Rent, Buy, or Build?
Rent, Buy, or Build?
Rent, Buy, or Build?
Rent, Buy, or Build?
Every day in our businesses we are faced with decisions on how to best utilize resources. We get tricked into thinking our most important decisions are about economic return on investment or capital. Yet, the aim of life and business is love.
Let me tell you a story. A story about a man who was invited by his closest friends for a weekend on the shore of the Pacific Ocean. This man’s friends had not seen him in a long time, so they picked a remote place free of distractions where they could hang out, catch up, and renew their lifelong friendships.
It was the perfect time of year to go to this remote area in the Pacific Northwest. The man’s friends prearranged all meals and activities so they wouldn’t have to worry about details once they arrived. They planned outdoor meals by a local chef, golf with breathtaking views of the ocean, hiking along the majestic ocean cliffs, and an outdoor fire in the evening so they could talk late into the night — everything was planned to maximize their time together.
The man was busy, but he agreed to join them. Upon arriving in the coastal town, he was driven to the hotel where their rooms were reserved. This man was surprised to find the accommodations in his room were too basic for his taste and desired comfort level. This was unsettling for him because he was so used to impeccable design, high tech electronics, and comfortable amenities.
He became fixated on the idea of perfecting his hotel room. He quickly sprang into action finding a local contractor to help him redesign and equip the room to his meticulous standards. He told his buddies to go on without him Friday because he needed to give the contractor the specifications. On Saturday morning they checked with him and he said, “Sorry I’ve got three teams of workers coming this morning.”
On Sunday afternoon, they had not heard from him so they stopped by his room and to their amazement they saw a completely transformed hotel room — actually two rooms. The man thought he might need one place to sleep and one place to be entertained so he had the wall knocked out and equipped the second room with a four foot wide 4K television screen, speakers, leather sofas and a wet bar with stools for others. In the bedroom, he had purchased a larger bed, complete with the highest quality comforters and pillows flown in from Italy. He had the room sound-proofed and the walls covered in luxury fabric.
The friends were amazed at what he had done. They couldn’t believe he had totally remodeled a rented room in just three days, but they were more disappointed than amazed. They had given up their weekend to be with their friend and now it was time to go.
The man was sad too, sad he did not get to enjoy his friends and sad he did not get to enjoy his extravagant creation before it was time to check out.
While this story is absurd on many levels, it’s an unfortunate analogy for many of us. We can spend so much time messing around with the temporary accommodations of this earth that we miss the point of why we are here.
We Have Been Given Everything
God owns everything. God has given us everything we have to serve and glorify Him (Romans 11:36) as stewards. He created us to subdue the earth and put all things under His dominion (Genesis 1:26-28).
We are given these gifts of time, talent, and treasure to know God and to love and serve our neighbors. In short, we are made for relationships — relationships with God and others.
All things are given to us, but we often get distracted. We get caught up looking around at what others have. We want to build better businesses, better cities and neighborhoods, better homes and better lives, but the way we measure “better” is often not right. We look at control, safety, comfort, and amenities instead of what is most important for stewarding what God has given us — serving others by building relationships.
In our business dealings we often think more about competing with our neighbor than providing for our neighbor.
We Want More Than We Need
Jesus, well aware of our struggle with decision making regarding resources and keeping up with others, often taught on money and resources. Eleven of His thirty-nine parables had to do with money and how to utilize it. One time when Jesus was speaking to His closest disciples a man from the crowd shouted out to Him.
Someone in the crowd said to him, “Teacher, tell my brother to divide the inheritance with me.” Jesus replied, “Man, who appointed me a judge or an arbiter between you?” Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”
And he told them this parable: “The ground of a certain rich man yielded an abundant harvest. He thought to himself, ‘What shall I do? I have no place to store my crops.’ “Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store my surplus grain. And I’ll say to myself, “You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.”’ “But God said to him, ‘You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?’ “This is how it will be with whoever stores up things for themselves but is not rich toward God.” – Luke 12:13-21
The rich man in the parable is spiritually blind, but so is the real man asking the question from the crowd. The man from the crowd takes a chance to ask the creator of the universe a question, and the most pressing question he has is about someone who he thinks is withholding something from him.
