.
The Emotional Trap
Promises play on our emotions. Hope is powerful, and in a tough economy, every pledge feels like a lifeline. We want to believe so badly that relief is coming that we ignore the risk. But hope without discipline becomes dangerous. True entrepreneurs learn to balance hope with caution. They celebrate opportunities, but they only spend what is tangible.
A Culture of Realism
If Zimbabwean entrepreneurs adopt the culture of realism—never spending money until it is received—we will see stronger, more stable businesses. Realism does not mean pessimism. It means recognising that only actual resources can build sustainability. Promises may excite us, but only cash sustains us.
The Challenge For You
As you read this, think about your current situation. Are you already planning expenses based on promised money? Are you waiting for a client, investor, or partner before making commitments? Pause. Reconsider. Protect your business by waiting until the funds are in your account. No matter how trustworthy the source seems, remember: a promise cannot pay rent, salaries, or supplier invoices.
With respect for your financial discipline,
ZimLedger Admin
ZimLedger
ZimLedger is the all in one business and finance platform for Zimbabwe. It generates quotes, invoices, payslips and financial statements, manages business ledgers, tracks income and expenses, and builds shopping lists. ZimLedger offers a simple yet powerful solution tailored to local needs. Whether you are budgeting in ZiG or USD, managing business accounts, converting Ecocash statements, or tracking household expenses, ZimLedger empowers you to stay organised, make informed financial decisions, and grow your wealth—right from your phone or computer.
