Teaching

I recently had a conversation with the executive director and manager of our language school in Bulgaria (Master Bulgaria, Ltd. at http://www.masterbulgaria.com). As some of my closer friends know, last year I took the bold step of making a proposal to assume the ownership of this company, which had been loosing money for the previous owners for three or more consecutive years.

As of today, just over a year after assuming ownership, the business has grown around 75%. Our goal is to increase that to 100% by the end of next quarter in order to be in a position to weather the predictably slow summer months. To accomplish this growth, we had to reinvent the product we offer, change our location, invest in new equipment and, most importantly, consolidate our team and invest in their professional growth.

If we meet (or exceed) our forecast, we expect Master Bulgaria, Ltd. to become profitable within the coming year and to become a leader in its sector, which can be described as elite or VIP language training. We are already giving into the Kingdom from this business. (Tithing from our business is a principle established and practiced from the beginning.)

According to our director, we are at a point where we actually need to reign in growth and minimize our marketing efforts. As is the case with many companies, large or small, we are not ready to handle the accelerated growth and expansion we are experiencing. In our case, the greatest constraint is human resources. The educational market is hot and the demand is strong. A career in education is often a transient one and, as a result, the variables in this business could discourage even the most optimistic visionary.

The big question is whether we have a compelling business case. We believe we do. If we did not, we would not be doing what we are doing. The ultimate goal of any business should be to be profitable. Allow me to break away from the standard definition of "profitable" and suggest a broader concept, i.e. a business that profits others and a business that makes a profit as part of the larger economic exchange in a given environment, be that local, regional or wider reaching.

The same question, if applied to the larger picture of our Kingdom-oriented activities, would be whether Kingdom ventures could or should have strong business cases. This may sound like a non-issue to some, but I want to go beyond the obvious “correct” answer and deal with some underlying dynamics, which I believe tend to bring mediocrity and even failure to Kingdom businesses.

THE ‘P’ WORD

As a result of God’s leading at the beginning of last year, I have entered into several different business partnerships, all with people whom I love, trust and with whom I enjoy working. I am excited to put my God given abilities to work and release the entrepreneurial part of me in the area of business. (I use the word abilities and not "talents" because to me, “talent” refers to a different attribute of God’s grace, but I will not take time to teach on that now.) I have already poured a substantial amount of my time, energy and capital into these ventures. For me to do this and not believe in success would be tantamount to idiocy. However, as I have spoken to different Christian entrepreneurs, I have realized that many of us still struggle or are afraid to confront ourselves periodically with the “P” word - Profit. Are we on the path of developing profitable businesses? Will they have longevity? Will they prove agile enough to meet the constant demands of the ever-changing marketplace? Are we venturing into business with the vision to take over certain areas of commerce or even whole industries and set the standard or lead by virtue of our extraordinary success? Are we aiming for a long-term impact? Or are we allowing the spirit of this world and the current economic realities to short-circuit the original intent God might have had when planting in us the seed of the dreams we are pursuing?

The reason we need to answer these questions clearly and unequivocally is that many of us as Christians tend to be naive when it comes to the bottom line of our otherwise noble efforts. We tend to lace our business ventures with all sorts of nice Christian clichés while people in this world aggressively pursue their not-so-spiritual goals of building profitable businesses. Consequently, Christians end up, once again, looking like the joke of town.

THE SONS OF THIS WORLD

Luke 16:8 says, “And his lord commended the unrighteous steward because he had done wisely: for the sons of this world are for their own generation wiser than the sons of the light.” Every day, even without realizing it, people in this world, relying solely on their abilities, ideas and commitment to personal success and realization, fulfill the word Jesus spoke here. If it were not so, Christians would be in charge of the banking systems, real estate, manufacturing, and research and development. We have many Christians who have had successful careers in these industries, but no iconic trendsetters; no excessively wealthy believers have been able to capture the attention of both ordinary people and top-tier influencers in this world.

