Really! Work is Worship

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with the best content and resources available. As we wrap up another great year we will be highlighting various articles and resources which have stood out in the past six months. Below is the “Editor’s Pick” for July to December 2016.

Please enjoy and thanks for following!

by Patrick Lai

The Hebrew word “avodah” (ah-vod-ah) is translated in the English Bible for both work and worship. A better English translation when referring to work is service. God receives work as worship done unto Him. Put simply: work is worship. The similarity between the two clarifies that in God’s eyes our work is worship in that it is not done for our own benefit, but rather as an offering to Him. This means the workplace is God’s place. We are to interact with God and talk about God in our workplace just as we do at church or at home. The workplace is a place of worship where we may express the compassion of Christ in word and deed.

In building a theology of work we need to begin with God’s Word and God’s words.  The Hebrew word avodah is central to understanding God’s view of work and worship. This noun עבדה (avodah), occurs 145 times, making this word group a substantial theme in the Old Testament. The root verb עבד (avad) occurs 289 times in the Bible, mostly in the qal form. This does not include the substantive form, עבד (eved), which occurs an additional 780 times in the Old Testament.  The עבד word group is translated throughout the English Old Testament in three main ways: Read more

Why Do BAMers Give Up & Go Home? The Top 4 Reasons for BAM Attrition

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with the best content and resources available. As we wrap up another great year we will be highlighting various articles and resources which have stood out in the past six months. Below is the “Staff Pick” for July to December 2016.

Please enjoy and thanks for following!

We asked seven BAM mentors to share the reasons for BAMer attrition that they most commonly see. By attrition we mean negative factors that erode a BAMers ability to stay in their job and thus cause them to leave their location or their company – these could be gradual or cataclysmic.

Here are the top four factors the BAM mentors shared and some observations about each one:

1. Commercial failure

As expected, the most commonly cited factor was commercial failure. This covered a very broad area, but there were two strong themes within this category: money and market.

“Money” included both inadequate capitalisation and lack of financial control leading to cashflow problems. “Market” included lack of adequate business planning to determine whether there is a market for the product or service, and lack of ability to pivot to changes in the market.

Sometimes it’s a failure to do suitable and effective research and planning. Is there a need for the product or service? Simple as that. – DS

I’ve got a couple of businesses that are hanging on by the skin of their teeth, and I think it’s problematic. And, in these instances, because they aren’t the type of owners who are the typical risk takers, they don’t make decisions to change their business model easily. – NH Read more

7 Markers for a Kingdom Business: A Framework for Entrepreneurs

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with the best content and resources available. As we wrap up another great year we will be highlighting various articles and resources which have stood out in the past six months. Below is the “Most Popular Post” for July to December 2016.

Please enjoy and thanks for following!

by Courtney Rountree Mills

A quick framework to help entrepreneurs learn how to integrate their faith life with their business life in a practical way.

Let’s face it. Life is hard enough as an entrepreneur. The whole world always seems to be resting on your shoulders. The pressure to succeed is immense. After all, if you don’t, you let down not only yourself and your family, but also your staff and their families! What gets you through the pressure? Mainly prayer and the passion you have for your business. You love the challenge of being an entrepreneur. It energizes you more than almost anything else. Sometimes thinking about your business becomes more like an addiction – you could work on or think through challenges you face all day, every day and never feel like you are completely caught up.

The only thing you care about more than your business is your relationship with Jesus and your family. Still, it seems your business ends up taking over your prayer life and family life, too. You keep hearing about how you should live an integrated life, but you have no practical idea how to achieve this. You hear people around you using the phrases “Kingdom Business” or “Missional Business.” These sound great to you, but you don’t even know what the definition of a Kingdom Business is. Measuring your business’ Key Performance Indicators is easy, but how do you measure your KPIs when it comes to integrating your life as a believer and business owner? This article provides a quick framework to help entrepreneurs live out their faith in their business. This is a topic that resonated most with the 450 entrepreneurs we have accelerated who were asking the same question. Most of this is not material I wrote. Rather, it is a compilation of some of the best material I have found on living out business as mission. Read more

Am I a Business Builder or Entrepreneur? Identifying Your Place in a BAM Team

by Peter Shaukat

Business as mission is communitarian and team-oriented, not individualistic. Beyond considering the individual characteristics that BAMers need, I would then ask, “What does the business team need to have in their overall profile?”

I think of the business team in a matrix model. One axis maps character, competence and charisma. Along the other axis is the type of person or skill needed. Those types would range right from the entrepreneur, along to managers and business professionals, and then those professionals with technical or specialist skills that the business needs.

Entrepreneurs and business builders

When you start out in business you are doing everything. Theoretically that is flawed, but it’s the reality in a brand new startup. You are not going to have perfection in your team and all the right people in the various roles from day one. But you want to move along a dynamic pathway, to break out those functions into different roles as quickly as possible.

If you are going to do business as mission well, the business needs more than one person with a good idea. You can’t start a BAM company without an entrepreneur, but likewise, you can’t continue a BAM company with only an entrepreneur! Almost as soon as the company starts you are going to need other kinds of people, ‘business builders’. Read more

Hiring: What to Think About at the Business Planning Stage

by David Skews

An organisation may consider many things as of particular value to their business – such as, reputation, market exposure, industry leadership, intellectual property etc – but the one thing on which all of these depend is top quality staff.

Whether one or many people, your team have the potential to make or break your business. Consequently, identifying, recruiting and retaining the best people is a top priority as soon as a business begins to grow beyond a one-man band.

Many businesses are started by just one person with the drive and enthusiasm to grow the business. Invariably those people also possess other business skills, but never every skill that is needed. Consequently, brutally honest self-assessment is needed to identify significant shortcomings, which will then help in deciding the additional skills needed.

