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5 Key Positions in Your Start Up and Some Things to Avoid

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TOP 5 BLOGS IN 5 YEARS

This month we are celebrating 5 years of publishing weekly blogs on The BAM Review and sending out bi-weekly emails!  To celebrate, we are re-posting the TOP 5 most read blogs from the past 5 years for your reading enjoyment.

by Mike Baer

I’ve consulted with a lot of business startups – usually after they’ve stalled or run into trouble. The problem in almost every case I have seen is not funding. It’s people.

Not having the right people around you from Day One is Problem One.

This post will address some of the key things to think about when it comes to your team.

Team Composition

Exactly what you need in term of skills depends largely on the type of business you are starting and the particular impact strategy you’ve chosen. Nevertheless, here are some basic positions you need to have filled – even if you have the same person filling two boxes on the organisational chart or if you outsource.

1. Finance and Accounting
It’s not just about reports. It’s about regulations, tax compliance, and information. Here’s a tip: businesses don’t fail for lack of profit; they fail for lack of cash. Think about that. A finance guy knows what I’m saying. If you don’t, then you need to hire one.

2. Operations 
Whatever your product or service someone has to run the day-to-day operations. Planning. Making. Stocking. Shipping. Delivering. Inspecting. Improving. Supply chain. Transportation. A lot goes into running a business.

3. IT 
Even if you’re not a technology company (and the odds are you will be) there’s a ton of technology you have to be on top of. Networks. Systems. Hardware. Software. Websites. Lions, tigers and bears…oh my!  Read more

BAM Endurance: Principles and Habits for Long-term Fruitfulness

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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

Passing it On: BAM Succession Planning and Exit Strategies

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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

People, People, People! Human Capital Flow for BAM Companies

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by Peter Shaukat

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.

Human Capital Flow for BAM Companies

To some ears, the term “human capital”, especially when applied to the BAM movement, might sound strange, secular, and mercenary – even exploitative.

According to the OECD, human capital is defined as: “the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in market circumstances”.

There is, therefore, nothing at all shameful in this use of the term. Indeed, if the BAM movement is predicated on the assumption that God’s pleasure is to create good things for the benefit of all, and that the marketplace is part of the divine design for how society is intended to function, then we should rejoice in being a part of that process and outcome. This doesn’t mean we are ciphers or cogs in some impersonal machine, for this would entirely negate the splendid truth that we are persons, made in the image of our Father in Heaven.  Read more

Practicing Jubilee Through Entrepreneurship

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by Stu Minshew

Last week, I shared how Michael Rhodes and Robby Holt’s new book, Practicing the King’s Economy: Honoring Jesus in How We Work, Earn, Spend, Save, and Give, challenges readers to consider ways to provide employment opportunities for those on the margins of society. Throughout the world, we are surrounded by those in need. Many individuals, and even entire groups of people, live on the margins of our society, including racial or ethnic minorities, low-income communities, single moms, the elderly, and those who have served time in jail.

As Christians in business, we are called to provide opportunities for those on the margins to build equity and take part in Christ’s abundant provision for His people.

My last post discussed shifting from a soup kitchen mentality to a potluck mentality, equipping us to more effectively walk alongside those on the margins.

Today, I want to explore another concept from Practicing the King’s Economy, unpacking what the Bible says about equity and the concept of Jubilee. As Christians in business, we are called to provide opportunities for those on the margins to build equity and take part in Christ’s abundant provision for His people. I’ll also discuss specific ways that entrepreneurship can create pathways to equity for those on the margins.

Jubilee and Restoration

To show God’s plan for everyone to have an equity stake in His economy, Rhodes and Holt go to the Book of Exodus. When the Israelites disobey and are sent to wander the desert for forty years, God uses this time, not only to discipline them, but also to show them what His economy should look like. As He provides manna, God shows them that He is a God of abundance and provides enough for everyone. At the same time, those who try to store up more than they need find it rotten and full of maggots the following day.  Read more

A Potluck Approach: Engaging the Marginalized with Meaningful Work

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by Stu Minshew

Work is good, and we are called to glorify God through the work that we do, but what does that look like in our day-to-day lives as entrepreneurs and Kingdom businesspeople? A new book by Michael Rhodes and Robby Holt, Practicing the King’s Economy: Honoring Jesus in How We Work, Earn, Spend, Save, and Give, has challenged me to intentionally consider how I can provide employment opportunities for those on the margins of society. Today, I want to share two key takeaways for as we seek to engage those on the margins through our work.

Where Do We Start: Potluck vs. Soup Kitchen

No matter where we live and work, we are surrounded by those in need. Many individuals, and even entire groups of people, live on the margins of our society. There are those who have committed crimes and served time in jail, those treated as inferior because of their race or ethnicity, members of low-income communities, single moms, and the elderly. Almost everywhere in the world, these individuals are afforded less encouragement and fewer opportunities for work, and are often prevented from even pursuing meaningful work.

