Four Reasons Your Business Needs Purpose to Grow Fast
If you’re like most established business leaders, who’ve grown a business from zero to five or ten million pounds, euro’s or dollars in revenue, you’re probably noticing a gradual but momentous change in the market.
I’m referring to how much harder it is to generate new business and continue the growth that got you this far. Whereas before you had the product and the sales capability to close new deals on a regular basis, now you’re fighting an uphill battle with ever more competition for what seems like a finite opportunity.
It’s likely that growth has slowed, almost to a point of stagnation. You probably have a smart and talented team, but the passion, drive and overall enthusiasm they have for the business is only a fraction of what you have, or what you’d want or expect from them. You’re probably spending far more time and energy trying to build a culture, but not seeing the results and you’re wondering if you really have the right people.
You’re almost certainly tired of being drawn back in to day to day matters, where you’d rather be involved in strategy, creative solutions, mentoring etc. Your exec team don’t come cheap either, they all have excellent CV’s and are highly capable, but they don’t operate as a cohesive unit who inspire you with confidence and push the business forwards.
When you started out in business you believed you could do good, use your business to help build a better world, but now the pressures of keeping the business alive are draining your time and energy.
Between the relentless pressures of work and a busy family life, you’re probably finding it harder than ever to inject the kind of life and energy the company badly needs to create that second wave of growth that will propel you to 20, 30 or 50 million turn-over.
All this means you’re compromising on your dreams and ambitions. You once set out to create a thriving company at the forefront of your sector, a culture where people were happy and loved coming to work. You also had an ambition to use your business to contribute positively to the world, to improve people’s lives… but instead, you’re balancing off competing pressures, wondering if and how you can possibly make your dreams a reality any more.
If that’s you, there are a few things you must hear:
According to the UK Federation of Small Businesses (2016) there’s been sustained growth in the total business population, with increases of 59% since 2000, that’s roughly 2 million more businesses!
This means, when pitching for business, it’s not uncommon for a prospect to have received, 5, 10, 20 even 30 calls before hearing your pitch and committing to a decision – making it harder than ever to stand out with a winning proposition.
This is happening because they’ve understood the need for a highly compelling selling proposition – a competitive advantage or value proposition that puts them head and shoulders above the competition.
Your Competitive Advantage
If you’ve already managed to grow your business to this substantial level, then there’s little doubt you’ll already have given thought to your competitive advantage, value proposition or unique selling point. However, keeping in mind the words of Marshall Goldsmith, that “what got you here, won’t get you there”, the essential questions to consider are:
With those questions in mind, consider that there are typically three ways a business creates a differentiated proposition:
Most companies have thought about their competitive advantage from the first two perspectives, but neglect to think about the third as a key area for differentiation. In other words, they understand how the products / services they provide meet a specific need, or they provide a product or service that already exists but they do so in a unique way.
While these are essential building blocks of a competitive proposition, companies who define the social value of their business in a way which connects with the hearts and minds of their ideal customers stand out from the crowd.
Very few companies have understood that their ability to stand out really depends on demonstrating value in all three areas. They understand that customers promote and prioritise brands who demonstrate their value on multiple levels and are meaningful as the below infographic shows.
(Edelman GoodPurpose Study)
The companies who are advancing a social cause as part of their core business proposition are purpose driven brands. They truly understand their reason for existence beyond the simple imperative of making a profit, were either founded on the principle of providing societal value, or more likely, have evolved their business model to advancing a cause that notably improves people’s lives. As we’ll explore in my next article, these companies are consistently outperforming the competition.
Thus, having a clear understanding of the different components of value and communicating those components effectively are keys to creating a competitive advantage that makes you stand out and grow.
Here are four reasons your business needs a social purpose to grow:
To build a purpose driven company, there are three building blocks that need to be in place. In my next article, I’ll share with you exactly what those building blocks are and give you everything you need to establish them quickly so you can create step change growth, build a high-performance culture and use your business as a tool for positive social change.
If you found this article helpful, then you’re going to love the free guide I’ve created for you:
“Turn Purpose into Profit: Three Moves to Attract and Convert Your Ideal Clients”
Just head over to www.nashbillimoria.com/turn-purpose-into-profit and download your free copy now.
I really look forward to adding more value to your lives and businesses.