Posts

BAM Endurance: Principles and Habits for Long-term Fruitfulness

One of the foundations of business as mission is that the company must be profitable and sustainable – otherwise how can it be a business long-term? We know that making sales, maintaining cash-flow and reaching profitability are a non-negotiables for BAM company health. Commercial success is critical.

But what else besides commercial success is vital to the endurance of a BAM company – or indeed to the BAM practitioners who run it?

Endurance vs Attrition

Missionary attrition is a term adopted by ‘member care’ experts to describe missionaries quitting the field earlier than planned and the factors that contribute to that. There is much we can learn from the wider mission community about the causes and cures of stress and attrition, however, when you add a commercial operation into the mix, there is an added layer of complexity.

What are the stressors common to business as mission that wear down a company’s chances of long-term survival? What causes practitioners to give up and go home? What causes BAM attrition, and conversely, what helps BAMers endure? Read more

3 Reasons to Scale Your Business to Reach the Unreached: Best of BAM Blog

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with great content and resources. Each year we do a summer roundup of articles which have stood out in the past 6 months.

Below is our second “Staff Pick” for January to June 2019.

Please enjoy and thanks for following!

by Mike Baer

In all entrepreneurial circles, the hot topic is “How to scale the business.” How do we take our company from me (and possibly a few others) to many? How do we add more employees? Customers? Lines of business? Locations? Profits?

Scaling in General

“Scale or Die” is the cry that comes from many startups and from virtually all investors. Growth is an evidence of life and health. Healthy companies grow. But it’s not easy, especially in a business as mission endeavor.

Where will you find the funding to expand? Bootstrapping or “cash-flowing” expansion is extremely difficult and tediously slow.

What about managers sufficiently skilled and knowledgeable to lead a larger business who also share your faith and focus? Where will you find them? How will you pay them? Who will move to your location? Do you use locals? Expats?

And, most importantly, what about your own experience or lack thereof? If you’ve never done it before, it’s daunting and difficult to say the least! The overwhelming majority of startups fail to scale.  Read more

Passing it On: BAM Succession Planning and Exit Strategies

by David Skews

Editors Note: When we asked veteran BAM leaders to identify some of the pressing issues that are facing the business as mission movement in the next decade, among the issues they identified were several areas that could broadly be categorized as ‘resource gaps for BAM companies’, including:

1. Adequate financial capital flow.

2. Adequate human capital flow – both in terms of a) recruiting the right kind of people to begin and sustain a BAM company, and b) succession planning and the successful transition of a BAM company from one generation of owners to another.

3. Adequate support for BAM practitioners, especially mentoring, accountability and care.

We will be posting articles covering each of these issues during the month of June, continuing with the challenge of human capital flow, part b: succession planning.

BAM Succession Planning & Exit Strategies

In the beginning God created a BAM Business but when is it time to pass it on?

I can guess why I was asked to write something on exit strategies by the editorial team!

Having founded a business in the UK in the 1980s, I later realised how it might be used by God with the help of a BAM conference I attended in 2003. Scaling the business was tricky, opening offices in Singapore and then into Southeast Asia. We had a bumpy ride in the 2010s and I completed my exit strategy through the sale of the company – specifically, a management buyout (MBO) – in 2014.

I am currently engaged in advising over 100 BAM businesses on their journey from pre start-up to lean start-up, and now some scaling-up. I am currently working with a BAM business in Asia that is planning the succession of owners, along with a collaboration of two BAM companies as part of a medium-term exit plan.  Read more

Investment in BAM: How to Get the Funds Flowing

When we asked veteran BAM leaders to identify some of the pressing issues that are facing the business as mission movement in the next decade, among the issues they identified were several areas that could broadly be categorized as ‘resource gaps for BAM companies’. These described a lack of the kinds of resources and inputs that BAM practitioners, and the enterprises they run, need to increase their chances of long-term viability and health. These resource gaps included:

1. Adequate financial capital flow.

2. Adequate human capital flow – both in terms of a) recruiting the right kind of people to begin and sustain a BAM company, and b) succession planning and the successful transition of a BAM company from one generation of owners to another.

3. Adequate support for BAM practitioners, especially mentoring, accountability and care.

We will be posting articles covering each of these issues during the month of June, beginning with the challenge of financial capital flow.

Financial Capital Flow – Where’s the block?

