Finding the Right Business Model or Being the Right Business Leader?

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with the best content and resources available. As we head into summer we are highlighting various articles and resources which have stood out in the past 6 months. Below is the “Staff Pick” for January to July 2017.

Please enjoy and thanks for following!

by Dave Kahle

“Is there one business model that you would recommend to a budding entrepreneur?”

That was the question a young man asked me recently. I reflected for a moment over the past 25 years, and answered this way:

“No. I’ve worked with over 500 businesses, and in that pack there were lots of different business models. What I’ve seen is that the model is less important than the implementation on the part of the company’s leadership.”

Let me explain. It is, of course, possible to have a flawed business model. But, honestly, I have only seen one or two of those, where, no matter what the leadership does, the business is not going to survive. It’s just a bad idea.

These are usually the result of people who are passionate about a product or idea. Unfortunately, that passion displaces common sense, and they ride that idea until it has siphoned their resources and depleted their energy.

The world is not full of bad business models. On the other hand, it is crammed with models that can and do succeed, providing the leadership is effective.

The path toward success is rarely formed by the business model. Far more important are the skills and character of the leadership. Drop a highly skilled, high-character entrepreneur into any model, in any market, and watch as he/she leads that company to growth, prosperity and market leadership.

The ultimate path for business success is far more about improving yourself than it is about finding the right product, market or model. Read more

Wealth Creation for Holistic Transformation

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with the best content and resources available. As we head into summer we are highlighting various articles and resources which have stood out in the past 6 months. Below is the “Most Popular Post” for January to July 2017.

Please enjoy and thanks for following!

by Mats Tunehag

“Remember the LORD your God, for it is he who gives  you the ability to produce wealth.” (Deut 8:18)

The Bible talks about wealth in three ways; one is bad and two are good. Hoarding of wealth is condemned. Sharing of wealth is encouraged. But there is no wealth to be shared unless it has been created.

Wealth is not a zero-sum game. Different kinds of wealth can and should be created, and can increase. All too often in the church the issue of wealth creation is misunderstood, neglected, or even rejected. The same thing applies to wealth creators.

Wealth creation is both a godly gift and a godly command (Deut 8). The people of Israel were commanded to seize business opportunities in mining and agriculture, and as a result the nation would prosper. However, God reminded them that wealth creation was a gift from him. It should be done in community and for community, recognizing the covenant, being accountable to God, and being mindful of blessing all peoples.

Wealth creation in and through business is beyond corporate philanthropy. Businesses do not exist to simply give away profit. They primarily exist to create different kinds of wealth for people and societies. It is not only about financial wealth, but also social, cultural, intellectual, and spiritual wealth.  Read more

5 Ways to Increase Spiritual Impact In and Through Your Business

A defining characteristic of a BAM company is that it intentionally integrates business with missional purposes. Yet, sometimes it can be challenging to figure out how to do so practically. Here are 5 areas that business owners and leaders can increase spiritual impact in the companies they oversee:

1. Keep God First

“Whatever you do, work at it with all your heart, as working for the Lord…It is the Lord Christ you are serving” (Col. 3:23-24).

  • Establish spiritual principles and values and integrate them into the mission, vision, and objectives of the company. Review how well you are abiding by these principles during all stages of the company’s development.
  • Create a Spiritual Impact Plan that has specific goals for how you run your company with spiritual objectives in mind.
  • Invite accountability to maintain the purpose of your company. Appoint a person or group (often called an advisory board) with the responsibility to assess and evaluate how well various departments and projects are aligned with the stated mission, vision, and values within the company.

Read more

How Enterprise Can Fight Slavery: The Freedom Business Alliance

We talked to Jennifer Roemhildt Tunehag about the Freedom Business Alliance initiative and the upcoming Freedom Business Forum.

We are hearing the term Freedom Business being used more and more, what is a ‘Freedom Business’? 

