Does your company have a purpose beyond profit?
Many people think businesses exist solely to provide a product or service in pursuit of profit. But nowadays, they are more than that. More and more entrepreneurs and consumers are embracing the idea that companies can be more than just money-churning machines. That's why businesses for good seek to create social impact.
But being a business for good isn't always easy — especially if you don't know where to start. Here, we will explore the benefits of a business for good and how to turn your for-profit business into a purpose-driven business.
Why a Business For Good is the Key to Success
Corporate success is more than just dollars and cents. Investors, employees, and customers are all now paying closer attention to factors beyond the financial, such as environmental and social standards.
Purpose does more than make a brand unique. It could also highlight a business' evolutionary path. When you leverage your mission as part of your company policies, it becomes a conscious expression of how your company intends to evolve and transform. That's why you need a transformational purpose, not just a passive or linear one.
Here’s what happens when you have a purpose-driven business.
Motivated staff
When your employees connect and align with your purpose, they will feel more engaged and involved with their work. It also boosts companywide staff motivation, increasing productivity and improved output.
Happier customers
When your customers feel they are part of the bigger picture, they will be more loyal to your business. That means they'll return to your brand and recommend you to other people.
Improved business performance
When your people are aligned and heading in the same direction, they can collaborate better and solve problems more quickly and efficiently. So when your business has a purpose, it’s all hands on deck—getting everyone to row in the same direction simultaneously will be much easier.
Better business culture
Culture is the glue that holds your company together. When you have a purpose, it will surely make your business a place that people are excited to arrive at and reluctant to leave at night. Everybody will also have an increased sense of reward and recognition.
Increased employee attraction and retention
Staff turnover can be damaging to your business. Your company's workflow can get disrupted, decreasing productivity and services while costing you money. Being a purpose-driven business could boost employee retention because it empowers employees, leading to increased job satisfaction and overall life fulfillment.
Moreover, it also helps you attract the best talent. Nowadays, employees want to be part of something greater. If your company can offer that, they will be more engaged and satisfied in their jobs. Highly engaged people drive innovation and deliver superior results. Remember, purpose is a powerful motivator for attracting and keeping employees — especially the best talents.
Stronger brand
When you focus on developing and fulfilling your purpose, you create memorable experiences for employees and customers alike, leading to better brand development. Improved brand recognition means your business is more likely to grow and reach more people so that you can increase your social impact and financial security.
How to Make the Transition Into a Business For Good
Transitioning from a business for profit to a business for good will not always be easy. There's a significant amount of work to do, but the benefits far outweight the costs. Here are some steps and tips you could use to make the transition.
Clarify your purpose. The first step to creating a purpose-driven business is clarifying your purpose and mission. That clarity becomes your guiding light for all the strategies and tactics that your business would use. From there, every single decision you make should serve your mission. With a clarity of purpose, your chances of bringing the mission to life will skyrocket.
Understand what motivates your people. Building enough self-awareness and relationship skills is vital to understand what motivates you and your team. The best teams operate with the same purpose, mission, and goal. Having a purpose allows your employees to unite for a common purpose and helps them become closer, more supportive, and more efficient.
Focus on your customers. Every company exists to create value for their customers. If your purpose has nothing to do with customers, it will not drive traction within your company. On the other hand, focusing on creating value for your customers builds trust and patronage.
Bring something to the table. The best way to create a purpose-driven business is to fill a void in the marketplace. It's best to offer something valuable or create something entirely new and different from the what already exists in the market. Just make sure that it's something people need and will truly serve them. Quality and value are both essential.
Hire the right people. Creating a business for good involves hiring people who believe in your purpose. When you speak with candidates, explain your mission and what drives your company. You must find people that believe in your vision, not just want a job. Don't just look at their experience and skills—remember to talk about your core values upfront, ask them questions, and ensure your employees align to your mission and purpose.
Form partnerships for social change. How can your services support society at large? Making a positive impact isn't possible without the proper help and support. Partner with different organizations to fuel innovation, solve society's biggest challenges and help people live healthier, happier lives.
Humanize your brand’s image. If your brand was a human, how would you want them to speak, behave, and help? Defining your brand and humanizing it helps you understand its role in the customers' and employees' journeys to help solve their problems and bring value to their lives. It allows you to define and embody your purpose, thus letting you express and communicate your mission to more people.
Listen to your community. Knowing and understanding the needs and wants of your target community guides purpose creation in the most authentic way possible and informs strategy. From there, your message, actions, tone, and products should support that strategy. Over time, you'll improve your approaches to different challenges and issues.
Empower Your Business by Letting Purpose Drive It
When you instill purpose, everything else falls into place. You cannot build an effective organization unless you mobilize people around a common goal meaningful to them and society. Employees shine brightest when they share common values, goals, and beliefs beyond their daily roles.
Are you looking for a virtual CFO? Book a call with Profit Reimagined today. You can also browse our website to see the virtual CFO services we offer and what we stand for. When you sign on with us, we hold nothing back in ensuring that we understand your mission and vision. We don't want to provide just CFO services — we want to help you strategize your finances in a way that aligns to your purpose beyond profit. You can also learn about our mission, vision, and how we can help you.