A business purpose statement sets the goals for your company. Every business should have one.
You business purpose statement should answer the question, “What is the the consumer’s problem and how does my business solve that problem?”
Your business purpose statement should be specific. Connect the dots for your consumer so they don’t have to do the work.
Your business purpose statement should be inspirational. Put yourself in the shoes of your consumer, and imagine what would inspire them to buy your product.
Your business purpose statement should be realistic. Dream big, but not too big. Your business purpose needs a goal that’s actually attainable.
When it comes to starting a business, you have to begin with your goals first. This is the work you have to do before you even start building, operating and marketing your business. Think about it, how can you move your business forward if you have no idea where you’re headed? Luckily for you, there is a document you can create to help you define your goals and better understand your customers. It’s called a business purpose statement. This resource will help guide your business as it grows. View it as the roadmap for your company.
You are probably familiar with the popular food manufacturing company, The Kellogg Company. They are responsible for some of the world’s favorites snacks, such as Fruit Loops, Rice Krispies, Pringles and Pop-Tarts. Like any good business, The Kellogg Company has a very specific business purpose.
On their website, they state that their purpose is to nourish families so they can flourish and thrive.
This is an excellent example of a business purpose statement because it answers two simple questions:
- What is the consumer’s problem?
- How does the business solve that problem?
What makes an effective business purpose statement?
For The Kellogg Company, their business purpose is not just about selling cereal. Their goal is to promote healthy and active lifestyles for families. How does Kellogg do that? According to Kellogg, it’s all about your diet and what you eat. That’s why their purpose is to nourish your family a variety of products to make you stronger. Think of their low sugar cereal options like Special K and Corn Flakes, or their line of health bars like Nutri-Grain.
Aside from being very specific and very short, this business purpose example does a great job of appealing to the emotions of consumers. It uses language like “flourish” and “thrive.” You get this almost superhuman feeling when you read the business purpose statement…like there are some magical qualities to the Kellogg products. They don’t just make you healthy, they make you feel like you’re unstoppable.
At the same rate, an effective business purpose statement is also realistic. Sure, you can have a lofty goal. A big goal will help keep your company motivated from day to day. But it’s important to make sure your goal is attainable.
And while many might think that goal setting is only helpful at the beginning phase of a business, you’ll be surprised to know that many of the world’s best business leaders use their business purpose statement to guide everyday decisions at their company. This is because the business purpose is a reminder of why you exist. It’s there to help you from becoming distracted. It’s what keeps Kellogg interested in creating and launching new food products to help families with their diet and fitness. It’s the reason they don’t tackle other business aspects outside of their original purpose. Healthy foods are the DNA of their company.
Remember, your business purpose statement is your roadmap–it’s like your company’s bible. Look to it when you’re tackling some of your most difficult challenges and decisions. You should also use it to influence your key marketing channels, such as your website (which we review in this post here). If done right, it will strengthen the connection between you and your customers.