Case Two: Small Business Start Up

CASE TWO: SMALL BUSINESS START UP

By Mike McLoughlin,
Youth With A Mission, Marketplace Mission
Visit the Scruples Small Business Forum at www.scruples.net for more information.

It was a good thing that Mr. Muleko hired DJ back because he had recently signed a contract with a local grocery store to supply 500 live broiler chickens a week. After some tough negotiations with the owner of the grocery store, Mr. Muleko agreed to a price of $1.60 per chicken. This price was 20 cents less than the usual price for the chickens, which was $1.80. The owner of the grocery store had been buying imported chickens at $1.40 each, however, he agreed to pay Mr. Muleko more because he could count on the regular supply of the chickens.

DJ had overall responsibility to raise the chickens from hatchlings to finished birds and deliver them to the customers. Mr. Muleko instructed DJ to mix less protein in the daily feed for the chickens to make up the difference in the lower price that they were receiving. DJ objected to these instructions as he knew that if the birds did not get the necessary protein they would not size very well. Mr. Muleko spoke to DJ in "no uncertain terms" that he would not tolerate anymore objections and that unless he obeyed his instructions DJ would lose his job.

DJ complied with Mr. Muleko's instructions, however, when it came time to deliver the birds to the Grocery the owner was concerned that "they looked a little on the small side" so he refused to accept them. DJ took the birds back to the farm and reported to Mr. Muleko. Mr. Muleko became very angry and instructed that DJ was to take the birds back to the Grocery owner and deliver them as they had a contract and the Grocery owner was bound to accept them and that there was nothing wrong with the birds. DJ objected to Mr. Muleko's instructions as he knew that the birds were not the usual size. Mr. Muleko fired DJ!

DJ returned home to his wife Marlene and their new baby boy feeling very dejected. Both of them immediately turned to God in prayer and received His comfort in their time of distress. Marlene was lead by the Holy Spirit to a scripture: "I, even I, have spoken yes, I have called him. I will bring him, and he will succeed in his mission." (Isaiah 48:15) DJ and Marlene both felt that God was indicating to them that He would help them to succeed in their own poultry business. So they began to make plans to start their own poultry business.

Case Problems:

1. What motives (desires of the heart) are in evidence in DJ's decision to object to Mr. Muleko's instructions and in Mr. Muleko's outburst? Compare DJ's Motives with Mr.. Muleko's motives.

2. What Key Success Factors (see previous chapter)) will be important in DJ & Marlene's successful launching of a poultry business? List them under the categories of WISDOM, CHARACTER and ACTION in order of their priority for starting a poultry business.

3. What are the significant challenges or hurdles facing DJ & Marlene in the launch of their poultry business and what can they do and what principles will they apply to overcome them?

Case Two Solution
1. What motives (desires of the heart) in:
DJ		Mr. Muleko
Faithful to God/Others.		Greed for gain.
No compromise.		Pride.
Love.		Self first.
Do what's right & fair.		No scruples.
Concern for Quality		Stingy with the product
2. What Key Success Factors?
WISDOM	CHARACTER		ACTION
Confidence	Honesty		Initiative
Planning	Faithfulness		Hard Working
Problem solving	Boldness		Persistent
Discernment	Justice		Takes risks
Discretion	Be Generous		Efficient
3a. What are the Challenges?
LACK OF CAPITAL.
A PLACE TO DO BUSINESS
A MARKET TO BUY PRODUCT.
THE RISK OF COMPETITION.
THE RISK OF THEFT/LOSS.
GETTING THE EXPERTISE & KNOWLEDGE
DISCIPLINE i.e. Develop a Written Business Plan
FINDING GOOD EMPLOYEES
3b. What are the Principles?
SERVE GOD FIRST NOT MONEY.
SERVE THE INTERESTS OF OTHERS.
GUARD YOUR HEART AND GRASP NOT.
PLAN BY PRINCIPLE NOT BY PRACTICE.
PRAY THEN PLAN; PLAN THEN PRAY.
SEE IT AS A MINISTRY AS WELL AS A BUSINESS.

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