While there are a number of small business in a broad range of industries that perform well and are continuously profitable, 20% of small businesses fail in the first year. 50% go belly up after five years, and only 33% make it to 10 years or longer. According to the small business administration (SBA).
Many of the cause of those business failures has been credited a lack of capital or funding. Retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. Get very few has been mentioned about a lack of purpose.
I am firmly convinced that not understanding your “why” can bring about a upfront disaster to your business. Think of airbnb, Nike or Apple, what did all these companies shares? Apart from hugely successful, they all share a strong purpose. And this strong purpose tremendously contribute to there success.
It’s amazing how many business owners and their teams go through the motions of running their businesses on a day-to-day basics. Without understanding the purpose behind what they are doing. You might as well be a zombie. Business without a purpose don’t have heart. They don’t stand for anything, and as a result, they don’t stand out from other. Successful business owners both understand their purpose, and can articulate it from there team.
Right now, because of our vast option for choice, people instinctively want to be a part of companies that promise to change things for the better for them, and customers view purpose-driven brands as being more caring and, as a result, they are more loyal. To them, Core and porter noveli consumer research. Shows that 67% of companies with a purpose care more about them and their families. 79% said they’re more loyal to purpose brands. And 73% said they would defend them. Another 67% said they are willing to forgive such a company for a mistake.
As business owners and entrepreneurs, its time that we stop as “soft” concept with no input on the bottom line and look at the pitfalls of not entrenching a strong purpose within our organizations. It needs to be entrenched by the future processes of the company.
Because there is a difference between what you believe your purpose is. And what your company behavior suggest. Your purpose truly is.