Tag Archive for: start up

8 BAMers Share Their Stories: Where Were the Gaps?

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We asked eight people who have got involved in BAM in the last 5 years to share how they got launched and how well they landed. We asked them:

We’ll be posting what they shared in four short blogs: Part 1 | Part 2 | Part 3

Part 4: Did any gaps in your know-how or preparation come to light as you landed?

On the business side, there’s always a lot that needs to be figured out on how to setup and manage a company as a foreigner. A benefit for us is that we had some operational and strategic experience in business before starting our own here. For BAM, we are continually working on how to best integrate ministry within business. Speaking with other BAM workers and hearing their experiences and how they do it has been crucial and insightful.  – Ben and Yumi, Vietnam [have been operating a software development company for 18 months, before that they spent 10 months intentionally preparing to do BAM, 4 months in their home country and 6 months in Vietnam] Read more

8 BAMers Share Their Stories: How Did You Prepare to Launch?

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We asked eight people who have got involved in BAM in the last 5 years to share how they got launched and how well they landed. We asked them:

We’ll be posting what they shared in four short blogs: Part 1 | Part 2 | Part 4

Part 3: What were some of the most important things you did to prepare to launch?

We researched and read books on BAM, as well as spending time talking to experienced workers particularly through the Open Network Expo. – Ben and Yumi, Vietnam [have been operating a software development company for 18 months, before that they spent 10 months intentionally preparing to do BAM, 4 months in their home country and 6 months in Vietnam] Read more

8 BAMers Share Their Stories: What Held You Back?

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We asked eight people who have got involved in BAM in the last 5 years to share how they got launched and how well they landed. We asked them:

We’ll be posting what they shared in four short blogs: Part 1 | Part 3 | Part 4

Part 2: Was there anything that held you back that you had to overcome?

We didn’t feel anything holding us back because we were at a point in our lives where we felt called to go and God had already blessed us with the the means and desire. The only thing that we had to work out as a family was to be unified on where to go. If you have a desire to go, just go! Be diligent in laying down a strong foundation, work hard everyday and be intentional about building relationships. In all this, never forget why you are doing it and who you are doing it for. – Ben and Yumi, Vietnam [have been operating a software development company for 18 months, before that they spent 10 months intentionally preparing to do BAM, 4 months in their home country and 6 months in Vietnam] Read more

8 BAMers Share Their Stories: What Propelled You Towards BAM?

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We asked eight people who have got involved in BAM in the last 5 years to share how they got launched and how well they landed. We asked them:

We’ll be posting what they shared in four short blogs: Part 2 | Part 3 | Part 4

Part 1: What helped propel you towards business as mission?

We were working professionals for a long time and felt we reached a certain level of accomplishment in our career and knew it was time for a change. When we decided we wanted to move abroad, we looked at ways on how we could have the greatest impact and found that running a business can hugely benefit a community on many different levels, as well as give ministry opportunities we otherwise would not be presented with. Also, starting a business felt the most authentic way for us to truly become “immigrants” in our new home country and displayed our commitment to the locals that we were serious and in this for the long haul. – Ben and Yumi, Vietnam [have been operating a software development company for 18 months, before that they spent 10 months intentionally preparing to do BAM, 4 months in their home country and 6 months in Vietnam] Read more

How They Got Started: 3 Different Routes into Business as Mission

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From Dream to Island Reality: Samantha

At the tender age of nine, rather than dreaming of make-believe castles and glass slippers, Samantha dreamed about living her life on a certain archipelago in Asia. After college Samantha spent a year in China teaching English then returned to the States to get her Master’s degree in Teaching English as a Foreign Language. Upon graduating, she taught English for several years at high school level. Then one day God began stirring that dream from her childhood of living in Asia. After months of seeking wise counsel and pushing on doors, a plan began to take shape. True to His word, God did “more than she could ask or imagine”, doors opened for her to join an organisation that fit her youthfulness and passion. She raised long-term support, and took a survey trip. Within a short time Samantha had moved and begun studying the local language on a main island of the archipelago. She was open to God’s provision, setting no expectations on how long she would remain long-term in the country.

