We have many tools and technologies to engage and listen to our customers. Successful business owners often experiment with different methods to find the best ways to connect with their customers. This week:

• Experiment with ways to engage and listen to your customers.

• Write what you learned in your business notebook.

• Be prepared to share your results with the group next week.

Successful business owners talk with their customers to gain ideas about how to make their businesses more competitive. This week:

• Talk with current or potential customers about how you can best keep or gain their business.

• Record these ideas in your business notebook.

• Fill out the “Keep” portion under the “How will I find and keep my customers?” section in your Personal Business Planner.

• Test these ideas immediately with your customers.

Next week you will be asked to give a five-minute presentation on your business. Your Personal Business Planner should be a good resource for helping you prepare.

Assume that you are making this presentation to a group of potential investors. You can decide how to organize and deliver your presentation, but it needs to include the following items:

• The unmet customer need that you will address

• The service or product you will offer

• Your competitive advantage

• Your target customers

• Your plan for acquiring customers

• Resources you will need

• Evidence that your business can be profitable

• Next steps for your business

Prepare a professional, high-quality presentation, and practice it to ensure that it stays within five minutes. Dress in business attire to deliver your presentation.

Next week is our last scheduled group meeting. After our business presentations, we will take time to reflect and celebrate. Plan on this meeting lasting 2.5 hours. Group members could bring refreshments to share after the presentations.

Note to the facilitator: You are encouraged to invite two or three business professionals from the stake or community to join the group next week and provide feedback on the business presentations. You and these professionals will fill out forms to give the presenter immediately afterward. The purpose of these forms is not to assess presentation skills but instead to provide ideas on developing or improving various elements of a person’s business. Before next week’s meeting, make copies of the Presentation Feedback Form below. You will need to have three or four copies for each group member.

Your business will need more refinement than you can imagine. A key part of refining your business is to write down your ideas, observations, and spiritual impressions each day. This week, begin using a blank notebook or an electronic device to record your thoughts and ideas. This is your business notebook. Next week you will be asked to report on how many days you wrote in your notebook. Bring it to the group meeting each week.

Business owners discipline themselves to reach out to new people every day. Making these contacts is essential to the success of your business. As you extend yourself and talk to more people, doors will open that you wouldn’t expect. This week, begin having daily conversations with new people.

The activity below will help you engage with others, even if it’s difficult at first. Next week you will be asked to report how many days you had conversations with people. As you start a business, it’s critical that you develop confidence in your ability to build relationships, encourage and persuade others, and gain agreement on mutually beneficial solutions.

Talking with customers can help you gain ideas about how to improve your service or product and price it appropriately. This week, talk with at least five potential customers and ask what it would take for them to buy from you. Additionally, you could go online to ask for feedback from potential customers.

After putting in this effort and determining your best possible financial information, fill out the lines under “Evidence that my business is profitable” in your Personal Business Planner.

As you begin to sell, you will learn the best ways to find customers. Be willing to experiment with new ideas until you find one or more approaches that efficiently help you find your customers.

Fill out the “Find” portion under “How will I find and keep my customers?” in your Personal Business Planner.

We will work together as a group to help each other start and grow our businesses. We also have a larger goal: to become more self-reliant so we can better serve others.

Self-reliance groups function like a council. There is no teacher or expert. Instead, we follow the materials as they are written. With the guidance of the Spirit, we will help each other as follows:

• Contribute equally to discussions and activities. No one, especially the facilitator, should dominate the conversation.

• Love and support each other. Show interest, ask questions, and learn about each other. Show respect for feelings, creating a safe environment where everyone feels comfortable sharing.

• Keep ideas confidential.

• Share positive and relevant comments.

• Make and keep commitments.

Elder M. Russell Ballard taught, “There is no problem in the family, ward, or stake that cannot be solved if we look for solutions in the Lord’s way by counseling—really counseling—with one another” (Counseling with Our Councils, rev. ed. [2012], 4).

“My Self-Reliance Group,” available at srs.lds.org/videos.

What have you learned from other councils that will help ensure that we have an effective group?

It’s easy. Simply follow the materials. There are six steps to each chapter in your workbook:

Report:

Discuss the progress you made during the week on your commitments.

My Foundation:

Review a gospel principle that will lead to greater spiritual self-reliance.

Learn:

Learn practical skills that will lead to greater temporal self-reliance.

Ponder:

Listen for the Holy Ghost to offer inspiration.

Commit:

Promise to act on commitments during the week that will help you progress.

Act:

Practice what you learned.

At this point, you should have at least one customer. If you don’t, focus on getting a customer as soon as possible.

Once you have customers, you need to work hard to keep them loyal to your business. You can build loyalty by engaging your customers, listening to them, and creating positive experiences for them. Finding new customers can cost your business far more than what it costs to keep current ones.

Imagine that you are opening a neighborhood hair salon. Many customers are price sensitive and will go to the salon that is cheapest or that offers a coupon or a sale.

• What are some things you could do to build loyalty to your salon so customers will come even if you are not discounting your services?

• What are some things you could do that would allow you to charge a premium price?

Engaging customers is more than having them notice your business. It means actively involving them and purposefully encouraging them to participate in it. As you engage customers, they develop an emotional attachment to your business and feel a sense of ownership. They are also more likely to be loyal to your service or product and to champion your business to others.

Always be looking for ways to engage your customers. They want to express their opinions, share experiences, and even give ideas for new services and products. You can engage customers in person, through experiences, and through technology. Social media and email are examples of how to engage customers through technology.

