How to Build a Purpose-Driven Business (and why you should)
What’s more important—profit or purpose?
It’s easy to say “purpose,” but let’s be real.
When bills are piling up and you’re just trying to make ends meet, profit often takes priority. Many entrepreneurs feel torn between the two, but more and more are discovering that purpose-driven work can lead to both societal benefits and long-term profitability.
Let’s dive into how purpose and profit can work together to create businesses that are not only successful but also meaningful.
Profit is a Measure of Value
Profit is usually seen as the ultimate goal in business; The clear indicator of success.
We assume the more money a company makes, the better it is at what it does. But profit is a reflection of the value a business brings to the world.
When a company creates value for its customers, employees, and community, it earns profit as a natural byproduct.
Profit becomes a measure of impact. The more value you generate—whether through great products, exceptional service, or contributing to the well-being of your community—the greater your profit potential.
Purpose-Driven Business Model
A business built on purpose is not simply focused on making money; it’s committed to a cause that resonates with its customers and stakeholders.
Your customers are more likely to support businesses they believe in, and this loyalty leads to less churn, better customer retention, and more word-of-mouth referrals.
For example, Harbor is an e-commerce business dedicated to helping parents get better sleep by providing an innovative baby monitoring system. The company's purpose isn’t just about selling a product; it’s about improving the quality of life for parents and ensuring the safety of their children. This kind of purpose-driven mission often results in a deep connection with customers, who see the brand as a partner in their parenting journey.
Investing in Community vs. 'Paying Back'
The idea of "paying it forward" is noble, but purpose-driven businesses invest in their communities in a meaningful way. Rather than donating out of obligation, they create lasting structures of support, whether through partnerships, job creation, or solving real-world problems.
Harbor focuses on helping parents by addressing sleep challenges, providing lasting value that goes beyond the product.
Purpose and Profit Can Coexist
Purpose and profit don’t have to be mutually exclusive. When businesses prioritize purpose, they naturally build trust, loyalty, and long-term growth. By aligning values with operations and staying true to the mission, profits follow as a result of doing the right thing.
A purpose-driven company not only generates revenue but also creates a legacy that people are proud to support.
If you want to build a business that stands the test of time, focus on creating value that benefits not only your bottom line but also the world around you.
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