Bible on Business: The Business Life

Back in 2005, as I was writing monthly newsletters for Newfangled, I took an opportunity to write one on how the Bible had influenced my experiences in business. Re-reading this content I find it all still very relevant to some of the core values I bring to my current efforts in consulting and mentoring small business.

This is a re-posting of that content–slightly edited to bring it up to date.

bible-business1I enjoy reading. I especially love books that unleash my imagination and inspire ideas. The puritan Richard Baxter once wrote: “It is not the reading of many books which is necessary to make one wise, but the well-reading of a few, could they be sure to have the best.” Books like Selling the Invisible by Harry Beckwith make my list of the few best business books that should be read often, and read well. But the absolute best book on business isn’t found in the business section of your local Barnes and Noble. To find this book you’ll have to head over to the religion section–they are the books of Proverbs and Ecclesiastes.

The first chapter of Ecclesiastes states that “there is nothing new under the sun.” I read business and marketing books for new ideas and perspectives, but while new ways of looking at business realities can be helpful, the realities themselves are always the same. This fundamental truth is reinforced for me when I discover great business wisdom contained in these ancient books. The insights in Proverbs and Ecclesiastes top anything I’ve ever read off the business best seller lists.

A qualification in consideration of agrarian language
I hesitate to proceed directly to the insights I’ve gleaned from these two books of Solomon without first recognizing that their wisdom is written in the business language of their time, that is, the business of agriculture. For example, certain principles related to how one should treat employees or serve clients might use oxen or cattle in place of the helper or helped. Such equations can easily be misconstrued and sound offensive to our non-agrarian ears. We certainly wouldn’t want our employees to imagine that we think of them as oxen!

But if we can get beyond the imagery we’ll find an awesome depth of insight in these old books.

Understanding the nature of business

‘Bad, bad,’ says the buyer, but when he goes his way, then he boasts. Proverbs 20:14

Business is essentially transaction. It is the exchange of one kind of value for another. Businesses have products or services that customers want or need. Customers have value (money) that businesses want and need. The key to a good business transaction is that both parties benefit. The buyer gets something they could not get on their own, or at least something of greater value than if they produced it themselves, and the seller converts their expertise into profit. In this way skill, expertise, efficiency and hard work translate into mutual benefit for both buyer and seller. Such business transactions, in their pure form, are wonderfully designed for the benefit of society. (This philosophical estimation of the nature of the business transaction was clarified for me by Wayne Grudem in his book Business for the Glory of God.)

There is, however, a natural tension as the balance of benefit in such exchanges works itself out. This tension is most observable during the act of negotiation. At the conclusion of a successful negotiation both parties agree on the value of the transaction (defects not withstanding). Tensions in negotiation occur as each party naturally seeks to maximize their own benefit. Proverbs 20:14 describes this dynamic, “‘Bad, bad,’ says the buyer, but when he goes his way, then he boasts.” This proverb highlights that in negotiations, distortions and misrepresentations of value often take place. I don’t believe this verse gives buyers or sellers license to make misrepresentations! Rather, it simply observes that negotiation is commonly attended by some degree of distortion. Nevertheless, negotiation is fundamentally a good thing that benefits both parties. This bit of wisdom helps me to be patient as I allow negotiations to complete themselves. It also helps me to avoid the mistake of undervaluing my own time and services in the face of the distortions that sometimes occurs during negotiation.

Where no oxen are, the manger is clean; but much revenue comes by the strength of the ox. Proverbs 14:4

I started Newfangled out of my basement. I was the business guy, the designer, the HTML coder, the bookkeeper and the janitor. As the company grew I had to employ others. This was a hard transition and very frustrating at times. I liked being a “doer” and I did not like dealing with employee problems. But in the end, while it may be messier, and more complicated to employ others, it is necessary for profitability. At a certain point I had to make a strategic decision about my goals. Being a one man shop was very clean, but hard to make a profit. Hiring others is less clean, but ultimately established a greater potential for profitability.

I have seen that every labor and every skill which is done is the result of rivalry between a man and his neighbor. Ecclesiastes 4:4

Competition can be a very healthy thing. Seeing someone doing something better than me does not have to make me envious, but it should provoke me to improve. Sharpening skills and improving products is a good thing. Who wouldn’t want a car with better gas mileage, or a computer with a faster processor and larger hard drive? Competition forces improvements that benefit everybody. Understanding that the “jealousy” I feel when I see someone do something better does not have to be “bad jealousy,” instead it frees me to admire a competitor’s business success and be spurred on to improve my own. I’ve been encouraged not to fear competition but value its influence on my business.

Re-Posting of “Bible on Business.” To be continued. (Part two here.