Three months into her language studies Samantha received a phone call from a certain small business ministering out in the islands asking if she would join them in their endeavor. Samantha had connected with this business months prior during her survey trip, hoping that God would open the door for her to join their business since their vision was the same as hers for the islands. With her teaching skills and a passion for the Islands, she immediately said, “Yes!” – believing she could do anything God called her to, including small business. Read more

Twists and Turns on the Journey to Launching a Business in Romania

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For Ryan Crozier, four passions remain constant: God, his wife, Romania and trafficking prevention. As a natural-born entrepreneur there have been many other passions and interests that have come and gone, but those are the ones that define his life. At age 12, Ryan fell in love with Romania on a short-term mission trip with his Dad that would change their lives forever. At 18 as a college student, the seeds for anti-trafficking work were sown as he listened to a visiting speaker from India recount the plight of children vulnerable to traffickers. His blood boiled as he listened to the woman tell stories of rescuing children from abuse. She compared their work to standing at the edge of a cliff trying to catch kids as they came off and not being able to catch them all. All Ryan could think about was why there wasn’t someone further back stopping children going anywhere near the cliff edge. It is a question that has helped shape the course of his adult life and it is the reason that today he is leading a company, eLiberare Design – a web design and development agency in Bucharest, Romania.

In 1997 when Ryan and his Dad set off on mission trip to Romania, they expected to serve and help, yet it was them who were most changed by the experience. When the Berlin Wall fell in 1989, it was estimated that 50,000 children were in State care in orphanages. Conditions in those orphanages were terrible, and by the time Ryan first visited Romania eight years later, thousands of children had run away and were living rough on the streets. While the kids found some measure of freedom, they also found new kinds of abuse – particularly the abuse of inhalants, many becoming addicted to sniffing glue. Ryan and his Dad volunteered with an organisation that were helping kids get off the street and into homes. Read more

An Unexpected Journey: Trafficking Prevention in Romania

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For Ryan Crozier, four passions remain constant: God, his wife, Romania and trafficking prevention. As a natural-born entrepreneur there have been many other passions and interests that have come and gone, but those are the ones that define his life. At age 12, Ryan fell in love with Romania on a short-term mission trip with his Dad that would change their lives forever. At 18 as a college student, the seeds for anti-trafficking work were sown as he listened to a visiting speaker from India recount the plight of children vulnerable to traffickers. His blood boiled as he listened to the woman tell stories of rescuing children from abuse. She compared their work to standing at the edge of a cliff trying to catch kids as they came off and not being able to catch them all. All Ryan could think about was why there wasn’t someone further back stopping children going anywhere near the cliff edge. It is a question that has helped shape the course of his adult life and it is the reason that today he is leading a company, eLiberare Design – a web design and development agency in Bucharest, Romania.

Although Ryan thought he would be moving to Romania for good when he turned 18, he instead was given some wise advice to get a college education first. From there God led him on a journey of preparation that included meeting his wife Andrea, them together getting jobs and starting businesses which would give them essential experience – and finally establishing the structures and support base they would need behind them to launch an NGO. Read more

Going Upstream to Bring Justice: Not For Sale

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Stephen Goode has been involved internationally in relief and development work for over 35 years. For the past 6 years he has served on the Board of Not For Sale. We asked him how Not For Sale is responding to the challenge of human trafficking and why they have made business a central part of their strategy.

Much of the activity around ‘business solutions to human trafficking’ has been on the side of restoration and providing jobs for those being rescued from slavery. Why has Not For Sale more recently started focusing on business solutions for the prevention of human trafficking?

Slavery exists today on a scale like no other time in history. The Global Slavery Index reports there are 35.8 million people enslaved today and the International Labor Organization (ILO) estimate that USD 150 Billion is made in illegal profits annually. The vulnerability of at-risk individuals and communities continue as key elements of modern day slavery. Traffickers come in to individuals and villages, promising any and everything and the slavery cycle of exploitation multiplies. Read more

Moving into the Neighbourhood: Up Close and Personal with Freedom Business

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Discovering Freedom

For more than 14 years I’ve had the privilege of living out life with women who have been given the choice of freedom.

It seems this freedom business thing does work. It provides hope where there was hopelessness, a choice when there was no choice at all – the chance of a new life that leads to freedom.

A life journeying with women discovering freedom, what can I say? There’s nothing else like it in all the world and, to be honest, I’ve discovered my freedom is tied up with theirs too.

However, there have moments in my life when I’ve realised I’m a bit slow to pick things up.

