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Becoming an entrepreneur and starting a business that creates positive change is a dream that has driven ambitious people since the dawn of the modern economy.
But where do you start? How can you create a meaningful product or service that stands out from the noise of today's highly competitive and saturated market? The traditional way of finding a niche and competing on quality or price is no longer enough.
If you really want lasting and compelling customer loyalty today, you need to offer an authentic product or service that appeals to your customers emotionally. It's important to connect them with other people and give them a real sense of being part of something bigger than themselves. In short, you need to start a movement.
For hundreds 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 marched on Washington with tens of thousands of supporters as part of the civil rights movement. Nelson Mandela's raised fist upon his release from prison after 27 years became a powerful symbol in the movement that overthrew apartheid in South Africa. The women's suffrage movement fought for a century for women's right to vote in America. Each of these historic, world-changing movements was anchored in one unifying and all-encompassing force: purpose.
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You may think that these historic movements were important, but what does that have to do with business success? What does purpose have to do with business? Study after study shows that in today's economy, you can't even think about starting a business if it isn't driven by a clearly defined, tangible, and unique purpose. If you do, you and your team members will be much happier in the process, as evidenced by the Harvard Business Review and other reports.
Purpose is the equivalent of “why?” The “why” encompasses a company's contributions and impacts on the world. It is the company's reason for existence and the reason it is in business in the first place. Purpose is an enabler, a conduit and a vehicle that drives innovation in the global economy. Larry Fink, CEO of Blackrock, says, “Without purpose, no company, public or private, can reach its full potential.”
Some of the most successful companies have embraced this ethos and are fully rooted in it. When we look at Tesla, we might think its purpose is to sell cars, which is part of it. But its stated true purpose is “accelerating the world's transition to sustainable energy.” It is this purpose that has driven the electric car revolution – a global movement that has seen electric car sales grow from 0.4% of the light-duty vehicle market in 2004 to 15.8% in 2023. And although Tesla kicked off the electric car movement, it continues to be its market leader. In 2023, it held 19.9% of the global electric car market and is the most valuable car company in the world.
Highly profitable clothing company Patagonia is another example of a company that has created a movement based on its purpose. In 2022, the company, long known for its environmental activism, doubled down on its purpose, updating it to “In business to save the planet.”
But it was more than just a declaration. Patagonia founder Yvon Chouinard had clearly defined his goal and announced the transfer of the company's assets ($3 billion in global assets and $100 million in annual profits) to a trust fund whose dividends would go to environmental organizations. In this bold support of her own movement, Chouinard declared: “The Earth is our only shareholder.”
In today's purpose-driven economy, identifying that shared purpose for your business – your North Star – is the most important aspect of starting a company or social enterprise. Purpose-driven companies make more money, have more engaged employees and more loyal customers, and are even better at innovation and transformative change.
Consumers are increasingly supporting companies that stand by their principles. According to Accenture, 62% of consumers want companies to take a stand on important societal issues such as sustainability, transparency and fair employment practices. Demand for authentic and purpose-driven companies is strongest among younger generations. According to Deloitte, “Millennials are driving this societal trend, with 40% of respondents believing that the goal of companies should be to 'improve society.'” Those who ignore the intersection of business and purpose do so at their peril, as Millennials (28-43 year olds) represent $15 trillion in global purchasing power.
Related: This CEO says prioritizing purpose over profit is the key to steady growth and sustainable profits—here's why.
As a leading financial firm, Deloitte is probably not the first company that comes to mind when you think of a company with a purpose. Yet the firm is a strong advocate of the belief that exceptional organizations are led by purpose. To underscore and advance Deloitte's purpose, the firm appointed its first Chief Purpose Officer and established a Purpose Office, whose goals are to consistently embed purpose into the firm's strategy and amplify the impact and positive change it creates for clients, people and communities.
Trusting a company has long-term benefits because it creates brand loyalty and turns customers into advocates for 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 and advocate for 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 led by a CEO, the leader sets the tone and must lead by example. Employees must see that commitment to purpose is reflected in the leadership's actions. Otherwise, the stated purpose becomes nothing more than a catchy slogan that doesn't resonate with consumers.
Giving a new business purpose is not just a trend, but a necessity to compete and succeed in the modern economy. To stand out, inspire trust, and build lasting connections with consumers—in other words, to build a movement—today's companies and organizations must find their purpose and fully embrace it until it permeates every part of their operations.
By defining and articulating your purpose, you lay the foundation for creating a business and maybe even a movement. If done right, both can create value and help change the world.
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