Two main issues were identified within the issue of financial capital flow:

1. A lack of investors ready to finance BAM companies

2. A lack of investable BAM businesses, or ‘deal flow’

What was agreed is that adequately financing BAM is an issue that must be addressed for the future, and to address it we are likely to need to work on both ends of this flow.  Read more

Let’s Get Local: Developing Both the Localization and Globalization of BAM

by Joseph Vijayam

In 2013 I was on a business trip in Jakarta. One afternoon my host asked if I would join him for a gathering of believers in his office building. To my surprise, this was not a small gathering of believers; it was a full-fledged worship service with songs, intercession, testimonies, and a short sermon with over 100 people in attendance. During the time of testimonies, people were sharing about their needs, including those at work, home, and in their communities. One of the business owners in the room shared that he sees himself as a pastor to his co-workers. At that moment, I realized that here in one of the megacities of Asia, weekly church service had taken a new form. The venue was a business conference room, the people in attendance came as individuals rather than families, significant time was spent in sharing of testimonies by new believers, and the time of their meeting was on a busy weekday. Every aspect of the event perfectly fit the needs of first-generation believers working in high rise offices in Jakarta. 

Though the purpose and function of the Body of Christ have remained the same, its local form has changed from age to age and from one culture to another. What I experienced in Jakarta was a unique expression of the local church that is ideal to the city of Jakarta for this generation. If the gathering of believers can take different forms, can our approach to bringing people into the Church be just as creative and specific to their situation? Not only do I believe that it can, I think it is essential.  Read more

3 Reasons to Scale Your Business to Reach the Unreached

by Mike Baer

In all entrepreneurial circles, the hot topic is “How to scale the business.” How do we take our company from me (and possibly a few others) to many? How do we add more employees? Customers? Lines of business? Locations? Profits?

Scaling in General

“Scale or Die” is the cry that comes from many startups and from virtually all investors. Growth is an evidence of life and health. Healthy companies grow. But it’s not easy, especially in a business as mission endeavor.

Where will you find the funding to expand? Bootstrapping or “cash-flowing” expansion is extremely difficult and tediously slow.

What about managers sufficiently skilled and knowledgeable to lead a larger business who also share your faith and focus? Where will you find them? How will you pay them? Who will move to your location? Do you use locals? Expats?

And, most importantly, what about your own experience or lack thereof? If you’ve never done it before, it’s daunting and difficult to say the least! The overwhelming majority of startups fail to scale.  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

Procurement and Technology Through a Spiritual Lens

by Ross O’Brien

In this series of blog posts, we have been looking at Porter’s Value Chain Analysis as a useful tool for business people seeking to maximize the value they deliver to customers while also seeking to gain a competitive advantage as they execute their strategy. If you have not yet read the previous articles, let me encourage you to read at least the introductory article linked here, as it will set the foundation for this and all the other articles in the series.

Beyond the traditional use of the analysis, we have also unpacked how the tool could be used as a way to help a follower of Jesus steward the resources of God’s company. In this sixth and final part of the series, we continue to examine the support activities of the value chain, this time focusing on Procurement and Technology.

 

800px-Porter_Value_Chain

Dinesh Pratap Singh’s visualization for Porter’s Value Chain: CC BY-SA 3.0 

Read more

Human Resource Management Through a Spiritual Lens

by Ross O’Brien

In this series of blog posts, we have been looking at Porter’s Value Chain Analysis as a useful tool for business people seeking to maximize the value they deliver to customers while also seeking to gain a competitive advantage as they execute their strategy. If you have not yet read the previous articles, let me encourage you to read at least the introductory article linked here, as it will set the foundation for this and all the other articles in the series.

Beyond the traditional use of the analysis, we have also unpacked how the tool could be used as a way to help a follower of Jesus steward the resources of God’s company. In this fifth part of the series, we continue to examine the support activities of the value chain, this time focusing on Human Resource Management.

 

800px-Porter_Value_Chain

Dinesh Pratap Singh’s visualization for Porter’s Value Chain: CC BY-SA 3.0 

Read more

The Role of Business Leadership Through a Spiritual Lens

by Ross O’Brien

This article picks up where we left off last year in the series on Value Chain Analysis Through a Spiritual Lens. If you have not yet read the previous articles, let me encourage you to read at least the introductory article linked here, as it will set the foundation for this and all the other articles in the series.

As we continue examining the way the value chain analysis can be useful, we need to keep in mind that these activities do not operate in isolation or for their own purposes. The activities in one functional area impact other areas and must be coordinated to help the company achieve its overall strategic objectives.

For example, if a firm takes a differentiation strategy in which its products, services, brand and marketing messages are unique from its competitors, then every functional area must seek to add value to achieving that objective of uniqueness. A company like Apple spends significant money on R&D, quality components and exceptional advertising to set its products apart. Primary activities including inbound logistics (sourcing components), production (quality control processes), and sales and marketing (advertising) must all support this objective, as well as the support activities of procurement (spending the necessary money to ensure differentiation) and human resources management (hiring, training, evaluating and compensating the kind of employees who will maintain the standards of excellence needed).

Read more

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