Business is essentially transaction. It is the exchange of one kind of value for another. Businesses have products or services that customers want or need. Customers have value (money) that businesses want and need. The key to a good business transaction is that both parties benefit. The buyer gets something they could not get on their own, or at least something of greater value than if they produced it themselves, and the seller converts their expertise into profit. In this way, skill, expertise, efficiency, and hard work translate into mutual benefit for both buyer and seller. Such business transactions, in their pure form, are wonderfully designed for the benefit of society. (This philosophical estimation of the nature of the business transaction was clarified for me by Wayne Grudem in his book Business for the Glory of God.)

However, there is a natural tension as the balance of benefit in such exchanges works itself out. This tension is most obvious during the act of negotiation. At the conclusion of a successful negotiation, both parties agree on the value of the transaction (defects notwithstanding). Tensions in negotiation occur as each party naturally seeks to maximize their own benefit. Proverbs 20:14 describes this dynamic: "'Bad, bad,' says the buyer, but when he goes his way, then he boasts." This proverb highlights that during negotiations, distortions and misrepresentations of value often take place. I don't believe this verse gives buyers or sellers license to make misrepresentations! Rather, it simply observes that negotiation is commonly attended by some degree of distortion. Nevertheless, negotiation is fundamentally a good thing that benefits both parties. This bit of wisdom helps me to be patient as I allow negotiations to complete themselves. It also helps me to avoid the mistake of undervaluing my own time and services in the face of the distortions that sometimes occur during negotiation.



I started Newfangled out of my basement. I was the business guy, the designer, the HTML coder, the bookkeeper, and the janitor. As the company grew, I had to employ others. This was a hard transition and very frustrating at times. I liked being a "doer" and I did not like dealing with employee problems. But in the end, while it may be messier and more complicated to employ others, it is necessary for profitability. At a certain point I had to make a strategic decision about my goals. Being a one man shop was very clean, but made it harder to earn a profit. Hiring others is less clean, but ultimately established a greater potential for profitability.   next >