The Power of Purpose In Business
We bet there isn’t anyone who hasn’t heard of the word “purpose”.
However, many small-sized business owners and individuals are not aware of its true meaning and importance in these challenging times, which is why they often fail to achieve their goals.
In today’s world, having a purpose behind your brand is as important as having a logo for your brand. A strong and articulate purpose will bring consistency, clarity and alignment to your business, and it will automatically be communicated to your customers.
So, how important is it really? Let’s find out.
What Is Purpose?
First, let’s take a look at what purpose is. For an individual, purpose is basically the reason for their existence. However, if you look at it from a business point of view, it could be defined as a company’s reason to exist that is in line with its goals and financial performance in the long run.
Purpose could help in effective decision-making, motivating, and unifying the employees and the stakeholders. It could also help direct small-sized business owners and solopreneurs to pursue their objectives with the incredibly strong motivation to serve their customers and care for their well-being. All in all, purpose is the cornerstone of a company’s identity and strategy.
Why Does Purpose Matter?
Now, as far as businesses are concerned, those that have an articulated purpose tend to show better growth when compared to other businesses that haven’t developed their purpose.
Another reason why purpose matters, especially to small businesses is that it helps provide significant benefits when it comes to managing its employees. Naturally, employees working for purpose-driven companies are likely to find their work more meaningful.
Top 3 Advantages of Having A Purpose
1. Provides A Reason d’Être
Purpose provides your brand with a reason to exist. As a business-owner, having a purpose will help you to achieve higher and meaningful objectives. If you believe that your brand matters and that they can make a difference, you will stay grounded in purpose.
2. Helps Develop Organizational Identity
A strong purpose often acts as the starting point to developing your business’s identity. Purpose is always deep-rooted in the vision, values, needs, and aims of a business, and therefore helps develop its identity.
3. Provides Context For Decision Making
Another advantage of having a purpose, especially for small-sized businesses is that it offers context for decision making. If you as a business owner are conflicted between two decisions, go back to your purpose and see which path serves your purpose. This will also help keep every action of your business aligned with your brand values, which are rooted in your purpose.
Why Is Purpose So Important Today?
Purpose has always had an impact on businesses and individuals. However, with the disruption that COVID-19 caused, its importance has magnified.
People are no longer accepting brands that do not have a particular sense of purpose. In fact having a purpose today helps tell your brand’s story to both customers and employees alike. With tons of businesses looking to hire more employees and employees planning to leave their employers, purpose plays a huge role in their decision making.
How To Make The Power Of Purpose Work?
Now that you know the importance of having a purpose, and hopefully also have a sense of what your business’s purpose is, you must be wondering what the next step is. Whether you are a business-owner or an individual, this is how you can make your purpose work:
Alignment is by far the most important element of purpose. There is no denying that people (employees) tend to be more engaged in their work when they feel like the company’s goals and mission matter to them. And when they feel like they are making a significant contribution to its growth.
For instance, a waiter at a coffee shop contributes to the customers’ opportunities to get together in community and conversation. Similarly, an industrial worker, making door knobs and hooks contributes to society’s need for efficiency and beauty.
Small-sized businesses that develop a strong purpose and enable their employees to evaluate their contribution to it are bound to make significant financial gains in the long haul. Not to mention, such businesses experience lower employee turnover and are successful to keep their employees motivated throughout.
In order to implement your purpose the right way, you need to keep the following four actions in mind:
First and foremost, you, as a small-sized business owner, should clarify your business’s purpose, especially in your business strategy. You would also want to explain the purpose of the company to your employees in detail. Make sure that you clarify what differentiates their purpose and what makes their contribution towards it unique.
Then, jott down the purpose of your business and revisit it on a daily basis to ensure it stays fresh and relevant.
Make sure that you communicate the purpose regularly and broadly to your employees. The idea here is to constantly remind them the reason the company exists and the goals it is trying to achieve. This will ensure that the employees don’t lose focus and realize the importance of their work.
c) Choose Judiciously
Next, you need to choose judiciously. As a solopreneur or a small-sized business owner, you can use “purpose” to set out your strategic choices. You can also use it as you define the future plans and the markets.
If you are an individual or an employee, you can choose a job that’s the closest to what matters to you the most. And don’t forget to remind yourself how small tasks can lead to something that’s even bigger than you. After all, “little drops of water make the mighty ocean,” right?
3. Keep Monitoring
Last but not least, reassess, reevaluate and monitor on a daily basis. Always remember that circumstances may change down the road, and you will have to shift and adapt. In order to grow your business, you need to have a resilient mindset.
Purpose is undoubtedly important for both individuals and small-sized business owners and its power cannot be denied.
That said, it doesn’t have to be difficult to implement. We strongly recommend keeping the bigger picture in mind and align the actions in a way that matters to you/ the business the most.