Business Principles of Prophet Muhammad (Saw)

Chapter 2: Business Principles of Prophet's Perception

• Prophet Muhammad's (Saw) early source of income was through his parents' and uncle's assistance.
• He grazed goats and sheep, earning modest income.
• The Prophet (Saw) adhered to the Sunnah of earning a living by grazing animals, which was practiced by other prophets.

Business Principles of Prophet Muhammad (Saw)

• Islamic Sharia defines accurate practices for worldly obligations, including earning, selling, and investing.
• These practices aim to achieve worldly well-being and happiness on Judgment Day.
• An important principle is moderation in business.
• The goal in business should be the well-being of the afterlife, not earthly wealth.
• Businesspersons should follow the ethics and conduct of business as described in the Quran.
• Entrepreneurs should choose a business that is halal and beneficial for the Muslim community.

Learning About the Desired Business

• It is crucial for businesspeople to understand the business they are involved in.
• They should learn the necessary techniques and methods, including traveling with mentors to learn the required business practices.
• The Prophet (Saw) learned business practices and techniques from his uncle, Abu Talib, and Zubair (Radh).

Strategic Planning

• To establish a system that achieves objectives according to the Islamic method, strategic planning is crucial.
• Success in business depends on following a system that aligns with the teachings of the Quran and Sunnah to create objectives that take the shortest amount of time.
• Guidance from Allah (SWT) and the blessings from the Sahabas (companions of the Prophet) are necessary when making business decisions.

Need of Strategic Planning

• Dividing institutions into departments is necessary.
• Well-qualified people should be appointed for each department to manage their duties effectively.
• Cooperation and collaboration in the work and tasks should prevail among all departments. Close supervision of employees should be a feature of business operations.
• Business operations should conform to Sharia, and employees should be appropriately guided.

Supervision in Business

• The purpose of supervision is to guide workers to conduct their duties in the correct way and to foster a good relationship between supervisors and workers.
• One should clearly define employee duties and responsibilities.
• Supervisors should show appreciation for their employees' efforts and rewards for their performance. Supervisors should avoid causing harm to their employees.

Avoiding Deception and Mixing in Business

• The primary cause of business losses in society is dishonesty in actions and dealings.
• It's crucial for businesspeople to be truthful and honest to gain trust from everyone.

Fifth Principle - Remuneration of Human Resources

• The success of a business depends on its human resources.
• Businesspeople should respect their employees and provide appropriate remuneration.
• Employees have rights and responsibilities.
• Employers should consider employees' rights and well-being.

Seventh Principle - Charity

• To spend in the way of Allah (SWT) is important in increasing progression and profit in business.
• Different models of charity are available, like zakat.
• Spending on charity can provide benefits in the future.

Eighth Principle - Halal and Haram

• It is essential to ensure that all business transactions are halal.
• Mixing halal and haram money or resources can be harmful to the business.
• Business practices should adhere to the permissible and prohibited practices in Islam.

Tenth Principle - Piety and Sobriety

• Businesspeople should practice piety and sobriety in their financial affairs.
• Piety and sobriety in business will help create success.
• Following the Quran and Sunnah is of great importance for business.

Prophet (Saw) and Business

• The Prophet's (Saw) actions and conduct serve as examples for business practices.

Other important topics

• Bazaar and business during the period of Nabuwat (the Prophet's life)
• Islamic Business Principles and Present Perspectives
• Supervision and its importance
• Employment practices
• Hospitality (treatment of guests)