For a number of years I thought the way to more freedom was growing one business as big as it could get, until I ran a few numbers around in my head.

Sonagacchi, our neighbourhood, potentially home to 10,000 women trapped in prostitution would simply not be transformed by Freeset, and the other amazing freedom businesses in the area, growing as big as they could.

Between us we employ around 3% of the total women there which means there’s a big number to go – around 9,700 at least.

You see, I still believe in a God who wants justice. The one who came to set the oppressed free. I still believe he wants to do this today and that this massive problem is not too big for him. I believe he weeps for the women of our community as he weeps for many communities like ours around the world. I believe he calls those of us claiming to be his followers to be involved in his kind of justice in his world. Read more

Evaluating Business Ideas for Freedom Business Startups

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by Christa Crawford

 

What are the most important questions to ask myself when evaluating a business opportunity?

My background is Business for Freedom – that is using business to bring freedom to people who would otherwise be trapped in trafficking, prostitution, or other forms of exploitation. The traditional model for reaching these people is the charity model, but in recent years there is a movement toward business, including business as mission. As such, much of my audience knows very little about business basics. For them, I would say that the most important questions are:

  • Is this business a good fit for the market?
  • Is this business a good fit for me?
  • Is there someone who can do this business better, and how can we partner together?

Is this business a good fit for the market? While this question may seem basic to business people, to many getting started in business for freedom the first question they ask themselves is “What can we sell?”, where they should really be asking, “What do people want to buy?” We must ensure that we are selling products that have the demand and quality to sell on their own, and not merely as “pity purchases.” Read more

Lessons from the Edge: Ingredients for Sustainable Success

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Insights from a BAM Practitioner 

‘Andrew’ was in business in China for 8 years and now consults to other BAM companies.

Finding a good fit for you is critical
This business is what you will be doing day in and day out, so it’s really important that you have an idea that you feel passionate about, that you understand how it’s a good fit for you and your goals. Is it a good business for your personal strengths? Business as mission can be really, really hard and finding that good fit will see you through many challenges. If you get into a business just because you have to, it can end up feeling like drudgery.

Don’t do it by yourself
It’s important to have good partners. Build a team or find a partner that has complementary skills to your own. Find partners locally that can work with you, whether it’s locals or other foreigners. I don’t think I would have made it in my own business if I didn’t have a key partner working with me, we kept each other going when the going got rough. Get good people around you and have the right people in the right roles.

Engage advisors
Find good mentors, consultants or advisors. That could look like having regular contact with consultants, finding a specialist mentor, or setting up an advisory board. Advisors might be other business folks in your local context, either foreigners or consultants that are further down the road than you, or local business people. They might be business people, lawyers and other experts from your home church network. One model that we’ve seen work well is to engage several different people from your home church from the beginning of the business. They would help with planning, make some site visits, get to know the local context and the difficulties, so that they can give business advice that is helpful for the situation.

 

Patrick Lai on Mentoring [Book Excerpt]

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One of the 11 building blocks of BAM or Business for Transformation (B4T) is “having a good mentor.”  Patrick Lai writes about this in his new book, Business for Transformation – Getting Started new on Amazon this month. Here’s an excerpt on this key topic.

Mentoring – Accountability

My wife has been known to say, “I love ministering. I just wish it didn’t involve people.” Every one of us is a sinner. We each have areas of temptation and sin. We need spiritual elders who will walk alongside us to assist us in maximizing God’s glory in and through us. In many situations, peer accountability is fine, but my research shows peer accountability is less effective than elder accountability. I think this is because peers leading one another are like the blind leading the blind.

In business, most reporting is done verbally, face-to-face. Bosses meet or communicate with their direct reports daily. We want to both see and hear that the work is being done and being done correctly. In business, people do not write up reports about themselves. Whether we are Christian or not, when we write up reports about ourselves, we are revealing only what we want to tell. And if we are honest, most of us view our work and ourselves better than we really are. Read more

Good Questions to Ask Yourself When Considering a Business

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Choosing a Business:

What do you like to do? If you are enthusiastic about a particular business, it will help keep you going in the tough times.

What do the local people need or want? Go to your proposed location and live there for a while.  Talk to people.  No business will succeed unless there is a felt-need in the potential customer base and you must understand that need, it may be different than you think.

