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Why Business Models Matter
| posted 11/02/2007
The Lord hasn't called most of us to do a brand new business model. Our organizations are usually doing many things right. But often something is missing—something extremely important. When you are earnestly asking, "Lord, how can I make this ministry work better" — begin to work on your business model.
How Business Models Relate To Your Mission
If you don't have the mission statement beside you, you cannot write a business model. You need a statement that inspires and excites because you will be basing your whole strategy on it.
A mission statement is a concise statement of the inspiring, non-financial result you are trying to achieve. That result has eternal value and/or meets human needs. It is clear with every word honed to polished gem perfection. Examples of mission statements include:
- Heartland Community Church in Rockford, Illinois: "Our mission is to provide transformational teaching, worship and community to help believers and seekers become fully devoted followers of Jesus Christ."
- Pura Vida Coffee: "We invite you to join us in creating good in the lives of children and their families in coffee growing communities through educational, economical, and physical development."
- Rodale Press: "Our mission is to show people how they can use the power of their bodies and minds to make their lives better. 'You can do it!' we say on every page of our magazine and books."
- Evangelical Christian Credit Union: "Our mission is to increase the effectiveness of evangelical ministries and ministry-minded individuals through biblically based, value-driven financial services."
- Bowery Mission: "We're called to minister to New York City people caught in cycles of poverty, helplessness and dependencies of many kinds and see their lives permanently transformed through the power of Jesus Christ."
Some companies have made mistakes with their mission statements. For example, the mission statement for a major jean company is just a financial model with nothing about their 100-year love affair with their customer. A prominent hotel's mission statement says they want to be the best, but they say nothing about their distinctives or the customer themselves.
What is a Business Model?
There is no one format, and there are several ways to explain business models. Here are a few definitions:
- Business models are stories that explain how enterprises work.
- Business models are detailed outlines of the transactions that are needed for your idea to make a profit. In ministry terms, what needs to happen for your ministry to do its job and sustain itself?
