Showing posts with label Christian Business. Show all posts
Showing posts with label Christian Business. Show all posts

April 19, 2009

Is your business idea good enough to win $10,000 in seed capital?

Here’s your chance to see if your idea for a start-up has wings. It’s a great opportunity for someone (hopefully one of our readers) to get some seed capital to launch their dream business. The contest is promoting John Maxwell’s (yes, the Christian leadership guru) new book “PUT YOUR DREAM TO THE TEST” and is being sponsored by the book publisher (Thomas Nelson Publishers), SCORE, Success Magazine, and Scribd (a web site where you can publish, discover and discuss original writings and documents).

TO PURCHASE PUT YOUR DREAM TO THE TEST BY JOHN C. MAXWELL, SEE “CHRISTIAN CAPITALISM SUGGESTED READING” IN THE SIDEBAR TO THE RIGHT OF THIS POST

You must submit your best original business proposal to Scribd before 11:59 PM EST on Wednesday April 22nd 2009 (sorry for the late notice but I just saw this today). On April 25th, 10 finalists will be selected and then Scribd users will vote for a grand prize winner. The winner of the $10,000 grand prize will be flown to Atlanta, to be awarded the prize on stage at this year’s Maximum Impact Simulcast conference on Friday May 8th. The interesting back story to this contest, I believe, is the collaboration between the Christian author, Christian publisher (Thomas Nelson), a secular entrepreneurial magazine (Success), and the secular business advisory organization (SCORE). A Christian entrepreneur could not dream up a better contest to be a part of. I love that this contest is being run in a way that is open to anyone no matter their religion. I especially like the prize being awarded at Maximum Impact which is an awesome Christian business leadership seminar which I have attended for the last few years. If you have never heard of Maximum Impact, check out the website it is something that is definitely worth going to if you are a business person. You will get to hear some very impressive people talking about different aspects of business. They have had Hall of Fame football players, best selling authors, tech industry executives, social entrepreneurs, etc. I could go on but you would get a better idea by just visiting the web-site. The simulcasts I have attended have really changed me, and how I do business, and have given me priceless knowledge from top notch business experts. ENTER CONTEST NOW (FYI- Submission rules and submission button are on right hand side of page).

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March 14, 2009

How do I write a business plan for my Christian start-up? Part 2

Writing a business plan can be a hard task for an entrepreneur for many reasons, the biggest one of all being that the majority of entrepreneurs tend to be A type personalities. We subscribe to the “Just do it” mentality. We see an opportunity and are ready to go out and fill the need. “Forget about planning, lets get it done”. Right? We have the idea in our minds of the perfect product, service, or business. We know in our gut that there is a need for it, that people will love it. There are even many documented success stories where entrepreneurs went ahead and did just that. Unfortunately there have been studies done that show that the failure to have an adequate plan in place is a big factor in the failure of many firms. In the previous post I talked about why you need a business plan and what it should accomplish.

