This document summarizes lessons learned from the experience of operating an oceanic business province in the USA. It discusses reasons the initial business failed, including inexperienced managers, lack of a clear plan, and starting too large. It then explains how the business succeeded later by restoring expert management, operating effectively, and starting small. Ten lessons are provided for developing church businesses, including starting with a capable plan, clear business plan, manageable scale, understanding customers, profitability, good communication, sufficient capital, and regular church donations. The purpose is to determine if past Unification business experiences provide practical guidance for local church business activities.

1. 1 CheongShim Graduate School of Theology
Innovative Church Development Seminar2013
Lessons from Ocean Providence
Innovative Church Development Seminar 2013
10th Session, 2nd Presentation, December 3rd 2013
Mr. Steve Mudgett, CheongShim Church Member
CheongShim
GraduateSchool
ofTheology
Business Development for FFWPU Churches

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1. Introduction
2. Reasons Our Business Failed in the Beginning
3. Reasons Our Business Succeeded Finally
4. Lessons for Business Development for FFWPU Local Church
5. Current State of Church Business in FFWPU Local Church and Suggestions
6. Conclusion
Agenda
Mr. Steve Mudgett
1. EFL Teacher CheongShim Church Academy, Seorak
2. 20 Years Experience in Oceanic Providence in the USA
3. Contact to the presenter, jsmudgett@hotmail.com, phone 010-4578-8760
Presenter Profile

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1.1 Research background
1.2 Research purpose and methods
Ch. 1 Introduction

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a. Local churches need funds from other sources, not just money from Headquarters or tithes from
members.
b. The Unification movement has done and is still doing various businesses that provide resources for local
churches.
c. These business activities and reports from business leaders and employees may provide real, practical
data, results, and lessons for local churches to own and operate businesses.
d. True Mother has called for the creation of a new, wonderful church environment. Local churches need
money to upgrade or replace local church facilities and to develop effective programs.
1.1 Research Background

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• Research purposes
a. Determine whether past Unification business activities provide real, practical lessons for local church
business activities and assemble and organize them.
b. DIfferentiate between Unification businesses in the past and local FFWPU church activities in the
present and the future.
c. Determine whether local FFWPU churches can actually create sources of funds from owning and
operating local businesses.
• Research methods
a. Internet resources on church and business, including blogs, magazine, newspaper, and scholarly
articles, books, book reviews and comments.
b. Personal experience in Ocean Providence in the USA
1.2 Research purpose and Methodology

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Ch. 2 Reasons Our Business Failed in the
Beginning
2.1 Beginning of Ocean Providence
2.2 In Brief: Why We Failed?
2.3 Lesson #1~#3

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2.1 Beginning of Ocean Providence
A. True Father set up the oceanic businesses beginning in the late 1970’s.
B. I started to work in the seafood business at that time in San Francisco as a manager.
C. However, our business failed after less than two years.

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In brief:
A. We did not have expert managers, and the company culture was filled with conflict.
B. We did not operate the business well.
C. We started too big and too high.
2.1 In Brief: Why Our Business Failed?

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Inexperienced managers without capability or a realistic plan could not
create an organized company.
1. Management did not have any experience and were not capable. Learning by doing.
2. We did not have a clear, effective short term and long term business plan – no good
answer to what was our business?
3. Managers and employees in conflict, not harmonious, did not unite.
2.3 Lesson #1: No Expert Managers

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2.3 Lesson #2: Did Not Operate the Business Well
Business operations were not coordinated and not profitable.
1. No deep and clear market research.
2. Bought what we could not sell. Dead inventory.
3. Managed cash poorly--purchased on cash basis and sold on credit.
4. Borrowed money unwisely.
5. Did not use financial tools well.

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2.3 Lesson #3: Started Too Big and Too High
Business facility and operations were bigger, more complex
than our capacity to manage.
1. Very large factory building and land and old worn out equipment..
Land 30,351 square meters
Building 2,508 square meters
30 year old, weak equipment
2. High payroll costs for 40 employees.
3. Bought, processed, and tried to sell tons of seafood.
4. Needed to manage large volume of purchases, sales and cash to continue to do business.

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Ch. 3 Reasons We Succeeded Finally
3.1 Restoration from Failure
3.2 Lesson #4~#6
3.3 Summary of All Lessons from Ocean Providence

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3.1 Restoration from the Failure
We restored these three points of failure:
A. We had experienced, capable managers and harmony between managers and workers.
B. We operated the business well.
C. We started over at small, local, simple business level and grew step by step.

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3.2 Lesson #4 : Better Management and Organization
Leader
Sub-leader
Member
1. True Father’s instructions about Three Stage Organization
Three Stage Organization
“Why didn’t you call me?”

