A compelling reason for creating value
The age-old question, what is my “WHY”? It seems many people that are new to the idea of starting a business begin with the idea of making money. There is obviously the need for profit in a business to keep it long-term sustainable and show you are providing value for the marketplace, but we don’t believe that should be THE why and your motivation for moving forward. So, what should THE why be?
Most successful businesses and entrepreneurs we know start with a problem to solve. Whether that is a problem people are aware of (Such as I need to get my lawn mowed) or a problem they didn’t even know existed in their lives but once solved provides for a better existence (Such as google search). So, what are you doing by providing a solution to a problem, which is the cornerstone of any successful business? You are providing the person or organization VALUE. Value is the end all be all in the world of business success. And what does a business get for providing value? In most cases, monetary compensation. So, what does this mean for your WHY?
Your WHY should be to have a passionate desire to solve a PROBLEM that you see in order to provide VALUE!
So, how do you start to define your why? In our experience, thinking first about the problem, and then what about the problem excites you to solve it, helps define the WHY you may be looking for. Some examples we have seen recently:
- A company creates fresh food packs that use less than perfect-looking produce to provide great value for the money. This solves a few problems, which are food waste, and the availability of high-quality products at a low price. Either of these could be a great why.
- A company that provides wine and spirits to the market only works with family producers. They want to preserve the long held tradition of craft in the alcohol beverage space but also source compelling and interesting products. The why is “Tradition of Craftsmanship”
- A company that works to sell more plant-based “Meat” products. The why is to cut down on both greenhouse gas emissions, as well as animal consumption.
As you can see, your “Why” can have many meanings to it, but it never includes a profit motive (Even though we agree, profit is not a dirty word, and must be included in all business plans). The reason for this is it is much more compelling to help make a change in the world than to help make a profit. We have found this to be true for all involved stakeholders including employees, investors, suppliers, and customers.
So as you start thinking about a business you want to start, be a part of, or help invest in, think about your why. The why will continue to drive you when times are tough, and almost always tough times will come while building a business. It is also important to have a why in order to get alignment in your organization on a share mission.
In conclusion, why is it important to have a “WHY”:
- Provides depth of mission to an organization.
- Helps provide guidance for the inevitable tough times that you will face.
- Creates guideposts for creating positive change in the world.
We hope that you find YOUR WHY, and would love for you to share with us what YOUR WHY is. We are going to compile an ongoing list and will share it periodically with the Abundance Tribe.
Share your WHY below!
Cheers
Team Abundance