Reality Check on Business WritingImage by panuta via Flickr

This post will show you how to begin taking the two most important first steps when building your Christian business plan: establishing an appropriate framework, and filling in the blanks by doing the research needed. In this stage you will solidify your ideas and back up what you feel in your gut, with hard facts and data. Ideally the data will support your original assumptions and maybe even give you some ideas to add value or depth. It is very important though, to be honest with yourself and look at what your findings are telling you, because sometimes the data tells us things we may not want to hear. It may tell you that you have to tweak or change a few things. Then again it may tell you that your original idea needs a major overhaul, or that it won’t work in its current format. Unfortunately I have been faced with this scenario on at least one occasion, and although disappointing at the time, it saved me a lot of wasted time, money, and future heartache. Looking at the situation and data I had collected, in an honest way, helped me to see that I needed to look into starting up my business in a different part of the country. The location I was looking at, would just not support the amount of revenue I was looking for. I’m not saying to quit your dream if the data is not supporting your idea. What I am saying is to use the data to reformulate things to give yourself the greatest chance to succeed. The frame work for a business plan is generally agreed upon. What is up for discussion is how long it should be, what areas you should spend more time on, etc… I believe that you have to adjust your business plan to what you will be using it for. The plan should start off with a section called the Executive Summary. This part should summarize the most important points that you want to communicate. It’s like an elevator pitch for your business plan. An investor should be able to have a general idea of what you want to do and how you are going to do it. If they are interested they can dive into the details by continuing to read on. You will follow the Executive Summary with specific areas that address the overview of the company, products and services, marketing, management, operations, financials, legal, and (for Christian companies) social benefit. Here are some sites that have templates or advice on how to put this framework together. SCORE Business Plan Template SCRIBD Business Plan Template Free Sample Business Plans Business Plan Resources I find these links particularly useful. The sections that you use in your specific business plan depend on your business type and your purpose for putting together a plan in the first place. Is this to get yourself organized and focused or is it targeted towards raising capital? What kind of investors are you looking to target? Are they VCs that expect you to make it succinct and to the point, or are they family and friends, that will take the time to read through and understand your plan? Think about what you want the plan to accomplish. Guy Kawasaki’s book “The Art of the Start” is a good source of info for getting a new business off the ground. There are also some good resource links on his venture capital page. Once you have decided on your framework, its time to fill it in with the information you will need, make sure to leave the Executive Summary for last. It will summarize your plan, so leave it blank until you have input all your info and research. First you will fill in the parts you know. Fill in the Business Description and Company Background. Summarize your Business Strategy and describe your Products and Services. Make sure you also fill in information on any Competitive Advantages your company may have; unique or proprietary technology, processes, or expertise. Social Benefit and Exit Strategy would also be sections you may be able to fill out before doing research, but as with everything you are doing at this point these may change once you start doing more in-depth research. Once you have filled in what you can with your existing knowledge, you should start the important work of doing research to flesh out and back up your plan. Two good places to start for general information and resources are SCORE and the SBA. There are also many local entrepreneur centers and university small business resources that you could tap into, close to where you live. In the next post I will talk more about research types and sources. I will also list some sites where you can get statistics and information that targets Christian business specifically. I welcome your comments regarding whether this post has helped you to put together your business plan, or if you have other resources links that could help others to put together their plan.



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March 1, 2009

Is a Christian start-up right for me?

WWJD Entrepreneurial Edition

There may be many reasons behind why people start their own business, but people become entrepreneurs because of two driving forces: desire or fear. Most entrepreneurs start their own business because they desire something better. They may want more control, more money, more flexibility, or a better quality of life.

A few though, start a business out of fear. They may have lost their job for an extended period of time and see no other options, they may be afraid of how they will feel if someone else beats them to market with a similar idea, or even be fearful of being trapped in a dead-end job for the rest of their lives. Christians are not immune to these desires and fears, after all we are living in the same 21st century world, and are exposed to the same pulls and tugs of culture, the same difficult situations, and the constant consumer minded advertising driving us to want more than we have. That is why it is so important to seek the Lord’s will in these situations.

Landing "WWJD"Image by fiveforefun via Flickr

We should never do something out of fear or greed, but out of love. When considering starting your own enterprise you must ask Him: “Lord is this what you want? Is this the outcome you would like for this situation, or are you trying to teach me something else?”.