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3.2 Lesson #4 : Better Management and Organization
2. Sacrificial Lifestyle of Members
a. We moved into the company and lived in the cardboard box warehouse.
b. Worshipped there, ate there, and slept there.
c. Worked from 6 AM to 9 PM, seven days a week, for three years.

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Operations of business were integrated and profitable.
1. We found our market niche.
2. We managed our inventory well.
3. We did not borrow any money we could not pay back.
3.2 Lesson #5 : Operated the Business Well

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New business level was at our capacity to plan, manage, and grow.
1. We started selling seafood house to house in the local and regional area.
2. Later we began selling seafood wholesale to Japanese and western restaurants.
3. Gradually our business became profitable, attracted better managers and more capital,
and grew to use the large facility.
3.2 Lesson #6 : Started Over at a Small Level and Grew Step by Step.

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3.3 Summary of All Lessons from Ocean Providence
stories points lessons learned
Lesson #1
Inexperienced and incapable
managers and employees without
good business plan.
No Expert
Managers
Expert managers are
necessary at first.
Lesson #2
Bought what could not sell, not
enough cash, and unable to repay
borrowed money.
Did Not Operate
the Business Well
Operations and finance
must be coordinated.
Lesson #3
Purchased and used large facility that
needed big payroll and huge sales to
continue business.
Started Too Big and Too
High
The level of business
must be manageable.
Lesson #4
RESTORED
Followed Three Stage Principle with
good communication, sacrificial
lifestyle, and good business plan.
Better Management and
Organization
Experienced managers
create successful
business plan and team
cooperation.
Lesson #5
Found market niche, managed
inventory and cash, and did not
borrow money.
Operated the Business
Well
Coordinated good market
research and financial
mgt. bring profit.
Lesson #6
Sold retail to local customers with
daily results, developed new
wholesale market.
Started Over at a Small
Level and Grew
Step by Step
Manage gradual growth
by serving market niche
and adjusting to changes.

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Ch. 4 Lessons for Business Development in
FFWPU Local Churches
4.1 Lesson #1~#10
4.2 Summary of All Lessons

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4.1 Lesson #1 : Start with capable managers.
Capable managers:
(1) have a realistic vision for the company and know how to plan for and get actual results
with and through others in the company.
(2) are not self-serving. They humbly listen to their customers and their employees and
strive to respond to them and implement their requests and ideas.
(3) train engage and take care of their employees to create a harmonious serving company
culture for an intangible competitive advantage in the market.

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• A written, simple plan will help you map out how you will start and run the business
successfully. Use this plan like a roadmap.
• There are many elements of a business plan. One of these elements, the company
description, is a short summary that should quickly and simply define the nature of the
business and the value proposition it produces for the customers and business owners.
• Use often the many helps from good business advisors and professional resources.
4.1 Lesson #2 : Have a realistic and clear business plan.

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• Coordinate people, capital, resources, and potential market at the start.
• Plan to grow step by step; do not get overextended.
• Small businesses have:
– flexibility and agility
– ability to see the whole picture easily
– possibility to fail cheaply
– freedom to change.
4.1 Lesson #3 : Start at a manageable scale.

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• Focus on customers needs and wants not just what you want to sell them.
• Definitely, the market can change. Pay attention.
– Example: Before retail sales slowed, already building wholesale market.
• Differentiate your company and product from others.
– Answer the question, “Why buy from us?”
4.1 Lesson #4 : Keep in close contact with your customers and
the changes in the market.

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• Know what your real costs are to sell the product at a profit.
• Use accurate, practical, financial data generating tools.
• There is no motive to sell a product if there is no profit margin.
4.1 Lesson #5 : Buy what you can sell at a profit.

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• Establish a culture of three stage organization– flat, open, and honest.
• Leaders have to make sure people are getting their needs met.
– Through serving, listening, and regular one on one meetings with employees.
• Employees have this same responsibility.
4.1 Lesson #6 : Have good flow of communication among all people
in the business.
Leader
Sub-leader
Member

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• As part of your business plan, decide what amount of start up capital you realistically need
both now and over the next five years.
• In the USA one study puts the average cost of starting a new business from the beginning
at about $30,000. (W 32,000,000)
• You have to pay back with interest the money you borrow, so if you borrow, do so wisely
with careful planning beforehand to reduce risk.
4.1 Lesson #7 : Have enough capital to start and carry on your business;
don’t borrow money unwisely.

