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 strategic business planning
“Which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it – lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish?'” – Luke 14:28-30 NKJV
Faith and hope undoubtedly hold significance in our lives, but relying solely on them as strategies for business success can lead to misguided outcomes. Luke 14:28-30 imparts a crucial lesson in foresight and preparation. In the realm of business, effective planning across marketing, business development, human resources and finance is imperative for attaining triumph. While divine providence is a cornerstone of our beliefs, steering our businesses with strategic intent is equally essential. The misconception arises when hope and faith are equated with a comprehensive business strategy.
Respected author Alan Lakein captures this sentiment aptly: “Planning is bringing the future into the present so that you can do something about it now”. This sage counsel underscores the importance of charting a well-structured, strategic course for your enterprise. Business prosperity hinges upon more than spiritual allegiance; it necessitates proactive, strategic approaches. Unfortunately, many Christian entrepreneurs falter due to the absence of comprehensive, meticulously outlined plans to navigate their businesses toward success.
A key element of effective business strategy involves setting measurable goals and pursuing them with unwavering determination. Mere proclamation of divine favour does not guarantee success; it requires a proactive, strategic approach. Thus, the responsibility lies upon us to proactively delineate pathways to success, demonstrating diligence and commitment. This intentional approach transcends faith and delves into the realm of purposeful execution, where well-defined, actionable plans guide our every move.
In essence, true success emerges at the crossroads of faith and prudent planning. The lessons encapsulated in Luke 14:28-30 echo a resounding call to embrace the wisdom of foresight, laying a sturdy foundation for triumph. Christian entrepreneurs must harmonise their unyielding belief in divine favour with a dedication to strategic planning. By doing so, businesses can thrive as a testament to the harmonious fusion of faith and meticulous foresight.
- Insufficient financial record-keeping
“Historical gaps emerge due to the absence of written records” – Lailah Gifty Akita
Much like the crucial role historical records play in unravelling the past, financial records act as a barometer for your business’ overall well-being. They provide a clear gauge of your enterprise’s condition, revealing both successes and cautionary signals. It’s essential to recognise that business failures seldom materialise abruptly; more often than not, they are heralded by discernible indicators and early warnings. Yet, entrepreneurs frequently choose to overlook these indicators, disregarding their invaluable insights. These indicators remain steadfast and evident, beckoning for our attentive response.
Furthermore, it’s critical to understand that financial institutions, ranging from banks to potential investors, require a comprehensive repository of accurate financial records before considering any involvement. Such records serve as a litmus test, unveiling the authentic financial trajectory of your venture. At its core, the truth remains: financial records act as a compass, guiding you toward a clear understanding of your business’ profitability.
A profound assertion from Daniel Desmond Koomson, an experienced manager at PwC Accra, underscores the shared responsibility: “You don’t need an accountant to keep good records”. This declaration echoes the reality that every entrepreneur must embrace the mantle of adept record-keeping. The maxim ‘knowledge is power’ holds weight here; a deep comprehension of your business’ financial pulse empowers wise decisions and strategic steps.
Neglecting the skill of meticulous record-keeping exposes an entrepreneur to precarious terrain, inching toward potential business downfall. The absence of this fundamental practice can swiftly undermine the very foundation upon which a venture stands. In the fabric of business ventures, financial records emerge as an essential thread, weaving a narrative of fiscal transparency and stability.
To navigate the intricate currents of business, an entrepreneur must possess not only a grasp of their product or service but also a mastery of financial insights. With each entry and ledger, a tale of profit, loss, growth and adversity unfolds. Entrepreneurs who prioritise this practice showcase dedication to the vitality of their enterprise.
In summation, akin to the wisdom encapsulated in Lailah Gifty Akita’s quote, businesses lacking written financial records encounter historical gaps that obscure their path to success. Aspiring entrepreneurs, seasoned business leaders and pioneering visionaries alike should internalise the undeniable significance of maintaining accurate financial records. By doing so, they not only sidestep oversight pitfalls but also pave the way for a robust, flourishing and enduring business journey.
- Inability to clarify the distinction between revenue and profit
Amid the intricate fabric of business finance, a pivotal distinction often eludes the grasp of entrepreneurs—the differentiation between revenue and profit. In this confluence of financial concepts, a lack of discernment can wield a profound impact on a business’ triumph. It is an unfortunate reality that many entrepreneurs, enthralled by the influx of money, fail to fathom the divergence between these two essential entities: revenue and profit.
Revenue stands as the culmination of monetary influx, an aggregation of income procured through the sale of goods or services – all intrinsically tied to the core operations of the company. Profit, in its more widely recognised guise of net profit or the bottom line, emerges as the remnant—resilient and enduring—after the financial tapestry has accounted for sundry expenses, debts, supplementary income streams and the expanse of operating costs. It is this final residue, the profit, that yields a more comprehensive representation of a business’ fiscal prosperity.
Entrepreneurs, though well-intentioned, occasionally misperceive the symphony of revenue as the definitive anthem of success. Their enthusiasm for the monetary tide surging inward eclipses the inquiry into the portion that genuinely belongs to them. It is a sobering reminder that revenue, as a force coursing into the business, is not synonymous with profit. Profit, in essence, is the equipoise achieved through the calculation of income inflow against the outflow—money in versus money out.
In the realm of kingdom businesses, the scriptural paradigm illuminates the imperative of profit, resonating with Christ’s teachings in the parable of talents (Matthew 25:14-30). Here, the seeds of profitability are sown, aligning with the divine desire for fruitful labour. Yet, let us tread thoughtfully, for profit must be pursued with the same reverence for righteousness as for wealth. The scriptures intimate that while wealth attests to God’s covenant (Deuteronomy 8:18), it should be amassed conscientiously, devoid of injustice or moral compromise.
Profit, as a compass guiding ethical entrepreneurship, navigates a terrain where just gain intertwines harmoniously with biblical precepts. The edict from Proverbs 16:8 resounds—wisdom beckons the pursuit of modest profit aligned with righteousness, surpassing the allure of extravagant gain tainted by injustice. This duality constitutes the fulcrum of a balanced approach, a double bottom line—a fulsome profit, reaped honourably and steadfastly adhering to sacred tenets.
To misconstrue revenue as profit is to court peril. Financial decisions, forged upon this misunderstanding, burgeon into a series of detrimental repercussions, ensnaring the business in an intricate web of adversity. For profit, true profit, is begotten solely from the divergence between expenses and sales. Beware the siren song of misapprehension, for it is a route fraught with peril—a recipe for a tempestuous downfall.
In summation, within the realm of enterprise, clarity between revenue and profit is paramount. It is the province of astute entrepreneurs to forge an unwavering distinction between these two bedrocks of financial insight. Let it be inscribed upon the annals of commerce that revenue is but a note in the symphony, while profit resonates as the triumphant crescendo—the ultimate testament to a business’ acumen, integrity and stewardship.
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]