Think of a business that engages you as a customer. How does this affect your relationship with the business?

As a business owner, be sure to engage your customers in thoughtful, considerate ways. For example, communicating through email can be an effective tool. However, if you send too much email, or the wrong kind of email, you might annoy your customers or violate their trust. Your customers’ experience should be your top priority.

One way to build loyalty is by listening to your customers. When you listen, “apply [your] heart to understanding” (Proverbs 2:2). Your customers often provide useful feedback that leads to new ideas, improved ways of doing things, and better service. Business owners can listen to their customers in many ways, such as those below.

As you engage and listen to your customers, you may observe new trends or changes that will require you to adjust your business. These may be changes in customer needs, culture, technology, or competition.

“Adjusting to Market Change,” available at srs.lds.org/videos. (No video? Read the script at the end of this section.)

What trends or changes might affect your business? In what ways could you respond?

Successful business owners find ways to delight customers by exceeding their expectations. Customers want their experience to be easy, convenient, and delivered with exceptional service. Customers also place high value on a business that follows through with its promises and stands behind its services or products. Providing a memorable customer experience pays off with word-of-mouth sales and increased loyalty.

“How Is My Business Doing?” (see the script at the end of this section)

What lessons do you learn from Jack’s business experience?

Successful business owners are well organized and keep track of their financial details. For your business to succeed, it’s essential that you keep good financial records. Without good records, how will you know if your business is profitable? How will you know if you’ve been paid by all of your customers? How will you know your total expenses?

In this chapter, we will learn about the importance of keeping good financial records. We will learn about the term revenue, which refers to the money a business receives from selling services or products to customers. We will also learn about the term expense, which refers to the money spent by a business to obtain services or products. During the week, we will track our business revenue and expenses to see if we are making a profit.

Successful business owners keep daily records. For new business owners, this can be a difficult habit to establish, but it’s important. Here are five strategies for record-keeping success:

• Remember the “why”: You can find motivation by thinking of the long-term benefits that will result from operating an organized business with good records.

• Develop new skills: You may need to develop new skills to succeed at keeping records. Our discussion today will help you learn those skills.

• Choose friends, not accomplices: A friend is a person who helps you do the right thing. An accomplice is someone who helps you do the wrong thing. Ask trusted friends, a mentor, or your spouse to help you be consistent in keeping records.

• Use rewards: Reward yourself for keeping daily records.

• Get the right tools: Make sure you have the tools to do the job right. We will learn about some effective record-keeping tools later in this meeting.

Which of the strategies listed above will be the most helpful to you as you develop the habit of keeping daily financial records?

A revenue and expense log is a common and important business form. The main purpose of the log is to record every time money comes in and goes out of your business. Another purpose is to help you keep business and personal finances separate (see chapter 7). Decide whether to keep this log on paper or on a software application. It’s essential that you use it every day.

After you have created a revenue and expense log, you can create an income statement. An income statement is also called a profit and loss statement or a P&L.

Remember how hard it was to calculate profit from memory during the activity in section 1? An income statement will help. It adds up all the entries from the revenue and expense log to summarize sources of revenue and expenses for a specific period, such as a week, month, quarter, or year. The income statement indicates whether your business is profitable during that period.

An income statement shows:

• Revenue

• Expenses

• Profit (or loss)

Notice how the purpose of the income statement is to aggregate all revenue and expenses into categories. You may have dozens, hundreds, or thousands of entries from your log that get summarized in the income statement. Once you understand how an income statement is organized, you can begin to study and analyze it to gain insights that will help you improve your business.

What insights can you gain from studying an income statement?

To know if your business is profitable, you need to create an income statement. To create an income statement, you first need to have a revenue and expense log.

Successful business owners rely on the power of record keeping. Does anyone in the group currently keep revenue and expense logs or produce income statements? If so, share how this has helped you.

You have now learned the importance of keeping a revenue and expense log and the basics of preparing regular income statements for your business. As your business grows, your income statements will likely become more complex. They will need to include other revenue and expense items, such as those listed below:

• Interest income

• Non-wage employee expenses (such as health insurance and payroll taxes)

• Marketing and advertising

• Rent

• Utilities

• Depreciation

• Insurance

• Interest expense

Don’t worry if you’re not familiar with some of these terms. You may want to reference the glossary for more information. As your business grows, you will want to become familiar with these terms and how to account for them in your income statement.

You need to use a comprehensive tool to manage the financial details of your business. Use this tool to record every revenue and expense transaction for your business. Ideally it should have a reporting capability to summarize revenue, expenses, and profitability. To help you make a daily habit of keeping your business organized, your tool should be easy to use and accessible.

Some business owners start by using a notebook and folders to record their receipts daily. These owners take their notebook and receipts and enter revenue and expenses into a spreadsheet every night. Most owners will progress to more advanced record-keeping tools, such as digital applications (apps) and software packages, as their businesses grow. Some owners also hire accountants to manage their finances.

• What tools are you aware of that can help manage the financial details of your business?

• What are the most useful features of the tool you recommend?

As a business owner, you need to decide which tool or resources will best help you record your revenue and expenses. Although a tool or an accountant will help with much of the record keeping, you need to understand the financial records of your business and review them continually. As your business grows, you will want to deepen your understanding of financial matters.

Starting today, record your revenue and expenses each day. At the end of the week, create an income statement for your business. (If it’s helpful, use the blank forms in “Resources” at the end of this section.) If your business doesn’t have financial data yet, create data for a fictitious business. The habit of recording all your revenue and expenses will benefit your business.

