I was honoured to join Startup Canada as advisor during their recent #StartupChats on How to Find Your Business’ Purpose, powered by Sovereign Insurance (@SovInsurance). The event had 26 contributors and 21.1 million impressions. Here are my answers to the questions:
- Why does every startup need a well-defined purpose?
Anyone can get anywhere if they keep traveling, but when you have a well-defined purpose, things either clearly ‘fit’ or don’t, and as such you get there faster!
- How can an entrepreneur tell when they’ve created the right purpose statement for their business?
The right business purpose statement communicates why your organization does what it does, which targets the emotional center of brains, which neuroscience has shown us is how people make decisions.
- What can happen if your company doesn’t define its purpose?
If your company doesn’t define its purpose you end up getting distracted by things outside your sweet-spot and confusing your internal and external customers and partners.
- How do business purpose and business strategy connect?
Business strategies should be designed for and measured by how well they achieve your business purpose.
- What’s the difference between mission, vision, and purpose?
Purpose communicates ‘why’ your business exists.
Mission communicates ‘how’ you do what you do.
Vision is ‘what it looks like’ when you’ve done it.
- Can a well-defined purpose really drive a company forward?
A well-defined business purpose steers a company forward by ensuring both internal and external customers focus on ‘why’ the business exists and don’t lose track of the forest for the trees.
- How should entrepreneurs inspire employees to support their business purpose?
Entrepreneurs should inspire employees to support their business purpose by leading by example, baking it into all systems — from application to employment, and incenting/celebrating it when they live it.
- How can entrepreneurs communicate their purpose to their employees and to Canadians everywhere?
Entrepreneurs communicate their purpose to their employees and to Canadians everywhere by living it, baking it into their systems/culture/communication plans.
- What competitive advantage does a startup with a strong purpose have?
A startup with a strong business purpose is more likely to attract the right customers — both internal and external — which is a better, faster and cheaper way to grow and auto-magically deters the wrong folks as a bonus!
- When a company has a strong sense of purpose, how does it impact organizational culture?
Culture is better when a company has a strong sense of purpose, as the values of its customers — both internal and external — will be more aligned, work better together and as such, be happier and enjoy more success!
- What are your final words of advice for entrepreneurs trying to define their company’s purpose?
A company’s purpose is an integral part of its brand identity and ideally needs to be cemented BEFORE the brand is launched.
The wakelet can be found here.
Have you defined your business purpose statement?
If so, please add it to the comments below. If not, get working on it, because as I’ve indicated above, it is a key part of your brand. Here’s ours…