“Learn,” Starting and Growing My Business (2014), 66–72
“Learn,” Starting and Growing My Business, 66–72
Learn
How do I help both my business and my family?
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Time:Set the timer to 60 minutes for the Learn section.
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Read:We should have started to keep records of our business money as it comes in and goes out. That is great! But what happens when we need money for personal or family needs?
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2:3
“Don’t Kill the Chickens: Part I” (No video? Read page 76.)
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Discuss:Maria’s brother wants her to give him money from her business. And she wants to help. But this would hurt or even destroy her business. Plus, she has dedicated her business efforts to helping her become self-reliant. What should Maria do?
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Read:QUESTION OF THE WEEK—How do I separate my business and family money?
ACTIONS OF THE WEEK—I will keep separate accounts and daily records for my business and family money, and I will pay myself a wage.
During this meeting, we will learn skills to help us answer this question and perform these actions.
Then, during the week, we will actually take steps to separate business and family finances. This will be a great blessing to us and to our families! Let’s read the Business Success section of the Business Success Map.
Why should I separate my business and family money?
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2:3
“Don’t Kill the Chickens: Part II” (No video? Read page 77.)
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Discuss:From what you learned in this video, why is it important to separate business and personal money and to pay yourself a wage?
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Read:A business owner is both an owner and an employee. This can raise some interesting questions.
We know that great blessings come from paying tithing on our income. If we keep our business money and our personal money separate, it is easier to calculate our tithing.
Remember these steps:
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Keep business and personal money in separate accounts or locations.
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We pay tithing on personal income (salary or commission) that we get paid from the business.
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Money in the business is not tithed. The money in the business is used to pay for business expenses, wages, and growth.
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Discuss:What if friends or family need money, like Maria’s brother?
Someone from the group read or summarize the parable of the ten virgins from Matthew 25:1–13. Are there times when we can’t or shouldn’t share when someone asks us for help?
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2:3
“Don’t Kill the Chickens: Part III” (No video? Read page 78.)
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Discuss:Did Maria do the right thing?
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Read:Successful business owners don’t steal from their business.
How do I keep separate records?
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Read:So, how do we separate business and personal money? We keep separate records! Maria keeps daily records of all the money that comes into her business and all that goes out. She also keeps daily records of all the money that comes to her family and all that goes out. These records are called “income and expense logs.” She keeps two completely separate logs—one for business money and one for personal money.
Lenders will often want to see a business income and expense log before making a loan. Keeping careful records will help us be ready if we decide to borrow to grow our businesses.
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Practice:Look at this sample of her business income and expense log. Notice that on August 16 (the day Maria’s brother asked for the money), Maria’s business had 3200 in its bank account.
Maria’s BUSINESS Income and Expense Log: August 14–20
Date
Description
Expense
Income
Cash Balance
Maria’s business cash balance
2600
August 14
Purchased Feed
-300
2300
August 15
Egg Sales
500
2800
August 16
Egg Sales
400
3200
August 17
Maria’s Wage
-3000
200
August 18
Egg Sales
600
800
August 19
Purchased Feed
-600
200
August 20
Egg Sales
700
900
Maria’s PERSONAL Income and Expense Log: August 14–20
Date
Description
Expense
Income
Cash Balance
Maria’s personal cash balance
600
August 14
Food
-100
500
August 15
Clothing
-200
300
August 16
Bus Pass
-200
100
August 17
Wage
3000
3100
August 17
Tithing
-300
2800
August 19
Food
-1500
1300
August 20
Rent
-600
700
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Discuss:What would happen to Maria’s business money if her business gives her brother 1000? Would she be able to pay herself her 3000 wage the next day?
Should Maria feel guilty if her business does not give money to a family member in need?
Look on both her business and personal logs and find the lines that show her wage. Can you see that her wage is an expense to the business and an income to her personal money?
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Read:As we learned earlier, Maria is correct to pay her tithing on her personal income.
How do I separate my money?
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Read:Let’s practice separating our business and personal money. For the following example, imagine that you have a business that sells drinking water.
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2:3
“Your Water Business” (No video? Just continue.)
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Practice:Follow these five steps, and use the forms on the next page to separate your business and personal money.
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Look at the personal and business income and expenses for each day of the week.
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Record your business money in your business income and expense log.
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Record your personal money in your personal income and expense log.
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Create your business income statement from the information in your business log.
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Create your personal income statement from the information in your personal log.
Check your work with the answer key on page 79.
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Discuss:What did you learn from this exercise? If you made mistakes, do you understand why? Those who understand can help those who are confused.
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Read:Successful business owners keep daily records and use them to make wise business decisions.
While Maria does not enjoy keeping records, she makes herself keep separate records for her business and personal money every day. This is the smart way to do business!
Plus she also knows that if she ever needs a business loan, lenders will want to see daily records.
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2:3
See how Daniel improved his business by using principles of self-reliance, including record keeping. Watch the success story “Daniel & Christiana: General Store.” (No video? Skip to the next page.)
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Read:We have learned some important skills today that will help us succeed. Let’s work hard this week to make these skills a habit. Let’s keep separate accounts and daily records!
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Discuss:Who or what might make it hard for you to keep separate records daily? You can make a plan to make it easier. You could do it at the same time each day. You could keep the records in a specific place. You could create reminders for yourself. Write your plan below.
How do I present my business?
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Read:Next week we will make presentations to our group about our businesses. We want to be able to describe our businesses to others. We want to hear suggestions about our businesses.
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Read:Follow these instructions or present in a way most comfortable to you.
MY BUSINESS IN THREE MINUTES—INSTRUCTIONS
Part 1
In less than one minute, describe your business.
Part 2
In less than one minute, describe how answering one of the following questions greatly improved your business.
1. What do people want to buy?
2. How do I sell?
3. How do I control costs?
4. How do I increase profits?
5. How do I run my business?
Part 3
In less than one minute, describe one thing you will do to continue improving your business.
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Read:During the week, think about what you would like to share. Describe your business in your business notebook. If you want, practice giving your presentation to your family or friends. Come next week prepared to share your business presentations.