A Business with Purpose (or Labour for Hire)

You have a choice when you run your own business - you can either be:

1. A Business with Purpose
2. Labour for Hire

A Business with Purpose

You know them when you see them. Those businesses that have a meaning or cause that transcends the products or services that they sell.

It's like they have a calling or goal that drives them. It either resonates with you or it doesn't. If it does, then you'll likely be like a moth to a flame - singing the company's praises, referring them and getting your wallet out for them at each and every opportunity.

Simon Sinek refers to these sorts of businesses as those that have found their 'why. Think Patagonia, Apple, Tom's shoes etc.

In these purpose-driven businesses, profit is viewed more as a by-product of their overarching quest. These businesses therefore tend to have happier employees, customers and stakeholders.

These businesses also have a key differentiator by virtue of their unique purpose. This drastically reduces competition and virtually eliminates the commoditisation of their product or service.

Labour for Hire

Businesses that don't have a core purpose or higher calling might otherwise be referred to as "Labour for hire".

It doesn't sound pretty and that's because it's not a very pretty place to be in business. Easy to replicate. Easy to price-cut. And therefore easily substitutable.

This typically results in less happy employees (=higher turnover of staff), less loyal customers and therefore a consequent struggle to maintain profits.

The choice is there for all entrepreneurs: which camp are you in?