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• Doing business without making a regular and systematic donation to the Church has no real
meaning or value.
• Prepare your business plan with the donation as a planned expense.
• Understand available tax benefits of donations and plan accordingly.
4.1 Lesson #8 : Donate regularly and systematically.

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4.1 Lesson #9 : Keep your spiritual life and take care of your family well.
• Integrate your business life with your family life to win their support.
– At home and away from the business, spend regular time focused on them, not on the business.
• Business should be done as a condition to witness or it has little meaning.
– Example: Ocean Church and Oceanic businesses.
– Business members are representatives of True Parents in all business activities
– Show the substance of the Principle
• Clear standard and education for ethical business activities through spiritual education
and life.
– Sunday morning and Monday morning should be in harmony.
– Business people must especially understand the proper use of public funds.

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• Researchers have shown it takes about ten years to develop expertise in any activity.
– Overnight success is a myth.
– Example: Google search engine took ten years to become a success.
– Also, Twitter, Xerox photocopy machines, Amazon on line shopping, Federal Express all took time
to be successful. The oceanic providence also took about ten years.
• We know from the Principle all things take time to grow and develop.
• True Parents show the supreme example of success through endurance and patience
in business.
4.1 Lesson #10 : Endure and be patient. It takes time to settle a business.

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4.2 Summary of All Lessons for Business Development in
FFWPU Local Churches
points details
Lesson #1 Start with capable managers
Managers lead with organized vision
for harmony and profit.
Lesson #2 Have a realistic and clear business plan
The business plan is the roadmap of
your business.
Lesson #3 Start at a manageable scale
Know and start at the capacity of
your people and resources.
Lesson #4
Keep in close contact with your customers and the
changes in the market
Know always what the customer
truly wants and serve them.
Lesson #5
Buy what you can sell at a profit; understand and use
financial tools to measure and plan for actual results
Need clear financial data regularly
and systematically
Lesson #6
Have good flow of communication among all people in
the business
Open communication makes a vital
business.
Lesson #7
Have enough capital to start and carry on your
business; don’t borrow money unwisely
Plan your finances both short term
and long term.
Lesson #8 Donate regularly and systematically
Donation is essential to your
business purpose and growth.
Lesson #9 Keep your spiritual life and take care of your family well.
A high, strong spirit and family
support is needed to do business.
Lesson #10
Endure and be patient. It takes time to settle a
business.
Building a foundation will take at
least three years.

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Ch. 5 Current State of Church Business Activities
in FFWPU Local Churches and Following
Suggestions
5.1 Current State of Church Business Activities in
FFWPU Local Churches
5.2 Suggestions

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5.1 Current state of Church Business Activities in FFWPU Local Churches
• Almost no FFWPU local churches own and operate a business.
• Lack of starting capital.
• Mature families that require stable living money and time, so members not available or willing.
• Capable people often have struggled and hesitated to involve sacrificially in the church
structure.
• Lack of strong spiritual foundation, harmony, and witnessing culture in FFWPU.
5.1 Current State of Church Business Activities in FFWPU Local Churches

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• Educate membership clearly and regularly about proper use of public funds and relationship
between public and private funds.
• Carry on transparent and responsible financial management and reporting in FFWPU local
churches.
• Educate general membership, including second generation, and find interested and capable
members to work together.
• Establish internship program with small businesses for interested and qualified second
generation.
• Conduct market studies to find business opportunities in local areas.
• Discuss and try to work together with Tong Il Foundation group of businesses as advisers.
• Begin to develop capital fund to invest in local businesses.
• Network with other local FFPWU churches to systemize business development through our
movement.
• Research the relationship of local FFWPU church businesses and Tribal Messiahship.
• Research comparative costs and benefits of Church owned and operated and/or Member
owned and operated businesses.
5.2 Suggestions

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6.1 Research Summary
6.2 Research Limitation and Ideas for Future Research
Ch. 6 Conclusion

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6.1 Conclusion
• Possible to make a profitable business if we do well.
• Many practical and theoretical matters to study, educate for, and practice.
• Future hopeful centered on True Parents vision of substantial Cheon Il Guk and lessons from
the past.
• Let’s work together.

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6.2 Research limitations and ideas for future research
Research limitations
• This proposal is based on small amount of data and field research and could not be
facilitated based on empirical studies.
• This study lacks academic research on similar topics possibly conducted by other
churches.
• While emphasizing the results of personal experience and lessons learned, the nuts and
bolts of actual business development are not fully presented.
Ideas for future research
• Research and develop practical Unification theory of economics and business, embracing
New Testament theory and practice.
• Research past Unification small businesses in detail for applications to local FFWPU
business.
• Study successful business structures and practices by Christian churches, like Mormons
and evangelical megachurches.