“Opportunity of a Lifetime? Part 1,” available at srs.lds.org/videos. (No video? Read the script at the end of this section.)

Mark wants to help his sister, but he also wants to expand his business. What do you think Mark should do?

Last week we discussed the importance of keeping a daily record of our revenue and expenses. Developing this habit is essential to creating a successful business. As this chapter will explain, another essential habit is keeping our business money separate from our personal money.

“Opportunity of a Lifetime? Part 2,” available at srs.lds.org/videos. (No video? Read the script at the end of this section.)

What do we learn from this video about keeping our business money separate from our personal money?

Pay yourself. As your business begins to earn money, you need to decide how to pay yourself. Many business owners start by paying themselves a small salary, which can increase as the business grows and becomes financially stable.

Keep separate bank accounts. The money you pay yourself should go into your personal bank account. This account should be separate from your business bank account.

Don’t rob your own business. Successful business owners do not take money from their business bank account to give financial help to family or friends.

“Opportunity of a Lifetime? Part 3,” available at srs.lds.org/videos. (No video? Read the script at the end of this section.)

• Do you think Mark did the right thing? Why or why not?

• What have you learned about saying “no” that will help you as a business owner?

Successful business owners understand that they need to save money in case any problems or difficulties arise and to help their businesses grow. When considering helping someone financially, we should use wisdom to determine reasonable limits and conditions. We should rely only on discretionary personal resources and should never use business funds. Above all, we need to make certain that our business is a “house of order” (D&C 88:119).

We receive great blessings from paying tithing on our income. If we keep our business money and personal money separate, it’s easier to calculate our tithing. Remember these principles:

1. Keep business and personal money in separate bank accounts.

2. Pay tithing on personal income (such as salary) that you receive from your business.

3. Money in your business is not tithed. You should use that money to pay for business expenses, salaries, and business growth opportunities.

In addition to having separate bank accounts for your personal and business money, you should also keep separate records. Mark Bailey keeps daily records of all the money that comes into his business and all the money that goes out. He also keeps daily records of all the money that comes to his family and all the money that goes out. These records are called revenue and expense logs (for business use) and income and expense logs (for personal use).

• What aspect of separating the business and personal money was most challenging?

• What insights can you gain from these business and personal income statements?

Successful business owners keep daily records and use them to make informed business decisions. While many business owners don’t enjoy keeping records, they make it a habit and a priority because they know that having accurate revenue and expense information will help their business succeed and grow.

New business owners often use spreadsheets or simple online tools to keep their records organized. As your business grows, it will make sense for you to invest in a more sophisticated accounting solution or hire an accountant to meet your business needs. Even though you have a tool or an accountant to manage your financial records, you need to have a working understanding of the details in those records and continually review them.

We will work hard this week to keep separate accounts and to avoid the common mistake of getting so busy with business tasks that we get careless with critical, daily record keeping.

You have learned that business success requires daily record keeping. Every time your business receives or makes a payment, you need to record it. You have also learned how to create an income statement, which shows a summary of the profit (or loss) achieved by your business over a specific period of time. Profit is defined as the money left over for your business after you subtract your expenses from your revenue.

While profit is an important metric, it’s not the only one that demands your attention as a business owner. Cash flow is a metric that focuses on the timing of the movement of money in and out of your business every day. Cash flow is the lifeblood of your business. When your business has cash available, you can pursue options for growth, make investments, and save money for unexpected situations or emergencies.

Your income statement might show that your business is profitable, but it will go bankrupt if it doesn’t have enough cash to pay its obligations. Cash flow problems are one of the leading causes of business failure.

There are two types of cash flow:

Positive cash flow occurs when the total amount of cash coming into your business during a specific period of time is greater than the total amount of cash leaving your business during that same time. This is what you want: a positive cash flow cycle.

Negative cash flow occurs when the total amount of cash leaving your business during a specific period of time is greater than the amount of cash coming into your business during that same time. This is a risky, undesirable situation that you should address immediately with actions that generate cash as quickly as possible and reduce costs.

Let’s review three different examples to understand cash flow pressures and how a business owner might address them. Imagine that a business starts the month with 300 in cash. The business usually receives cash payments of 200 every Monday and 200 every Wednesday. It pays out 300 in cash every Friday. Example A below shows the cash flow cycle for this business over a period of three weeks. Money comes into and flows out of the business in a predictable pattern.

Example A: Ideal cash flow

Unfortunately, every business experiences surprises and setbacks. Example B below shows what happens when a business isn’t prepared for a negative cash flow. In this case, two customers don’t pay their bills, resulting in 400 of uncollected receivables (also called bad debt). The business owner was depending on this money to pay employees. The business also incurs an emergency expense that has to be paid immediately.

Example B: Negative cash flow—unprepared

Example C below shows the same surprises and setbacks as example B. But in this case, the business owner is prepared. She relies on her line of credit to keep her business operating. She repays the balance on her line of credit as soon as possible.

Example C: Potential negative cash flow—prepared

What do these examples teach you about the challenges of managing cash flow?

It’s common for business owners to have cash flow challenges. Some of these challenges include:

• The newness of the business, which makes it difficult to receive and pay on credit.

• Growth opportunities, which can reduce the amount of available cash.

• Having inventory, which ties up cash.

• Customers paying on credit, which delays the amount of incoming cash.

• Selling to other businesses that pay on credit, which delays the amount of incoming cash.

• Uneven sales due to seasonality or other factors, which can create peaks and valleys in the amount of cash you have.

