WHAT IS YOUR MAJOR BUSINESS PURPOSE?
1. Defining Your Definite Major Business Purpose & Envisioning Your Desired Outcome
Before you start doing the things, the tasks, required to start a business, we suggest you follow the above-referenced 6 steps. They come from a very famous book by Napoleon Hill, called Think and Grow Rich.
It’s one of those books that most successful people I know have read. In his book, Hill presents his concept of the Definite Major Purpose.
There are a lot of people who start businesses in a niche because they think it will make them a lot of money. They know nothing about the niche, and have no interest in learning anything about it. This can work, but it is highly discourage, especially for your first, or primary business.
Once you decide what business you are going to start, envision the outcome you want according to the Rules of Think and Grow Rich. Picture the lifestyle it will bring you. Imagine what you will do with the money you will earn. Be as specific as possible.
2. Fundamental Major Definite Business Purpose
A business purpose describes the reason, or purpose, that a company was initially founded. It describes what makes a business unique, as well as what the business plans to do.
A business purpose is not a mission or value statement and is much shorter than both. Whereas a mission statement is used to identify the purpose or values of the company, a business purpose is a legal phrase.
This statement is often included with the Articles of Organization. This statement informs the state or investors of the reason why you are forming the business.
A business purpose statement can help you define the goals and intentions of the business, as well as describe the services offered to a customer. It can also give brands a competitive edge by having clear goals. Some business owners also use the business purpose statement as a starting point for writing their mission statement.
Companies may also turn to their business purpose to make decisions or create policies. Additionally, some businesses may use the business purpose statement to ensure any changes align with their initial purpose.
Let’s start with the most basic – The Fundamental Purpose of Business.
History is littered with attempts to define the purpose of business. In 1776, Adam Smith stated the purpose of business as the mechanism to generate profit and increase shareholder wealth (known today as the “shareholder view”).
Smith’s definition of business purpose identifies profitability as the defining characteristic. This definition however is problematic. Relying on profitability alone ignores the ease of manipulation and ambiguity of profit as an appropriate measure.
Profitability is simply a measure of the surplus (or the deficit) remaining after costs are deducted from revenues. Trusting profitability alone obscures the role of investments made for the future and alternative capital structures.
Should the appropriate measure of profitability include or exclude re-investments or costs associated with capital structure, of which there are alternatives, any of which can affect profitability?
Rejecting, as an oversimplification, profitability alone, others have restated the definition of business as maximizing shareholder value or wealth. Relying on the premise that the principle purpose of business is to maximize value (over time) overcomes the distortions profitability alone experiences.
Nevertheless, the reliance on maximizing value neglects the underlying mechanism that businesses use to create value – creating customer satisfaction.
Peter Drucker said, “There is only one valid definition of business purpose: to create a customer.”
Drucker’s definition is useful. However, it suffers from two shortcomings. First, businesses create customer satisfaction not customers. Second, this definition is silent on a business’s dependency on capital.
We suggest a better description of business purpose is: Use revenues and capital to produce customer satisfaction and capital provider rewards.
Extraordinary businesses use revenues and capital to produce customer satisfaction and capital provider rewards.
Failing to satisfy this fundamental business purpose is unsustainable. There are examples of businesses that operate in violation of this principle but not for very long.
There is a temptation to include the interests of other stakeholders (employees, suppliers, communities, or others) in the definition of business purpose.
The interest of other stakeholders is noticeably excluded from our description. Other stakeholders are not unimportant however business sustainability can be achieved absent their special consideration.
Nevertheless, there are compelling reasons that the interest of other stakeholders should be explicitly identified. Doing so should be addressed as part of the business’s intentions that I’ll discuss separately.
Every business is different. Businesses differ in scale and performance. They differ in what they do and how they do it.
Despite countless differences there is an underlying principle that each and every business must conform: The Fundamental Business Purpose (Business Purpose).
Failing to satisfy this fundamental purpose “will” (not “may”) result in business failure. This design applies to every business regardless of whether it is a sole practitioner or a multi-national enterprise; whether a technology company or a local pizza parlor; whether for profit or not for profit.
The Fundamental Business Purpose requires a business to use revenues and capital to produce customer satisfaction and reward capital providers.
This idea is easily dismissed as obvious and trivial. Yielding to this temptation is an engraved invitation to disaster.
