Is your business built on a strong foundation for long-term success?

In today's economy, many businesses borrow extensively to finance new expansion, increase inventory, purchase new equipment, and enter new markets. While the sun shines, interest rates are low, and business is good, servicing the debt may be manageable, and you might be tempted to increase borrowing to accelerate your business plan.

Inevitably, however, the winds and rains come, the economy will hit a down cycle, and business will slow. Your foundation will be tested. Are you prepared? If your business is not built on solid rock—especially financially—you may find all your hard work washed away before you can respond.

Use the good times to pay down your debt. Keep your outstanding obligations to a minimum and your business will be built on solid rock. The badgers are not mighty folk, yet they make their houses in the rocks (Proverbs 30:26).

Scripture: Therefore everyone who hears these words of Mine, and acts upon them, may be compared to a wise man, who built his house upon the rock. And the rain descended, and the floods came, and the winds blew, and burst against that house; and yet it did not fall, for it had been founded upon the rock (Matthew 7:24-25).

 

 

Outline for developing a business plan