If you’re an entrepreneur, you have a purpose, and you know it. You likely eat, sleep and breathe it. It’s what led to you creating your product or your business, and to you, that’s the exciting thing to talk about. The thing you created. What we believe, and what we are here to tell you, is that your purpose that led to the creation of what you do is far more interesting to consumers than the thing that you actually created. And what’s more so, by leading with your purpose—not your product—your business will be more successful.
According to Kantar Consulting’s new Purpose 2020 report, “brands with a high sense of purpose have experienced a brand valuation increase of 175% over the past 12 years, compared to the median growth rate of 86% and the 70% growth rate for brands with a low sense of purpose.”
It’s never easier to craft your brand than when you’re just starting out. Codifying your brand purpose early on allows you to build your company over time with your purpose brand as your North Star guiding hiring, culture and even operations. Once the company is well established, with many employees and stakeholders, codifying the brand purpose becomes more difficult to do, as it will often be at odds with facets of the company’s established operation. And therefore, it’s more difficult for organizational buy-in—because, quite simply, change is hard.
We attended New Orleans Entrepreneur Week earlier this year, and saw hungry startups like TOURED talk about how they got to where they are now. Each and every one of these young, hungry entrepreneurs had an unmistakable and irreplaceable purpose. It was clear through their talks that they live this purpose. But are they using it to their advantage in marketing their own company? Truthfully, and unfortunately, they are not.
In our experience, very few entrepreneurs experience success with the product idea that launched their company. However, their brand purpose should remain the same, guiding them through their explorations and iterations until they find the product that ultimately brings them success. Entrepreneurs can build equity with consumers in their brand first, leaving themselves the flexibility in product development to fulfill their brand purpose.
So, entrepreneurs, we implore you: Start with purpose. Weave it into every inch of your company, and never ever waver. That is how you will succeed. If you need help doing it, call us. There’s nothing we’d like more than to share your purpose with the world.