The everyday analogy – the internal combustion engine – illustrates the Fundamental Business Purpose. Every internal combustion engine converts fuel and oxygen into power and exhaust. No matter the size. No matter the application. All internal combustion engines do the same thing. A lawn mower engine does exactly the same thing as the engine found on a Formula One racecar. The difference is the application of the engine and the infrastructure required to satisfy the application. No one would confuse a lawn mower engine with a Formula One racecar. Nevertheless, both engines do the same thing; just very differently.
The business purpose is the criteria any business decision must pass through to ensure the choice is framed to perpetuate success. The business purpose is an idea and a decision gateway. The fundamental business purpose is a lens to focus your attention on two essential outcomes that drive business success. Ultimately, everything a business does should in some form or another contribute to satisfying a customer and rewarding capital providers.
3. How to write a Business Purpose Statement
You can write a business purpose with the following steps:
1. First, start by researching your industry
It can be helpful to begin the process by looking at other businesses in your industry to see what they include in their business purpose statement. Researching competitors can also help you understand what services other businesses offer. This may provide you with a list of tasks or purposes that you had not previously considered.
2. Then, consider why you started the company
Ultimately, a business purpose is a statement defining why you are in business. Take a few minutes to consider why you formed the business in the first place, as well as why it is important to the business’ goals.
3. Then, consider how the business will operate
Think of the specific steps you can take to achieve the reason for forming the business and how that may impact customers.
4. Finally, write your statement in a way that is concise and clear
Because a business purpose should only be a sentence or two, it is important to write it in a way that is concise, yet clear.
4. Examples of a Business Purposes Statement
Here are a few business purpose examples, covering different types of industries:
- Real estate: The purpose of Big Estates is to assist buyers and sellers with the sale and transfer of property, as well as manage licensed agents who provide the same.
- Retail goods: The purpose of Online Purchase Connections is to evaluate, market, procure and sell products to the general public through eCommerce and physical storefronts.
- Personal services (like spas, hair salons, estheticians, massage therapists): The purpose of Beauty Tech Associates is to procure and sell retail products and provide rentable space for licensed technicians to provide beauty services to the public.
- Advertising: The purpose of Analytics Services is to study the industry desired by the client and provide feedback on marketing strategies and tactics to gain competitive advantages in return for increasing revenue.
- Legal services: The purpose of Practical Legal is to employ and market licensed legal professionals that provide legal consultation and representation to clients in the areas of personal injury and workers’ compensation.
- Manufacturing: The purpose of Biggest Suppliers is to secure raw materials and consumer goods to deliver to commercial and consumer companies.
- Information technology (IT): The purpose of All-Around Amazing Tech is to employ certified technicians who provide specialized services to assist end-users in technology needs, while also providing technical consultation and implementation.
- Automotive: The purpose of Hot Rod Inventory and Repair is to maintain a vehicle inventory and a place of business where consumers can purchase automotive products and accessories, while also offering repairs.
Here are a few examples from some notable brands.
- Facebook: “To give people the power to share and make the world more open and connected.”
- PayPal: “To build the Web’s most convenient, secure, cost-effective payment solution.”
- Tesla: “Our goal when we created Tesla a decade ago was the same as it is today: to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”
- Sony: “To be a company that inspires and fulfills your curiosity.”
- Google: “To organize the world’s information and make it universally accessible and useful.”
5. Tips for Writing a Business Purpose Statement
Here are a few tips that you can use when defining the business purpose:
- Look up the specific laws in your state. Some states may have specific requirements on the business purpose statement. Looking up these laws ahead of time can ensure that you meet these requirements.
- Consider your daily responsibilities. By considering the tasks that you complete each day, you can narrow down the business’ purpose. Write a list of tasks the business needs to complete each day, then find a way to combine these tasks with a brief statement.
- Keep it short. Because a business purpose should be concise and to the point, aim for one to two sentences. This also allows you to add to the business’ purpose if it expands later.
- Use the mission statement for inspiration. It can also be helpful to revisit previously drafted statements, like the mission or value statement, to remind yourself of the goals and intent of the business.
- Enlist the help of friends or a coworker. By having mentors, experts, friends or coworkers review the business purpose statement, you can get an outsider’s view. This ensures that your statement is clear and accurately describes the business.
6. Master Bruce Lee’s Definite Major Life Purpose
Below you will find the handwritten major definite purpose of Bruce Lee . Bruce Lee wrote it in 1969. You can use this as a template to create your own major definite purpose.
