A Radical Approach to Business Management

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GOD'S WORD
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That’s how Larry Burkett describes managing a business based on biblical principles. The Bible’s focus is more concerned with eternity than with profits where as most business schools focus on the bottom line.

In America the use of the Bible as a business text actually goes back hundreds of years. Business principles differed then too. Honesty, ethics, and moral values were taught in the classrooms of all major business schools. Professors placed strong emphasis on a company’s responsibility toward its employees, customers, and creditors. Prior to the twentieth century, business courses, and business schools themselves, were based on biblical principles. In reality, they were biblical schools that were training future business leaders.

What happened?

After the Civil War, the federal government assumed a stronger position in the private sector. After World War I, unions gained political power. Prior to the Great Depression, we had been an equity-funded nation. But that time caused a general lack of confidence in the stock market and after World War II, debt surpassed equity in business. Most companies found it cheaper and easier to borrow money than to raise it through equity funding. This debt funding has continued through today.

As Larry points out, the one principle that vividly stands out is that God’s people should be debt-free. Too much debt makes the business vulnerable to interest rate swings. According to one statistic, 60 percent of all American businesses are potentially unprofitable once the interest rates reach 15 percent. I have a feeling that threshold may have lowered since that study was completed. Our lack of fiscal discipline and our obsession with quick profits make U.S. Industry vulnerable.

God’s principles of business are not offered “cafeteria style.” In other words, you can’t simply pick and choose those you like and ignore those you don’t. God’s Word sets up a whole structure by which a business is to operate: a foundation. You can build a business without a sound foundation. But when the wind blows and waves come, it will collapse. God’s Word is the Rock upon which a business must be built. (1)

Do the biblical principles of business work? Yes, without question – over the long run. If you’re looking just for quick profits, don’t choose God’s way. However, if you desire long-term growth and stability, God’s way is the only way.

Business God’s way is essential for long-term growth and stability. If you would like to learn more about running your business God’s way, email me at info@commonsensecfo.com or call Kirk at 402-658-7340.
(1) “Therefore whoever hears these sayings of Mine, and does them, I will liken him to a wise man who built his house on the rock: and the rain descended, the floods came, and the winds blew and beat on that house; and it did not fall, for it was founded on the rock.” Matthew 7:24-25 (NKJV)

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