Islam and Business Finance

Image courtesy of 89studio at FreeDigitalPhotos.net As a business owner or manager you are going to be making decisions. The process of making decisions involves planning, implementing decisions and putting controls in place to enhance decisions. Before any business action can be carried out a plan has to be made. This plan will stipulate the objectives of the business and strategies that will be used to achieve the objectives. For a plan to be more realistic, it is always good to look at the performances of the past so as to be able to predict what can be achieved in future. Long term plans must be made and broken into short term plans. After objectives of a business have been stipulated, a business owner or manager will have to evaluate various possible medium (strategies) of achieving the objectives of the organisation.  Reliable information should be used, so that the best option is chosen.  After the strategy needed to achieve the business objective has been ch...

Image courtesy of Stuart Miles at FreeDigitalPhotos.net It is okay to make mistakes as long as you learn from them. I overheard someone complaining that he couldn't deliver his work on time as a result of another colleague's negligence. Now he thinks the next person to handle the task will think he is slow. As a result of that, he had a bad day. You should not bother yourself over ridiculous things. For one, how do you know what the person will think, Allah knows best what is in the heart of man. If it bothers you that much walk up to the person and tell the person the reason behind the lateness. When you make a mistake, you should not feel bad and learn from it cause no one is perfect except Allah. However, when it comes to sinful acts you should feel remorse and ask Allah for forgiveness. You should adopt that style of thinking.  Make sure your business or job is halal. Everything happens according to the will of Allah. Everything should be done deliberately ...

Image courtesy of khunaspix at FreeDigitalPhotos.net I have not spent time with any Japanese but I have with some chinese people. I do love their mannerism  and not to mention I love chinese food (the food you eat should be halal). Hmm, I was carrying out my research today and I came across these words "Japanese Management System", then I thought to myself this will be interesting. I am familiar with strategic management, however, this is peculiar to Japan. Japan is the 3rd largest economy in the world, thus, I know you will be curious to know about their management system. Their style of management can be applied to a business. I found out that the reason why Japan excel is because of their hard-work, commitment of their citizens to the company they work for and an education system that delivers highly skilled and self motivated graduates. After that being said, the Japanese management system encourage businesses to make products that have no fault, using the ...

Image courtesy of Stuart Miles at FreeDigitalPhotos.net This article could be useful if you buy and sell goods. You want to have an adequate amount of stocks available for your customers, you do not want to buy goods that customers won't buy until they go obsolete and then you have to discard them. You could also want to have the lowest storage cost possible, thus not storing excessive goods which could then lead to a high storage cost. A lot of factors are taken into consideration, other factors include minimizing your cost of re-ordering goods annually. You do not want to tie up your capital in stocks, thus you need funds to execute other business activities. Today, I am going to let you know when to re-order stocks and how much stocks you have to order for when you need new stocks. The re-order level is calculated by multiplying the maximum lead time by the maximum usage. The lead time is the average period it takes to order and receive your stocks while the usage...

Image courtesy of Salvatore Vuono at FreeDigitalPhotos.net Some people wake up early in the morning, while some others sleep till late. Guess what all successful entrepreneurs get up early in the morning. Some successful entrepreneurs get up by 6.00am, some are even up by 5.30am. You should get up before Fajr prayers to do Tahajjud prayers, and make supplications to Allah. Tahajjud prayer is not obligatory. Managing your time in the morning effectively and efficiently could become an habit over time once you start managing it. Now I sound like an expert on time management. I just carried out a research which I learnt from and I am delivering it. Do you know some Chief Executive Officers spend 30 minutes in morning running. It gets them fully prepared for the day. We have 24 hours in a day, 6-8 hours should be spent sleeping, 8 hours is spent working (not everyone, some people work part time or more hours) if you have a regular job (9am to 5pm). Thus, you have 8 free hours l...

Image courtesy of renjith krishnan at FreeDigitalPhotos.net * Always arrive to work on time, in other words be punctual. * Do not always make excuses to stay away from work. A good attendance record is required for you to keep your job. * Deliver results, the work you do should be considered as your product, thus find a way to differentiate your product, aim for excellence. * Make sure you treat your bosses with respect, however you can always make your suggestions known in a polite manner. * Your holiday should be booked in a strategic manner, thus, do not seek for holidays during busy periods. * Follow the culture of your department as long as it is halal. * Maintain a nice and modest look. *Your job should be halal.  These are tips, you could still lose a job but it could be for something better. Allah knows best. Everything should be deliberately done for the sake of Allah. Part of doing something deliberately for the sake of Allah is to h...

Image courtesy of Stuart Miles at FreeDigitalPhotos.net Everyone has procrastinated at a particular time in there life, but some people do it all the time. For example some people spend 30 minutes on their bed before they get up from their bed in the morning. Some individuals postpone actions to be carried out today, they keep telling themselves I will do it tomorrow, tomorrow comes and they say I will do it tomorrow and they end up not doing it n ot they do it when its too late thus leading to dissatisfaction.  All individuals that are financially successful hardly procrastinate, when you do not procrastinate it makes it easier for you to achieve your goal cause that way you do not have to rush things, you carry out actions at a very good pace. You set a long term goal, you break it into short term goals and then you write a plan to achieve these goals. The moment you execute your plan without procrastinating the higher your chance of achieving your goal, thus pr...