My Definite Chief Aim
I Bruce Lee will be the first highest paid Oriental super star in the United States. In return I will give the most exciting performance and render the best of quality in the capacity of an actor. Starting 1970 I will achieve world fame and from then onward till the end of 1980 I will have in my possession $10,000,000. I will live the way I please and achieve inner harmony and happiness.
7. More Than One Major Definite Business Purpose
Having more than one major definite purpose will reduce its power to influence your sub-conscious mind. Plans for acquiring the object of your desire might change but the object of your desire should not.
System to Apply Your Major Definite Purpose to Your Life
We looked at what a major definite purpose is, how it works and how to make one. With the Andrew Carnegie Formula you will be able to create your own definite purpose or chief aim and apply it to achieve your definite major purpose.
You will need to effectively absorb this into your life to see all the benefits. Without that, your major definite purpose will just become something you wrote and forgot about. You need the Andrew Carnegie Formula and system to incorporate this into your life.
8. Definite Major Life Purpose FAQs
A. What is a major definite purpose in life?
Your major definite purpose can be defined as the one goal that is most important to you at the moment. It is usually the one goal that will help you to achieve more of your other goals than anything else you can accomplish. It must have the following characteristics:
1. It must be something that you personally really want. Your desire for this goal must be so intense that the very idea of achieving your major purpose excites you and makes you happy.
2. It must be clear and specific. You must be able to define it in words. You must be able to write it down with such clarify that a child could read it and know exactly what it is that you want and be able to determine whether or not you have achieved it.
3. It must be measurable and quantifiable. Rather than “I want to make a lot of money,” it must be more like “I will earn $100,000 per year by (a specific date).”
4. It must be both believable and achievable. Your major definite purpose cannot be so big or so ridiculous that it is completely unattainable.
5. Your major definite purpose should have a reasonable probability of success, perhaps fifty-fifty when you begin. If you have never achieved a major goal before, set a goal that has an 80 percent or 90 percent probability of success. Make it easy on yourself, at least at the beginning. Later on, you can set huge goals with very small probabilities of success and you will still be motivated to take the steps necessary to achieve them. But in the beginning, set goals that are believable and achievable and that have a high probability of success so that you can be assured of winning right from the start.
6. Your major definite purpose must be in harmony with your other goals. You cannot want to be financially successful in your career on the one hand and play golf most of the time on the other. Your major definite purpose must be in harmony with your minor goals and congruent with your values.
B. How do I find my purpose in life?
What’s important here is that you try new things. If you haven’t yet discovered your purpose in life, then you are not going to find it by trying the same things over and over again.
C. How to get clarity and find your purpose in life?
- Define the Success You Want. You need to define the success you want.
- Write Down What You Want. The next suggestion is write down the success that you want.
- Envision Your Future.
- Seek Out Other Successful People and Mentors.
- Living Your Purpose.
- Listen to Your Inner Voice.
- Trial and Error.
A life purpose can (and probably will) change many times over your life. For some people, this means that whatever got you motivated and inspired yesterday might not provide you with the same itch tomorrow.
9. How We Work With You to Reach Your Definite Major Life or Business Purpose
30+ Years of Experience Helping Businesses Across America
Step 1: 30 Min Call (FREE)
- Call us for a free 30-min consultation.
- Discuss your business issues and get expert feedback to address your problems.
- If your business is a good fit we will invite you to proceed to step 2.
Step 2: Strategy Session Call (FREE)
- We will develop a specific action plan for your business.
- We will create business strategies to address your problems.
- We will develop a financial model of what your business will look like if you apply these strategies.
Step 3: Coaching Program (PAID)
- You will meet with your coach one-on-one, in person or by video conference.
- Sessions are 1 hr. every week during the planning phase.
- Sessions are 1 hr. every other week during the execution phase.
CONTACT MICHAEL KISSINGER TO HELP YOU- Phone: 650-515-7545
10. Coaching-Consulting Helps You and Your Team Reach Your Major Definite Major Purpose
Each step you work through will have exponential growth, followed by a flattening off and slight decline before the next stage kicks in and propels you to the next level of profitability.
But when you have business coaching, you’ll get the roadmap to make sure each change of gear is as painless and seamless as possible.