It’s a business that exists to fight human trafficking. There are several types of business that fit into this category:  businesses that create jobs for survivors of exploitation would be the most familiar, but we would also include businesses that hire vulnerable people in order to prevent exploitation, as well as the aggregators who take products from these first two to new markets. A fourth category would be businesses that provide services specifically to and for other freedom businesses (ie., communications, logistics support, etc). Finally, there are businesses who have devoted the profit from their companies to fight trafficking. These are also part of the freedom business ecosystem.

We sometimes call freedom business the ‘backwards business’. In a normal business paradigm, an entrepreneur sees an opportunity to create a product or service that meets a need in the market. By gathering a qualified staff, he sets himself up to make a profit. 

In contrast, a freedom business starts with the group of people it intends to employ. In businesses working to prevent human trafficking and exploitation, those people have been made vulnerable by poverty, lack of education, or other challenging variables. For those in business for restoration, the difficulties are greater.  Their employees have already been victimised, and the resulting trauma creates levels of complexity in life and employment. Read more

When Things Go Right: 8 Success Factors to Keep You from Failing

To round out our ‘Learning from BAM Failure’ series, we circle back around to what helps you succeed. We asked the same BAM practitioners who shared failure stories to also share what kept their businesses from going under completely.

We asked: If you had to give the top two or three reasons for your overall business success, what factors would you share?

Here is a rundown of their combined responses in a Top 8 list of ‘What Went Right’

1. Build a wider network and community

Mentioned in some form by almost all the practitioners we asked, top of the list is creating a robust network around the business and its owners. These BAMers said that forging strong partnerships and building a community of mentors/supporters was key. Avoiding isolation is vital.

Having world class partners has been essential.

As an owner, share the challenges you face with your board, investors, mentors, etc. Tell the truth, early and often.

Surround yourself with counsel. Stay attached to God and his people either through a church/agency or personal mentor or coach.

I’ve succeeded because I’ve had a spouse that has stood by me through thick and thin, not to mention a relationship with my business partner built on tremendous trust and respect. It’s also been important to have mentors and coaches walking closely with us.

A success factor for me has been being well networked in the wider business community as well as the BAM community nationally.

Integration with the local University has been essential. Strong relationships with key professors has allowed us to get first picks on some of the best students who come to do internships with us and eventually become junior staff members.

Read more

When Things Go Wrong: 9 BAMers Share Mistakes & Misadventures

We asked some (otherwise very successful) BAM Practitioners that we know to share some of the errors, disasters and unfortunate events that they have experienced in their business as mission journeys. Here nine BAMers share eleven stories about their mistakes and misadventures:

They Didn’t Come…

In our first years we did not have enough focus on sales and revenue, it was more of a “build it and they will come” mindset. It almost killed us. Then the solution was to hire a sales guy in the US, but the problem was twofold; first I should never have tried to outsource sales so early as CEO and second I hired a great guy but one that had bigger company experience and not the early entrepreneurial sales experience needed at our stage. This was a second failure on the sales side that almost killed us. I have come to fully understand the saying “no margin, no mission” and put sales as a key priority for myself until we got fully into orbit and could hand it off to the right person with right experience for our company stage, deal size and industry. MC

Too Many Cabinets

There’s two ways you can kill a startup: too little business and too much business. A couple of years ago, our 5 month old custom cabinet business was featured on our local news station. In our exuberance, we signed up too many customers with an unrealistic view of how quickly we could complete jobs. In less than a month, we had ended up with upset customers and significant cash flow problems as we made mistakes in our rush to complete jobs whilst also missing deadlines. In this case, we were able to recover our financial footings through a few key factors: Our product ultimately was a good fit with customer demand, so after apologizing and then completing jobs satisfactorily, we were able to refine our product and service to even better serve our customers. We started specializing in only Shaker Cabinets which sped up our production time and allowed us to more strategically market to our customers. Finally, our grasp of our cash flow position enabled us to raise funds in time (through God’s abundant blessing) to make it through our mistake and onto the future. JR  Read more

The Postmortem of a Failure: How to Evaluate & Even Avoid Failure

by Colleene Isaacs

“Why did I fail? I did it by the book. I listened to my advisors. I corrected course based on what others recommended…”

“The business was a good idea, the timing was probably just off…”

“I knew I was in God’s will. He would provide and make it successful. How could I go wrong with Him on my side? I can’t figure out what happened…”

Does any of this sound familiar? Has this, or a variation of this, narrative been your own?

