Clearly defining your mission and purpose can positively impact your business growth and overall valuation
In his iconic TEDx Talk, Simon Sinek discussed the importance of understanding your “Why” – the reason that your company exists. This goes far beyond the actual function of what you do; it’s a deeper purpose that forms the mission of your business. Your “Why” draws an emotional connection between your business and everyone else in your company’s circle. This includes your customers, your employees, and your outside partners.
Sometimes, as our companies grow, we can lose sight of why we started our businesses in the first place. Figuring out your purpose requires some analysis and organizational soul searching. What is the underlying message beyond the product or service you sell?
Rather than focusing on what you do, dig deeper to discover your purpose. Instead of saying “We make ice cream in 50 different flavors,” you can draw a stronger connection with “We believe in personal freedom. And freedom means not being forced to choose between A and B.”
And by extension, you can then build this into your marketing message: If you value personal freedom like we do, then you’ll love the fact that we offer 50 flavors of ice cream. Life is too short to settle!”
See the difference?
When you understand your purpose, you are in a strong position to attract loyal, long-term customers who feel a strong connection to your mission and message. As Simon Sinek professes, “People don’t buy what you do they buy why you do it.”
At Peek Advisory Group, we understand our “why.” While our services focus on valuation, strategic accounting, financial management, and transactional support, that is not our mission. If you ask any of our professional advisors why we exist, they will tell you: “Our mission is focused on building the future of women-led businesses.” This powerful notion resonates with our clients and our workforce.
Why Focus on Why?
Understanding your mission is not only good for your personal clarity, it’s good for your bottom line. According to Accenture, consumers “…support companies whose brand purpose aligns with their beliefs.” In other words, increasingly, consumers are basing their buying decisions not only on the quality of a company’s products and services, but also on their values and their missions.
Additionally, focusing on your “Why” is also good for workforce development, employee retention, and long-term growth. As many small business owners have discovered, the key to their success and continued profitability lies in the strength of their teams. In today’s competitive and socially conscious environment, employees are seeking to join companies with strong missions. According to research by Gallup, “Millennials don’t just work for a paycheck — they want a purpose.” And while Millennials are just one segment of the workforce, this desire to find purpose in one’s work spans all generations.
And according to Glassdoor’s 2019 Mission and Culture Survey, 79% of respondents “…would consider a company’s mission and purpose before applying.” The key takeaway: If you want to attract, retain, and inspire employees, then get clear about your mission. When employees find their work meaningful, they are more engaged, which leads to increased productivity, less turnover, greater customer satisfaction, and higher profits.
Rediscovering your “Why” is important for your company’s success. Not only can it lead to a higher valuation and a stronger connection with your customers and employees, it can also renew the spark and motivation that you had when you originally started your business.