Getting
started
Starting and managing a business takes motivation, desire,
and talent. It also takes research and planning. But
the one essential that has proved itself indispensable
with numerous successful Christian-owned businesses
is that the owners and managers, to the best of their
abilities, make decisions on the basis of God’s
Word rather than on what is acceptable to society. The
purpose of any Christian business should be to glorify
God, not just to make a profit. "Whatever you do,
do your work heartily, as for the Lord rather than for
men" (Colossians 3:23). When Christians are more
concerned about the pursuit of riches than serving God,
they cease to be useful to God. "No one can serve
two masters; for either he will hate the one and love
the other, or he will be devoted to one and despise
the other. You cannot serve God and wealth"(Matthew
6:24).
Like
a chess game, success in small business starts with
decisive and correct moves. In order to increase your
chances of success, take the time up front to explore
and evaluate your business and personal goals. Then
use this information to build a comprehensive and well-thought-out
business plan that will help you reach your goals.
The
process of developing a business plan will help you
think through some important issues that you may not
have considered yet. This plan should detail how the
business will be operated, managed, and capitalized.
I encourage potential business owners to develop their
business plans on the side while they work their regular
jobs.
Developing
a plan should consist of four steps:
Getting started. List your reasons for wanting to
go into business.
Determining
the type of business. Based on your talents, skills,
time availability, and interests, decide what business
is right for you.
Identifying
the niche your business will fill.
Developing
a pre-business checklist that answers questions about
business location, financial resources, insurance
needs, equipment and supplies needed, and legal structure.
After the plan has been developed, establish a budget,
even if your idea is several years in the future. A
budget plan will allow both you and anyone interested
in your idea to see what the projected expenses will
be, and it will help you to establish goals. Count the
cost, study to prepare yourself, and pray to seek the
Lord’s direction. People often do not calculate
the costs of starting new ventures, and they end up
abandoning their ideas after too many failures. They
find that they borrowed too much, overextended themselves,
and didn’t know the marketplace. So, investigate
the costs of developing this idea before you look for
working capital. "For which one of you, when he
wants to build a tower, does not first sit down and
calculate the cost to see if he has enough to complete
it?" (Luke 14:28). Whatever the Lord has laid on
your heart, be patient and allow Him to work it out
in His timing. We hear from so many people who’ve
found themselves in trouble after they’ve begun
new businesses, simply because they were impatient and
underfinanced. Implementing a vision requires spending
time in preparation.
After
establishing a budget, obtaining sufficient capital
is next. I strongly caution against borrowing to start
any new venture. Absolutely do not borrow against your
home or retirement account to fund business ventures
and never deplete your savings accounts, cash in your
IRAs, or cash savings bonds to fund new ventures. Debt
makes it very difficult for any new business to break
even. If God wants you to develop this idea, He will
provide a way to finance it without having to jeopardize
your future.
The
Lord may open doors tomorrow for you to pursue this
dream, or it may take years for your dream to be fulfilled.
Allow the Lord to work out His will for your life and
then walk in obedience - one step at a time. Hold on
to His promises to you, and ask Him to direct your footsteps
when you are not certain about the path He wants you
to take. As you surrender your business to His control,
He will give you the wisdom you need to carry out your
plans.
Purchasing
an existing business
If you are interested in purchasing an existing business,
it’s best to have a lot of experience in the business
that you are considering purchasing. You will need to
look at their records and books or have someone who
is familiar with that type of business look at them.
This is very important and an area that certainly would
be worth the money an accountant may charge for this
service.
Businesses
are sold by a variety of methods, whether it is in the
form of services or the purchase of a building or property.
Determining the value of a business is very difficult.
In a buyer’s market, what a business is actually
worth seldom brings that price. In addition to the value
of the property, which should have about three fair
market appraisals, and the cost of inventory, the business
worth should be about four times its net yearly earnings.
After you take out your salary, the business should
be able to pay itself off in about 5 to 7 years. If
it cannot, it is probably overpriced and not a very
good buy.
Another
consideration is to determine if the business location
is compatible to the surrounding community or is the
community changing to the extent that this type of business
is no longer profitable. Check county zoning and see
what is being built in that area.
Starting
a home based business
If you are considering a home-based business you need
to be very cautious, since some organizations that offer
home business opportunities are not trustworthy. If
the opportunity requires an investment on your part,
my advice is to stay away from it, especially if it
does not fit within your budget.
Before
becoming involved with any home-based venture I advise
you to: (1) get the names of the principals of the business
opportunity and the home office of the company; (2)
write or call the Better Business Bureau in the state
where they are located; and (3) write or call the attorney
general or the state securities office of that state.
Ask if they have had any complaints filed against the
company. All these things should be done before you
make any decision to become a part of that company.
An
option that you might want to consider if your desire
is to establish a home-based business is to check with
some of the larger churches or businesses in your community
to see if they have any work you could do in your home.
Other home businesses that have been successful include
child care services, dress shops, consignment shops,
bakery serving services, and typing and computer services.
God knows your needs and the desires of your heart.
Trust Him to show you the occupation that will fit your
talents and needs and will honor His name.
Conclusion
Small business is the backbone of the American economy
and is America’s largest employer. Starting your
own business may be the pinnacle of years of hard work
or the challenge of making a unique idea into a profitable
venture. It can be very challenging and rewarding, and
if you are successful having your own business is a
chance to take control of your future, achieve a great
sense of personal satisfaction, and reap financial rewards.
Nevertheless, in order to be successful in the eyes
of the Lord, the business must be established for the
purpose of glorifying and honoring Him.