• Unexpected expenses.

• Nonpayment by customers (bad debt).

What potential challenges do you anticipate with the cash flow of your business?

There are many things you can do to create a positive cash flow cycle for your business and to prepare for possible surprises and setbacks. For example, you could research the standard payment terms for your industry. In some industries, vendors can wait 90 days or longer before they are required to issue payment. Other industries often require payment within 30 days. When you understand the standard payment terms for your industry, you can then work to negotiate more favorable terms for your own business.

Business owners generally want to receive or collect cash as quickly as possible and withhold paying cash until they are required to do so. On the surface, this principle may seem to conflict with the Savior’s teaching that “whatsoever ye would that men should do to you, do ye even so to them” (Matthew 7:12). As a business owner, how do you reconcile these principles?

As you work to create a positive cash flow cycle for your business, it’s important to operate with integrity. Put in the effort to understand the payment terms for your industry. Be smart in setting up your payment strategy. Work to create favorable payment terms for your business. Once you have set your payment strategy, clearly communicate your expectations and keep all of your commitments.

It’s not enough to periodically check your business bank account and hope that the numbers work out. You need to actively manage the cash flow of your business.

As a successful business owner, you should know how much cash your business has available at any time. Don’t rely on bank statements to manage your cash flow. Your account balance often doesn’t reflect payments that are in process, such as payments going out to suppliers or coming in from customers.

You need to create and continually update your cash flow projections. As explained earlier, cash flow is the timing and amount of cash that flows in and out of your business during a specific period of time. Your projection should show your expected cash flow for the next few months. Your projection won’t be 100 percent accurate, but it’s essential that you consistently establish conservative estimates for your monthly revenue, variable expenses, and fixed expenses.

Positive cash flow doesn’t just happen for a business. It’s achieved through hard work and careful planning. If you know your current cash position and future cash flow projection, you can make decisions that will help your business succeed and grow. Successful business owners keep a cash reserve for unexpected expenses and often line up sources of credit based on their projected cash flow needs.

Successful business owners think about and communicate what their business will become. They determine a vision for their business. A vision is a picture of a desired future state. In the Pearl of Great Price we read that the Lord “created all things … spiritually, before they were naturally upon the face of the earth” (Moses 3:5). Similarly, business owners should mentally create the future of the business they intend to build physically.

Creating a vision is a mark of leadership. The scriptures teach, “Where there is no vision, the people perish” (Proverbs 29:18). This truth applies directly to your business. Your vision will guide your actions and will help you and the people you work with to focus their energy and efforts.

It’s not enough to create a vision and then hope your business succeeds. You will need to work hard and be persistent to bring your vision to reality.

A business should not depend completely on its owner. Successful business owners create operations manuals and document their workflows to show how to perform the standard work of their business. These resources encourage quality and consistency in a business’s processes. They are useful for training new employees and for maintaining best practices among current employees. They should be frequently reviewed and updated.

Creating an operations manual and documenting your workflows for specific tasks will set expectations, help employees achieve common goals, and ensure consistency. This documentation makes it possible for someone to perform a task when an employee who normally performs it is sick, takes a vacation, has an emergency, or leaves the business. With detailed workflows in place, you can work on improving your business rather than simply working for your business.

Creating an operations manual and documenting your workflows will also help you if you are your business’s only employee. The process of documenting will help you structure and standardize your business. It will help your business be better organized. Documented workflows also serve as a knowledge resource to help you remember tasks that you may perform infrequently.

• As a business owner, why is it important for you to create an operations manual and to document your workflows for specific tasks?

• What business tasks or processes should you document so the work can be performed consistently?

Business owners are responsible to ensure that their businesses comply with all laws and regulations. Laws and regulations vary by industry and location, so it’s important for every business owner to think about his or her legal and regulatory requirements at a (1) local level, (2) state or provincial level, (3) national level, and (4) international level.

Adding a new employee to your business is a major decision that requires an organized hiring process and prayerful consideration. Successful business owners write detailed job descriptions to guide their hiring decisions. A job description informs the applicant of the work requirements and helps the employer communicate the skills, knowledge, and abilities that the new employee will need.

Why is it important to be both methodical and prayerful when hiring an employee?

To create a thriving business, it’s essential that you lead and empower your employees. A leader is someone who motivates other people to follow. Leadership isn’t derived by a title or position; it’s earned by the ability to persuade, encourage, and guide the group toward a desired goal. To empower your employees means that you provide them with opportunities to demonstrate and develop their skills and interests. Smart business owners help their employees align their personal growth with the growth of the business.

How could you empower your current and future employees?

As a business owner, you can display leadership by the way you hire and manage your employees. This section describes three guiding principles.

The first principle is to hire slow and fire fast. For example, let’s imagine that Vivian owns a home care business. She carefully takes the time to hire the best applicant based on a detailed job description. She also takes immediate action in letting go an employee who demonstrates that he is not a good fit for the role or the business. In both instances, Vivian makes decisions that will benefit her employees and her business in the long term.

A second guiding principle is to provide adequate training. For example, let’s imagine that a mechanical engineer named Nat owns his own business. Nat helps his employee Miles create a personal development plan and provides access to training. With his new skills and training, Miles is soon able to manage several important projects for the business. In turn, Nat has more time to focus on growing the business.

A third guiding principle is to inspect more and assume less. This principle doesn’t suggest that you should micromanage your employees. Instead, it means that you should be aware of the work they are doing and how you can help them. For example, let’s imagine that Cesar owns a graphic design business. He develops close working relationships with his employees and dedicates time to ask questions, listen, guide, and stay close to the work they do.