For Christians there may be a different set of desires in starting up a business, and these desires should be driven by love. The Christian entrepreneur may want a workplace where they can feel free to be the person God desires them to be, including to express their Christian beliefs and to put God first in their lives and business (loving God). They may want to use a business model balanced more toward doing God’s work instead of focusing solely on profits (loving your customers), or to have a business that provides jobs and a functional, stable workplace for other Christians (loving your employees), or even to use their business as a mission to minister to people in areas that are hostile to Christians but welcome foreign business investment (loving the lost). Whatever our desires may be, the most important point here is to seek God’s will. He wants us to be a light to the world. "No one lights a lamp and hides it in a jar or puts it under a bed. Instead, he puts it on a stand, so that those who come in can see the light” Luke 8:16. Whether we shine our light at a job working for someone else, or in our own business doesn’t matter, just as long as we are where He wants us to be. In a previous post I talk about using a business as your ministry. In the post I talk about my own personal experience starting a Christian business based on a God-given mission, but one size does not fit all. God’s kingdom is full of endless variety, and there are many types of businesses that can be considered Christian. They can be tailored to the Christian marketplace, or not. They can state publicly that they are Christian, or they can keep these motives in the back office leaving customers to think to themselves “there’s something different about this company”. Different people have different preferences, and I hate to repeat myself but, foremost in this is going to be what the Lord desires to accomplish through your business. Whatever the format, or target market, a Christian business should be a light shining in the darkness; to the community, its customers, and employees. It should be run in a Christian way, based on biblical principles. In 1Timothy 6:9, Paul gives us a warning “People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction.” So we should not be motivated by the love of money, but for the desire to be a faithful servant though our business. Many Christians run their own business but are not following biblical principles. They say things like: “business is business”, “business is war”, “all is fair in love and business”, and a myriad of other sayings aimed at separating their business lives from their spiritual lives, and making themselves feel better about the sins they are committing for the love of money. The Bible says: “Out of the same mouth come praise and cursing. My brothers, this should not be. Can both fresh water and salt water flow from the same spring? My brothers, can a fig tree bear olives, or a grapevine bear figs? Neither can a salt spring produce fresh water” James 3:10-12. So, as Christian businesspeople, we must strive to not be contradictory, but to do everything with one purpose in mind.

“Whatever you do, work at it with all your heart, as working for the Lord, not for men, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving” Colossians 3:23-24.

Starting up and operating a Christian business is not the easiest thing to do, not only must you be profitable so that you can continue serving the needs of your customers, and providing a stable job for your employees, but you must put God first in everything you do.

There are constant tests, challenges, and temptations in this, especially when our competitors are not abiding by the same standards, but the reward is the great satisfaction in allowing God to work through your business and seeing the good that comes out of it. There is much peace in knowing that you are operating in God’s will. “For my yoke is easy and my burden is light” Matthew 11:30. If you think that you can walk along this narrow path then a Christian start up may be right for you.

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February 20, 2009

How do I write a business plan for my Christian start-up? Part 1

Putting together a business plan for your Christian or Social Enterprise Start-up can be a daunting task, especially if you have never put one together before. Add to it the fact that there is an added social benefit aspect involved, and you see why people might think that this is beyond them. Don't worry! In this series of posts I will cover all the steps needed to put together your business plan.

Creamy center = sketch of business planImage by juhansonin via Flickr

That is, if you don't want to pay a professional to do it. I'll also include information on software that you can use to make your life easier, if that's the route you would like to take. I find that putting together my own plan really helps to form my ideas, work out problems, and really see things from an investor's and client's perspective. Going through the journey and doing the work and research it takes, to put together a good plan, really prepares you when it comes to presenting your "big idea" to prospective stakeholders.
Your business plan should help you to do the following:
  • Better form your ideas regarding the business
  • Formulate a strategy for your business including marketing plan, financial plan, products offered, etc.
  • Ultimately help you to raise capital for your venture, by communicating your vision to others and answering the potential investor's main question: "Why should I invest my hard earned money in you and your idea, instead of somewhere else"?
Your business plan could be for a small home business with you as the only employee, or it could be for something on a much grander scale. Whatever the case, the plan needs to be able to communicate your vision, the steps to realize that vision, and it needs to show readers the following:
  • You have experience in the business you are about to embark upon, or you have a management team that is experienced
  • You have an understanding of the industry, the business, your target market, and your competition
  • You have an understanding of the risks involved, you know the costs and have worked out an approach to overcome these factors (i.e.- operating on foreign soil)
  • You have projected a financial outcome for the first five years with realistic numbers (pro forma statements) and it is going to bring a great return on investment (ROI)
  • You have projected the social outcome in the first five years and it is going to bring a great social benefit

