When profit is the result and not the reason
By Nicky Turnbull
An interesting social experiment to try – ask someone what their personal purpose is and see how they respond. In most cases, you will be met with a flustered answer or a blank stare. Very few individuals can capture their purpose in life succinctly, and I have found that the same is true for businesses and brands.
The saying goes – “The two most important days in your life are the day you are born and the day you find out why”. This ‘why’ is what many companies struggle to define, despite much being said in marketing circles around starting with the ‘why’ and not the ‘what’. This is mainly driven by Simon Sinek’s book, ‘Start with Why’.
I have sat in many brand workshops where the question is asked – “why does your business exist?” and the confident answer from those around the table is “to make a profit”. I find this most true in intense performance-driven cultures or commission and sales-focused companies. They have become so focused on the bottom line that they seldom take a step back and ask the key question – but WHY? What they don’t realise is that profit and purpose are not mutually exclusive.
Here is what happens when you build from a purpose rather than starting at the end – making a profit.
1. Your staff are more aligned and give discretionary effort
Giving staff something to believe in rather than something to deliver, creates a sense of purpose and direction. Many brands focus on delivering on their purpose externally, but the same, or arguably more focus needs to be given to creating a purpose-led internal culture. This can set you apart as an employer and enhance performance.
2. Your business can grow and scale
Purpose can extend into other products and services. You can build on the ‘what’ from the ‘why’. Dove is often used as a great purpose example, for good reason. The brand is most well-known for its iconic Beauty Bar which was launched in 1957 and which revolutionised the soap bar market. The brand has since extended into other products, but has always kept ‘real beauty’ at their core. The product range can keep extending and growing from the same fundamental belief.
3. You start to build a brand, not just a business
In today’s consumer environment, authenticity is key. More and more, consumers are looking to buy based on beliefs and values that resonate with them – this tells us that consumers are buying into meaning, buying into purpose.
4. You have a clear direction based on a fundamental belief
Purpose should not just be something that you say or demonstrate, but something that underpins all business decisions. If you test decisions against your ‘why’, you have a North Star to guide you and remain consistent and true. If a decision doesn’t align with your core beliefs, then don’t do it. A hypothetical example would be Dove launching a make-up range. This doesn’t support their core belief of promoting real, natural beauty – so it would set the brand on a totally different course.
5. You start to resonate on an emotional level rather than just a functional one
Building lasting relationships rather than transactions. Purpose builds trust and lasting relationships with your target market. There is a reason why brands are emotive things, while products are physical. Connect on that emotive level and the physical will follow.
So, while the bottom line is important to any business, and also how you get there – why you do it, why you get up and do what you do every day, should always be the foundation and the true test. Brands based on purpose are built on that strong foundation and it can be seen in their performance and direction. This is why I will always encourage any brand, whether new or established, to check back and define their purpose. That is very often where you find your answers, and the profits take care of themselves.