A business purpose matters the most in an organization.
A business with a defined purpose stands on a stronger foundation and a more coherent strategy than one that doesn’t.
Whether you’re the owner of a small business, a start-up, or a freelancer, realizing the real purpose behind what you do is essential to your success.
Without direction and engine, it will drift aimlessly, chasing fortune without establishing a business. It is an objective that forms the bedrock and structure of everything we do, and as such, it’s vital to understand what it is.
And that purpose has hardly anything to do with money.
What is a business purpose?
Your business purpose is an aspirational reason for being that seeks to create value beyond bare profit. Several corporate companies spend money defining their purpose with mission and vision statements.
A purpose of business is a big-picture and long-term reason for doing what you do. It rarely changes once a year and can remain constant throughout a career. Yet revealing what this intent is and drafting into words can be difficult.
For some, it remains permanently hidden as they chop and change ideas and strategies without knowing their motive. If you keep hopping from one shiny object to the next, you’re likely missing a bigger purpose in business and life.
How is a business purpose important?
Whether you’re a solopreneur or a team leader, a properly defined business purpose matters for several reasons. For example, a structured purpose:
Provides fresh perspectives
A clear purpose renders you fresh perspectives. When you understand why you do what you do, you have a clearer vision of your objectives. Clarity on your motive of work and mission allows you to see the broader context and your place within it. It helps you be in a better position to spot new opportunities.
Fosters agile thinking
A structured purpose naturally leads to agile thinking. You can adapt to changes faster than you would if you are foggy about your identity and direction. Agility in marketing planning and business growth strategies is key to success, especially when things go wrong. To be agile allows you to pivot to meet new expectations and take advantage of changing trends and technologies.
Reduces fear
Having a clear business purpose reduces fear and the fog of uncertainty. You know who you are and what your capabilities are. Your identity becomes distinct, and as a result, your voice becomes sturdy. You will have a solid foundation from which your every action grows and flourishes.
Connects your workforce to something greater
A well-described purpose connects people to something greater than themselves. It is especially crucial in a company with a hefty workforce, but it can also apply to small start-up firms and solopreneurs. A freelancer with a defined and passion-fueled purpose will likely find fulfillment in lending a hand to a specific cause or industry.
Creates a reference point
A good purpose creates a reference point from which you can measure all progress and activities. Knowing your reason for work and what you want to achieve allows you to judge whether what you are doing measures up to your brand and goals. Your progress is evident with a defined purpose in position.
Why does a business purpose matter the most now?
A purpose has always impacted people and business, but the disruption of the last two and a half years magnified its importance. The times when we were not able to go out frequently when we were isolated from our family and friends, and when things turned upside down reminded us of what mattered to us. Due to their absence or discombobulation, we realized what we needed and desired for a fulfilling life. The purpose of building a business has been brought to the top of mind for the users.
Moreover, we are in the midst of nothing less than a talent revolution. With 40% of people saying they plan to leave their current workplace (based on a Microsoft survey) and 43% of businesses reporting they will seek to increase headcounts (based on a McKinsey study). When people choose to leave a company, join a new organization or remain with their current role, the purpose will be a crucial factor influencing their choices.
Final thoughts
A defined business purpose is significant for your business, regardless of what stage it is at in its development. Your purpose fuels your business growth strategies and is the engine behind your entire brand.
It’s critical to identify why you do what you are doing and to put this into words for everyone to understand. By doing so, you form a stronger connection with your target audience and make the goals and direction of your entire brand clear to yourself.
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