Jesus’ answer is a rebuke of the man and a lesson for us all. Jesus says he did not come to help us figure out how to divide temporary resources. Instead Jesus tells us not to worry about money and possessions, “Sell your possessions and give to the poor. Provide purses for yourselves that will not wear out, a treasure in heaven that will never fail, where no thief comes near and no moth destroys. For where your treasure is, there your heart will be also” (Luke 12:33-34). Jesus is teaching that possessions and resources reveal what we love the most. And, He is always offering himself as the greatest treasure — the very bread of life.
The rich man in the parable thinks the purpose of his business is to make provision for himself so he won’t have to worry or work. The reason to build more barns and store more grain is only for himself. He even talks to himself this way, “And I'll say to myself, ‘You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.’” Jesus says this type of man is a fool. This is a particularly sobering comment from the Creator of the universe for those of us who lead businesses.
Stewardship Questions Are Important
The purpose of our work and the purpose of business is to provide for others. Dallas Willard once said, “Business is a fundamental structure of love in the kingdom of God.” Businesses are an excellent way to meet the needs of our communities and build relationships with those we serve. As such, businesses can be the best structures of stewardship.
Every day in our businesses we are faced with decisions on how to best utilize resources. We get tricked into thinking our most important decisions are about economic return on investment or capital. Yet, the aim of life and business is love.
Businesses have to make economic and strategically important decisions on pricing, margin and product quality. Healthy businesses expand, and when the leaders consider how to expand, they must determine whether to rent, buy, or custom build new spaces, new software and new media to propel the business. Yet, if they ask why and their answer is to serve others, the typical decision grid takes on a whole new meaning. Here is how to add love to your next rent, buy, or build decision.
Rent, Buy, or Build With Love
Here is how to add care for your neighbor to the next rent, buy, or build decision — whether that is with real estate, software, media, or even with staffing (temp, permanent, or development).
Renting — speed to market, can be lower cost, but comes with less control. If the features are what clients need, it can be the best option — especially if it does not impact the personalization or customized value proposition the business offers.
- Key questions to ask: Does this option provide what clients need most? Can any dollars saved be used to provide value in some other way?
- Key truth: “The earth is the Lord's, and everything in it, the world, and all who live in it.” – Psalm 24:1
Buying — more control, could be more cost short-term but less cost long-term. Speed can be equal to renting. Does it have what is needed to serve clients according to the brand promise?
- Key questions: Would customization be required? How long do you intend to use the asset to serve customers in its current condition? Is this the best use of capital? Do tax advantages offset any costs?
- Key truth: “No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.” – Matthew 6:24
Build — most control, can create a maximum amount of customizations and unique experience. Can take longer and cost more. Can be more motivating to employees and customers.
- Key questions: Is this the best use of our time, talent, and resources? Will it allow us to serve our customers in the best way possible? Will the value this creates create economic advantages?
- Key truth: “And whatever you do, whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father through him.” – Colossians 3:17
Above All Steward Your Heart
Remember that above all else God cares about our hearts — our hearts for Him. Tim Keller, in his sermon on this parable How Money Makes Us Fools, said, “There is no way you can have the reality of God’s character in your life unless you treat your money [all resources] different than everyone else does.” He is saying that our stewardship of resources reveals what we love and when we love Jesus above all things, we use the our resources to love others — especially in our business.
We put everything we steward for the glory of God and love of neighbor because, we know even our very lives are not our own, we know that we have been bought with a price (2 Corinthians 8:9). And, that the rescue by our Savior changes everything from the way we conduct simple transactions to the way we make strategic business moves.
