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“If the foundation is destroyed, what can the righteous do”. In as much as I will have to do a revisit on this scriptures, the oversight shows the need for a standard layout. No matter how beautiful a building can be, its existence is dependent on its foundation. When this is overlooked, a sudden collapse can be inevitable.
Where are we heading to? Some people just do business for the sake of the money involved and TRY to offset the needed and very necessary processes. Even I have to admit the fact that I will need to set up a working structure if I am to run a long lasting company. There are many structures to look out for; but the TOP two are how work is done and how money is managed.
I will be looking at the latter in this article because it has been where many entrepreneurs mix it up. How did I even get here? Ok, a friend was just discussing with me on how someone who was trusted to manage a business decided to disappear overnight. And when talking of disappearing overnight, we have to look at the damages involved. He has put the business in debt in millions in the process.
He took advantage of the paying customers who had put trust in him as the manager and swindled away with the fund leaving the business in the fate of arranging for a payback. It is the question of how many actually will want to do business with them again if they finally just get their funds back.
Where was the entire mistake? Personally, I had to track it down to the business owner who was ignorant of setting up structures upon a business that is doing transactions in millions daily. Why would you put in a manager out of trust to handle transactions. I am just considering his greed mentality of avoiding to pay many hands to run the company. So he brought in someone from his place to be an ALL in one manager; the chances of getting dupped was very high.
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How was he even trusting the daily or weekly reports that were sent to him as concerning the business that he is not around physically to confirm anything. No internal or external auditor, no accountant, no cashier, there is no structure that questions where and how money is used. All you did was bring in a one man squad to become all in all.
Even as a co-partner of my brand, I am working on how to set up structures that will even limit my access to company funds at ease. We all have personal challenges of which we can ignorantly put ourselves as a result of our actions or inactions. With easy access to cash, business will bleed.
To conclude, let me add, business is more than just having money to start or staying in profit. Setting in the needed internal structures that can combat a crackdown is very possible. There must be different bodies involved in the decision of expenses if a business must stay healthy long enough.
This is an article covered by dani-EL; a broad niche writer. I write on faith, life facts and daily living, business and economics, small scale and daily businessing, cryptocurrency and technology. And yes, I do cover articles on financial education and investment updates. And note, if I happen to be a financial adviser to you, the TOP financial advice should be ‘DYOR’ (Do Your Own Research), I can't afford to break your heart.
