Building Wells vs. Opening Dams

If money is like water, then your financial strategy is simply flow management. You are not trying to create the water—that is God's job. Your job is to make sure the water flows exactly where it needs to go to sustain life, build reserves, and advance the Kingdom.

Two of the most common moves we make in flow management are building wells and opening dams.

Building a well is about creating reserves. It is the intentional act of capturing a portion of the flow and storing it for future seasons. This is incredibly important, especially as a business owner. You can be really great at sales and bringing the money in, but cash flow is what truly makes or breaks a business. A well provides stability when the natural flow slows down.

Think about the seasons in your business. Do you have busy summers, or does it slow down? Maybe wintertime or January brings a lull. Analyzing your seasons and recognizing the patterns of both increased flow and drought will create better stewardship in your business. But here is the catch: a well is only useful if you actually dig it before you are thirsty. As business owners, we don’t always operate with the discipline needed to divert reserves when the flow is good. A practical workaround is setting a standard of flow in all seasons and then turning it off when you are ready to redirect. A great strategy could be diverting 5% of your profits into a reserve account all year long, with the exception of the specific months you know you need to pull from those reserves.

Opening a dam, on the other hand, is about releasing pressure. Sometimes, our expenses act like massive concrete walls holding back the flow of our resources. We get so caught up in maintaining a certain lifestyle or funding things that no longer serve our assignment that the pressure builds to an unbearable level. Opening the dam means ruthlessly cutting expenses so the water can flow freely again toward what actually matters. A quarterly audit of your expenses is a fantastic way to keep track of the dams in your business.

So, what is the practical sign that you need to start building a well versus opening a dam? The truth is, there is no single "sign"—it needs to become an integral part of your methodology as a business owner. If you struggle with it, hire someone who can help look at this with you. I personally love doing this with my husband for all of our businesses. It helps us practice having uncomfortable conversations, especially around money, and having another set of eyes on what is working and what is not is incredibly helpful.

Keep in mind, it is not just about eliminating expenses entirely; it is about shaving those dollars off your bottom line. Replacing an expense with an equal ROI but at a lower cost is a great goal and a powerful point of view to adopt. It feels less restrictive and more like a rewarding challenge.

You have the authority to direct the flow. Look at your finances this week: where do you need to dig a deeper well, and where do you need to bust open a dam?