In the next post I will discuss what I consider to be the first step once you have your business idea and have decided to go forward with the business plan; doing the research. I'll include a list of information sources for your research so you can get started backing up your ideas with hard facts and figures.
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February 12, 2009

GodTube's Name Changes to Tangle

GodTube has officially changed its name to Tangle. Some had published articles erroneously stating that the self-professed "#1 online Christian community" would be changing its name to GodBook, a veiled implication that the company is riding the coattails of whatever is new and sexy in the social networking world.

Image representing GodTube as depicted in Crun...Image via CrunchBase

Personally, I applaud the company for taking this step to differentiate itself and establish its own brand. I'm sure as a brand new start-up the original name served it well, allowing it to grow its fanbase, due to the association in people's mind's that it was a Godly version of the wildly popular YouTube. This strategy allowed it to grow tremendously in a very short span of time. In August 2007, the month of its official launch, GodTube was ranked by Comscore (video link) as the fastest growing website in the U.S. with a 973% increase and ranked in the top 1000 websites in the country. Since then the company has been able to raise an impressive $30 million (according to Paidcontent.org) to take the concept to the next level. Of which the name change and enlarging of its scope is expected to be just the beginning. There seems to be a lot of surprise out in the tech world over the amount of capital raised, and from a secular source nonetheless. I think the secular world underestimates the reach of Christian businesses and the desire many (even non-Christians) have for wholesome, family friendly values, in the services and products they buy. I think as Christians we may sometimes feel like we are swimming against the stream of culture, which the popular media only magnifies in its focus on selling sex, money, and violence. The industry has established a culture that glorifies and promotes those who break boundaries, and seems to punish those who try to take back the higher ground looking upon them with disdain. Many of the articles written about GodTube looked down upon the company. They talked about how it was a copycat to YouTube, they mentioned that it was running on a $300 computer script, and much harsher allegations were leveled, which I will address later. This attitude seems to be the norm in the secular media, and GodTube isn't the first and won't be the last to be looked at in a patronizing way because of their focus on God. Chik-fil-A is still seen as throwing away business by closing its stores on Sundays, even though its concept has been a runaway success. As far as the allegations against GodTube, regarding its imitation of YouTube, I think its a bit hypocritical since many historically successful businesses have emulated and improved upon already successful concepts; Pepsi Cola, Lowes, and Google are just a few that come to mind. They were definitely not the first to do what they are doing, but somewhere down the road they connected with people, Pepsi because it was cheaper than Coca Cola at a time when the nation was facing hard times, Lowes connected with women and more upscale shoppers, and Google was simpler, faster and more relevant in its results. I take more seriously, the accusations against the company for theft of copyrighted code. I think it is the company's responsibility as a Christian company, and as an example to its user base, to take the initiative to address these allegations and dispel them, or apologize and make amends in a way that is biblical, if they are true. Exodus 22:9 states the following: In all cases of illegal possession of an ox, a donkey, a sheep, a garment, or any other lost property about which somebody says, 'This is mine,' both parties are to bring their cases before the judges. The one whom the judges declare guilty must pay back double to his neighbor. I'm sure its not what their legal counsel would say is prudent, and GLG Partners (the hedge fund that put up $30 million) would probably make it very difficult if the allegations turned out to be true, but it would be the right thing to do in God's eyes for them to set things straight. If we believe as it says in Romans 8:31-39 that God is for us, we should (as business people) not be afraid to do the things we must do as a result of our faith, even if it goes against everything the secular business world maintains. That is what sets us apart for Jesus, and identifies us as part of his flock. We must live to a higher standard than the marketplace and when we stumble, as will most likely happen (because we are still human after all) we must take the difficult steps to correct our wrongs without being made to do so by a governmental authority, or court. Peter 5:6-9 states: Humble yourselves, therefore, under God's mighty hand, that he may lift you up in due time. Cast all your anxiety on him because he cares for you. Be self-controlled and alert. Your enemy the devil prowls around like a roaring lion looking for someone to devour. Resist him, standing firm in the faith, because you know that your brothers throughout the world are undergoing the same kind of sufferings. As for the secular media coverage of Christian companies, we have to expect that it will continue to reflect Christians in a less than desirable light, because they don't understand us, don't understand what makes us tick, and many times feel convicted because God's word speaks against their lifestyle. As a result they will continue to be surprised when we succeed, and to delight when high profile Christians stumble and fall. My hope is that GodTube becomes a really, really, big success and that those with capital to invest start looking closer at Christian start-ups and growth businesses. I'm believing for many more "dot-God" success stories, and eventually for one of the 7 mountains to fly God's banner on its peak.