How could these principles help you in your business?

Goals are steps that help us bring our vision to reality. We can work to achieve our vision if we break it down into small, incremental goals to complete over time. The acronym SMART can remind us to set goals that have the following characteristics:

• Specific: include a detailed description of what will be achieved.

• Measurable: include a metric or indicator to measure progress.

• Achievable: set goals that are realistic and attainable.

• Relevant: set goals that are important and provide motivation.

• Time-bound: include the date when the goal will be achieved.

As a business owner, think about your long-term vision and break it down into smaller goals that can be achieved through focus and persistence.

As you work toward realizing your vision, be sure to maintain the following daily behaviors:

• Be consistent by working on your goals every day.

• Track your progress in detail.

• Be flexible in adjusting your goals when appropriate.

After completing the Starting and Growing My Business for Self-Reliance course, some groups choose to continue meeting together but less frequently. They find value in consistently learning together, supporting each other in growing their businesses, and working to overcome challenges.

If you choose to continue meeting, select a group leader and establish a meeting schedule. The current facilitator does not need to be the group leader. The leader communicates with the group and works to ensure that the meetings are well organized and helpful to each member. The leader should plan topics and create an agenda for each meeting based on input from the group. The agenda may include such activities as listening to a guest speaker, discussing a business-related book that group members have read in advance, or working together to develop business skills.

Some groups also organize group texts so they can communicate regularly. They offer encouragement; share articles, videos, and other content; and recommend business contacts and resources. To facilitate additional networking experiences, you may want to coordinate with your stake self-reliance specialist to arrange a meeting for members of your group and others in the stake who have completed the course.

Would you like to continue meeting as a group? If so, discuss how you would like to stay in contact to support each other in growing your businesses.

During the past 12 weeks you have established new habits and become more self-reliant. The Lord wants you to continue building on these abilities and developing new ones. As you pray and listen, the Holy Ghost can help you know what things in your life you need to improve.

What changes have you seen in your life during the past 12 weeks as you’ve attended group meetings, kept commitments, and worked to become more self-reliant?

There are many ways you can continue to work to become more self-reliant. You could:

• Study and continue to live the 12 “My Foundation” principles and habits of self-reliance.

• Continue helping members of your group.

• Share what you’ve learned and your testimony of self-reliance with others at church and in your community.

• Be a facilitator for a new self-reliance group.

• Build on your abilities by participating in one of the other self-reliance groups.

• Study the doctrinal principles of self-reliance below.

• What can you do to continue progressing on your own path to self-reliance?

• What can you do to champion self-reliance within your stake and community?

As you continue your path to self-reliance, remember the following counsel from Elder Marvin J. Ashton: “The Lord cares enough about us to give us direction for serving and the opportunity for developing self-reliance. His principles are consistent and never changing” (“Give with Wisdom That They May Receive with Dignity,” Ensign, Nov. 1981, 91).

The prophet Nephi counseled: “And now, my beloved brethren, after ye have gotten into this … path, I would ask if all is done? Behold, I say unto you, Nay; for ye have not come thus far save it were by the word of Christ with unshaken faith in him, relying wholly upon the merits of him who is mighty to save. … Ye must press forward with a steadfastness in Christ” (2 Nephi 31:19–20).

One of our key business skills is selling. Successful business owners talk with potential customers every day—both formally and informally—to share their business message, to gain feedback, and ultimately to generate sales. Today we will deliver business presentations to our group members and to guests who have joined us.

The purpose of your business presentation is to clearly communicate the value that your business offers. The facilitator, guests, and group members should not assess your presentation skills, but instead should provide ideas on developing or improving various elements of your business. Going forward, you will likely have additional opportunities to promote your business as you sell, build relationships, recruit partners or investors, or seek financing.

Your presentation should include information about:

• The customer need your business will address.

• The service or product you will offer.

• Your competitive advantage.

• Your target customers.

• Your plan to acquire your target customers.

• The resources you will need for your business.

• Evidence that your business can be profitable.

• The next steps you will take to move your business forward.

Many principles contribute to business success. Some of these are listed below:

• Vision: “Where there is no vision, the people perish” (Proverbs 29:18).

• Work: “Be anxiously engaged in a good cause, … for the power is in them, wherein they are agents unto themselves” (D&C 58:27–28).

• Inspiration: “Cry unto [God] over the crops of your fields, that ye may prosper in them. Cry over the flocks of your fields, that they may increase” (Alma 34:24–25).

• Persistence: “We will not go … until we have accomplished the thing” (1 Nephi 3:15).

• Accountability: “Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things” (Matthew 25:21; see verses 14–30).

• Abundance mentality: “The earth is full, and there is enough and to spare” (D&C 104:17).

• Time management: “Your time is valuable” (Thomas S. Monson, “Guideposts for Life’s Journey” [Brigham Young University devotional, Nov. 13, 2007], 1, speeches.byu.edu).

• The power of small and simple things: “By small and simple things are great things brought to pass” (Alma 37:6).

• Commitment: “Which of you … sitteth not down first, and counteth the cost?” (Luke 14:28; see also verses 29–30).

Which of these principles stand out to you as the most applicable as you start or grow your business?

There are many valid reasons why you might start or grow a business:

• Ownership

• Additional income

• Personal passion

• Second career

• Challenge of the experience

• Necessity (few or no employment options)

• Personal freedom and control

• Greater financial security

There are a variety of paths you might take with your business. The following examples show how a few people did it.

