PROFIT AND LOSS ANALYSIS

“Save the seed to have the trees” do you know where it was mentioned in the Bible? 

I don’t. Do you know that the Bible is compact and full of case studies? It is embedded with rules and wisdom of worship, successful living, business success, national governance, technology, international relations, agriculture, policy formulation and many more. Leke said, “The scriptures are replete with case studies” and I agree with him absolutely.

He used a scripture in the Bible “What shall it profit a man if he gains the whole world and loses his soul” as he began to teach me Profit and Loss Analysis. He analysed it from a perspective I have never heard or imagined before. He didn’t do so from the religious glance, no, he analysed it from the natural man’s point of view. Though, this is way deeper.

“Profit is a strategic thrust while gain is transient”. Profit is of a more lasting nature with an eye on the future while gain looks at the next quarter or a few miles down the road. Profit and gain are not mutually exclusive.

However, you must aim for both? Don’t focus on the short term and don’t pay too much attention to the long term. Don’t eat your seed in the short and lose the tree in the long term. Short term thinking at the expense of long term sustainability is flawed business thinking.

You must make investments (which are short term) to deliver on your long term focus. You must build capacity for the business in the short term to deliver high returns in the long term. This will guarantee sustainable growth and development. This also rewards the entrepreneur.

As you grow in life, you need a business model with increasing capacity that meets your needs for today but, also the needs of tomorrow. Your business must have elastic capacity. You need to build capacity.

You need to build capacity. Don’t suck out capital from the business in search of personal security. Have faith in yourself and in the business too. Such premature suction of capital is mostly a sign of fear of imminent business collapse. At other times, it is a weakness of inconsistency. Watch it.

The man with short term mentality always develops problems. If you really want to profit in your business, you need to always think of tomorrow. When is tomorrow? Tomorrow is just another yesterday. Think smart, think sustenance and think long term.

I hope this profit and loss analysis is simple enough; save and invest the seeds to have the trees.


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