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January 26, 2009

Christian Capitalism

It seems that Christian Capitalism is starting to finally get a foothold. I have been noticing Christian sections popping up in retailers outside of the usual "Christian Bookstore" category. I have seen these in many stores including Walmart, Publix, Walgreens and Target. Sometimes its a whole aisle, other times its just one of those rotating wire stands that may contain Christian greeting cards or self-help books.

Greeting cards on display at retail.Image via Wikipedia

Every day I see more Christian stuff out there for sale. So I think to myself, "if these secular businesses are setting aside the space for this, there must be a pretty big demand for it". Right? Well I decided to find out facts and numbers on how big the Christian "stuff" industry has gotten. As I was just surfing the web doing research I came across something interesting. Did you know that Forbes has a package of stories about Kingdom-based business, called "Christian Capitalism"? Right now they have 13 articles in the section, although a couple of them are not about business but about unscrupulous scammers that have preyed on Christians. I'm really not sure why these stories are in there, but it seems that the secular media always have to include something in there to paint Christians as naive, or below par in some way. The most important points I took from these articles were that Christian business is growing steadily albeit quietly, and big business is starting to notice. This article was written a few years ago and it states that the Christian retail business had $4.2 billion in annual sales at the time, and that Walmart's entry into the market was expected to grow the industry at a 30% clip. They view it as a tremendous opportunity for sales growth in the future. I can't help but think of the opportunities this presents to Christian entrepreneurs, not only to make a living, but to build upon a different kind of business mentality. Christian entrepreneurs have an opportunity to shine, to be an example, and to differentiate themselves from the rest of the marketplace. In this season where we see so much media coverage of corporate greed, unethical behavior, and disregard for customers, employees, and communities, Christian Capitalism can bring a new perspective into the marketplace. The ideal of Christian Capitalism is not just to earn money serving the Christian target market. It is to build functional relationships between the business and its customers, employees, vendors, and community. These functional relationships should encourage, build up, and pour out into others the love that the Holy Spirit pours into us. Another very important piece in this is that Christian businesses are called to support their local churches and area ministries. This is God's way and is a system that works well when all parties invest into it. The businesses create a good product, strong relationships, and good will, and the community responds by supporting the businesses and making them successful. The businesses in turn supports its employees, vendors, and community, and the cycle starts all over again. Along the way businesses that subscribe to the idea of Christian Capitalism become a noticeable presence in their communities. Led by their employer's example, employees start to buy in to God's system. Customers respond to the way they are treated by demanding the same treatment from other businesses. Christian start-ups pop up to fill this need and also because they seek to emulate the success of existing businesses that follow the Christian business model. On and on it goes, affecting the vendors, and other stakeholders. Christian Capitalism can really gain momentum if Christian entrepreneurs can resist the temptations that success brings and keep their eyes firmly focused on Christ. Another stumbling block for Christian Capitalism to overcome will be to differentiate Christian businesses from the impostors. Success breeds imitators and opportunists. There are already many non-Christian companies that do business or are trying to gain a foothold in the Christian economy. Not that there is anything wrong with that, because we as Christians need all kinds of services and products. We have to understand though, that when we support these businesses our money goes into their storehouse, or is invested into causes that may be in conflict with Kingdom goals. By their fruit you will recognize them. Do people pick grapes from thornbushes, or figs from thistles? Mark 7:16
We must be discerning in our support of businesses and look to their fruit, because a direct result of Christian Capitalism should be that God's resources are kept flowing through the kingdom, not remain in storehouses. where moth and rust can reach them. "Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal". Matt 6:19