We have been blessed with resources such as time, energy, and money. We decide every day how we will allocate these resources among family, work, service, and other interests.

Owning a business creates benefits, but these benefits often come with costs. We each should seek inspiration and use our agency to determine how we use our resources for our family and life.

One purpose of this course is to help you develop the habits of a successful business owner. Successful business owners are observant, curious, and eager to learn new ideas every day. They recognize that their business opportunity is a work in progress. They understand that they will have to make many refinements to their business simply to have a successful start.

To become this kind of business owner, you will need to exercise faith and get outside of your comfort zone. You will have to get out of your home or office and frequently talk with potential customers about their needs and preferences. You will need to seek new information and feedback that will help you improve your business. Business owners who are unwilling to engage with their customers, continually learn, and make changes to their business will find it difficult to succeed in the long term.

As we work to start or grow our businesses, we will encourage each other to think and act like successful business owners. Many of the weekly commitments that we will complete outside of our group meetings will help us develop the habits we will need to be successful.

Each week we will practice the following:

1. Observe and talk with customers: to gather ideas, understand customers’ needs, test and adjust our business ideas, and gather feedback.

2. Write down our thoughts: to note observations, ideas from others, and impressions from the Holy Ghost.

3. Sell: to learn to listen to the needs of others and identify appropriate solutions.

4. Record financial details of our businesses: to track the key success factors of our businesses and to project the future.

This week you will be challenged to practice these skills and report to the group. You will also begin talking with potential customers. 
You will report your results next week.

We will work together to help each other start and grow our businesses. Our larger goal is to become self-reliant. When we can take care of ourselves, it’s easier to help other people.

During the next 12 weeks, we will work through the following chapters together:

• Chapter 1—My Readiness for Business Success

• Chapter 2—Solving Unmet Customer Needs

• Chapter 3—Ensuring That I Have a Profitable Business

• Chapter 4—Finding Customers

• Chapter 5—Keeping Customers

• Chapter 6—Managing the Profitability of My Business

• Chapter 7—Keeping Separate My Business and Personal Money

• Chapter 8—Managing the Cash Flow of My Business

• Chapter 9—Growing My Business

• Chapter 10—Financing My Business

• Chapter 11—Continually Improving My Business

• Chapter 12—Presenting My Business

Some people make the mistake of trying to build their businesses around their assumptions or a “gut feeling” that their ideas will work. These businesses do not usually succeed. This course will encourage you to observe and engage with customers every week and to refine your ideas according to what you learn. We will learn to “organize … every needful thing” and to continually improve our businesses and other aspects of our lives (D&C 88:119).

In this group, you will be using a Personal Business Planner to gradually build a plan for your business. The planner will help you organize details and evaluate the viability of your business opportunity. Your planner will also be useful when you present your business to the group in week 12. After you have finished the course, it will help you continue your plan to grow your business.

The details of your business plan should be tentative at first, since they will change as you learn more by talking to customers, suppliers, and other business owners. Use a pencil when writing in your Personal Business Planner, since you will want to make updates as you refine your business. Turn to the Appendix to see the Personal Business Planner that you will be using.

“Keeping Commitments Leads to Growth,” available at srs.lds.org. (No video? Read the script at the end of this section.)

How can we help each other practice skills and keep commitments?

Group members who attend meetings and keep their commitments may receive a self-reliance certificate from LDS Business College. See chapter 12.

“Why Do People Buy?,” available at srs.lds.org/videos. (No video? Read the script at the end of this section.)

What did you learn from this video about why people buy?

Successful business owners seek to understand and meet the unmet needs of customers. Understanding customer needs is an ongoing journey that requires significant effort, time, and persistence. Your customers’ needs will change over time, so you will continually need to adapt your business to meet them. This is true whether you are considering a new business opportunity or managing an existing business. This section will help you learn how to identify the variety of needs your customers might have.

To have a viable business opportunity, you must meet a need or solve a problem that people are willing to pay for. To determine if people would be willing to pay for your service or product, you need to talk with them about it. By talking with potential customers, you can assess the demand for your service or product and see if it’s sufficient to sustain the sales you need for your business to succeed. Customer feedback can also help refine your business idea.

Begin testing your business idea with customers early—before you invest much time or money—to see if there is a market for it. Most business owners have to adjust and refine their ideas and the details behind their business many times before they find the right offering that has the potential to succeed.

If people don’t have a strong interest in your service or product and aren’t willing to pay for it, even after you refine it, start over with another idea. Don’t continue to invest in an idea that doesn’t have strong potential for success.

In addition to talking with potential customers to evaluate your business idea, you need to do other research. The Lord has counseled, “Study it out in your mind” (D&C 9:8). If people are willing to pay for your service or product, that’s a good start, but you need to keep testing and refining your idea. Study what your competitors are doing. Research information online and read industry publications. Talk to experts who know about the kind of business that you are considering. These efforts will help you understand the business environment and consider potential risks and opportunities. These efforts will also help you develop and refine your business idea based on facts, knowledge, and data.

Change is all around us and is always happening. Many people fear change. However, successful business owners welcome change because it allows them to address unmet needs and solve problems. They are constantly observing and anticipating changes and trends. They act on these opportunities quickly.

Some changes that business owners care about include:

• Demographic changes. These are shifts in populations based on gender, age, race, ethnicity, religion, language, income, education, and other factors.

• Regulatory or government-imposed changes. These result from laws, regulations, or orders from governments or other authoritative bodies.

