Tips for building a purpose-driven business
All businesses have a common purpose: to make money. But for many business owners, it's about more than revenue and profit. It's about making a real difference in the world by introducing products and services that improve people's everyday lives. Purpose-driven businesses inherently operate on the principle that their existence serves a greater purpose. These range from addressing social issues such as poverty and education to environmental issues such as sustainability and conservation. What matters is that purpose is authentic and deeply embedded in every aspect of your business, from decision-making processes to product development and customer engagement.
Purpose-driven businesses are more likely to grow than businesses that aren't focused on a specific purpose. According to the Kantar Purpose 2020 Study, brands recognized as having a highly positive impact defined by their purpose experienced 175% growth over 12 years. In contrast, brands perceived as having low purpose increased by 70%, and brands perceived as having medium purpose increased by 86%. Whether you're an experienced or aspiring entrepreneur, understanding how to build a purpose-driven business to overcome challenges will help you build a world-changing company ready for growth. help generate.
Fundamentals of purpose-driven business
“To build a purpose-driven business, you first need to define your core purpose and values. You need to be able to clearly explain why your business exists, beyond making a profit. What positive impact do you aim to have on your customers, your community, or the world? Once you define your purpose, let it guide every aspect of your business. says Leah Dergachev, Founder and Chief Storyteller at Austley.
Some companies find purpose through vision and mission statements. Some are built to solve specific challenges. “When my daughter was born with a rare genetic disease that robs her of her natural ability to breathe, I had no choice but to get creative and develop tools to improve her quality of life.” explains her CEO and founder Michael Herrondo. Body Balance Systems manufactures red light therapy beds.
“There are many ways to create the future you want to see through your business, including being thoughtful about who you hire, how you pay them, and what you buy. If you’re thinking about how to incorporate purpose into your business, , we recommend starting with your vision for the future. What is your North Star in terms of making an impact? If you could change one thing about the world, what would it be?” at Executive Coach. says Rhys Best, founder of Girls Club Collective, a leadership lab for women.
She added, “From there, work backwards and ask: How is your business uniquely positioned to contribute to that vision?” What is your biggest opportunity to leverage that or make a positive impact through your product or service?”
21st century consumers are increasingly looking for brands that align with their values. “Today's consumers are digitally confident and purpose-driven. They are well-informed and focused on finding brands that align with their values. companies are going to have to raise the bar to pass the call,” said Carl Haller, Global Leader, IBM Consulting Consumer Center of Competency. An IBM study led by Haller found that purpose-driven consumers (defined as consumers who choose brands and products in line with their personal values) accounted for 44% of all consumers, making them the largest segment. It turned out to be occupied.
A purpose-driven business model not only appeals to this demographic, but also fosters loyal customers and dedicated employees. People want to buy from and work for companies that have a positive impact on the world. Additionally, a strong, authentic purpose can differentiate your business in a crowded market by offering a unique selling proposition that competitors cannot easily imitate.
From purpose-driven products to purpose-driven culture
Moving from creating a product for personal purposes to building a business requires intention. “Purpose-driven organizations succeed when their purpose is truly aligned with their strategy and operations,” Rodolphe Durand and Ioannis Ioannou explain in Harvard Business Review. I am. “Overall, leaders have a responsibility not only to lead an organization toward its purpose, but also to live it every day. Their actions, decisions, and communications set an example for the broader organization and serve as a guide to purpose in everyday reality.” It emphasizes the importance of
“In the beginning, I had one goal in mind: to save my daughter and help her live a healthy and productive life,” Rondo says. “The struggle to find well-designed products in the medical industry inspired us to get into this business. We strive to create high-quality, affordable products that can support people in living healthy lives. Every decision we make comes back to this overarching intention, and we live our values every day in the way we interact with our employees, customers and stakeholders.”
Building a purpose-driven business is powerful for companies that want to stand out from the crowd. By defining their true purpose and embedding it into every aspect of their business, companies can foster a resilient culture, build brand loyalty, and make a meaningful impact. This journey will require dedication and adaptation, but the rewards in terms of business resilience, customer engagement, and social impact are huge.
In times of great challenges, purpose-driven businesses stand out as a beacon of hope and innovation, demonstrating that success and social contribution can go hand in hand.
