Do Not Take Money From Strangers

ADAGE

Do Not Take Money From Strangers

RESPONSE

This adage is in the same category as never taking candy from a stranger. Never build a business plan around the necessity to raise venture capital from outside investors. The first thing they do, even with a minority investment, is take contractual control of all key decisions. Instead, use customer money to finance your business. Design ”pay as you go” business models using customer deposits or advances. Use price discounts, exclusivities, and other tactics to entice alpha/beta customers to purchase. Run your business model for your customers—not investors. Commit yourself to the long haul of your product or service and its benefit to others. That will cause an increase when enough people are impacted by your excellence. This rule assumes you have the luxury of time and choice. Many enterprises will encounter unexpected challenges that require immediate capital infusion and do not have the luxury of time or choice. In this case, they may be tempted to take money from individuals or sources that are antithetical to Christian values.

SCRIPTURE

Proverbs 13:11 Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.

1 John 1:7 (ESV) But if we walk in the light, as he is in the light, we have fellowship with one another, and the blood of Jesus his Son cleanses us from all sin.

QUESTIONS

1. How do the Scripture(s) apply to the business adage?

2. Your pagan brother-in-law wants to invest. Do you take his money? Why or why not?

3. Are pay-as-you-go business models Christian-friendly? Explain.

4. Are Christian investors good investors to have? Explain.

5. When do you walk away from a potential investor?

DOWNLOAD

Download the free PDF worksheet for this adage, print it, and use it in your meeting, conference, or group.

COMMENTARY