• Technology changes. These are innovations or inventions that improve efficiency or achieve other benefits.

• Cultural changes. These are shifts in a group’s values, norms, and beliefs that affect behavior.

We have all been given gifts from our Father in Heaven (see D&C 46:11). Successful business owners often pursue businesses that align with their gifts, talents, passions, and interests. Their primary interest is typically not money; instead, it is solving a problem or meeting a need that they care greatly about. These business owners often spend their free time thinking about their business because they care deeply about making positive change. This sense of purpose provides commitment to quality and excellence with the business—and resilience and drive during tough times.

Successful business owners often have experience working in the industry of their business, working in a related industry, or consuming the services or products of the industry. This experience often provides business owners with knowledge of the competition, valuable relationships, and awareness of customers’ problems and unmet needs.

“Unmet Needs,” available at srs.lds.org/videos. (No video? Read the script at the end of this section.)

All businesses have competitors, so your business needs to have a competitive advantage to earn a profit and keep customers. To have a competitive advantage, your business needs to be different or better than your competitors. A competitive advantage often provides a barrier to entry that makes it difficult for competitors to copy your service or product.

“Competitive Advantage,” available at srs.lds.org/videos. (No video? Read the script at the end of this section.)

What did you learn from this video about how to discover the competitive advantages you might have?

The following owners built their businesses around three very different competitive advantages.

What types of competitive advantages have you observed in local businesses?

Customers must be the focus of your business. Their experience with your business will largely determine how well it does. Center all aspects of your business on meeting their needs. You want them to be enthusiastic about the experiences they have with your business.

As a business owner, you should gain a detailed understanding of the types of people, groups, or organizations that are most likely to buy your services or products. The more you understand your customers, the more specific the messaging, experience, and support can be for them. Some factors that can help you discover target customers include:

• Demographic: age, gender, marital status, occupation, income level

• Organizational: public or private sector, trade or professional, wholesale or retail

• Geographic: location, population density

• Psychographic: personality, lifestyle, interests, attitudes, opinions

• Behavioral: buying behavior, brand loyalty, benefits sought

After you have identified your target customers, it’s important to communicate to them why they should be interested in the service or product offered by your business. To help communicate this, develop a short business message that quickly promotes and differentiates your business offerings. It should include three key parts:

1. The name of your business.

2. Your service or product.

3. The reasons why your service or product is different or better. (Refer to your Personal Business Planner to review reasons why your service or product is different or better.)

Here is an example of a short business message:

“Hi, I’m Terry. I’m starting a business that will be called Hidden Fields Catering. We provide healthy catering options for business events, family reunions, and other groups. We use only the freshest organic ingredients in our meals. Our focus is on delighting health-conscious people who want creative vegetarian dishes and a hassle-free experience.”

It’s important to find the most effective ways to reach your customers. Many business owners use multiple physical and e-commerce channels to sell to and communicate with their customers. However, it’s best for new business owners to focus on developing no more than one physical channel and one e-commerce channel. Additional channels can be added when the business starts to grow. Common sales channels include those listed below.

Your business will not automatically attract customers. You need to offer things they care about and that they believe will benefit them. Make sure your business message is tied to things that your potential customers want. Put yourself in your customers’ shoes and ask, “Am I interested in purchasing the services or products that this business offers? Why or why not?”

Smart business owners are creative in getting the attention of their customers. Some ways to get customers’ attention are listed below.

It’s important to measure whether your communications are attracting the interest of customers, contributing to more sales, and increasing profit. To do this, you need to measure:

• A specific way you are communicating with your customers.

• What the business result is.

Review the following examples.

Being busy isn’t the same thing as being successful. If your communications aren’t producing results, then they aren’t a good use of your time. This is why it’s important that you always measure your results.

Once your business has achieved sustained success in delivering a profitable service or product, it could be ready for growth opportunities. Growing your business may have been part of your plan from the beginning, or it might be a pleasant surprise brought about by your hard work and persistence. Most business owners grow their business in one of three ways, as shown below. In this chapter we’ll explore each of these ways in detail.

One effective way to grow your business is by offering additional services or products that meet the needs of your target customers. New services and products create additional revenue streams that help provide stability for your business. Some examples might include those shown below.

Note that each of the expanded services or products in these examples is a compatible extension of the core business.

Another way to help your business grow is by expanding the size of your target market. This will allow you to focus on and communicate with more customers, which will hopefully lead to more business. Some of the ways you can expand your target market are shown below.

• What factors would you want to research and consider before pursuing any of these options?

• How would you maintain the quality of the services or products in your core business as you expand?

You can also grow your business by competing for a greater percentage of the market. Business owners do this by focusing on their competitive advantage and increasing the quality of their services or products so that customers will switch to their business. For example, the owner of a movie theater might invest in comfortable chairs and upscale food options, which could attract people who might attend other theaters.

We’ve just learned about three ways to grow a business. If you want to grow your business, you need to actively look for potential growth opportunities. Successful business owners learn by taking action (see D&C 58:26–28). They exercise wisdom when considering new opportunities to expand their business by carefully evaluating additional resources and potential challenges. However, they aren’t afraid to experiment and make mistakes. They see mistakes as opportunities to accelerate their learning, which can make them stronger and move them closer to their goals. They have the courage to shift the focus of their business, if necessary, to meet changing customer needs.