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January 25, 2009

Your Business As Ministry- Building the wall

Over a year ago "The Big Guy" told me to "start building the wall". By "Big Guy", I mean "the man upstairs", you know...God. I had been praying for years that he would show me my ministry. Every morning when I got up, I would pray and read His word, and in my prayers I would pray for the ministry that He had for me, and pray for His anointing. I had been praying this for so long that I did so almost automatically. So it came as a great surprise to me, one Sunday morning when I was in the shower getting ready for church, that he answered my prayer, just like that. In a blink of an eye he gave me a full view of my future ministry, and it wasn't what I thought it would be. I wouldn't have to sell everything, move to some remote corner of the world, and live in a primitive native hut! Hooray! What a relief. That just wasn't for me. He showed me that a business would be the vehicle for my ministry. Although now that I have been pursuing the mission he planted in my heart, I think that living in a hut might have been easier, and less stressful.

Its a wonder I did not see it beforehand, having been the owner of a business or self-employed for most of my adult life. I had just never viewed a business as being a ministry. My life plan was to run a successful business and save enough money to retire early with enough money to support a ministry for the remainder of my days. I realized that I had been allowing the world to program me into believing that Church and Business were to remain separate. Business was what you did during the week, and Church was what you did on your free time and Sundays. I never thought that I could contribute to the Kingdom as a businessperson other than through tithing. As I examined the mission God planted in my heart and prayed for confirmation, I thought, "if I felt this way how many others were out there that felt the same"? I imagined the impact on the business world, of thousands of business owners sold out for Jesus. As business owners, our "congregations" may be there 5 days/week, 8 hours/day. That's 40 or more hours a week that we can be living models of Christ to our employees. An opportunity any Pastor would be enviable of. How many lives could be touched? Changed? But, preaching the Word at work is not just a walk in the park. It brings its own set of challenges and difficulties.

God had told me "start building the wall". I didn't know what that meant at first. So I asked Him for further guidance, and confirmation. I wanted to make sure this vision was from Him. While praying I clearly heard "Nehemiah". I immediately turned to it in my Bible. I had read Nehemiah a few times but all I remembered was that he had rebuilt the wall around Jerusalem, and he and Ezra were contemporaries. Over the next few days I read Nehemiah and prayed for discernment about the meaning of the passage. Why had I been led to read this? I felt that Nehemiah was to be a blueprint for the start-up of the business. Through prayer, God gave me further confirmation. I received a 3 page insightful explanation, linking Nehemiah's project to rebuild the wall of Jerusalem, with my God given mission to start up a Kingdom-minded business for the Lord. Reading over it today, I am amazed by how on-point it has been, and I receive new insight on problems I am just now encountering. God is amazing! The more I nurture the seedling of the idea he planted that morning, the more I realize how much grander his dreams are than mine. I see how he has tailored this mission perfectly to suit me. How perfectly he weaves people, places, and moments in time to fit together like rotating cogs. Perfectly designed machinery, comprised of many pieces working in unison, and in many dimensions, to accomplish his perfect will.

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1 Chronicles 29:11-12

Yours, O Lord, is the greatness and the power and the glory and the majesty and the splendor, for everything in heaven and earth is yours. Yours, O Lord, is the kingdom; you are exalted as head over all. Wealth and honor come from you; you are the ruler of all things. In your hands are strength and power to exalt and give strength to all. Now, our God, we give you thanks, and praise your glorious name. "But who am I, and who are my people, that we should be able to give as generously as this? Everything comes from you, and we have given you only what comes from your hand.

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