Business Essentials: PROFIT
1 Timothy 6:18, Luke 12:13-34, Luke 19:11-26
You have created a PRODUCT. You have established a PRICE that the market will bear. You have also developed a PROMOTION strategy that will educate and inform prospective buyers. I’m sure you already understand the basic concept of “profit”, which is to have more revenue than cost in the organization. As a Christian business leader, what is your responsibility and commitment to making a profit? What do you do with it? Is making a profit a sin?
Of all the business elements discussed in this series, the topic of PROFIT is the one that is likely the easiest to understand but, in some cases, may be the hardest to achieve. There are many influences that challenge our ability to make a profit. Some of these influences are in our control and some are not. Competition, government regulations, new technologies, distribution challenges, rising costs of labour, etc. can all put negative pressure on a business and can quickly erode the ability to show positive cash flow.
Q: What challenges to profit is your business currently experiencing?
I remember the “feast” years of the newspaper industry. The early 1990’s was fantastic! Readership was at an all-time high. Advertising rates were through-the-roof simply because of the results advertisers were seeing by using our product to promote their business. In those days it wasn’t uncommon for newspapers to experience margins (EBITDA) as high as 40% and we were loving it! It was fun until it wasn’t!
Around 1992 the internet started to wade into the news space and various companies started providing digital solutions to our customers. We didn’t pay too much attention because we were too busy swimming in pools of cash and believing our own press about how important and secure we were. Our casual response to outside pressures eventually led to our demise. The abundance of cash over a long period of time caused us to become lazy in our financial disciplines and the “always winning” attitude created a sense of arrogance as we taunted competitors and became dismissive to clients who asked for customized services.
Fast forward to today and we see that newspapers (the tangible printed product) have fallen to an all-time low. Digital platforms and social media companies provide quick delivery at a low cost complete with readership and click statistics that advertisers are hungry for. Margins for the newspaper industry have plummeted and revenue has disappeared. The cost to compete has become too high for smaller independent news providers, and many of them have “turned off their presses” as a result. Their profits have dropped so dramatically that financial obligations to cover costs to creditors, staff severances, and the like quickly put them in a deep LOSS position. Black ink on the page has transitioned to become blood red on the financial statements.
Q: What’s currently happening in your industry? Are there any financial disciplines you are currently slacking in?
Running a business takes a lot of time and effort, and, if we’re not careful, we can start to think that all we have achieved and acquired is a result of our supreme business sense. In other words, we could start to think our profits are our reward for all our hard work, and what we do with it is our business and nobody else’s.
Looking at Luke 12:13-34, Jesus gives instruction to a person who was looking to profit from the division of an estate. Jesus clearly states his thoughts on the topic. When greed takes over and the desire for profit above all else becomes our main concern, we lose sight of what really matters. Our sense of the things that have true value gets all mixed up.
Consider the passage in Luke 19:11-26. Here, Jesus shares a story of a certain “nobleman” who entrusted workers with a sum of money to take care of while he was away. Upon his return he asks for a record of their activities. He recognizes them for their growth (or lack of) in the business during his absence. It’s interesting to note, there is no condemnation for making a profit. In fact, making a profit was expected and rewarded! There is, however, judgment and discipline for failing to show growth.
Next, 1 Timothy 6:17-19 gives some very clear direction on how we are to regard the handling of worldly wealth. It says:
“Teach those who are rich in this world not to be proud and not to trust in their money, which is so unreliable. Their trust should be in God, who richly gives us all we need for our enjoyment. Tell them to use their money to do good. They should be rich in good works and generous to those in need, always being ready to share with others. By doing this they will be storing up their treasure as a good foundation for the future so that they may experience true life.”
Q: What are your thoughts about these three passages as it relates to what you should/could do with the profits from your business endeavours?
As a Corpath member, and Christ-follower, you are called to have a different definition of your work responsibility and what to do with PROFIT than that of the world. Making a profit isn’t a sin; however, making it your “idol” is! We know that all we have, including our businesses, are God’s, and he gives us the opportunity to use them as tools to bring glory to him. We are called to be good stewards of all that God has entrusted to us which includes the profits of the businesses we care for. When we are faithful to Him, we desire to give generously to those in need and, in so doing, recognize we are building KINGDOM VALUE.
Prayer:
God, I praise you for all you have done for me. My desire is to be a good steward with everything you have entrusted to me. May I be faithful with those things. This week, open my eyes to opportunities to give generously in ways that bring help and support to others and honour to you. Amen.
Blessings always and all-ways,
Steve Shrout
President
Special Note:
If you enjoyed today’s message, then share it with someone. Also, use this content and questions as a discussion guide in your next Forum Group meeting.
Attached is a printable PDF you can use to help with your meditation and reflection. I encourage you to print it, answer the questions and then keep it in a Corpath binder or folder for future reference and thought. You will receive a new PDF each week with each new Monday Meditation, and, over time, your binder will become a book representing your own Corpath journey of BUSINESS thoughts, personal LIFE development and SPIRITUAL growth.
