Business means conducting trade, this simply means physically buying and selling between two people. Nowadays, technological advancement has made it possible to start a global business just by opening up a PC. This advancement consequently opened up the world of business to a wide range of people, from teenagers selling things to senior citizens trying out some of their uncharted water before kicking the bucket.
But whether it is a small scale, sole-proprietorship business, corporation, or limited partnership businesses, it is important to carefully set out a business purpose, which roughly translates to writing down your reason for starting a business into one or two sentences and mobilizing all necessary resources around it. As a matter of fact, research shows that companies with properly defined business purposes have 50% more chance to expand successfully to new business than those without a poor business purpose. Also, 58% of businesses with clearly defined business purpose record an average of 10% growth within the first 3 years of starting the business.
Understanding the Company’s Purpose and Vision
It is no doubt that every company or business has a purpose, however, to comprehend this purpose, it is important to differentiate it from the company’s vision. Moreover, If you want your clients to connect with your vision and purpose, you must first of all have to be clear about why, how, and what your business is all about in a meaningful manner.
Company’s Purpose: this means why you chose to start the business, besides the obvious reason of making a profit. Furthermore, you can use a ‘pressure test’ to check if your reason will hold true for the organization in general, as well as for individuals. Purpose statements usually start with ‘we believe…’. Audiopedia explained it in this video https://youtu.be/zbiuRyZ2Ybw
AMEX: we believe it is noble to serve others.
FACEBOOK: we believe that connection is a human right.
TOMS: we believe we can improve people’s lives through business.
Company’s Vision: This simply means the difference you will make in your customers’ or clients’ lives or businesses when your purpose is realized. Unlike the purpose statement, the vision statement usually begins with ‘we will..’
AMEX: we will become a company that cares and supports our own people like no other.
UBER: we will change the way the world moves.
TESLA: we will accelerate the advent of sustainable transportation.
Is the Company’s Purpose the Same as Its Vision?
As previously mentioned, the company’s purpose is not its vision, and here is why:
- The company’s purpose tells your audience why your company matters in the present, while Vision tells your audience why your company will matter in the future.
The purpose is about what your company does and why, while Vision is about what you expect to find when your company reaches its destination.
Purpose addresses why you exist whereas vision addresses where you aspire to be.
Finally, the purpose statement usually starts with ‘we believe..’ while the vision statement starts with ‘we will..’
In summary, a company’s vision is a continuous process that will align your mission with your company’s purpose, that is to say, vision keeps you on course to fulfill your purpose.