Some would argue that Christians cannot and should not aim at becoming leaders through successful Kingdom ventures, because this world is under the control of Satan and only Satan can give such power and authority to people who sell their souls to him. If that is true, then Abraham, Joseph, Daniel and Solomon never really served God.

Even though they made mistakes and were not perfect as humans, these men demonstrated that it is possible to amass great wealth in this world and not become corrupt. Amazingly enough, Solomon fell not because of his wealth but because of his promiscuity, which was the same flaw we see in the life of his father, David.

Regardless of that, these individuals (and many others) demonstrate that God wants to prosper His people and entrust them with great power and influence. If we don’t get this, we will vacate the seats of influence in this world and they will end up usurped by power-hungry individuals who are indeed under Satan’s dominion. In fact, this describes the present situation in the world. It could have been and should have been different. Can we shift the course of things in this generation? Maybe, but we won’t be able to do that if Christians continue to treat business as we have been until now.

Isn’t it time we started to think and act more like the Kingdom?

Jesus did not give the wicked man’s heart as an example, but his ability (Luke 16:8). He praised his ability to quickly assess a difficult situation and bring a solution to the table. This fellow knew how to use his mind. Why can’t Christians learn how to be razor sharp when it comes to entrepreneurial thinking and action? Could it be because we have some underlying theological misconceptions? Do we buy in to such ideas as “I better leave it up to God,” or “God knows how to handle this,” or the ominous “If it is God’s will”? Simply put, entrepreneurs in this world, because they do not have such underlying mental or motivational blockages, do not look for a “mystical” solution to their business-related challenges. Instead, they employ their ingenuity with full force. Illegal business practices, lying, cheating, opportunism and intimidation may be part of the reason some businesses progress. The corporate world is particularly known for the predatory nature of the players involved. Does this mean all businesses are like that? I don’t believe that! Regardless of the negative outlook some people have when it comes to the free market system and the playing field it creates, education, hard work, dedication and ingenuity have been and will continue to be the cornerstone of the economic success of the United States and other developed countries.

WHY DO WE FAIL?

I believe I have outlined above the single most destructive thought and behavior pattern that hinders or completely brings to a halt new businesses headed by Christians - we wait on God to take care of everything! We haven’t come to grips yet with the fact that God is only willing to do His part and there is actually a part we play in His plan. If we assume that the “Christian” business owner we are talking about is a law-abiding, honest person who also conducts their business with integrity and believes in hard work and excellence, there simply are no other exclusively “spiritual” reasons our businesses fail. But what about Satan? Can’t he destroy a Christian business? I once heard a lady talking about not wanting to do business with Christians. I asked her why. She proceeded to explain how she had partnered with someone who was a Christian, who borrowed company money, promised to return it within a specific timeframe and then disappeared. When she asked him how he could do that, his answer was, “Because of spiritual warfare, which caused lack of finances.” I think it’s about time we move beyond this argument. Even if there was spiritual opposition, we need to tackle the issue at an appropriate level and not simply make it an excuse. If there is intense spiritual warfare, then the business owners (if there is a partnership involved) need to come together and pray and push back the enemy. If it’s a sole proprietorship, the business owner needs to find someone, whether it is a spouse, a friend or an intercessor, who will connect and agree in the spirit. But we are not to disclose these things in public, since the carnal man doesn’t understand the ways of the spiritual realm. What the carnal people of this world understand is success or failure.

Most all other reasons businesses owned and operated by Christians fail are the same reasons that cause businesses owned by non-Christians to fail - volatile markets, fierce competition, hidden cost of business ownership and many other factors.

Did not Jesus teach that the same disasters came against both the person who built their house on sand and the person who served God? (See Matthew 7:24-27.) Like natural weather and wars, we are all subject to the same economic fluctuations and pitfalls in business, whether or not we serve God. Following are what I believe to be the seven most frequent reasons small businesses fail today.

1) Started for the wrong reason

People think that to be your own boss is a lot of fun and allows you more time to be with family and to do what you want to do in life. The truth is that it will take much more effort, time, and resources for a small business owner to manage their operation than going to a 9 to 5 job, where someone else bears the weight of responsibility and things are much more predictable.

