In recent posts, I have written about a productivity framework and the time management skills…
How to Define Your Business Purpose.
When you start a business, an important first step is to define your Business Purpose!
That is; why does your business exist – from the customer perspective?
In today’s world, where differentiation is difficult, having a clearly defined Business Purpose is essential!
Money is an Outcome Not a Business Purpose.
Common responses to the question of “What is your Business Purpose” are:
For larger organisations;
While this approach may deliver success for a time, it is not sustainable!
If your focus is internal, the business will lose its way and customers will drift elsewhere.
History is littered with examples of businesses that once enjoyed great success, but failed because they prioritised profit above all else. Their growth stalled as competitors with a stronger customer focus, eroded their market share.
Running a profitable business is clearly important, however profit should be an outcome of what you do, NOT the primary driver!
Profit is NOT a Business Purpose!
What You Do is Not Your Business Purpose.
When deciding your Business Purpose, it is important not to confuse what you do with your Purpose.
Your customers purchase what you provide simply as a “means to an end”.
They use your product or service as a means to satisfy a need, achieve a goal, feel better, solve a problem, save time, avoid frustration etc.
Your product or service is simply the tool they use to this end.
How to Define Your Business Purpose.
To define your Business Purpose, consider the following questions:
These questions are about looking at your business from the CUSTOMER perspective.
As you work through the questions, a sense of your Business Purpose will begin to evolve.
Values, Hidden Secrets, and Non-Negotiables!
Other questions to help define your Business Purpose include:
All the foregoing exist for a reason – and may point towards what your Business Purpose!
Define Your Business Purpose: Involve all Stakeholders.
To get the best outcome, involve all your team members – seek their input.
Employees who deal directly with customers, are likely to provide some great insights!
Engaging employees in the process, can also help them discover a deeper meaning in their daily work!
The best way to gather this data is to provide the foregoing list of questions to everyone who will be involved. Ask they consider answers before the meeting.
Give each person the opportunity to put forward his or her responses to each question – importantly, without debate.
Having done this:
(Depending on the size of the business, this process may require more than one session)
Create a Short Purpose Statement.
The next & often the most challenging, step, is to create a short “Purpose Statement”. One that defines what the business is about. Its essence, reason for existence!
If it doesn’t jump out at you – go over the data gathered, highlight words or phrases that stand out, or which are repeated.
By this stage, you may have a sense as to the “essence” of your Purpose – but can’t quite find the right words to express it.
If it is still not clear – keep information handy, where is it is visible to you and the team.
The key is to not try to force it. Simply leave it be and reflect upon it. The right words will invariably appear, often when you least expect it!
You will know it when it appears as it will “feel” right!
Examples of Purpose Statements.
Some examples of Business Purpose Statements include:
A powerful Purpose Statement says nothing about revenue or profit – it focuses on the impact the business hopes to have on its customers and the world.
A structure to develop your Purpose Statement that Simon Sinek suggests is:
Create Guiding Principles to Bring Your Purpose to Life.
The final step in the process is to create four or five “Guiding Principles” to ensure you, and the team, bring the Purpose to life.
These will be things that you will do with EVERY customer to ensure the essence of your Purpose is “lived” by everyone in your business.
They essentially become a “checklist” to ensure your promise is delivered!
A Clearly Defined Purpose Makes Great Business Sense.
A business without an over-arching and compelling sense of Purpose, tends to lose its way and drift – restructures, and changes of tack, are common!
High customer turnover, and continually needing to find new customers to replace those that have disengaged, is another!
The lack of a clear Purpose directly impacts the business bottom line!
A clear Business Purpose on the other hand, provides direction and shapes everything you do in the business!
It provides a simple and powerful framework for decision-making!
Because so few businesses invest the time to define their Business Purpose, it can set you apart in the marketplace.
From a marketing perspective, it provides the foundation of a great story your customers will remember and share!
If you would like to learn more, or need assistance to define your Purpose, don’t hesitate to get in touch.
Bruce Hall.
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