So many businesses, like so many employees, just show up, make their widgets, and sell their widgets. It’s clear however that a business that leads with their purpose in the marketplace performs better. Some stats via my friend Barry Chandler over at Storyforge:
- Only 20% of companies worldwide are seen to positively impact people’s lives.
- Of 50,000 brands studied over a ten year period, the top 50 financially performing brands pursued purpose ahead of profit, creating increased shareholder value.
- These same brands outperformed the S&P 500 by 400%.
Some example companies: Apple, Dove, Chipotle, Zappos, Red Bull, and Starbucks. These companies are built on the concept of improving lives in some way.
Here’s my take on a formula that gets us where we want to go:
- Intent + Problem = Product.We have some sort of intention, like working in a particular industry, and if we match that with a problem we can create a product.
- Intent + Problem + Customer = Great Product. If we involve potential customers in the design process we can create a great product.
- Great Product = Opportunity to Sell. Even with the best product we merely have the opportunity to offer it to the marketplace. We need to attract customers to buy the product.
- Great Product + Purpose + Customer = Sale. We attract those customers with a deep purpose that goes far beyond the utility of the product.
- Great Purpose = More Sales. It stands to reason that if a potential customer shares our purpose they are more likely to purchase our product. These are customers that would normally go elsewhere. Additionally, working from purpose creates happier, more engaged, more productive employees who are ultimately going to work harder and be bigger ambassadors for the company when they believe in its purpose.
- Position Your Purpose = Sustainable Business. Articulating and sharing your purpose well creates a sustainable business.
This last piece is complex because it involves every aspect of your business: product design, marketing, sales, operations, and customer support.
To Do This Week: Pursue the exercise of filling in the blanks in the formula for your business. Can you articulate your purpose clearly? Are you?
A purpose focus is a win for customers, employees, community, and bottom line. Need some help with this? Give Barry a shout or let me know and I can introduce you.
Share where you stand with the purpose formula. Click the “comments” box below to participate in an on-going discussion via LinkedIn.