Such self assessment will inevitably require input from other trusted and respected people. Some shortcomings are best addressed by outsourcing tasks, which can be a lot less hassle than employing people directly. However, eventually, it becomes necessary to actually hire people to fill the gaps.

When hiring, it’s good to have some firm priorities in mind before interviewing. For example, integrity should always be at the top of the list. The most experienced and capable candidate will become a serious liability if they cannot be trusted. Absolute integrity can never be guaranteed but it should be a primary aim. Read more

A Mentor Writes on People Planning: Building Your Team

by Mike Baer

There is no more important decision you will make in your BAM startup than the formation of your team. Actually, it’s several decisions rolled into one: Who? What? When? How?

Who? By this I mean simply hire the best and never settle. Many BAMers hire those most in need, buddies, fellow missionaries, etc. only to find out that they’ve loaded up their ship with deadwood. In such cases, failure is almost certain. Hire the most qualified people (technically and spiritually) as you can.

What? Over time there will be standard, key functions you will need. You will need a solid financial manager/CFO type. You will need a solid operations manager/COO type. You will need a solid sales/CSO type. And, of course you will need the people to actually do the work of the work—the store clerks, the factory employees, the computer programmers, etc.

When? My rule of thumb is to hire as few as possible while still getting the work done. Over-staffing is a path to disaster. In your business plan you will have at least three phases of staffing:

Phase 1: the absolute minimum necessary to open your doors. Who and how many will it take to make your first widget or serve your first cup of coffee? Read more

Cash Flow Mishaps: Stories from BAM Practitioners

We asked BAM practitioners to share their insights about cash flow. Here are 6 mini-stories of BAMer ‘cash flow mishaps’ or near misses!

[Read Part 1: 10 Cash Flow Tips and 10 Red Flags from BAM Practitioners]

6 Cash Flow Stories

One cash flow mishap we’ve experienced is significantly underestimating cash needs to service a period of significant growth. This can happen when long lead time raw materials are needed, with up-front payment. It can also happen when financing growth requires organisational learning and capacity building, it then takes extra time to ramp up production, and the working capital cycle is longer than expected. Another real danger is when a series of smaller mishaps all happen at the same time, for instance low quality raw materials, late delivery of materials, late payment by customers for finished products. Each of these on their own are manageable, but create a serious issue when stacked together. We have been able to develop some cashflow forecasting tools using MS Excel which give us visibility on future cash needs, including graphs, which feed into weekly reporting. This has been invaluable to us. – MH, Manufacturing, Asia

 

A few years ago I led a new initiative at our company to build a software product for retail banking. I was hoping that the recurring revenue from product sales would offset the erratic cash flows that are typical of a project-based software company. A project team of eight members spent 18 months building the product and we spent another year having a sales team sell the product. For a small company like ours the outflow of funds in this experiment resulted in a major blow to our cash flow for a couple of years. What I learned from this costly mistake is that a project oriented service company is not automatically good at being a product sales company. They are two different types of organizations with different team structures and competencies. – Joseph, IT, India/USA

Read more

10 Cash Flow Tips and 10 Red Flags from 10 BAM Practitioners

In a truly great company, profits and cash flow become like blood and water to a healthy body: They are absolutely essential for life, but they are not the very point of life” – James Collins, Good to Great

As Jim Collins so wisely said, cash may not be the ultimate point of a company, but it is like blood to the body – essential for survival.

We asked 10 BAM practitioners to share their insights about cash flow. Read below the 10 tips they shared and also 10 ‘red flags’ – the tricky situations they have encountered where cash flow can easily trip you up.

In Part 2, we share 7 short stories of ‘Cash Flow Mishaps’ – real-life cash flow challenges that BAM practitioners have encountered

As one BAMer summed up, “Cash flow is an important indicator of how a business is doing, don’t take your eye off it!”

Cash flow tips from BAM Practitioners – Do:

1. Always watch your cash flow very carefully and plan ahead at each stage.

2. When business planning, find a cash flow projection template and someone who will force you to fill it in!

3. Use forecasting tools and technologies to help you watch and manage cash flow on an ongoing basis. Read more

Numberphobic? 3 Key Ideas to Increase Chances of Business Survival

by Dawn Fotopulos

According to an Intuit survey from 2015, 87% of small business owners do their own books and 47% claim financial illiteracy. It’s not a surprise that more than half of small business start-ups never survive to see year 5 of operations; it’s remarkable that half do. If you follow start-up history out to year eight, the failure rates are in the 80+ percentage. Any thinking person would take their start-up capital and go to Las Vegas. You’d have much better odds of winning there.

What if, by learning just a few key ideas, you could double even triple your probability of small business survival? What if a one day commitment of your time could change the next twenty years of your future and the future of your household? What if what’s in this article prevents your small business from becoming a statistic? It can. Here’s how.

Every business owner needs to answer three key questions:

  • Am I making money? (Showing a profit)
  • Do I have enough money to pay the bills? (Enough cash flow)
  • Am I building wealth or destroying it? (Building net worth)

Read more

Financial Planning: How Do I Prepare to Present to Investors?

by Mike Baer

Funding for your new business is obviously crucial – no cash, no business. So let’s think about this from an investor’s perspective. What is it that interests him or her? What does he or she want to see? What questions answered?

Here’s what I’d be asking:

  • What exactly is the product or service that you intend to sell? Don’t assume that I understand it. Make it simple for me.
  • What is the market demand for this? Is it a cool idea, a “me too,” or is there a real demand? In other words, do people really need/want your product or service?
  • Who will your competitors be? How is your idea better than and different from theirs?

This first set of questions is about your viability in the market place. Is this a real business? This second set of questions is about you. Can I count on you? Read more