I have just started a new business. The name and Logo is below:
Epitropos is the Greek word for stewardship. The foundational concept for my business originates in scripture:
“Moreover it is required in stewards that
one be found faithful” 1 Corinthians 4:2
I have just started a new business.The name of my business is Epitropos, which is the Greek word for stewardship. The foundational concept for my business originates in scripture:
“Moreover it is required in stewards that one be found faithful” 1 Corinthians 4:2
The Slogan: Building Sustainable Business with Heart, Trust, and Leadership
The question you might ask, how does stewardship play a role in the modern business world? I think the concept of stewardship is critical for a successful business. Often in this blog I have mentioned the fact that operational efficiency is critical for business success, this is what stewardship is all about. Let me explain.
One of the financial statements business leaders monitor is the Cash Flow statement. It has three sections: Operating Activities, Investing Activities, and Financing Activities. All three sections represent how the cash has evolved from the start of the year until the end of the year. Let me demonstrate.
Let’s say a company states that it had zero net cash for the year as a result of its operations. The company can improve its cash deficiency by selling assets. This would be reflected as a positive cash result in the Investing section of the statement. Therefore, even if operations had zero cash flow for the year, the company could show a positive cash flow simply by selling assets (Investing), or even by selling stock, which would be reflected in the financing section of the statement. Even though what the business did to make money didn’t make any it could show it had a positive cash flow by other activities.
This is not necessarily bad if it is one year, but if the management team does this year after year, then there is a problem. A management team needs to run the business well, which can only be done with a healthy operational strategy. This is where stewardship plays a role.
As a business leader your goal is to sustain the business over time. A healthy business is maintained through good practices. This is the same as living a healthy life style. It involves making positive life choices. Good stewards make positive business choices, thus keeping the business healthy.
What do I mean stewardship? I think if we explore the four pillars of stewardship, I think we will understand. The four pillars are:
1. A healthy perspective on ownership of the business
a. Good business owners/managers don’t see their business as just their own. Don’t get me wrong, I believe in private property, but ownership involves not what the business can do for me, but what can it do for everyone impacted by it? This is related to stakeholder theory.
2. Being responsible:
This means that, as a business owner/manager I will be faithful in practicing my craft. I will:
a. Pay my employees a fair wage and on time
b. Pay my bills promptly
c. Practice transparency in business
d. Practice a triple bottom-line: People, Planet, Profit
e. Provide a safe work environment
f. Provide appropriate work training
3. Holding yourself accountable
a. I will be a business owner of integrity and honest business praxis
4. Operate for a larger reward.
a. I see coins, profit, as having two sides. There is an economic side and a social impact side. I must create profit, but then I use that profit to promote good for myself and those around me.
I want to help business leaders learn how to practice stewardship. That will be my job for the next thirteen years.
And that is my thought for the day!