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The church is a place of worship and usually requires money to maintain. Sometimes, churches organize programs that require a lot of funds.
While donations from members can help fund the church’s maintenance and projects, they are not always enough for what the church intends to do.
One way to increase a church’s income is by owning a business. The income generated can be used for different things, including the church’s cleaning. According to Compass Cleaning Solutions, a full-service commercial cleaning company, outsourcing a church cleaning can free up valuable time and allow church members to focus on the important spiritual needs of the congregation. A clean church environment is also vital for congregants’ health and safety.
However, starting a church-owned business to generate the income needed for this can be challenging. Aside from the need to correctly navigate the legality, there is the management issue.
A church-owned business, although for-profit, cannot be run like a typical business considering the brand is directly linked to the church’s reputation.
Below are some tips to navigate the management successfully:
1. Legal and regulatory compliance
A church is a non-profit organization and hence not taxed. However, operating a for-profit business under the church’s name is legal except that this time, the activities may be taxed.
It is called a feeder corporation. This subsidiary will generate funds and distribute them to its shareholders in the form of a dividend.
Before starting a business for your church, it is recommended you consult with legal experts to ensure compliance. Also, stay abreast of relevant laws and regulations, as they are bound to change in the future.
2. Alignment of mission and values
As a church-owned business, the company is expected to portray the mission and values of the church.
Things can be daunting if the business does not align with the church’s doctrine. When deciding on the type of business to start, ensure it is in an industry that is morally right for your religion.
Ensure the business’s mission aligns with the church’s overall goals and values. Establish clear ethical guidelines that reflect the church’s principles.
3. Financial management
Write a detailed business plan for the business. This should include the expected management structure for the business, projected sales, and cost of operations.
Develop a budget and funding options to explore, including donations, grants, and loans. Track your expenses closely.
Do not lose focus. It is a for-profit venture; therefore, aim for profitability to sustain operations and support the church’s mission.
4. Strong governance
Even though the business is owned by the church, it might be impossible to get all the professionals you need among members.
Your board of directors should be a mix of church leaders and business professionals. When choosing a board of directors from outside the church, the individuals should have a personality and reputation that aligns with the church.
Implement a transparent decision-making process and conduct regular financial and operational audits.
5. Talent management
The business can be an avenue to create employment opportunities for church members. You should also hire from outside the church in case you need more hands.
Prioritize individuals who share the church’s values during your hiring. A church should be a community that also functions as a family; therefore, incorporate this value into the business. Foster a positive and supportive work environment.
Establish Key Performance Indicators (KPIs) and conduct regular evaluations of the business and workforce to identify areas for improvement.
6. Strategic planning
Leverage your church’s network to expand the business’s reach and impact. This can help expand your customer base in no time without any need to spend on marketing or promotion.
Develop a long-term vision for the business and be prepared to adapt to the ever-changing market conditions.
7. Community engagement
As a church-owned business, consider giving back to your community. Engage in charitable activities that align with the church’s mission and reflect its values to contribute positively to society.
Utilize volunteers to reduce the cost of such projects.
8. Intellectual property
If the business requires the use of texts, symbols, or teaching, get the appropriate approval to avoid running into any legal issues.
Likewise, register your business and other brand details to avoid unauthorized usage, which may result in a loss of revenue or damage to the church’s reputation.
Faith-based business ideas
In case you are wondering about the kind of business your church can start, below are some ideas:
- Restaurants
- Bible school
- Recording studios
- Clothing line
- Job training
- Software repair
- Newspapers and magazines
- Banquet hall and conference center
- Coffee shop
- Thrift store
- Real estate
- Gift shop
- Landscaping
- Bookstore
- Life skills training
- T-shirt company
In conclusion, when deciding on a business to start for your church, avoid those that will become a direct competitor with your members’ businesses.