Imagine a business owner who stripes parking lots. He determines that he can gain more business by shifting the focus of his business. After talking with his customers, he learns that they would be willing to pay more if his business would black out old markings and install parking bumpers and speed bumps. He has analyzed this in detail and believes it makes financial sense, so he decides to pursue these new opportunities.

• What opportunities or obstacles have you noticed that might cause you to shift the focus of your business?

Your ability to grow your business can be greatly aided if you have personal savings to draw on. One habit that distinguishes successful business owners is that they consistently save money. We have been counseled to pay our tithes and offerings first. Then we should pay ourselves by saving a portion of our money.

Saving money provides funds for emergencies and unanticipated needs. It also provides peace of mind, flexibility with life decisions, and resources for opportunities like growing a business. While there are many ways to save money, what is ultimately important is to save money every week.

Technology can help you save money. You can set up an automatic deduction from your paycheck or an automatic transfer from a checking account to a savings account. Automatic deductions or transfers can help saving become effortless. Some other practical ways to save money include:

• Building an emergency fund.

• Establishing a budget.

• Working toward a short-term savings goal.

• Depositing lump sum income, such as tax refunds, birthday money, bonuses, and inheritance money.

• Setting up savings accounts for missions, education, retirement, business opportunities, or other personal goals.

• Saving your cash or loose change.

What approaches have worked best to help you save money consistently?

To maintain a healthy profit margin, business owners must often learn to operate with relatively few resources. Successful business owners are frugal and decisive in determining which costs are worthwhile and which are not. Sometimes they take bold action by committing to cut a certain percentage of their costs and then finding creative yet realistic ways to achieve savings. Some common ways that business owners effectively manage costs are shown below.

We have learned that successful business owners work to create a positive cash flow cycle. Through careful planning and persistence, they have sufficient cash to maintain and grow their business. They know their current cash position, and they routinely update their cash flow projections. They “see that all … things are done in wisdom and order” (Mosiah 4:27).

In addition, many business owners seek financing to pursue growth opportunities like those we learned about in chapter 9. If you decide to seek financing for your business, you will first need to have a detailed understanding of your business cash flow, especially the cash your business currently consumes and is projected to consume. It’s essential for you to ensure that your business has sufficient cash to maintain operations, cope with any unexpected situations, and grow according to your goals.

Personal debt and business debt are different. Personal loans are often used to spend more than we have the ability to pay. Business loans should be used to produce more than we have the ability to produce. Church leaders have counseled us to avoid personal debt. As Elder Joseph B. Wirthlin said: “Some debt—such as for a modest home, expenses for education, perhaps for a needed first car—may be necessary. But never should we enter into financial bondage through consumer debt without carefully weighing the costs” (“Earthly Debts, Heavenly Debts,” Ensign or Liahona, May 2004, 41).

Think of someone you know who has borrowed money for personal use. Did this help them or hurt them?

We should be careful when considering business debt. But when handled wisely, “sound business debt is one of
the elements of growth” (Teachings of Presidents of the Church: Ezra Taft Benson [2014], 272).

Almost every business requires additional capital, or money, to grow. Business owners typically obtain additional capital through their own savings or by debt financing or equity financing. Debt financing means taking out a business loan and then repaying it with interest. Equity financing means receiving money in exchange for partial ownership of the company.

On occasion, business owners receive government grants or money from other sources. These funds usually do not have to be repaid.

Successful business owners are thoughtful and creative in raising the funds they need to grow their business. There are many ways to obtain the funds you need. This section divides them into three categories. Category 1 looks at funds that are frequently used first, such as your personal savings. Category 2 explores different debt financing sources. Category 3 summarizes less-common financing options that may be applicable to some business owners.

Finding the best financing sources for your business requires consistent effort. Financing sources vary greatly by location, so it’s important to talk with people you trust in your personal and community network. Online, government, and community resources will likely assist you with your search.

• What local or national organizations could provide guidance or resources for business financing?

• What online resources could provide guidance for business financing?

The thirteenth article of faith states that we believe in being honest. Financial relationships are based on trust and personal integrity. Acting with integrity means that we fulfill our agreements and avoid any deceitful practices.

If we borrow money, we should be sure to pay it back. As the Lord reminds us in the Doctrine and Covenants, “If thou borrowest of thy neighbor, thou shalt restore that which thou hast borrowed” (D&C 136:25).

If we obtain money for our business through a loan, from investors, or through a grant, we should use that money for the intent it was given, not for another purpose. When individuals or organizations provide money to our business, they should be able to trust that we will honor our agreement.

We have been counseled to stay away from financial arrangements that we don’t understand, that are too good to be true, that present conflicts of interest, or that place us in ethically questionable or unlawful situations.

What have you learned about having integrity in financial matters and avoiding deceitful practices?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn from the Make-A-Sale Challenge?

• What would our Heavenly Father have us learn about taking initiative with our business?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn from experimenting with new ways to engage and listen to your customers?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn from using an income and expense log and creating a business income statement?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn by keeping separate records for your business and personal money?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn by researching potential financing options for your business?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn by researching the legal and regulatory requirements for your business?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What was your experience with the Paper Clip Challenge? What lessons did you learn from this experience?

• How is working with an action partner helping you?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn about unmet customer needs and business advantages by talking with people this week?

• How is working with an action partner helping you?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn from talking with potential customers this week?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn by writing a list of potential cash flow challenges that your business may face? What solutions did you come up with?

What challenges did you have with keeping your commitments this week?

• What experiences did you have with keeping your “My Foundation” commitments?

• What did you learn by creating a plan to grow your business?

• What did you learn by creating a plan to cut your business costs?