By Nelson Semanu BOANDOH-KORKOR & Elizabeth BOANDOH-KORKOR
“All the things we do, all our behavior, should let others know that we are living by, and operating in, biblical principles. Principle and character are the highest quality traits on our list……Focus on people more than money. Without employees and customers, you’re going nowhere. Make sure you never stop thinking about the customer’s perspective.” – David Green, Founder, Hobby Lobby
- Lack of priority for fundamental business requirements
Then the Lord responded and said: “Record the vision and inscribe it on tablets, that the one who reads it may run. For the vision is yet for the appointed time; it hastens toward the goal and it will not fail. Though it delays, wait for it; for it will certainly come, it will not delay – Habakkuk 2:1-3 NKJV
Business success hinges upon adhering to fundamental principles, and entrepreneurs who overlook these essentials could jeopardize their ventures. At the heart of these essentials lies a well-structured business plan or strategy. Neglecting the creation of a detailed business strategy that encompasses financials, forecasting, and budgeting can have detrimental consequences for the business.
I will stand watchfully and position myself on the tower to listen for divine guidance and respond to correction. Then the Lord answered and said, articulate the vision clearly and present it comprehensively, so that those who read it can move forward confidently. For the vision is appointed for a specific time, and though its fulfillment may be delayed, wait patiently, for it will undoubtedly materialize without delay – Habakkuk 2:1-3 NKJV
Merely holding business concepts or strategies in your thoughts is insufficient; you must articulate your business blueprint in written form. This practice is pivotal for the triumph of any business endeavor. It’s imperative to possess an in-depth understanding of how your business functions, inside and out.
Precisely define your target customers, analyze demand and supply dynamics, and assess your competition. Grasp the intricacies of your cost structure, encompassing both fixed and variable expenses. Familiarize yourself with the essential metrics of your business, enabling you to confidently address inquiries from potential investors regarding return on investment. Seeking professional guidance is advisable if you lack proficiency in these areas.
Avoid diverting your everyday liquidity needs into capital projects, a common pitfall among entrepreneurs. Recognize that liquidity serves as the life force of your business and should be safeguarded vigilantly. Refrain from indulging in unnecessary expenditures such as luxury vehicles, extravagant office spaces, or superfluous staff. Maintain a clear demarcation between personal and business finances by establishing separate accounts for each. One pragmatic approach involves setting a consistent salary for yourself. Exercise caution against regarding the funds at your disposal as personal assets. Refrain from treating the business as a personal piggy bank, as such actions can lead to dire consequences.
- Effective hiring and firing practices
Diverse skill sets and backgrounds are essential for filling various roles within your organization. In the initial stages, ensure you have diligent and versatile individuals who can adeptly handle a range of tasks. As your business expands, focus on recruiting specialists for roles that demand expertise. Avoid appointing generalists when specialization is necessary, and vice versa, to optimize your team’s effectiveness – Devin Miller, Attorney, Founder, CEO & Managing Partner, Miller IP Law
This factor stands as a significant contributor to business failures. Entrepreneurs who make ill-suited hiring decisions within their enterprises must exercise careful consideration, as impulsive choices could lead to future regrets.
An employee may be unsuitable for a position if any of the following conditions exist:
- Their skills do not align with the job’s task requirements.
- Their passions do not resonate with the role’s demands.
- Their attitudes are incongruent with the company’s values.
- Their compensation falls outside the market range for the role.
- Their character conflicts with the company’s core values and undermines them.
- Their interpersonal skills adversely affect the company culture.
Trust in the Lord with all your heart, and lean not on your own understanding; in all your ways acknowledge Him, and He shall direct your paths – Proverbs 3:5-6 NKJV
Business failures are rarely random occurrences. The process of hiring and firing profoundly influences business triumph. Reflect on any business failure you’ve encountered. Upon thorough analysis, you’ll likely pinpoint that inadequate hiring, firing, and a lack of effective conflict resolution were pivotal factors at the core.
A misguided hiring decision can potentially disrupt your business. Thus, a determined commitment to sound decision-making is imperative. Surrendering to the guidance of the Holy Spirit ensures your path to success. As Christian business owners, it’s crucial to recognize that honing the skills of hiring and firing is integral to fulfilling the four purposes that God has ordained for businesses.
- Building resilience against failure and overcoming shame
“The distinction between ordinary individuals and accomplished ones lies in how they perceive and respond to setbacks” – Dr. John C. Maxwell, Global Leadership Expert
Developing the ability to confront fear and failure is paramount for a kingdom entrepreneur, as failure is an intrinsic aspect of life. No matter your intelligence, not every business venture you embark upon will prosper, and not every business decision will yield favorable outcomes. In tandem with celebrating success, we must embrace failure as a learning opportunity, acknowledging its lessons. Often, those who face business losses tend to fixate on challenges, overlooking God’s promises and potential solutions. Dwelling on problems can erode one’s resolve.
Following periods of sustained success, many business owners elevate their lifestyle under the presumption that their flourishing income will endure indefinitely. Frequently, these individuals teeter on the brink, allocating the bulk of their earnings toward worldly pleasures and extravagances. As a business’s performance falters, so does the owner’s income. Consequently, feelings of shame may arise from an inability to uphold their accustomed lifestyle, fostering apprehension over potential public scorn.
Such shame exposes a misconception that personal value is intertwined with material triumph. For the Christian entrepreneur, liberation from this trap lies in comprehending that our worth emanates from our identity in Jesus Christ, rather than being contingent on our accomplishments in business.
- Avoiding the trap of arrogance
“Pride precedes downfall; an arrogant spirit leads to a fall” – Proverbs 16:18 KJV
The peril of arrogance or pride can also pave the path to business failure. Often, visible indicators manifest before a business succumbs to failure. The challenge, at times, lies in entrepreneurs in leadership roles who fail to acknowledge evolving circumstances, disregarding the need for humility and change. When a business faces decline, a common misconception among business owners is the belief that their determination and actions alone can reverse the trend, steering the business toward renewed profitability and success.
Even more insidious is the notion that merely focusing on top-line revenue ensures profitability and success, overlooking other critical factors. Such a mindset fosters a profoundly misguided perspective that can spell doom for a business. The tendency to ignore the bigger picture often culminates in the eventual collapse of the enterprise.
Maintaining a stance of humility, a willingness to learn, and openness to advice can act as potent safeguards, shielding your business from impending collapse.
Nelson Semanu Boandoh-Korkor is a distinguished figure, acclaimed as an Author, Publishing Consultant, Christian Business Coach, and a fervent Financial Evangelist. Nelson is a forex trader, cryptocurrency investor and metaverse enthusiast.
Elizabeth Boandoh-Korkor (CA) is an accomplished Chartered Accountant with extensive experience as a Financial Management Consultant, spanning close to two decades in both the not-for-profit and banking sectors. You can reach out to them on +233549762233 or [email protected]