For the joy set before us, we desire to do everything the way Jesus gave everything for us!
Resources
Business Is Provision For People
How Money Makes Us Fools by Tim Keller
Let me tell you a story. A story about a man who was invited by his closest friends for a weekend on the shore of the Pacific Ocean. This man’s friends had not seen him in a long time, so they picked a remote place free of distractions where they could hang out, catch up, and renew their lifelong friendships.
It was the perfect time of year to go to this remote area in the Pacific Northwest. The man’s friends prearranged all meals and activities so they wouldn’t have to worry about details once they arrived. They planned outdoor meals by a local chef, golf with breathtaking views of the ocean, hiking along the majestic ocean cliffs, and an outdoor fire in the evening so they could talk late into the night — everything was planned to maximize their time together.
The man was busy, but he agreed to join them. Upon arriving in the coastal town, he was driven to the hotel where their rooms were reserved. This man was surprised to find the accommodations in his room were too basic for his taste and desired comfort level. This was unsettling for him because he was so used to impeccable design, high tech electronics, and comfortable amenities.
He became fixated on the idea of perfecting his hotel room. He quickly sprang into action finding a local contractor to help him redesign and equip the room to his meticulous standards. He told his buddies to go on without him Friday because he needed to give the contractor the specifications. On Saturday morning they checked with him and he said, “Sorry I’ve got three teams of workers coming this morning.”
On Sunday afternoon, they had not heard from him so they stopped by his room and to their amazement they saw a completely transformed hotel room — actually two rooms. The man thought he might need one place to sleep and one place to be entertained so he had the wall knocked out and equipped the second room with a four foot wide 4K television screen, speakers, leather sofas and a wet bar with stools for others. In the bedroom, he had purchased a larger bed, complete with the highest quality comforters and pillows flown in from Italy. He had the room sound-proofed and the walls covered in luxury fabric.
The friends were amazed at what he had done. They couldn’t believe he had totally remodeled a rented room in just three days, but they were more disappointed than amazed. They had given up their weekend to be with their friend and now it was time to go.
The man was sad too, sad he did not get to enjoy his friends and sad he did not get to enjoy his extravagant creation before it was time to check out.
While this story is absurd on many levels, it’s an unfortunate analogy for many of us. We can spend so much time messing around with the temporary accommodations of this earth that we miss the point of why we are here.
We Have Been Given Everything
God owns everything. God has given us everything we have to serve and glorify Him (Romans 11:36) as stewards. He created us to subdue the earth and put all things under His dominion (Genesis 1:26-28).
We are given these gifts of time, talent, and treasure to know God and to love and serve our neighbors. In short, we are made for relationships — relationships with God and others.
All things are given to us, but we often get distracted. We get caught up looking around at what others have. We want to build better businesses, better cities and neighborhoods, better homes and better lives, but the way we measure “better” is often not right. We look at control, safety, comfort, and amenities instead of what is most important for stewarding what God has given us — serving others by building relationships.
In our business dealings we often think more about competing with our neighbor than providing for our neighbor.
We Want More Than We Need
Jesus, well aware of our struggle with decision making regarding resources and keeping up with others, often taught on money and resources. Eleven of His thirty-nine parables had to do with money and how to utilize it. One time when Jesus was speaking to His closest disciples a man from the crowd shouted out to Him.
Someone in the crowd said to him, “Teacher, tell my brother to divide the inheritance with me.” Jesus replied, “Man, who appointed me a judge or an arbiter between you?” Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”
And he told them this parable: “The ground of a certain rich man yielded an abundant harvest. He thought to himself, ‘What shall I do? I have no place to store my crops.’ “Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store my surplus grain. And I’ll say to myself, “You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.”’ “But God said to him, ‘You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?’ “This is how it will be with whoever stores up things for themselves but is not rich toward God.” – Luke 12:13-21
The rich man in the parable is spiritually blind, but so is the real man asking the question from the crowd. The man from the crowd takes a chance to ask the creator of the universe a question, and the most pressing question he has is about someone who he thinks is withholding something from him.
