What Is a Purpose-Driven Business? (And Why YOU Should Start One)

What Is a Purpose-Driven Business?Are you thinking of starting a business but you don’t want to start just ANY business? You want something that not only fills your wallet but also your heart, something that brings you joy, deep meaning, prosperity, freedom and fulfilment?  If so, starting a purpose-driven business may just be the answer you are looking for.  So exactly What is a purpose-driven business? (And why YOU should start one?) 

In this blog post, we will dive into what a purpose-driven business is, 5 solid reasons why you should bake purpose into your business.  And, why purpose-driven business is NOT a privileged only for big corporations – it is something that YOU can do today even if you are just starting out.

You may also like:
– FREE course: How To Start a Purpose-Driven Online Business
9 Ways To Add Purpose and Giving into Your Business (Even If You Are Just Starting Out)
– The Dos and Don’ts of Starting a Purpose-Driven Business 
– Start with WhyThe Most Important Question Of All

We have a lot to cover, so let’s dive right in!

What is a Purpose-Driven Business? 

A purpose-driven business is a business that not only focuses on making profits, but also focuses on making a difference.

Being purpose-driven does not mean you have to be a charity, or a social enterprise, or even a not-for-profit.  It simply means that you are using your business to achieve aims beyond the bottom line.

It’s about doing your soul’s purpose work, be it creating beautiful illustrations or designing simple, yet functional products and doing that work for an important cause. 

Perhaps there is a cause in the World you care deeply about and you want to become part of the solution.  For example, may be you care about environmental issues so you decide to start a blog and teach others how to live an environmentally-friendly lifestyle.  Perhaps you care about the rising medical expenses in your country and you decide to start a blog to teach others about healthy eating and alternative natural therapies. 

Or may be there is a group of people in the society you want to help.  For example, I care about education for underprivileged children, so I donate parts of my business revenues to build schools and support educational programs in developing countries (see my Giving Initiatives).  A purpose-driven business uses its business as a force for good and as a platform to help the cause it cares about.  

The Definition

To put simply, Purpose is about doing something that is bigger than you. It is about wanting to make a real difference and do for others — to help, to give, to serve. It is the change you want to see in this World, a legacy you want to leave behind, and a reason why your work matters. 

There’s probably nothing more fulfilling than feeling like you are truly aligned with what you do in a way that contributes to making the World a better place.

 Why Start a Purpose-Driven Business?

There are many wonderful reasons why you may want to start a purpose-driven business.  Let us take a closer look at each of these reasons and see which ones resonate with you the most.

 (1) It Brings You True Happiness

Purpose is that sense that we are part of something bigger than ourselves, that we are needed, that we have something better ahead to work for. Purpose is what creates true happiness.

As Mark Zuckerberg shared in his May 2017 Harvard commencement speech, “purpose is what creates true happiness.”  

How Does This Relate To You?

If you are on this page, my guess it that you are looking to start a business that not only just fills your wallet but also your heart.  So, taking it from Mark Zuckerberg, starting a purpose-driven business may just be the answer you are looking for.  

(2) It Gives You More Motivated and Engaged Employees

A recent Harvard Business Review study found that employees who derive meaning from their work, report almost twice the job satisfaction and are three times more likely to stay with their organization to fuel business success.  

A study by PwC also found that Millennials who have a strong connection to the purpose of their organization are 5.3 times more likely to stay.

As you can see, having a purpose-driven business can give your employees deeper meaning from their work, therefore, helping them to stay motivated and engaged.  In return, your company will also have lower employee turnover rate.  And, you are also likely to attract better talents.

How Does This Relate To You?

May be you are just starting out and you are not thinking about hiring any employees yet.  However, just knowing that your purpose-driven business will likely help you attract better talents and have more motivated and engaged employees is probably reassuring.  

(3) It Gives You Better and More Loyal Customers 

In this cut-throat competitive world for profits, having a business with purpose allows you to stand out and becomes a secret weapon.  According to New York Times bestselling author Simon Mainwaring, 91% of consumers would switch brands if a different one was purpose-driven and had similar price and quality.

Customers view purpose-driven brands as being more caring and, as a result, are more loyal to them. Cone and Porter Novelli consumer research showed that 67% of people feel 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 more willing to forgive such a company for a mistake.