How should Christians respond? We must start by realizing the value inherent in each individual, a value that comes from the fact that they are created and loved by God. As His followers, we are also called to love them and we demonstrate that love in the way we engage them.  Read more

Workplace Relationships: Community Interaction

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by Michael Thiessen

I’m willing to bet that if you own a business, it’s not a huge mega-corporation with billions – or even millions – in revenue. You probably own a fairly small business (or might work for one). Most people would probably guess that a large share of businesses have fewer than 20 employees, but did you know that the number is 90%?

When you run a small business, your community is vital to your success. Your customers, suppliers, employees, and even your competitors, are all part of your community. The first church in Acts had a strong sense of community, which we emulate to this day in our own churches. When others need help, we provide it, whether it is financial, emotional, spiritual, or otherwise.

Communities are part of what makes us strong. But our community doesn’t stop at the doors of the church that we attend on Sunday mornings. How can we be good stewards of the business God has given to us, using it as a platform to build strong relationships with our community?

Professional Peers

We can give employees time off to volunteer, we can give discounted services to churches and other non-profits, or we can use the equipment or expertise from our business to help others in the community. I could probably list off a few dozen more, and I’m guessing you could too. Instead of spending time on those fairly obvious avenues, let’s focus instead on how we can connect with others in our industry.  Read more

Workplace Relationships: Serving Your Clients

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by Michael Thiessen

Capitalism – for all of the wealth and prosperity that comes with it – has many flaws. One flaw, however, is often overlooked. Capitalism causes us to stamp out uniqueness and to treat everyone as if they were exactly the same. The industrial revolution of the 18th and 19th centuries led into the mass market revolution of the 20th century, which led us to where we are today, in the 21st century.

Along the way these revolutions significantly changed how we operate our businesses and how we treat our customers. Over time we have been trained to view other human beings as faceless numbers on a spreadsheet. In this way it has robbed us of our ability to serve each other’s unique needs. It has made it more difficult for us to love and serve our customers as individuals. But this trend is reversing. Now we have a lot more ability to serve each person’s specific needs and treat them like a fellow human, while still running a successful business.

The Mass Market and Taylorism

The mass market has profoundly shaped our society – not just by creating wealth and boosting productivity, but by changing how we think. It all started with a man named Frederick Winslow Taylor, whose ideas on what he called Scientific Management paved the way for the mass market. His innovation was simple – to apply engineering practices to the business itself.  Read more

Workplace Relationships: Loving Your Employees

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by Michael Thiessen

As a business owner, you provide many amazing things for your employees. You provide financial security for their families, a sense of belonging, and the emotional well-being and satisfaction that comes from doing good work. However, if Jesus were running a business, do you think he would stop there?

I believe that we are called to much more than that. We have so many more opportunities to bless our employees and care for them – to love our neighbors as ourselves. We can learn leadership lessons from Jesus, think more deeply and compassionately about who we are hiring, find ways to engage spiritually with our employees, plus some other great ways of caring more for our employees.

Leadership Lessons from Jesus

In true biblical fashion, it turns out that the best way to lead others is to serve them. Stephen Covey, who wrote one of the best-selling business books of all-time, was an advocate of this style of leadership, aptly called Servant Leadership. This is also the style of leadership that Jesus used throughout his ministry. We see this in how he washed the feet of the apostles, humbling himself to serve them even though he was their King. In fact, one of the people I have interviewed for Marketplace Disciples has based their entire business on teaching others how to lead in this way. Jannice Moore coaches the boards of businesses and non-profits, and gets to share the story of Jesus with all of her clients:

“The model of governance in which my business specializes is Policy Governance ®. One of its fundamental principles is that the board is not there for itself, but for its owners, those on whose behalf it governs, and that the board’s relationship with those owners should be one of servant-leadership.

So I build the concept of servant-leadership into every presentation, and use it as an opportunity to note that the concept was one taught by Jesus Christ.” Read more

Pride, Humility, and Failure

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by Dave Kahle

Remember John Delorean?  He was the superstar General Motors executive who started the Delorean Motor Company.  When the company began to falter, he was arrested and charged with complicity in a drug deal that some speculated was an attempt to raise money to prop up the company.

All of this was big news in Detroit, where I was living at the time.  One particularly insightful article in the Detroit News theorized that he had been supremely successful his whole life, and thus never learned to deal with failure.  His development was stunted by a lack of failure in his life.  Faced with the pending failure of his auto company, he had nothing to lean upon and lost his moral compass.  A long string of successes had not developed his character.

Perhaps.  There is one thing for certain, regardless of the individual circumstances for Mr. DeLorean.  If we choose to, we learn more from our failures than we do from our successes.  Within every failure there is the seed of a lesson well learned, of a solid character trait emerging.  It is our failures that contribute most intensely to our development.

To this day, I can recall with vivid detail the events of my most humiliating failure as a sales person.  It was early in my career, about three decades ago, and I had made the mistake of speaking badly about the competition to a customer.  The customer was a personal friend of the competitive sales person and was personally affronted by my comment.  The dressing down that I received at the hands of that customer remains painfully with me today.  I don’t believe that I have ever made that mistake since. Read more