Jesus’ answer is a rebuke of the man and a lesson for us all. Jesus says he did not come to help us figure out how to divide temporary resources. Instead Jesus tells us not to worry about money and possessions, “Sell your possessions and give to the poor. Provide purses for yourselves that will not wear out, a treasure in heaven that will never fail, where no thief comes near and no moth destroys. For where your treasure is, there your heart will be also” (Luke 12:33-34). Jesus is teaching that possessions and resources reveal what we love the most. And, He is always offering himself as the greatest treasure — the very bread of life.
The rich man in the parable thinks the purpose of his business is to make provision for himself so he won’t have to worry or work. The reason to build more barns and store more grain is only for himself. He even talks to himself this way, “And I'll say to myself, ‘You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.’” Jesus says this type of man is a fool. This is a particularly sobering comment from the Creator of the universe for those of us who lead businesses.
Stewardship Questions Are Important
The purpose of our work and the purpose of business is to provide for others. Dallas Willard once said, “Business is a fundamental structure of love in the kingdom of God.” Businesses are an excellent way to meet the needs of our communities and build relationships with those we serve. As such, businesses can be the best structures of stewardship.
Every day in our businesses we are faced with decisions on how to best utilize resources. We get tricked into thinking our most important decisions are about economic return on investment or capital. Yet, the aim of life and business is love.
Businesses have to make economic and strategically important decisions on pricing, margin and product quality. Healthy businesses expand, and when the leaders consider how to expand, they must determine whether to rent, buy, or custom build new spaces, new software and new media to propel the business. Yet, if they ask why and their answer is to serve others, the typical decision grid takes on a whole new meaning. Here is how to add love to your next rent, buy, or build decision.
Rent, Buy, or Build With Love
Here is how to add care for your neighbor to the next rent, buy, or build decision — whether that is with real estate, software, media, or even with staffing (temp, permanent, or development).
Renting — speed to market, can be lower cost, but comes with less control. If the features are what clients need, it can be the best option — especially if it does not impact the personalization or customized value proposition the business offers.
- Key questions to ask: Does this option provide what clients need most? Can any dollars saved be used to provide value in some other way?
- Key truth: “The earth is the Lord's, and everything in it, the world, and all who live in it.” – Psalm 24:1
Buying — more control, could be more cost short-term but less cost long-term. Speed can be equal to renting. Does it have what is needed to serve clients according to the brand promise?
- Key questions: Would customization be required? How long do you intend to use the asset to serve customers in its current condition? Is this the best use of capital? Do tax advantages offset any costs?
- Key truth: “No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.” – Matthew 6:24
Build — most control, can create a maximum amount of customizations and unique experience. Can take longer and cost more. Can be more motivating to employees and customers.
- Key questions: Is this the best use of our time, talent, and resources? Will it allow us to serve our customers in the best way possible? Will the value this creates create economic advantages?
- Key truth: “And whatever you do, whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father through him.” – Colossians 3:17
Above All Steward Your Heart
Remember that above all else God cares about our hearts — our hearts for Him. Tim Keller, in his sermon on this parable How Money Makes Us Fools, said, “There is no way you can have the reality of God’s character in your life unless you treat your money [all resources] different than everyone else does.” He is saying that our stewardship of resources reveals what we love and when we love Jesus above all things, we use the our resources to love others — especially in our business.
We put everything we steward for the glory of God and love of neighbor because, we know even our very lives are not our own, we know that we have been bought with a price (2 Corinthians 8:9). And, that the rescue by our Savior changes everything from the way we conduct simple transactions to the way we make strategic business moves.
For the joy set before us, we desire to do everything the way Jesus gave everything for us!
Resources
Business Is Provision For People
How Money Makes Us Fools by Tim Keller