The ‘American Dream’… the lure of entrepreneurship … the captivating sense of freedom … is frequently ignited by one word – MONEY. Profits drive a lot of actions.
And money is the REASON why most people start their own business. More money buys you freedom, travel, luxury, social status and control over your financial future.
That’s what I call “reason-based entrepreneurship”.
But 99.9% of entrepreneurs and business owners forget the PURPOSE for getting into business in the first place.
The purpose of a business is to provide your customer or client with a better advantage, benefit, value, and/or profit.
Hence, the term “purpose-based entrepreneurship”.
While “reason-based entrepreneurship” is built around persuasion, manipulation, cutting costs and reducing overhead (a.k.a cheapening the product as much as possible until the customer notices or stops buying) …
“Purpose-based entrepreneurship” is built around finding new and innovative ways to further enrich your client’s life. It’s about being extraordinary. Remarkable. Unexpected.
It’s giving your clients the best outcome, advantage or result (even if it means less profit, in the short term, for you).
Purpose-based entrepreneurship makes your customers feel like they are important – and that they really matter to you.
Some examples include the restaurant owner who offers reading glasses for patrons who forget theirs at home; the doctor who calls a sick patient at home just to see how he’s doing; the bank that creates a free program to help homeowners make more money so they can pay their mortgage; and everyone else that goes beyond the call of duty just to let their customers know they care…
This type of entrepreneurship ignites a new realm of increased customer loyalty, increased word-of-mouth advertising, increased repeat business, increased customer value, increased profits and lots of client love!
Oh, and if you think that purpose-based entrepreneurship actually COSTS you more money – think again.
Purpose-based entrepreneurship lowers customer attrition and reduces the cost of customer acquisition – making you more profits in the long run.
You could say that “reason-based entrepreneurship” is penny wise and pound foolish.
