The Power of Purpose in Business

The power of purpose in business refers to the idea that having a clear and meaningful purpose can drive success and create a significant impact. This is a concept that I think many business owners need to revisit and refresh their memories on. 

To understand the business purpose, it is important to distinguish it from your company's vision or mission.

So, what is the core purpose of your business?  Put another way…. What is your WHY?  Or what is the fundamental reason your company exists? It's not about the specific product or service you offer and it's also not directly about making money. That's not to say your current offering or financial goals aren't important, but those things will change and evolve over time, but it goes beyond the traditional focus on profitability and market share. 

A purpose-driven business is one that operates with a higher mission or cause, beyond just making money.  When a business has a strong purpose, it serves as a guiding force that influences decision-making, shapes company culture, and inspires employees and customers alike. 

Examples of purposes of your business might be:

• Transparency: Transparent communication for clients and/or staff.
• Social Impact: Address societal or environmental issues.
• Innovation: Develop groundbreaking products or services.
• Customer Satisfaction: Exceed customer expectations.
• Employee Well-being: Create a positive work environment.
• Community Engagement: Support local initiatives.
• Profit Maximisation: Maximise financial returns.
• Ethical Practices: Uphold integrity and sustainability.
• Global Expansion: Enter new markets.
• Education/Empowerment: Provide knowledge and resources.
• Cultural Preservation: Protect cultural heritage.

When Elaine and I had our real estate business our purpose was to provide exceptional customer service and transparency to both our clients and our staff (in the way of an exceptional and inclusive culture).

Here are a few key ways that having a clear business purpose can help your business: 

1. Employee motivation and engagement: A clearly defined purpose gives employees a sense of meaning and fulfillment in their work. It helps them understand how their contributions align with the broader goals of the organisation. This, in turn, leads to higher employee motivation, engagement, and productivity.

2. Attracting and retaining talent: In today's competitive job market, purpose-driven companies have a greater advantage in attracting and retaining top talent. People are increasingly seeking meaning and purpose in their careers. When a business has a compelling purpose, it becomes an attractive destination for individuals who want to make a positive impact through their work.

3. Customer loyalty and trust: Purpose-driven businesses often connect with customers on a deeper level. When customers align with a company's purpose, they develop a sense of loyalty and trust. They believe in the company's mission and values, which can lead to long-term customer relationships, brand advocacy, and increased customer satisfaction.

4. Decision-making and strategy: A clear purpose serves as a guiding principle for decision-making within the organisation. It helps leaders prioritise actions and initiatives that align with the company's purpose, vision, and values. This focus ensures that business strategies and initiatives are in line with the overall mission, creating a cohesive and impactful direction.

Having a clear purpose in your business gives you the ability to inspire and motivate employees, attract loyal customers, guide decision-making, and create a positive impact on society. It goes beyond financial success and focuses on making a meaningful difference in the world.