Define the WHY?

What's the purpose behind your actions as an individual and as a business? Do you wake up every morning knowing your business has a clear goal and direction? If so, are you on the right path? Not sure if you can confidently answer these questions? Don't worry, you aren't alone. Many entrepreneurs have a cloudy sense of why they are doing what they are doing. Spoiler alert... if you started a business to become a millionaire, you're off to a poor start. Not to say it can't happen; financial success should be a key metric in your business, BUT NOT the sole driving force behind your daily actions and behaviors. Consequently, folks that focus primarily on profitability end up underachieving, burnt out, and ultimately failing. Simon Sinek introduces the concept of "why" in his book, Start With Why. I highly recommend any entrepreneur take the time to read it. Sinek argues, and I agree, starting with a clear sense of "why", is vital for success in any type of business, no matter what the industry. This of course leads us to the question... How do we define "why"?

Here's my shot at it: a properly defined "why" needs to center around the concept (or concepts) you are most passionate about and influence a community that you legitimately care about. Let me explain the power of a properly defined "why" through an example.

Let's start a business, you and I. You in? Great. Our why? "To improve the lives and wellbeing (what we are most passionate about) of every customer, employee, partner and vendor we serve (the community we care about), by providing a life changing product (insert your product) and putting people first." Of course, assumed in the "why" is that this business should, in fact, be profitable. But note, profitability and financial success is not the key motivating factor behind the existence of the company. If it were, our "why" would look something like this: "To hit a $200K profit margin by year 3." Fast forward, we are in year three of the business. Sales are steady. But profitability is not at the landmarks we had hoped for. What do we do? Let’s reference our "why" and ask ourselves some questions. Our we improving the lives and wellbeing of our customers? Yes. Great. Now, how can we continue to do that but, increase profitability? ~ Can we iterate on the product in a way that improves it sufficiently, while still being profitable? Yes? Then we simultaneously improve our customers experience and promote more, perhaps, even new sales. ~ Can we be completely transparent with our vendors, who we've built a rapport with? Ask them to revisit our working contracts? See if we can find another solution that is mutually beneficial? If so, let’s find a better deal for both of us. ~ Can we become creative with our marketing strategies? Still be economically responsible, but, perhaps target a group of customers we haven't yet connected with in a meaningful way?

All of these potential solutions will help improve profitability and align with our defined "why".

Notice, we didn't cut wages or downsize. We didn't comprise the quality of our product, or find a cheaper version of what we are offering. Those actions just seem... dirty, right? Why is that? Because they aren't defined by our "why"

Even with this very generic example, you see how powerful a properly defined "why" can be. Your "why" guides you and can lead your business through both times of growth and decline. Profitability is a key factor to business success. It should not be neglected. You should have clear goals around net/gross sales, expenses, and of course, profitability. However, when you wake up in the morning, and place both feet on the ground, it's your "why" that gets you out of bed and motivates you. It's your "why" that will keep you focused, encouraged and positive every day, no matter what. It's your "why" that your "what" and "how" begin to develop. So, before you begin to project, forecast and plan, you should ask yourself, "why"?