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Becoming an entrepreneur and creating a company that creates positive changes is a dream that has guided ambitious people since the starting of the modern economy.
But where do you begin? How are you able to create a meaningful product or service that stands out from the hustle and bustle of today’s highly competitive and saturated marketplace? The traditional way of finding a area of interest and competing on quality or price is not enough.
If you wish truly lasting and evangelical customer loyalty today, you could deliver an authentic product or service that resonates with customers on an emotional level. It’s necessary to connect them with other people so that they truthfully feel like they are part of something greater than themselves. In short, you would like to start moving.
For a whole lot of years, social movements have been catalysts for transformative, impactful and historic change.
Throughout history, they have served as catalysts for profound and transformative change. Dr. Martin Luther King he marched in Washington with tens of 1000’s of supporters inside the civil rights movement. Nelson Mandela raised fist after being released from prison after 27 years, he became a powerful symbol of the movement that crushed apartheid in South Africa. The women’s suffrage movement fought for this for a century women’s voting rights in America. Each of these historic, world-changing movements was anchored in one unifying and all-encompassing force: purpose.
You may think these historic movements were necessary, but what does that have to do with business success? What does purpose have to do with business? Test After test shows that in today’s economy you can not even think about starting a business if it does not have a clearly defined, measurable and unique goal. By doing this, you and your team members shall be much happier, as evidenced by your support Harvard Business Review AND other reporting.
Purpose is the equivalent of “why”? The “why” encompasses the company’s contributions and impact on the world. It is the reason for the company’s existence and the reason it is in business in the first place. Purpose is the enabler, the channel and the vehicle that drives innovation in the global economy. Blackrock CEO Larry Fink says“Without a sense of purpose, no company, public or private, can achieve its full potential.”
Some of the most successful firms have embraced this ethos and are fully rooted in purpose. When we glance at Tesla, we’d think that its goal is to sell cars, which is part of it. But it is he stated the real goal “is to accelerate the world’s transition to sustainable energy.” This goal has fueled the electric automobile revolution, a global movement that driven Electric automobile sales from 0.4% of the light vehicle market in 2004 to 15.8% in 2023. And although Tesla began the electric vehicle movement, it is still its leader. In 2023, it held 19.9% of the global electric vehicle market and is the leader the most beneficial automobile company in the world.
The highly profitable clothing company Patagonia is one other example of a company that began a movement based on its purpose. In 2022, the company, long known for its environmental activism, doubled its purpose to “I am in business to save the planet.”
But it was greater than just a statement. With a well-defined goal, Patagonia’s founder, Yvon Chouinard announced he would transfer ownership of the company ($3 billion in global assets and $100 million in annual profits) to a trust, with dividends going to environmental organizations. Thanks to this courageous support of Chouinard’s own movement decided“The land is our only shareholder.”
In today goal-oriented economyidentifying this unifying purpose for your company – your north star – is the most significant aspect of starting any company or social enterprise. Purpose-driven firms earn extra moneyDo you have more engaged employees AND more loyal customers and they are even higher at it innovation and transformational change.
Consumers increasingly support firms that stick to the rules. According to Accenture62% of consumers want firms to take a stand on necessary social issues reminiscent of sustainability, transparency and fair employment practices. The demand for authentic and purpose-driven firms is biggest among younger generations. According to Deloitte, “Millennials are driving this social trend, with 40% of respondents believing that the purpose of businesses should be to ‘improve society.’ Those who ignore the intersection of business and purpose do so at their own risk, as do millennials (people ages 28-43). 15 trillion dollars in global purchasing power.
As a financial powerhouse, Deloitte probably is not the first company that comes to mind when we think of a purpose-driven company. However, he is a strong believer in the belief that exceptional organizations are driven by purpose. To strengthen and achieve Deloitte’s goals, the company appointed its first-ever chief purpose officer and appointed: Purpose Office. Its goal is to consistently embed purpose in the organization’s strategy and deepen the impact and positive changes it brings to customers, people and communities.
Trust in your company brings long-term advantages by building brand loyalty and turning customers into supporters of your product. According to Edelman, “trust drives growth. When consumers trust a brand, they are more likely to purchase its products (59%) and remain loyal to and support the brand (67%).
A company’s purpose must start at the top. Whether it’s a small business run by a sole proprietor or a large corporation run by a CEO, a leader sets the tone and must lead by example. Employees must see commitment to goals reflected in management’s actions; otherwise, the stated goal will grow to be nothing greater than a catchy slogan that won’t resonate with consumers.
Giving a recent enterprise purpose is not only a trend, but a necessity to compete and thrive in today’s economy. To stand out, build trust, and create lasting connections with consumers—in other words, build a movement—today’s firms and organizations must find their purpose and fully embrace it until it permeates every part of their business.
By defining and articulating your purpose, you are laying the foundation for starting a company and even perhaps a movement. If you do it right, each can build value and help change the world.