How Can a Christian Finance
Start Up Costs for a Business?

What is Christian Finance? The word finance is both a noun and a verb. Finance is the money available to a business or ministry. To finance means to raise the money for a business or ministry.

When you want to own a business you need money to start and operate your business. Where will you get it?

Scripture has a lot to say about borrowing, lending, debt, loans and finance in general. The Bible says that the borrower is servant to the lender.

For example... we believe it would be unwise to borrow money to go to Disney World when you can't afford it! We do believe that your first financial goal is getting debt free.

Get Your Finances in Order

Click here to understand the principle of contentment so you can enjoy what you have.

How we approach personal Christian finance has a direct influence over our business and ministry finance.

Having said this... what about business? Does wisdom in Christian finance mean borrowing money to start a business is a bad idea or just plain wrong?

We used to think it was. Out of a good heart we never wanted to be in debt. So we may have lost some financial ground in our early years of marriage.

We learned that the Bible does not teach that borrowing is wrong. It gives guidelines on the proper application so we can use finances wisely.

Most business start-ups require large investments of finance capital (money). When we started our ski and bike shop it took over $150,000 just to open the door and another $100,000 to keep it going.

Other People's Money (OPM)

Since we did not have the cash we used other people's money (OPM). In this case it was one investor who had just sold another ski shop. He was looking to re-invest his capital.

This is how wealth building works. Christian or otherwise... your ultimate goal is to earn enough money in your business to become an investor yourself.

Become part of the Great Commission by investing in the Kingdom of God. As you grow in your Christian Finance skills you will have more money to invest in Kingdom building like some of these "kings".

The benefit of using OPM is that it keeps your money from being tied up in a long term investment. The downside is that you have to return that money plus some of your profits. Investors invest because they expect a return.

Business loans are another way to use OPM to finance start-up costs. Banks offer businesses various terms that can be negotiated to fit your particular needs. A bank may want some form of collateral or property that protects them from a default.

Some people use the equity in their home to acquire finances through a home equity line of credit. Be careful here. Do you really want to put your house at risk?

Remember anywhere from half to three quarters of new business start-ups fail. Make sure you have a solid financial plan.

Have a Business Plan

Regardless of how you finance your venture you will need a good business plan. A business plan covers ownership, business environment, marketing plan, operating plan and financial plan.

The financial plan covers start-up expenses, income statement, cash flow, and risk assessment.

There are some businesses you can start without a lot of money. Our current business is a good example. We started it with a business loan for less than five thousand dollars ($5,000).

It was financed with a zero percent (0%) credit card offer. This can be a good Christian finance strategy... an easy way to use OPM for free.

Good Credit Card Debt?

Why would we say this being so against credit card debt? Because it can be done wisely. The low monthly payments put very little financial stress on our new business.

It was interest free... easy to acquire... freeing up more cash to re-invest in our new business.

Most new businesses fail because they lack enough cash in the beginning stages. It turned out that we paid off that "business loan" very quickly.

That five thousand dollar ($5,000) investment has returned three hundred thousand dollars ($300,000) in just four and a half years.

Put Your Money Where Your Mouth Is

The problem with all "low start-up costs" Christian business opportunities is just that. They don't cost much.

It's very hard for people who only invest $39.95 to "start" their business to take it seriously.

This is one reason why most Network Marketing businesses fail. There is little to lose so not enough effort is used to build a real business.

There is very little commitment. People treat their business more like a hobby. This means certain disappointment.

Hobbies cost you money! We know... we love to ski and bike and both cost us a chunk of cash every year.

You have to treat a business like a business. When you invest a million dollars in a franchise opportunity you treat it like a business!

When we help a Christian finance their new business we never lend them the money. We know they need to find a way to finance their venture to demonstrate to themselves that they are more committed to their business than we are.

In every case those who look for a short cut or a cheaper way to get started never succeed. Where there's a will there's a way. If there is no will... find something else to do.

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