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Becoming one entrepreneur and creating a company that creates positive change it's a dream that has fueled ambitious people since the dawn of the modern economy.
But where to start? How will you create a meaningful product or service that stands out among today's highly competitive noise and saturated market? The traditional way of finding a niche and competing on quality or price is no longer sufficient.
Today, if you really want consistent and evangelical customer loyalty, you must offer an authentic product or service that resonates with customers on an emotional level. It's important to connect them with other people, making them genuinely feel like they're part of something bigger than themselves. In short, you need to start a movement.
For hundreds of years, social movements they 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 in Washington with tens of thousands of supporters as part of the Civil Rights movement. of Nelson Mandela fist raised after his release from prison after 27 years he became a powerful symbol in the movement that destroyed apartheid in South Africa. The women's suffrage movement struggled for a century to achieve voting rights for women in America. Each of those historic, world-changing movements was anchored in a unifying and overarching force: purpose.
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You might think that those historic moves were important, but what does that have to do with it? business success? What does purpose have to do with business? STUDIES AFTER STUDY shows that you can't even think about starting a business in today's economy unless it's driven by a clearly defined, tangible and unique purpose. By doing so, you and your team members will be much happier in the process, as supported by Harvard Business Review AND other reports.
Purpose equals “why”? The “why” includes a company's contributions and impact on the world. It is the company's raison d'être and the reason they are in business in the first place. The goal is an enabler, a channel and a tool, driving the innovation of the world economy. Blackrock CEO Larry Fink, say“Without a sense of purpose, no company, whether public or private, can reach its full potential.”
Some of the most successful companies have embraced this ethos and are completely rooted in purpose. When we look at Tesla, we might think that its purpose is to sell cars, which is part of it. But it is DECLARING The real goal “is to accelerate the world's transition to sustainable energy.” This goal is what fueled the EV revolution—a global movement that EMPOWERING EV car sales from 0.4% of the light vehicle market in 2004 to 15.8% in 2023. And while driving the EV movement, Tesla continues to be its leader. In 2023, it held 19.9% of the global EV market and is the most valuable car company in the world.
of very profitable The clothing company Patagonia is another example of a company that started a movement based on its purpose. In 2022, the company, long known for its environmental activism, doubled its goal, which has been updated to “In business to save the planet.”
But it was more than a statement. With his goal well defined, Patagonia's founder, Yvon Chouinard announced the transfer of ownership of the company ($3 billion in global assets and $100 million in annual profits) to a trust fund, with its dividends going to environmental protection organizations. With this bold support of her movement, Chouinard DECLARING“The earth is our only shareholder.”
In the present day purpose driven economy, identifying that unifying purpose for your company—your north star—is the most critical aspect of starting any business or social enterprise. Purpose-driven companies earn more moneythey have more engaged employees AND more loyal customers and are even better at innovation and transformative change.
Consumers are increasingly supporting businesses that stand on principle. According to accentuation, 62% of consumers want companies to take a stand on important social issues such as sustainability, transparency and fair employment practices. The demand for authentic and purpose-driven companies is stronger among younger generations. According to Deloitte, “millennials are leading this societal 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 peril, as millennials .(those aged 28-43) count 15 trillion dollars in global purchasing power.
As a financial powerhouse, Deloitte is probably not the first company that comes to mind when thinking of a purpose-driven firm. However, it is a strong proponent of the belief that exceptional organizations are driven by purpose. To reinforce and advance Deloitte's purpose, it appointed its first ever chief executive and created a Purpose office. Its goals are to continually embed purpose into the organization's strategy and deepen the impact and positive change they are making for customers, people and communities.
Trust in a company has long-term benefits by building brand loyalty and turning customers into advocates for your product. According to Edelman, “trust drives growth. When consumers trust a brand, they are more likely to buy its products (59%) and to remain loyal and advocate for the brand (67%).
A company's purpose should start at the top. Whether it is 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 commitment to purpose reflected in their actions head; otherwise, the stated purpose becomes nothing more than a catchy slogan that fails to resonate with consumers.
Infusing purpose into your new venture is not just a trend, but a necessity to compete and thrive in the modern economy. To stand out, inspire trust, and create 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 operation.
By defining and articulating your purpose, you are laying the groundwork for starting a business and, perhaps, even a movement. If you do it right, both can create value and help change the world.