2) Lack of planning

While there are many variables in today’s dynamic economic landscape, you need a plan. You can modify the plan or scrap the original plan for a new one. But, if you do not have a plan, you are exposing yourself and your business to both external and internal instability. You will pay for it. Everyone, from the most seemingly insignificant worker to the CEO, should know the plan. You also need to evaluate your market, your competition and your own strengths and weaknesses. Performing a formal SWOT (Strengths, Weaknesses, Opportunities, & Threats) analysis and updating it periodically is imperative.

3) Poor management

Even the greatest idea can fail due to lack of good management. This is the reason most churches in the US (over 85%) have less than 100 members on any given Sunday. It is not because the pastors do not love God and people. Most of the time, they were never taught how to lead a church to grow and manage it when it does. It is the same way with business. You can be an honest, noble person with a great idea. Nonetheless, it will take keen management skills to navigate your start-up to a place of becoming and remaining a profitable business.

4) Insufficient capital and over-expansion

If you want to get from point A to point B, you need to have enough gas in your car. Lack of sufficient capital can bring your great plan to a complete disaster. It is imperative to ascertain how much money your business will require to start. You must consider not only the costs of starting the business but also the costs of staying in business. It is important to take into consideration that many businesses take a year or more to become profitable. This means you will need enough operating capital to cover the operational costs until the revenue from sales finally begins to exceed the cost of doing business.

Another side of the issue is over-expansion, which has to do not only with lack of finances but also with quick growth and lack of the necessary human resources.

5) Location, location, location

Some people believed that with the advent of the internet location would no longer be as significant an issue to a business. Not true! The prime location is really the spot that gives you the most traffic or accessibility, whether that is on a street corner or on the internet.

6) No website

If you are serious about being successful in business these days, you need a functional, clean and well-designed website. Period! At the very least, every business should have a professional looking and well-designed website that enables users to easily find out about their business and how to avail themselves of their products and services. Later, additional ways to generate revenue on the website can be added, such as selling advertisement space, drop-shipping products, or recommending affiliate products.

7) Lack of business case

When it comes to building a profitable business, we need to have a strong business case. If we believe God speaks to us and is leading us to venture into business, we need to know it is up to us to make a strong business case when it comes to raising capital, partnering, or hiring quality personnel. Nobody wants to invest, partner, or work for a business doomed to failure.

One example of a business case is the actual project proposal including the cost benefit analysis as well as any impact studies such as social, health, environmental, financial, and public considerations related to a specific project. Even if God spoke to us to start a business, it is our responsibility to evaluate, plan, network, modify, and restructure. It is our responsibility to do whatever it takes to see to it that the original purpose of God becomes reality.

ANGELS AND ACCOUNTANTS

Of course I believe in the supernatural! I do believe we can pray and believe God to have angels protect our businesses and the Holy Spirit to even get to our accountants (blessed be their souls!). It is great to hear that employees are being saved, clients are asking for prayer, and even competitors are giving God glory when they observe our success. Just remember these things ought to be happening as a by-product of a well-managed Kingdom business. These should not and cannot be our goal. If they do become our primary concern, we might as well declare we have churches, not businesses, and we might as well start offering water baptisms instead of the products and services the marketplace has come to expect of us.

A KINGDOM BUSINESS MUST BE A VIABLE BUSINESS

Our Kingdom businesses are “Kingdom” to us. From the world’s perspective, they need to be strong, viable businesses with successful starts, deployments and finishes. Then and only then can we insist on giving God the credit for what started as our inner, personal dream. Then and only then are we in the company of the great entrepreneurs of old who heard the voice of God in secret, but applied His principles in the visible world with a shrewdness from which we should learn.

A Kingdom business must be a viable business by George Bakalov is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Permissions beyond the scope of this license may be available at http://www.gbmi.us/Contact_Us.htm.
George P. Bakalov