As you can see, not only does having a strong purpose engage employees, it also helps attract better and more loyal customers.

How Does This Relate To You?

We all want to have better and more loyal customers, and starting a business that is purpose-driven can help you do that.  This is true no matter what size your business is – a startup, a small business, or a huge company, the same principle applies.  

(4) It Gives Better Business Performance

With more motivated and engaged employees, and better and more loyal customers, it is not surprising that purpose-driven business also have better business performance.

Recent analysis of purposeful companies by the Corporate Board/EY Global Leadership Forecast has the most compelling financial evidence – suggesting that purposeful companies outperform the stock market by 42%.

As you can see, purpose-driven businesses also have better business performances.

How Does This Relate To You?

May be you are just starting out and you have no intentions of ever making your company publicly-traded.  That is totally fine!  The important thing is to know that statistics have shown that businesses that are purpose-driven tend to have better business performance. 

(5) It Helps You Make Tough Decision

When you are clear on your purpose, it helps you to make tough business decisions.  To demonstrate this point, I want to site a story about Starbucks from the article Why Purpose Matters:

The StarBucks Story

“Two years before opening stores in Japan in 1996, Starbucks asked some consultants for advice.  At the time smoking at coffee shops were the norm in Japan; non-smoking coffee shops didn’t exist.  As a result, the consultants advised Starbucks to allow smoking in the stores if they wanted to succeed.

What would you do if you were the CEO of Starbucks?

They had a tough decision to make, but they had a purpose-inspired framework to help them.  Recall that an essential element deeply connected with their purpose was their passion for coffee.

Starbucks prided themselves on the wonderful aroma of coffee in their stores.  Imagine if people were smoking in the stores… The smoke would wipe out the coffee aroma.

Starbucks ended up opening non-smoking stores in Japan, contrary to what the consultants advised.  If you’ve visited Tokyo in recent years, you’ve probably seen a lot of Starbucks coffeeshops. They have a big footprint and have significantly changed the coffee scene in Japan.”

How Does This Relate To You?

As you can see, having a clear purpose can help you make tough decisions on your business down the road. 

It’s Not Just for Big Corporations

Now that you understand what is a Purpose-Driven Business and why starting a purpose-driven business is not only good for your heart but also for your wallet, are you ready to dive right in?  

In the next blog post, I will share some of the ways you can incorporate purpose into your business.  Having purpose baked into your business is something you can do even when you are just starting out.  It is NOT something that is only privileged for large corporations.  Everyone can use his/her business as a force for good and make a difference in this World.  

To end this blog post, I want to share with you a short story that I really love.  

How To Change The World? 

How To Change The World?  By an unknown monk 1100 AD:

“When I was young, I wanted to change the world.
I found it was difficult to change the world,
so I tried to change my nation.

When I found I couldn’t change the nation,
I began to focus on my town.

I couldn’t change the town and as an older person,
And I tried to change my family.

Now, as I’m old,
I realize the only thing I can change is myself,
and suddenly
I realize that if long ago I had changed myself,
And I could have made an impact on my family.

My family and I could have made an impact on our town.
Their impact could have changed the nation,
and I could indeed have changed the world”.

We All Have the Power 

Isn’t this a lovely short story? 

We all have the power to change the world and you are never too “small” to make an impact!

Dream big, start small, act now.  Pour your heart into something you believe in, start a business that serve the people you most care about.  With that, profits will follow and you can have a business that not only fills your wallet but also truly fills your heart.   

I hope you have enjoyed this blog post.  What is your biggest takeaway?  What business are you planning to start?  Please comment below!  I would LOVE to hear them. 

If you have enjoyed this post, please do LIKE and SHARE with your friends.  Sharing is caring! 

Meanwhile, subscribe to my email newsletter and gain FREE access to my email course “How To Start a Purpose-Driven Business”.  In this FREE course, I will walk you through step by step on how to start your purpose-driven online business: from getting clarity on your business idea, selecting your business name, creating your website, making your first income and attracting loyal followers.  Join now below!

How To Start a Purpose-Driven Online Business


In this FREE course, I show you how to start an online business that not only fills your wallet but also your heart.  From finding the right business idea, to creating your website, all the way to earning your first income and attracting readers. Join now!

 

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