A new wave of entrepreneurs are taking over the business world, and profit is the last thing on their minds. Purpose, or the reason why a company exists, is fueling entrepreneurs to start companies that go beyond a simple product or service. Entrepreneurs are looking to give back to communities, focusing on adding value to customers instead of fattening their own bank accounts.
When your employees believe your company has purpose, it makes their jobs that much more important. And on the consumer side, when customers align with your brand purpose they can give your brand 47% more share of the wallet when compared with customers who don’t believe in your brand. When customers feel a brand is reflective of who they are and what they believe in, they are likely to support that company. Employees feel more engaged with brands that clearly articulate a purpose, and perform higher on key business metrics when compared to employees who are less engaged.
Perhaps more importantly, a strong purpose gives founders a reason to wake up every day and go to work. Times can be challenging and unpredictable in the startup world, but as an entrepreneur you need to be able to stick with your company through the highs and lows. “At the end of the day, life is too short not to enjoy what you’re doing,” says Sadiq Samji, founder and CEO of Allure HBF, a company that is making Hair Building Fibers accessible to the masses instead of only those that can afford it. “It’s incredibly challenging [to start your own business], but I think there’s a lot of satisfaction and fulfillment you can gain from entrepreneurship.” Whether you work in corporate America or a small startup in the Silicon Valley, happiness and satisfaction strongly influence your ability to stay productive in the office.
This challenges old-school notions that paying an employee more will result in increased productivity. Fiscal incentives are no longer effective motivators; your workers are looking for another reason to walk into the office day over day and that starts with giving them something to believe in. Businesses that take the time to invest in their employee’s happiness resulted in about a 12% increase in productivity levels, yet many employees continue to report they do not enjoy their work. As entrepreneurs, it’s important to factor in employee well being and what type of culture you wish to create as you build a business from the ground up. More so than paychecks and benefits, what can you offer your employees to keep them happy and excited to work for you?
Take a look at your current business and be honest with yourself. What is your “why”? What is your brand purpose? Take a poll and ask how happy your employees are in order to determine what kind of culture exists are your workplace. Invite feedback from managers and associates who may be silently suffering. If you notice a major disconnect between the company culture you’re advertising and what the culture really is, you’re likely to see unmotivated employees who potentially hate their jobs.
The millennial generation, for example, is keen on finding companies that serve a higher purpose. If there is one generation that encapsulates the need to move towards purpose instead of profit, it would be the 18 to 34-year-olds, who currently make up the largest share of the American workforce. Most millennials believe businesses have no goals besides profit, and they judge how a business treats its people and what it does. In order to ensure long-term success, companies must turn their eye towards purpose and find ways to contribute to something greater than themselves. Entrepreneurs have a huge leg up over established corporations, who will undoubtedly find it difficult to rework entire company cultures that have been in place for decades.
The startup culture is changing. Entrepreneurs are not only seeking innovation, but they seek to do so in ways that is socially conscious. Some startups can register as a Public Benefit Corporation (BCorp) to show they maintain a public commitment to doing business in a way that positively impacts society. “While profit is important, the days of just pure profit without purpose are gone,” remarks Samji. “Here, the bottom line is ‘how can we make somebody feel good about themselves’. If we can do that, then everything else will fall into place to ensure sustenance for the long term for both the customer and the company.” If you lack purpose, chances are you’ll find some amount of success for a certain amount of time. But if longevity and long-term success is your goal, you may want to rethink your current business.
At the end of the day, the businesses that will succeed are the ones that serve a higher cause and can internally motivate employees to work day over day. No matter where you work, you want to wake up every day with a smile on your face, ready to walk into the office and get to work. After all, life is too short to not enjoy what you’re doing. Together, happiness and purpose will be your strongest incentives to mobilize your entire organization.