Good Research Approaches for Figuring Out Your BAM Business Model
How do you know what kind of BAM business to pursue? That’s a question that we often get from those thinking about building a business as mission company. What’s more, what are some early indicators that a business is or isn’t working? We decided to ask three BAM mentors three questions about how they would go about deciding and evaluating their business model. This is Part 2, with our third question about research approaches.
What would be some good research approaches to figuring out good business models?
Mike Baer
A workable business model starts with one simple reality: you are meeting a real need that people are willing and able to pay for. That means the first step is not having a clever idea. The first step is identifying unmet or poorly met needs.
Ask basic questions: What problems exist in this community? What needs are not being met—or not being met well? What solutions are inaccessible, unreliable, or unaffordable?
You can use AI tools as a starting point, but be careful. They are often misleadingly optimistic. A conversation with AI can help you think, but it should never replace firsthand learning.
So get out and look. Observe the market—and in many contexts, observe the bazaar. Watch what people buy, what they avoid, what they complain about, and what they improvise. Talk with neighbors and customers. Ask fellow believers—but with caution. Well-meaning people often affirm ideas they would never personally pay for.
Talk with other business owners. Talk with bankers. Talk with local officials. In-person conversations are gold. Online surveys can help too, especially when distributed through community-based social media groups, but don’t mistake opinions for behavior.
If your community has access to solid data—through a chamber of commerce or local development office—use it. And when you think you’ve identified a promising solution, test it cheaply and early. Share samples. Run pilots. Sell before you scale.
This is the value of an MVP approach—a minimum viable product. You will likely need several iterations. That’s not failure; that’s learning. Fail fast and forward: try, observe results, adjust, and try again—before you commit fully to a new enterprise.
Hannah Lau
A working business model is simply identifying a customer group’s problem/need, getting into their ‘world’ by delivering value, and doing it in a way that’s profitable for you. That’s basically it. So the best way to find a business model is to start by understanding your customer. That’s who it’s all about. The more you understand the customer and the ecosystem that surrounds their need, the better you’ll be able to create value for them and deliver it in a way that they will easily adopt.
Some ways to best understand your customer include:
- Target segmentation
- Ideal Customer Profiles/Personas
- Competitive Analysis
- Positioning and Customer Behaviour
- Distribution realities for the category
- Standards and expectations in the existing market
My personal philosophy—tried, tested, and witnessed across 350+ organisations: Lead with product and you’ll be out of the game before you launch. Lead with what your customer needs and you’ll be innovating forever. What I mean by this is that most people focus on the product because they start with an idea, which can easily become obsolete or boring. If we start with a group of people and their needs, and try to find creative solutions to solve those needs (one of them being a product), it will keep us proactive and not reactive in the market.
Grant Smith
When deciding on a business, my recommendation is find out what others are doing and understand their model. It could be that you can do it better. In any business model it is important to understand how your competitors are doing it and then you analysing if you can do it better or there is a gap in the market. There is a reason no company is selling ice to the North pole, so you may have a brilliant idea, but research the opportunity critically.
When deciding on a business model, understand the barriers to entry. If you are importing, what are the import duties and how do you navigate the duty process. If you are in construction, what approvals do you have to attain from the local government and what challenges may you face in achieving those approvals. If you are borrowing money, factor in unexpected delays and budget for additional finance which in theory you don’t think will be incurred. You should have cushions in your financial models to give you wriggle room.
With special thanks to our three mentors for sharing their wisdom in this series.
>> Read Part 1 here
Photo by UX Indonesia on Unsplash

Mike Baer was one of the early leaders in the modern Business as Mission movement. He started his career as a pastor and church planter. After 15 years in the pastorate Mike was led into business where he gradually began to discover the potential for believers in business to bless their communities, evangelize the lost and spread the Kingdom of God, especially among the unreached. Today, Mike is the CEO of
Hannah Lau began her career in advertising when she moved to Asia as a marketplace missionary. In 2015, she began her journey as a redemptive entrepreneur, building and helping others build businesses that embody the gospel in every area of its operations. She is the co-creator of the Redemptive Business Canvas and the founder of 
