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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

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

Watching Your Numbers: How to Be Realistic About Your Financials

Our panel of mentors regularly answer your practical business questions. Send us your questions!

 

Dear BAM Mentor,

I am aware of the tendency to be a bit idealistic when working through the Financials section of a Business Plan. As I start thinking about the numbers, what are the hard questions I need to ask myself – or invite others to ask?

~ Crunching the Numbers

Dear Crunching,

The financial section of a business plan – this is where the rubber hits the road! Unless the BAMer pays attention to the finances, the business will not be around for very long, and any missional impact will be cut short. 

Whether you are a business person looking to raise capital for a growing business, or a new entrepreneur looking for start-up funds, you will need to to work on your figures. You can be as enthusiastic as you like about all the potential opportunities and impacts, but unless this enthusiasm translates into numbers, based on some valid assumptions, you will be walking on very thin ice.

Over the last 10 years I have been constantly astounded by the lack of financial acumen in the BAM movement. One major challenge I’ve found in working with BAMers is getting a valid set of financial statements. This lack of acumen isn’t necessarily intentional in many cases but it certainly is prevalent. I think this is largely down to two reasons: Read more

Ask Critical Questions: Number Crunching Quickly and Responsibly

Our panel of mentors regularly answer your practical business questions. Send us your questions!

 

Dear BAM Mentor,

I am aware of the tendency to be a bit idealistic when working through the Financials section of a Business Plan. As I start thinking about the numbers, what are the hard questions I need to ask myself – or invite others to ask?

~ Crunching the Numbers

Dear Crunching,

There always seem to be two extremes when it comes to the issue of financials in business planning. The first is what I term “magical thinking” and says, essentially, “Since I believe that God is leading in this business it is sure to succeed. Why waste time on financial plans?” The second and opposite says, “My business plan needs to look like something for a Harvard MBA project so I will be perfect on the numbers.” Both, as most extremes, are wrong.

I can fill volumes with stories of businesses that God “led” people to start that failed miserably. I can also point to businesses that either failed or failed to start in spite of incredibly deep and thorough financial analysis. However, I think we can resolve this dilemma based on some words that Jesus spoke related to discipleship:

For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? Otherwise, when he has laid a foundation and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish.’ – Luke 14:28-30, ESV

The point of this passage is to make sure of some basics before you launch into following Him and, by way of extension, before you launch into business. Loosely translated, it would be something like, “Don’t launch without thinking and don’t overthink launching.” In business planning, I’d suggest the following critical questions. 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

Do You Have Clear KPIs for Your Kingdom Business?

by Larry Sharp

What if Jesus was your boss? What if he was the chairman of your board? What if you reported to him each month for your KPIs (Key Performance Indicators)?

What would he expect that those KPIs would be? How would he measure how you are doing?

A wise owner or manager continuously keeps his KPIs in mind. He knows that accountability is a key factor in driving results. So it is with God as the owner of our businesses because Kingdom business owners see themselves as stewards.

KPIs should be clear, short and understandable to everyone in the business. They should be measurable and uncomplicated. Either you achieved them or you didn’t; they are not fuzzy.

Profitability

We expect secular entrepreneurs to think profit margins and growth. But what about Kingdom business owners? Yes, definitely. Jesus himself established a KPI for profit as a measure of success when he told the parable of the talents (Matthew 25: 14-30). He made it clear that everyone is entrusted with wealth in unique proportions. In his example he told of one who received five bags of gold and he doubled it; another received two and he doubled it. Both were commended because they “put their money to work.” Jesus said, “Well done.”

On the other hand, one person received one talent and did nothing with it. We might have thought Jesus would have said: “…oh well, he is just not a business guy!” No – he also was expected to be profitable and when he did not even invest the gold in low-interest accounts, he was called “wicked”. Read more

8 Ways to Strengthen Marriage and Family Relationships: BAM Practitioner Tips

Those who have a family and run a BAM company will have already experienced the challenges and stresses in one spilling over into the other! Threats to the healthy functioning of family life can end up becoming threats to the health of the business, and vice versa.

To close this BAM Endurance series, we are sharing insights from 12 married BAM practitioners. In Part 1 read about the 3 greatest challenges to marriage and family life these BAMers have faced while running a company.

In Part 2, we offer 8 ways to strengthen marriage and family relationships that these BAM practitioners share from their own experiences:

8 Ways to Strengthen Marriage and Family Relationships

1. Get your priorities straight

At the foundations, are you putting the first things first in your life? BAM practitioners shared that having the right foundation for decision making – shaped by the word of God, and wise advice – led them to making better choices about how they spent their time.

The biggest lesson I’ve learned is that I own the business, the business doesn’t own me. If I value family time I need to structure my business in such a way that it allows me to spend time with them. There will always be busy periods at work but if I’m always working 14 hour days I’m not doing a good job structuring things. I love the classic business book, The E-Myth which is a great reminder that I need to be working “on” the business not “in” the business. It is possible to build a business the suits the lifestyle I want to live but it takes intentional planning, strategizing and structuring. – Peter, Nepal

There are certain habits I’ve leaned on over the years and one of them is reading the Word of God. While the entirety of God’s Word, through direct reading as well as through exposition by preachers, has been helpful in guiding my thoughts and actions, I have benefitted the most from reading Psalms, Proverbs and Ecclesiastes. These books of the Bible have helped me to recognize what is most important in life and to let go of things that are not fundamental to my identity and purpose in life. – John, India/USA Read more

The 3 Greatest Challenges to Marriage and Family Life: BAM Practitioner Stories

Some BAM practitioners are married. Some are married to their business partners! Some BAMers have children. Others don’t. The shape and size of our families – and our companies – varies tremendously. Those who have a family and run a BAM company will have already experienced the challenges and stresses in one spilling over into the other! Threats to the healthy functioning of family life can end up becoming threats to the health of the business, and vice versa.

As we close this BAM Endurance series, we share insights from 12 married BAMers on the three greatest challenges to marriage and family life they face while running a company.

In Part 2, we offer 8 ways to strengthen marriage and family relationships that these BAM practitioners have shared from their own experiences.

The 3 Greatest Challenges to Marriage and Family Life

Of all the challenges to health marriage and family relationships that the 12 BAMers shared, they essentially boil down to one of three main issues:

1. Time management and stress build up

2. Blurred lines between business and home

3. Lack of understanding and support

1. Time Management and Stress Build Up

The sheer scale of the task and the responsibilities of the business can easily overtake family priorities. Running a business can become all consuming and erode time that should be spent with family. For those who work together, this problem may be exasperated if you both enjoy working hard and end up with a lack of balance between work and family-focused time. In the short-term there may be seasons where the pressures of the business mean working longer hours. However, if this is allowed to become a long-term pattern, a build up of personal and relational stress will become a threat to healthy marriage and family relationships – and ultimately the business itself. Read more

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