Why do Christian Businesses Fail and How to Fix It

Sharing is caring!

Reasons why Christian businesses fail and what you can do to avoid it

There are many reasons why Christian businesses fail, but there are some things you can do to avoid it.

Before we dive in, let me explain what I mean by “Christian businesses.” A Christian business is a business that’s owned by a Christian that serves Christian or non-Christian customers. So whether you serve Christians or non-Christians, as long as you’re a business owner who confesses Christ as their Lord and Savior, this post applies to you.

When a business fails it leaves a bitter taste in your mouth and makes you feel rejected and a failure. But the truth is, the fact that your business failed isn’t the end of the world, and it doesn’t make you a failure. All it means is that you probably did a few things wrong or maybe the business idea wasn’t viable, to begin with.

So if you’re struggling with your business or working hard to grow your business, here are some things you should avoid because they are some of the most common reasons why Christian businesses fail.

Related: Starting a Business God’s Way: 6 Simple Rules to Guide You

How to Prosper in Business as a Christian (5 Assets You Need to Build a Prosperous Business)




I know so many Christians who assume things should be easy because they are Christians and they believe in miracles. Unfortunately, this is a wrong approach to biblical entrepreneurship. The Bible is full of verses extolling the virtues of diligence and hard work, so there’s no reason to think that you can build a successful business with very little effort.

While it’s true that God gives us the power to get wealth, it’s also true that without labor, there’s no profit. You can’t grow your business without labor and dedication. Lack of effort is one of the reasons why Christians fail in business., and the only way to fix this is to be diligent.

Commit to working hard on your business. Yes, you don’t have to toil or wear yourself out, but don’t let anyone tell you all you need to build a successful business is a little effort with prayer and faith. That’s a lie! You need a lot of effort.

Related: Top 6 Kingdom Business Principles You Need to Master


Along the same lines, lack of focus has ruined many businesses that could have been successful if the entrepreneur gave it their full attention. Now, I know some entrepreneurs find themselves in situations where they need more than one income to survive. Sadly, when that happens, you end up juggling too many things like a full-time job and a business or multiple side hustles.

This is not to say that people with only one businesses don’t have this problem as well. They do!

Lack of focus can stop your business from growing because you don’t give it the attention it requires. This problem is usually the result of not setting clear goals for your business. Without goals, you find yourself going in different directions without any sense of purpose or clarity. This problem can be fixed or addressed by setting goals and creating a business plan to guide you.

A lot of Christian entrepreneurs who struggle with a lack of focus usually don’t have a plan for their business. In a sense, they are rudderless. If a lack of focus is a problem for you, take some time to set clear goals for your business, then create a plan to help you accomplish them.

Lack of planning is a major reason why Christian businesses (and businesses in general ) fail, so don’t let that happen to you.

Related: How to Create a Simple Christian Business Plan


Your business won’t succeed if you don’t have the knowledge or skills to start and run a successful business. Starting a business is the easy part, but making your business profitable over a long period of time is where the challenge lies.

I know I probably sound like a broken record, but you can’t succeed at being an entrepreneur if you have no clue about entrepreneurship. Inexperience running a business can lead to bad decision making which can impact your business.

Far too many Christian business owners are just winging it or flying by the seat of their pants. They have no real idea of what they are doing or what they need to make their business succeed. So they spend months or years toiling and working on their business with nothing to show for it.

Lack of knowledge and skills will continue to hold you back unless you address the problem. If you don’t want your business to fail, the first thing you should do is to learn how to run a successful business. And the way to do that is to figure out the things you need to do to make your business successful.

Now, take some time to figure out what you’re missing so you can fill the knowledge or skills gap you have. It’s never too late to learn if you’re willing. Some of your options may include:

  • Working with a business coach (here’s how to choose the best one for you)
  • Investing in courses, classes, and other training
  • Reading books about entrepreneurship like this, this and this
  • Learning how to market your business so you can attract more customers
  • Hiring more help (or hiring experts in areas that you struggle with like bookkeeping/accounting)

When your business is failing, you need to consider other options including making changes to the way you have been running your business. So take an honest look at your skills and knowledge. Are they good enough to run a successful business? What do you lack? How can you fix it?