If this has been your own experience, how do you begin to dissect and understand what happened?

The Standard Reasons for Failure?

Most business experts can easily recite the top five to seven reasons for business failure. However, the reality is… the reasons for failure in any particular business cannot be summarily reduced to a quick list.

The manner in which we think about our failures is flawed, because we are flawed. Failure is multi-faceted, and complex, just like the humans who craft the scenarios in which failure thrives.  Read more

8 Counterintuitive Benefits of Failure: A Personal Story

by Chris Cloud

I’ve had many failures in my life. One of them was in business. I was partner in a healthcare related startup that launched right before the Great Recession in the U.S. We were trying to do something radical, and the market wasn’t ready. But the truth is, neither were we as company leaders. We did some things well, but we made a lot of mistakes because of our lack of experience. These circumstances eventually caused the young seedling company to go out of business.

Bottom line: we failed. I failed.

Here’s a little bit of what I’ve learned through that particular failure as I’ve reflected on it over the years.

I’m writing from a place of weakness, as I’ve made many mistakes in the way I have responded to failure – but I’ve also seen the fruit and growth that can come as a result. Before I share the 8 counterintuitive benefits of failure, here are 7 more harmful ways I have responded to failure.  Read more

We’re Only Human After All: Growing Through Failure

We take our humanity to work everyday. One day, we might fail to meet a deadline or misunderstand a client. Another day, failure might bring unrecoverable loss, the closing of a department, losing your largest account, or even filing for bankruptcy.

As failure looks us straight in the eye, we have a choice to make about how we respond. In these moments of hardship we can choose denial, blame, resentment, unforgiveness… Or we can chose to bravely take responsibility for our decisions and the impact on those around us. We can allow God to deepen our character through the roughest of circumstances.

Character Growth Spurts

No one wakes up in the morning and says, “I hope I fail today” – rather we hope not to! Yet failure, whether big or small, is part of our human existence. Indeed, it is through times of failure that our characters get a growth spurt. Hopefully, we get enough of these growth spurts early in life before the stakes get too high!

If our identity is in our work, rather than Christ, success will go to our heads, and failure will go to our hearts. – Tim Keller

God is passionate about our sanctification. He uses work spaces to cultivate people to be more like Himself. The workplace can be a place of character development if we allow our hearts to receive the instruction. Failure, more than just about anything else, can grow hardy, rock-solid character and deeper trust in God – if we allow it to.  Read more

5 Risk Factors Guaranteed to Doom a BAM Business

by Larry Sharp

 

The Good, the Bad and the Ugly: Stories from the Frontline

Last year I was leading a seminar in a conference in Arizona, when a local business owner asked the question, “Are there no failed BAM businesses?” While I readily agreed there were, I began to think about the question in a more profound way. What is the “good, the bad and the ugly” of real life BAM business experiences – those that demonstrate that there are BAM failures along with the successes?

Over the past 10 years, I have observed risk factors for BAM enterprises which should stimulate every stakeholder in the BAM community towards better recruitment, better preparation, better deployment and better accountability. Many a sports leader, military hero, or young entrepreneur has demonstrated the oft-quoted statement of Benjamin Franklin, “Failure to prepare is preparing to fail.” And that is true in the Kingdom business endeavors of today.

So what are these factors and where are the stories which help us understand basic principles for launching and landing well in a cross-cultural business? How do we best start companies designed to work out the Great Commandment and the Great Commission? How can we improve so that there will be fewer failures and a greater chance of successful transformational businesses in the areas of the world that need them the most? If these five risk factors don’t actually doom your BAM company, not paying attention to them will seriously endanger it… at the very least!  Read more