Life’s Work

Life’s Work – Business – Knowledge

Maximizing Kingdom Impact/Profits/Compensation

It should be every ministries goal to augment the funding and resources needed to undergo its ministry and use these assets to maximize their kingdom impact. Often times ministries are limited because of the small amounts of money they have. Due to this lack of money, it is important for every church organization to be smart with how they use their resources. One crucial thing churches need to learn is how to increase profits and following that learn to reduce their taxes. For more information visit the links below.

We have resources about maximizing business income and employee compensation available in our store.

Human Resource Management

Strong leadership and proper management are also essential pieces of a successful company, compiling twenty-five percent of the cause for success of a company. Besides the obvious tasks of determining wages, employee benefits and handling human resource issues, management is also responsible for establishing the best location for the business, setting up the most effective distribution channels for the company’s product or service and determining the proper legal structure for the business.

Financial Management

Financial projections are put together in terms of estimated income and expenses. If capital is required, it should be noted as such in the financial projections. Also, if capital is necessary from outside investors, the plan should include methods for repayment. Projections should cover three to five years. A separate page should list the assumptions that were made by the company. If the amount of income or sales is undefined, different scenarios could be made using different sales projections.

Sales and Marketing

The next stage is to develop a marketing and sales plan. This section is very similar to the section on fundamental strategies, as the broad goals of marketing need to be defined. Examples include the development of a sales training program, the development of an image for the company, the identification of the specific niche for the company, the development of a competitive analysis, marketing strategies for seasonality, pricing strategies, customer service plans, packaging and store design, advertising plans and the development of marketing materials. Sales plans should include new business acquisition strategies and tactics as well as existing business growth strategies and tactics.

Accounting

It is essential to establish an accounting structure that both complies with current tax law and allows for information to be readily available in an easily managed format for management. Many organizations fail because discovery of essential information comes too late. The first, and most important step, is to establish accounting policies that provide all the necessary information on a timely basis. Next, set up purchasing and inventory control policies. Credit and pricing policies are also essential to the success of any venture. The next few pages will help with this assessment.

After completing these pages, review the capitalization methods. Most businesses will need an operating history before capitalization can be considered. Keep in mind, seventy percent of businesses begin with capitalization from friends and family.

Logistics and Operations

Next, a production ramp-up/logistics plan needs to be developed in order to identify a timeline of critical path for completion of the production and delivery. It is important to define this within the parameters of how much production and/or services will be required. If the product or service is extremely popular, the company could be faced with and inability to deliver, causing significant frustration to customers. This plan is simply a list of each task in the production process, who will perform the task by occupation, how long the task will take, and the value of the task. Do not ignore the steps being performed by outside suppliers, the equipment, personnel, or training required and the layout and location that are critical to the process. Financial contingencies must also be defined. Clearly the planning aspect of this production is critical in terms of defining how a product or service can be delivered.

Once completed, the company needs to define the contingencies, or possible issues, that could arise in the business. A listing of the potential problems or situations needs to be developed. Examples might include the reaction of the customers to a downturn in the economy, preparation for a fire or natural disaster that would destroy client files, lack of proper capitalization, loss of key personnel, change in government laws or regulation, or a law suit. Those working on the business plan must then create policies for reacting to each of these situations. Developing this type of business continuity plan will allow you to be proactive, rather than reactive, when such circumstances arise.

Biblical Leadership Principles

There are multiple lessons that can be learned through the stories of Godly leadership given in the Bible. The first step to being an effective business leader is understanding that you will need both patience and resiliency. Not everything will go your way, but it is important to utilize the resources and tools God has given you. Also, it is important to believe in yourself, the people around you, and the purposes that have brought you together. Being a successful leader starts with a strong sense of purpose that is God-centered.