by Bron Vasic
More Than Enough Entrepreneurial Coach
What does being behind the eight ball mean? The dictionary says that it is “an unfavourable or uncomfortable position”.
If you play snooker or pool, you will understand exactly what it means to be behind the eight ball. Being behind the eight ball is actually considered “being hooked or snookered”.
Snookered is the condition when the cue ball is positioned behind an obstacle ball (i.e. “hooked”), and is creating the need for a kick or jump shot. In other words, this is not a very good position to be in.
In financial affairs, we use this term to infer that we have a lot of hard work to do to get back on a strong foundation. In my mind, this means building and maintaining the integrity of the business.
In Luke 6, Jesus reminds us of the importance of building a strong foundation, digging deep into the rock and not building on sand. There are strong implications for both choices.
So what does a strong foundation for a business owner look like? What foundation gives you the best chance for success?
Business Integrity
Keep your business in a comfortable and favourable position, ensuring the business is strong for the days ahead.
Seek wise counsel in your business affairs
Run your business as a business – ensure you have a sustainable business model. A business is more than just an extension of your personal budget.
Understand profitability – have a business model that looks to make a profit, allowing the business to have a strong foundation especially in challenging economic times. Running a business is much more than just caring about cashflow.
In considering these ideas, also consider some of the key risks that are not good to take.
Borrowing the maximum amount that your assets will generate
Ignoring your spending plan (budget)
Not having a spending plan for your business, or for your personal finances
Paying the minimum on credit cards
Doing your financial management alone
So remember this
Seek wise counsel in your business affairs, run your business as a business, and understand profitability. Do not chase the dollars, or have a business that simply exchanges four quarters for a dollar. There needs to be a business model that is more than just about managing cashflow. It needs to be about making a return that allows the business to stay strong in times of flooding, because we all know, economic floods do come.