Can you make money at this business? Look at how much you can sell your product or service for and how much it costs to produce or provide it.  Typically you have to sell something for twice what it costs you in order to stay in business. Don’t give your product and services away, you’ll go out of business quickly and it helps no one in the long-run.

This is not an easy process – 80% of all businesses fail before five years. Read more

Don’t Miss This: Essential Preliminary Research for a BAM Company

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We asked our team of BAM experts to give some practical advice for BAM practitioners in the beginning stages of business planning. For this post we asked them to share ideas about developing goals and vision.

Robert Andrews, Larry Sharp and Garry all actively mentor frontline BAM companies – as well as teach and write on BAM. Read more about them below.

What kinds of preliminary research or on-ground preparation would you emphasise as particularly important to someone planning a BAM company – especially in a cross-cultural context?

Robert Andrews

A business plan is intended to help you work through the key issues you will face in running your business and should include all of the factors that have critical importance. It should addresses the design of the product, distribution, manufacture, finance, marketing, purchasing, and capitalization. It should also address how all of these business functions fit in to the work God is doing. Read more

Startup Planning Questions: Discovering your Business Model

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by Larry Sharp

This is Part 2 of a two-part post, read Part 1.

What is the business model?

I have always found that plans are useless, but planning is indispensable.
– General Dwight Eisenhower

I am not a big fan of complex business plans in the early stages, but prefer to develop a business model typical of the lean start-up strategy.1 Don’t get me wrong – proper plans are necessary in time especially to qualify for a business loan or to record key research, but at an early stage I prefer modeling that is hypothesis driven. This mind-set should be intuitive to the entrepreneur and be at the heart of the consultant’s strategy.

Business founders should begin with a search for a business model which is driven by a hypothesis which can be tested in the marketplace of customer need. The model canvas contains a series of theories or good guesses which must be tested. These are sketches of how the company anticipates creating value for the customer. Read more

Business for Transformation: A New Book by Patrick Lai

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B4T Patrick Lai

From the back cover

Business for Transformation focuses on answering the question: “How do you start a business that transforms communities of unreached peoples?” Starting a business cross-culturally involves thousands of decisions. Until now, BAM and B4T practitioners have been lacking a tool that explains how to start a business that engages unreached people for Jesus’ sake. This book draws on years of experience from scores of OPEN workers who are BAM/B4T practitioners. BAM/B4T are among the faster growing segments of the worldwide mission movement. It is written for new workers and coaches who need practical guidance in setting up and doing business in hard, church-less areas.

BAM is about shaping business for God and the common good; bringing solutions to global issues like human trafficking, poverty, creation care, and unreached peoples. Patrick Lai’s book is an important guide for those who are serious about transformational business, especially in areas where the name of Jesus is rarely heard. This book is very practical with tools, stories and resources. Read it, use it!

Mats Tunehag – Co-Chair, BAM Global Think Tank and Senior Associate of BAM, The Lausanne Movement Read more

Startup Planning Questions: What to Do Before the Launch

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by Larry Sharp

 

What is the opportunity?

By failing to prepare, you are preparing to fail.
– Benjamin Franklin

IBEC’s first consultant and later CEO, Ken Leahy drilled into me, “You do not have a business if you do not have a customer”. Since then the key question for me is to identify a meaningful business opportunity early on. Vision is important, but it cannot be the key component at the beginning. Do you have a customer? What is the problem to be solved? The answer can be derived from research and counsel, but it is important to determine the need for the product before moving too far toward planning and product development. Some call this the value proposition and it articulates why customers need the product or service. With no need, customers will not pay, and without sales, there is no business.

A couple planning to start a business in a large Asian country came to us with an idea. They planned to make wedding dresses in the country at a low cost and market them in the USA for considerable profit. The idea sounded good to everyone they discussed the idea with. Fortunately, they retained a consultant who pushed them in the direction of robust research and analytics. The day when everyone realized there was no ‘business opportunity’ here, there was sadness and tears – it seemed to be the death of a dream! Read more

How to Develop a Vision and Goals for Your BAM Company

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We asked our team of BAM experts to give some practical advice for BAM practitioners in the beginning stages of business planning. For this post we asked them to share ideas about developing goals and vision.

Mats Tunehag, Larry Sharp and Garry all actively mentor frontline BAM companies – as well as teach and write on BAM. Read more about them below.

