by Geoff George Paxton

Created on: April 20, 2010

Tips for solving financial problems

The topic does not state whether these are personal or business financial problems, but by implication, personal. However, I am going to make some comments on business, to then apply the lessons to the personal.

What is a problem?

For some, it is a total obstruction, a kind of road block, that takes insurmountable proportions. It becomes impossible to take one’s eyes off the problem. A biblical illustration may help. Jesus had risen on Easter morning. The tomb was empty, and he appeared to Mary and some disciples. Later that day, two disciples were walking to a nearby town, when Jesus walked up to them and joined them. They were so obsessed with the events of the crucifixion, and the reports that he had risen, that they did not recognise him. They could not see past the problem.

A problem is actually an opportunity.

The skill comes in recognising that, and using it creatively.

The western world has gone through a period of economic slow-down. The reaction of accountants (self-named financial experts) is to cut costs in every possible way. Planned expenditure, whether for maintenance or expansion, is severely impacted, and staff complements shrink. All because accountants are a strange breed, perhaps not even really human, and know no other way.

Other articles on this topic have all emphasised the need for a plan.

Absolutely. If the problem is to be turned into an opportunity planning is desperately needed.

But, a plan on its own is not enough.

There is a proverb which says, “Where there is no vision, the wheels come off” (I paraphrase). In a corporate context, the business executives must take time to gather, and workshop what the creative response should be to this opportunity that has presented itself. The vision statement that is produced must be succinct, but not a slogan like Nike’s “Just do it.”

Flowing out of the vision statement should be a set of attainable, quantifiable, measurable goals.

These goals then generate plans. What has to be done (a sequence of events)? When? By whom? At what cost (a budget)?

A further problem with accountants is that they will be too busy counting beans to attend such envisioning workshops, so they do not have the total picture. The executives (the company’s leaders) correctly hand over the budget to the accountants to manage. The accountants see the budget as being ‘the plan’, and proceed to cut and mutilate to ‘cut costs’

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