Proverbs that can lead to profitability
Even in great economies, businesses struggle to find profitability. Although there are no easy answers to realizing a higher profit level, the Bible can lead to several key actions that may help grow your company’s profitability.
1. Portion accordingly.
Proverbs 13:11 says: “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it” (ESV). Even little savings over time can produce a large return. Businesses run by steward leaders make it a priority to set aside a small percentage of money each month for future opportunities. This is for the business and also in obedience to what God might ask a leader to do for His kingdom. Don’t be afraid to start small. Remember God can take a tiny seed and grow it into a great harvest.
2. Plan ahead.
Proverbs 21:5 says, “The plans of the diligent lead to profit as surely as haste leads to poverty.” Profits can accrue with proper forecasting of market trends. Good leaders are not surprised by changes happening in and around their company. They prepare for change and are ready to seize opportunities, whether the market is up or down. God wants to reward those who think and plan for the future.
Many businesses don’t achieve longevity because they don’t plan for it. Leaders who focus on good profit should budget today while preparing for tomorrow, knowing tomorrow might change and be different from today. In his book, Good Profit, noted business leader Charles Koch writes: “If you want to generate good profit in your organization, you have to constantly strive to discover, respect, and satisfy what customers value, and even anticipate what they will value in the future.”
3. Put aside.
Solomon gives counsel and advice on self-control in Proverbs 21:20, “The wise store up choice food and olive oil, but fools gulp theirs down.” Many business leaders fail to open a business savings account. This is one of the best resources of a profitable business. Wise businesses should not use everything at their disposal. Companies run by steward leaders make it a priority to use today’s profits for tomorrow’s purposes.
Set aside a small percentage of money each month for future opportunities, both in the business and in obedience to what God might ask of a leader to do for His kingdom.
4. Protect assets.
Many companies get into trouble and wind up closing because they become debt-ridden. Avoiding debt is a good strategy to increase profitability. Solomon writes in Proverbs 22:7: “The rich rule over the poor, and the borrower is slave to the lender.”
Productive companies that have a niche market and an excellent customer base can still fail when they don’t manage financial metrics well. Reducing debt should be a top priority for any size business. Christian business owners would be wise to adopt of the view that God owns the business, so they shouldn’t let the bank own the business.
5. Perceive adversity.
Business dynamics change—often quickly. Solomon warns of this in Proverbs 27:12 when he writes: “The prudent see danger and take refuge, but the simple keep going and pay the penalty.”
This proverb points to the “penalty” of plowing forward without considering your ways. In business, it can be easy to develop the habit of overspending. Business owners, who lead with a perspective of accomplishing a greater good, understand every dollar counts and every dollar should be counted.
Having a purpose of profit begins when a leader understands the value of managing the business in a way to produce significant outcomes in their community and around the world.
Companies focusing on profit not only operate their business effectively, but they also use the business as a platform to accomplish a greater mission. By using these biblical principles from Proverbs, the future of businesses and organizations under the care of Christian leadership could be ready for good and hard seasons.
Photo source: istock
 | Ken Gosnell is CEO and Servant Leader of CXP (CEO Experience). CXP is a premier coaching and executive roundtable business that serves Christian CEOs in Washington DC, Maryland and Florida. Ken serves leaders by helping them and their teams to have great experiences that both transform the leader and their organizations to go further faster. Learn More » |
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