What advice would you give a new BAMer about developing a vision and mission plus goals/objectives for a company?

Larry Sharp
I am not so big on ‘vision’ initially (though it ultimately is important) but I am more interested in ‘opportunity’. Is there an opportunity to sell a product or provide a service? Is there an opportunity to reach a people group with discipleship? Is there an opportunity to transform a community? I would start there and when answers emerge, a vision and purpose should be articulated – and from there some goals for reaching the vision.  Then I would bounce my ideas on the vision – purpose – goals continuum off of some experienced BAMers. I have had many long-time BAM practitioners tell me that they welcome people to “come and see” and ask questions.

Mats Tunehag
Remember that BAM, is not a technique. It is a worldview and a lifestyle. It is about following Jesus in the marketplace – to the ends of the earth – loving God and serving people through business.

BAM is not Christians just doing social enterprise. BAM always considers God as a stakeholder who has a vested interested in multiple bottom lines and multiple stakeholders. Read more

12 Stakeholders You Should Engage in Your Business Startup

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We asked a team of BAM experts to give some practical advice for BAM practitioners creating business plans. For this post we asked them about key stakeholders in the business planning process.

A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. – BBC

Mats Tunehag, Larry Sharp and Garry all actively mentor frontline BAM companies – as well as  teach and write on BAM. We also asked business woman Julia to share about a stakeholder she has found helpful in her business in Mongolia. Read more about them below.

Here are 12 stakeholders they mentioned, there are others:

  1. Investors – owners, bank or investment company
  2. Business people – in companies working cross-culturally in your business or industry
  3. Business consultant – someone with specialist knowledge
  4. Colleagues – management and staff
  5. Customers – those likely to be your clients
  6. Suppliers – of essential materials and services for your business
  7. Community – local society and also the physical environment
  8. Cultural expert – someone with insight into engaging with local community
  9. Government official – someone who can give you insight and be an advocate for you
  10. Body of Christ – local church community, mission organisations and supporting churches
  11. Spiritual advisor or mentor – someone with wise counsel you can be accountable to
  12. God – the most important stakeholder

Read more

Discovering the Right Thing to Build: How to Get Started with Business Planning

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by Colleene Isaacs

In every new business I have had the pleasure of being able to build, or at least participate in the process, the ultimate plan that proved successful for the business was not the original idea that got the team on board. My partners and I started out on one path and soon found in each case, for a variety of different reasons, that if we didn’t “pivot” or change course the business had a high probability of failure. Fortunately, we did change course quickly enough, such that resources were preserved and we were able to build and scale the business to a successful outcome. Other start-ups in which I participated made assumptions based on existing businesses and markets, and unfortunately never tested those assumptions. The businesses ultimately failed, because the assumptions were wrong.

I have met MBAs that have plowed considerable resources into researching and defining a business model, only to take so long and be so far off mark, they never got the business off the ground. Read more

10 Questions to Ask Yourself When Evaluating a Business Idea

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By Robert Andrews

I would ask questions like these in a couple of iterations, meaning I would go through them once quickly to see if there is some clear deal breaking problem, and then again in more detail, and finally as part of the development of a detailed and researched business plan:

1. Is it a product or service that honors God?  (Helping society, is good for the environment, etc.)

2. Is the business viable? Is there a market need for the product/service? Is the market ready and able to pay for the product/service?

3. Are there ways in which the business can make a positive contribution to the needs of the kingdom in this city/country?

4. Are staff, suppliers and other essential services available?

5. Are there legal restrictions or other government regulations that would make it unworkable?

6. Do I have the skills and other resources necessary to run the business and, if not, can I get them through training, hiring, consulting or other partnerships?  (This would include management skills, technical product skills, local business knowledge, language and culture skills, just to name a few.)

7. How much capital will it take to start and maintain?  (Estimate the capital requirement. Then double it. Then double it again!)

8. What happens if it all goes the wrong way… can I afford the loss if it comes?

9. Do I have the time and energy to make this work and is my family willing to make the sacrifice with me?

10. Are there other opportunities available that will bring a better financial and/or spiritual return on my invested time, money and effort? Read more

Lessons from the Edge: Integrating Mission and Business in Your Business Preparations

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Insights from a BAM Practitioner 

Peter has lived and worked in a professional and business capacity for over 40 years throughout Asia, Europe, the Middle East, South and North America and is a pioneer in the business as mission movement. He currently consults on business as mission all over the world and is the CEO of a global investment fund for BAM enterprise in the Arab world and Asia. 