Related: How to Be Successful in Business As a Christian

How to Prosper in Business as a Christian (5 Assets You Need to Build a Prosperous Business)


One of the most common reasons why Christian businesses fail is a lack of funding. Many small businesses fail because they lack working capital and are cash-strapped. This usually happens because the business owner isn’t very good at money management.

You need good financial management skills to run a successful business. Without good financial management skills, you won’t be able to keep track of your revenue and expenses which can lead to overspending, going into debt, and mismanagement of your business resources.

Lots of Christian businesses make financial decisions without knowing the financial health of their business or considering the long-term effect on their business.

Another reason Christian businesses run into financial problems is that they miss the mark on pricing their products and services. I have talked a bit about the importance of pricing for profit. Knowing how to price your products or services is one of the most important skills all entrepreneurs should learn.

How you price your products or services is a big factor in whether your business will succeed or fail, so you need to pay attention to it. For example, if your business is failing because you are not generating enough money, maybe increasing your prices can infuse much-needed cash into your business.

The fact you’re a Christian business owner doesn’t mean you should undercut yourself. You’re allowed to make a profit as long as your prices are fair and you deliver on your promise.

Lots of businesses fail because they keep the price of their products or services too low for too long, so they start having cash flow problems. When the cost of running your business outweighs the revenue generated over a long period of time, your business is bound to fail sooner or later.

So if you’re having financial problems in your business, take a good look at how you are currently pricing your products or services. Are your products priced for making a profit? Are you financially competent?

What can you do to turn things around?


I alluded to this earlier but I think this deserves its own section. Of all the things you could possibly do to succeed as a business owner, nothing moves the needle more than knowing how to market your business and attract new customers and sales.

A lot of Christian businesses either don’t have a marketing budget or they fail to prepare for the marketing needs of their business. Effective marketing isn’t something you can do without a plan or a budget.

Your business is going to struggle if you can’t attract enough potential customers that you can convert into sales. Marketing is an essential aspect of any business especially at the early stage when you’re still relatively unknown. That’s why you need a marketing budget and a plan to get your name out there and create awareness.

If your business is failing, ask yourself the following questions:

  • Am I doing a good job marketing my business?
  • Do I have a marketing budget?
  • Do I have a plan or marketing strategy?
  • If you have a strategy, is it working for you?

Businesses that ignore the importance of marketing are more likely to fail than businesses with a marketing budget and effective strategy. So take the time to create a marketing budget for your business and also a strategy that works.

Related: How to Create an Effective Christian Business Marketing Strategy

Closing thoughts on Why do Christian Businesses Fail and How to Fix It

It’s true that you can do all the right things and your business can still fail. However, not doing the right things is a sure way to ensure that your business fails. There are lots of reasons why many businesses fail but the five I have listed in this post are some of the most common.

If you can avoid these mistakes or fix them your business has a good chance of succeeding. So take the time to assess where your business is so you identify problem areas that could potentially cause your business to fail.

Remember, you can always ask for help if you need some guidance. There are lots of great business coaches that could point you in the right direction so be willing to invest in coaching or mentorship if you need it.

Is your business failing? What can you do to fix it?

Why do Christian Businesses Fail

  • Lack of effort
  • Lack of focus
  • Don’t know how to run a successful business
  • Financial problems
  • Inadequate marketing

Related Christian business advice posts

6 Amazing Biblical Sales Principles To Try Right Now

Prayer for Struggling Business: 19 Powerful Scriptures to Inspire Faith and Hope

7 Simple Ways Christian Marketing Can Be More Effective

Why do Christian Businesses Fail and How to Fix It

why do christian businesses fail

Sharing is caring!

About the author

Hi, I'm Favor! I think of myself as a business strategist and coach for new business owners. When I am not engaged in business stuff, I enjoy spending time with my kids, reading, traveling, and just being chill.


Leave a Comment