Business coaching gives you the tools you need in order to increase your margins, lead your team, establish a strategic direction and systemize your building company. CONFIDENTIAL TESTIMONIALS – mksmasterkeycoaching.com
WE’LL HELP YOU IN YOUR OFFICE, ON THE JOB OR ONLINE WITH THESE COACHING PROGRAMS
- Personal Development Coaching
- Business and Management Coaching
- Financial Coaching
- Operational Coaching
- Performance and Productivity Coaching
- Legal Strategy Coaching
- Business Marketing Coaching
- Sales Coaching
- Human Resources Coaching
- Owner and Employee Self-Improvement Coaching
11. OUR OBJECTIVE IS TO BE YOUR “GO TO” COACH-CONSULTANT-MENTOR-TRAINER
Our objective is to work with your company offering coaching or consulting services of the highest value based on a proven track record of “Hands-On-Performance”.
The key to the successful company is a business owner that spends more time and energy working ON the business, rather than IN it…
In order to grow your company, you need to spend more time on profit-generating activities, rather than meaningless tasks that just leave the wheels spinning in your business.
All professionals know this to be true, but the problem is they don’t know where to start.
There’s no doubt that you’ve heard of business coaching before – maybe you’ve even been coached yourself at some point in the past. But our business coaching is different…
- We don’t provide generic advice or solutions…
- It’s business coaching for owners and managers.
- We tailor our coaching to you building nightmares.
Meaning you don’t have to decipher through generic BS that doesn’t actually apply to your nightmare. Our proven coaching for your business is ready to deploy into your company immediately!
We’ve worked with thousands of business across America. So you can rest assured that everything we offer has been tested by other businesses just like you and has been proven to work.
If you’re thinking that you’re already flat out with work and you just don’t have the time, you need this more than anyone.
It’s not about working longer hours.
Business coaching allows you to systemize your company so you can spend more of your time on profit-generating activities!
Now, we know what you’re thinking…
If you don’t increase your profits, you’ll be losing money with all those extra expenses…
But, here’s the thing.
Growth, unfortunately, is not linear.
In business, net profit follows what we call the S curve. Which means, in order to move forward, you’ll need to move slightly backward.
Think of it like changing gears in a race car – as you change gears, you lose a small piece of momentum, but you have to go through that to be able to take your speed to the next level.
It’s exactly the same in business!
12. We Guaranteed Our Coaching Will Get the Major Definite Life Purpose Results You Want
: We Guarantee to get results, and that you’ll be able to “Find our Fee” in your business within 17-weeks of our coaching your company, or your coaching is FREE.
Our coaching programs have been tested and proven across America, so when you hire us, you WILL get results. Even if you have done your part in good faith, have done all assignments, and have attended all coaching sessions, events, and workshops–but you’re still not satisfied or not seeing the results you want by the seventeenth week, we will coach you FREE until you get the results, no questions asked!
: We Guarantee to tell the truth about you and your business no matter how uncomfortable it may be, or how hard it is to share with you the realities of your business and the changes you need to make. When you hire us, you will have the “unreasonable friend” and the personal business mentor you and your business need to succeed. You will be accountable for everything you say you will do, and your business will get the push it needs so you can get the results you want.
: We Guarantee you a “business re-education” about how your business really works and how to successfully grow your company, as well as how to apply your new education and knowledge to any business situation. Your coach will guide you with proven systems and strategies that will allow you to make more profit whether you need more time, a better team, and more money.
You’ll be in the “driver’s seat” of your own business equipped with a “map” and a “license” to take it wherever you want to go with us by your side unlocking the potential of your company.
: We Guarantee complete confidentiality. Our Coaching relationship with you will involve trust and understanding about the nature of our strategy and of your business. We guarantee the privacy of our work together.
: We Guarantee a personalized approach to your business. Your business is unique, and since you are relying on our vast industry business experience, we guarantee a full disclosure of the programs we recommend to you. We shall meet your expectations with the desired outcomes and results.
: We Guarantee to show you how we define business success, and how to build a commercial, profitable enterprise that works with or without you. Even if you are an owner who loves business and who loves working “in” your business every day. We will show you how to build a company you can work “on” whether you show up every day or not. Regardless of your ultimate goals, you will learn the strategies, systems, and advantages of our definition of a successful business.
If you want to learn more about our coaching contact us now.
Reitenbach-Kissinger Success Institute
LinkedIn Profile: https://www.linkedin.com/in/michael-kissinger-a66b214/