Preparation must consider both business preparation and missiological preparation
This is about recognising what God has already done in the practitioner’s life in regards to their sense of missional call and life experiences; the tapestry woven together in their life before the BAM entity begins. What has God been doing to both missionally and professionally prepare the person, in terms of their skills and competencies? Mentors should begin with: Tell me what God has been doing in your life? Tell me what your sense of call is? Tell me how God has been preparing you? The incubation of a new BAM business is the result of the process that God has already been doing before that.

Gain an understanding of what is going on in the environment that God has called you to
What is your business going to be about, commercially and missionally? Where has God called you to do BAM and what might he want to do through the business? What is going on in that environment in commercial terms? What are the needs? What is the market? What is the missional calling to the people group? How is God raising up your business? This stage will include formal market research, missiological research, taking exploratory trips, etc. Avoid the stumbling block of falling in love with your product and discovering after the fact that the market doesn’t have the same affinity for it! The BAM practitioner will need someone who is business-minded to ask good questions. Also avoid the other stumbling block of an inadequate understanding of the missiological, anthropological, and sociological issues that are at play.

Work together with national Christians to gain understanding
Engage in a dialogue that will shape understanding about the context and what the business is going to be. This will involve persuading each other of the vision and intent of the company, and further refining what might work and what won’t. This should be bilateral; an expat that is not willing to listen to national Christians on what tweaking and refinement is needed is doomed to failure.  This of course is not the same thing as listening to all voices – for there will be many nay-sayers and people who just don’t get it. Choose your national counsellors with discernment and humility.


These Lessons were first shared in the BAM Think Tank Report on BAM Incubation, and published on the Blog in full here.

5 Stages of the Birth of a New BAM Company

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by Peter Shaukat

Peter Shaukat, CEO of Transformational SME (TSME), identifies five stages in the emergence of a new business as mission company. Each stage, from conception to launch, involves the integration of missional and commercial elements.

Preparation Stage

This is before the ‘baby is born’, the preparation that has taken place even before the business journey starts. It is about recognising what God has already done in the practitioner’s life in regards to their sense of missional call and life experiences; the tapestry woven together in their life before the BAM entity begins to be incubated. Preparation includes both business preparation and missiological preparation. What has God been doing to both missionally and professionally prepare the person, in terms of their skills and competencies?

This is where mentoring should begin: Tell me what God has been doing in your life? Tell me what your sense of call is? Tell me how God has been preparing you? The incubation process needs to begin there. The incubation of a new BAM business is the result of the process that God has already been doing before that.

Perception Stage

The perception stage is the next step. This is about gaining an understanding of what is going on in the environment that God has called you to do business as mission within; and what God wants to do through the business. What is going on in that environment in commercial terms? What are the needs? What is the market? What is the specific missional element? What is the missional calling to the people group? How is God raising up your business? The perceiving stage addresses the question: What is your business going to be about, commercially and missionally? This is the beginning of the gestation stage of the new business. Read more

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

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by Mike Baer

Adapted from material first published on the Third Path Blog, here and here, reposted with kind permission.

 

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. Read more

5 Funding Models for Your Kingdom Startup

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by Mike Baer

Post first published on the Third Path Blog, reposted with kind permission.

The still famous line from the movie Jerry McGuire is “Show me the money!” Some of you have been thinking that as you’ve read the rest of this series. How do I get money to launch my startup? I’m going to outline several “programs” you can consider:

The “Missionary for a Moment” Model

I have to tell you upfront that I have rejected this model for years. However, recently a close brother whom I respect greatly challenged my thinking and got me a little closer to acceptance than I was before.

The Momentary Missionary Model essentially uses raised donations or support to cover living, travel and certain startup expenses just like a normal missionary would raise support to cover living, travel and ministry expenses. What makes this work is that you are committing to your “donor-investors” to be off their giving roles within a specified period of time, to have your business profitable and to live off it.

Your donor audience in this scenario is sympathetic although they may not be the most investment savvy. Be careful to not take unintentional advantage of that sympathy. This is business. Read more

Bootstrapping your Business vs Seeking Outside Investment

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What would you say were the most important things to prepare or think about as I approach a BAM investor? What are some typical pitfalls or mistakes I could avoid?

