Growing Business In Tough Times (3)

By Patrick Kuwana

Financial stewardship is about managing the finances and the capital that is within the business.  During tough times it calls for tightening the reins in terms of financial management, but it also calls for cleaning up a lot of the loose ends that we often overlook when things are going well.

We should, however, never tighten the belt so much that we actually end up choking off the very flow of capital and finances within the business, resulting in a crippled business.

Once we really understand our business models and our supply chain, we can then begin to make critical decisions as to where money should be allowed to continue flowing as before and where money should be tightened in terms of the financial management of the business.
 
One of the verses from the book of Proverbs states, Know the state of your flock. It is critical for us to keep very good records in terms of everything that is happening from a financial perspective within the business. Often, cash flow is what causes businesses to fail. Even businesses that have good sales, businesses that are operating efficiently, often have to close their doors when the cash flow dries up. Cash flow becomes critical when times are tough. Are we getting paid on time? Are we following up on creditors? Are we following up on invoicing?
 
It is also critical for us to look at the banking accounts we are depositing our money in. Are we depositing our money in the best interest bearing accounts? Are we depositing our money in accounts that we can have quick access to, based at our cash flow needs? Are we investing in the right areas of the business where we can see growth taking place? Whenever we are involved in a disruptive market scenario, when economic times are tough, financial stewardship becomes critical.

At the same time, it is also absolutely critical that we never lose focus of one of the most critical elements of our businesses. We are in business to be a blessing to other people. We are in business to be a blessing to our staff, our employees. We are in business to be able to be a blessing to those who are less fortunate than us. Therefore the principal of giving and the principle of tithing should never be lost, even when we are going through these very hard times.

sl-001
sl-002
sl-003
sl-004
sl-005
sl-006