Purpose-Driven Business 101

Welcome back, Impact Citizens!
If you are considering entrepreneurship and you want to learn about how you can use your business to make a difference and make money – this blog is for you. There is a lot of technical business jargon in this one, so hang in there with me because this will help you understand how to establish an organization of purpose and use it to amass resources.

What is the real purpose of business?

Ultimately and ideally, business should be about bringing quality of life to stakeholders, increasing wealth, allocating resources to satisfy needs, and assigning influence to affect social and environmental development. Competitive markets allow for consumer choice in products and services, and employment empowers, equips, and produces income, all aiding in the pursuit of a higher standard of living. Voluntary transactions of transferring assets (whether that is monetary assets, human capital, raw materials in manufacturing, or equipment) from low-valued uses to higher-valued uses through commercial dealings increases profit and helps to acquire additional company resources.

There are needs and perceived needs derived from scarcity and deficiency, which a well-modeled company can distribute and assign to work together to satisfy those needs in society. Corporations inherently have authority and influence in their sphere of trade. Rather than wielding this power as a negative force for self-interested gain and manipulation, this influence can be utilized as a mechanism for social justice, ethical commerce, and environmental change. This is the real purpose of business.

What is a purpose-driven business?

A purpose-driven business is simply an organization that intentionally works towards a unifying goal. The reason the business started drives the motivations of management to work to see that overall target achieved. Every decision made for the company’s development and growth considers how it can improve its stakeholder’s quality of life, yield higher returns, satisfy the customers’ needs, and employ its influence for the greater good.

Every strategy, communication, evaluation, and decision is deliberately made for the organization’s purpose. It takes perseverance and commitment to the cause from every department to see success in a purpose-driven business. Effort that works against the company mission eventually pulls the company further away from its purpose.

Defining your business' purpose.

“The purpose of life is a life of purpose” ~ Robert Byrne

This goes for the corporate world too. Your purpose is your why. Is it to bring education to impoverished communities in Northern Africa or save the sea lions or produce a quality product that raises awareness for human trafficking or develop technology to reduce carbon emissions or provide an excellent service to decrease the mental health cases in your city?

Once you know your why, you have to communicate that effectively to all your stakeholders. The best way to do this is in a purpose statement. This can be the same as your mission statement or written up separately. This way every stakeholder that interacts with your company identifies your business by this and recognizes what you are working towards. Purpose statements should invite people to join in to see your mission accomplished – whether that is through purchasing products/services, volunteering, donations, applying for a job, spreading the word, becoming brand ambassadors, or through advocacy.

Define your business purpose in a summarizing statement that is:

  1. Concise and easy to understand.
  2. In alignment with your branding.
  3. Gets to the heart of your business.
  4. Uses inclusive wording.

As you construct your purpose-driven business, remember to differentiate yourself from all the other latest do-good firms through your purpose statement to accumulate funds that will support your vision and mission.

Remember you are a history-maker. 

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