Small Businesses

I spent 32 exciting, fruitful years with former Alcan Inc., now Rio Tinto Alcan, in mostly executive capacities in head offices, large and small subsidiaries, on boards of directors of publicly traded and private affiliates, in different countries, cultures and continents. But there were a few constants: Alcan's principles, objectives, and polices (POPs) applied always! What applied in Canada applied equally in Thailand; these POPs were valid for billion dollar businesses and million dollar businesses. Though I will devote this page to small businesses, the POPs I will discuss will be valid for all businesses because they will be grounded in the Bible.

Developing and growing a business can and should be fun. But you need to be in the right business, for the right reasons, with the right expectations. You must be realistic. If you plan to start a business today, probably it will produce “unnecessary” goods or services. How many stores in a typical shopping plaza sell "necessary" stuff? How many businesses produce "necessary" goods or services? So, your business will compete with other businesses for access to highly indebted folks' credit facilities to use for discretionary items.

Today the economy is in recession, later it will boom. When? We don't know, but we know the economy will continue to cycle between feasts (growth) and famines (recessions or contractions). We see an excellent coping example in Genesis 41. Simple concept, yet profound, businesses don't accept that famine follows feast. And so, today, many businesses are overextended and must contract, some collapsed, others are collapsing! Several didn't see the need for flexible cost and revenue structures to cope with extended famine periods. Nor did they see a need to conserve funds and other resources. Most of all, executives and owners didn't see the need to let Jesus guide them to His chosen opportunities and away from their pet projects, which looked good for awhile, but had no substance.


If you are in business today, ask God to show you how to navigate through your challenging circumstances. Don't be deceived and think there is no hope. With God, everything is possible (Mark 9:23). Dedicate your business to Jesus; let Him be the chairman of the board. Be open to His direction. You might need to go ten paces back to advance twenty, or you might need to stay ten paces back. Are you prepared to do as He says? As you seek God's direction, ponder these words from Lamentations 3:24-25 (NIV): I say to myself, "The LORD is my portion; therefore I will wait for him." The LORD is good to those whose hope is in him, to the one who seeks him; it is good to wait quietly for the salvation of the LORD.

Core Values

This is a business truism: if you and a partner are not on the same page, the relationship will be a disaster. Unequal yoking the Bible mentions is profound for businesses too. Imagine learning these matters after you start the business: You believe in paying taxation, paying creditors on time, being open with customers, but your partner doesn’t share these views. Watch out; draw up a set of key values you and your partner will commit to before you agree to join the business. Even if both partners are Christians, still draw up a values statement to commit to. As well, agree a dispute resolution procedure ahead. You don’t need values’ statements or dispute resolution procedures when things go well. You need them for three reasons. First, each partner can think through his or her obligations in sensitive areas ahead of his commitment. Second, when disputes arise, each partner can refer to the agreement as a reminder of the original intent. And third, partners can channel disputes through previously agreed procedure or procedures. I found the pre-agreed values and dispute resolution procedures invaluable during my career, especially working in different cultures.

What's the Businesses Purpose

Though obvious, often we decide to start a business, home-based or otherwise, but we don’t think through what the business will do, or what skills it will need. Sometimes we see a TV ad with folks telling us how to earn thousands and do no work. That's the first sign we shouldn't be involved. I tell my students that only Governments make money-they print it! We should strive to earn it. So, ignore those TV ads telling you to sit, do nothing and earn millions! To be sure, if it sounds too good to be true, it isn't true.

As you evaluate going into a business, ask these questions: Will it produce goods and, or services that do not exist? What will be my competitive advangage? What will I be doing better than others? Will it need special equipment or talents? Are they available? Who will provide needed skills? You? If not, where will the business get essential skills? Is technology an issue? Will the business need to keep up to date with special technology? Will this require special funding? Do you understand the business’ issues? These are a few matters each partner will need to think through during the business evaluation procedure.

Why

Why do you want to be in this business? Why not just offer your services for a fixed or commission-based fee? Some folks want to be in business because someone tells them about a “good business.” Alternatively, they might see an enticing advertisement. Still, they might have a vision, or dream from childhood! These are seeds. Ask the Lord to guide you. Is this His plan for you? Pray, seek His direction. Listen to your spouse. If he or she is uncomfortable, ensure you listen to, understand, and pray about each concern. Telling your spouse to “trust you” or “he or she doesn’t understand” suggests you are not prepared to discuss the matter openly. Be willing to hear from God. He might not want you to go into “this business.” When you act, listen for His voice; if you walk closely with the Lord, you will know if you take a “wrong turn” (Isaiah 30:21). Starting a business, buying 100% or a share in a business, could be one of your most important commitments.

These are three wrong reasons to go into business:

“My friend says this business is doing well.” “Well” is subjective; we have objective measurements to show how businesses should perform.

“I want to make ‘money’”; Governments’ “make” money! Businesses make products or provide services that earn money.

“I want to help my friend.” Sure, help your friend but do you have to commit God’s money in a business to deliver this help?

This is one right reason to go in business: God tells you “this business” is where He wants you to be. If God shows the way, He will give you everything you need. You will be able to do everything He wants you to do in each 24-hour day. Did you get that? When God calls you, He gives you everything you need to do His will! So, you shouldn’t use "deflection speech," and victim attitude statements to excuse your poor planning and execution. As you go, eliminate these three meaningless, deflection speech phrases from your vocabulary:

Pastor and bible teacher Chuck Swindoll reminds us that “God doesn’t “change flat tires.” We must do our part, so do homework to learn business basics about leadership, goals, markets, finances, time, productivity, continuous immrovement, and accountability. You don’t need to become an expert, merely understand enough to guide the business and ask right questions. Later, we will upload pdf files covering these and other business basics.

We welcome your feedback.

Published Magazine Articles

God Holistic Funding & The Credit Crunch, p.26