Before you walk down the road of approaching an outside investor, why not consider the possibility of self-funding – also known as “bootstrapping” – your company? If you decide to bootstrap, you may be surprised at how differently you approach your business, as well as the funding process. Bootstrapping can create a healthy foundation from which to begin your business, and can provide invaluable lessons to entrepreneurs. Lessons learned from bootstrapping can include:

  • Tests your business plan – A bootstrapped business that can bring a product or service to market, develop a customer base, and create a revenue flow will help you identify the strengths and weaknesses in your plan. You now have the solid proof you need to affirm your ideas and build on them. You will have determined if the market needs or wants your product, what the market is willing to pay for your product or service, and what will be required to put the business on a path to profitability. In addition, you will have a better sense of true costs, not just cost of goods, but hidden costs that are usually not considered or may not be known when a plan is developed. Bootstrapping will also force you to consider how the product or service is being developed, and it may cause you to re-consider aspects of product development as being unnecessary for product or service launch.
  • Provides incentive for a low burn rate – Limited financial resources will greatly influence the decisions required to operate your business, while at the same time maximizing efficiencies. This may include hiring employees that can function in more than one role, outsourcing certain roles until you can afford to bring them in-house, minimizing overhead like office space (know anyone with a spare garage?), as well as using a creative approach to marketing.
  • Skills and values development – Self-funding can be a useful mechanism in helping you gauge your true passion and commitment to your business. It will help you develop a higher level of accountability as well as resourcefulness, resilience and courage. It will most certainly test your risk aversion.

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How to Prepare for Investors

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What would you say were the most important things to prepare or think about as I approach a BAM investor? What are some typical pitfalls or mistakes I could avoid?

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

Ask a BAM Mentor: Evaluating a Business Opportunity

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Twice a month, our panel of mentors answer your practical business questions. Send us your questions!

 

Dear BAM Mentors,

What are the most important questions to ask myself when evaluating a business opportunity?

~ Business as Mission Newbie

 

 

Dear BAM Newbie

First and foremost, set your goals according to the principle, “Seek ye first His kingdom and His righteousness and all these things shall be added to you.” (Matthew 6:33). Then, ask God for guidance into a business ministry of His choice for you, wait for His answer with a listening heart and mind. Third, allow God to choose life and business partners who identify with your God-given vision and mission objectives by asking everyone who wants to be an investor or active partner in the business whether they understand, agree and fully embrace the vision God has given you. – Joseph Read more

Questions for Business Building

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What are the most important questions to ask myself when evaluating a business opportunity?

When I first heard this question my reflex response from 30 years experience of running a business was… When will I get my investment back, what is the percentage return on investment and what is the risk?!

My more considered response is to ask three initial questions. There are obviously many other issues but these are those I consider the most significant:

First Question – What is the purpose of this business and what is my real motivation for taking on this opportunity to build a business?

I would ask myself, what am I really focused on – my vision, mission and strategy to bless the nations. I would consider the eternal rather than short-term goals for the business and would seek to discover how the business could sustain itself having once outgrown me and my start up team. Read more

Considering the Business Opportunity

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What are the most important questions to ask myself when evaluating a business opportunity?

Probably the most important aspect of pursuing a business opportunity is to first determine whether you are the right person for the job. I would recommend you do a personal assessment (be honest with yourself, there’s a lot at stake here), and ask yourself if you have the skills and passions necessary to build this specific type of business. Beyond that, do you have what it takes to live through the highs and eventual lows that you know will occur through the normal course of operations? Evaluating your readiness, and determining if your unique skill set maps to those required by the business should be at the top of your checklist, as you prayerfully and thoughtfully determine the worthiness of the project ahead of you.

As a potential entrepreneur, it is easy to get excited about any new business opportunity. So much in fact, that an entrepreneur can quickly lose his objectivity and become blinded to the potential pitfalls associated with the business. Many of us foolishly consider that if an opportunity exists, it must be the open door God wants us to walk through. Keep in mind that just because a door is open, doesn’t mean its the right door for you. While venturing into any new business can be daunting and filled with uncertainty, it can also be a time of exhilaration, not to mention a lot of fun. But do yourself a favor before you journey into the unknown; check your motivations. Know why you are doing this, and know the risks before you take the jump. Read more