CHAPTER 5
purpose, promise, and principles
the cornerstones of your business

IN PART I, I TALKED about the importance of having a “big-picture” view of your business. Part of this “big picture” should be your business purpose. Why are you doing what you’re doing? It’s amazing how many business owners and their teams go through the motions of running their businesses on a day-to-day basis without ever understanding the purpose behind what they’re doing. They might as well be zombies. Businesses without a purpose don’t have a heart. They don’t stand for anything, and as a result, they don’t stand out from similar businesses. Successful business owners both understand their purpose and can articulate that purpose to their team, their customers, their investors—and in fact, to the world.

What’s Your Purpose?

Think about the business brands you love. Don’t you have a visceral understanding of their purpose? Consider the nearly cultlike following that Apple products have. People identify with the brand because it stands for something: innovation, efficiency, quality. It speaks to them.

It should go without saying that part of your business purpose is to make money. But making money shouldn’t be the sole purpose of your business. There has to be a sense that the service or product your business provides brings value to the market, and that because of that value, the company makes money. A business that exists for the sole purpose of making money won’t ever become a great business. Customers don’t come to you because they want to make you rich. They come to you because they believe in the value you provide for them, whether that value is in detailing their car, grooming their dog, creating their estate plan, or selling them a lawn mower. So it’s up to you to determine what that value is—that’s your business’s purpose.

You and everyone on your team needs to know that purpose. Even if you don’t have a “team” yet, you should be able to answer these simple questions without hesitation:

• Why are we doing what we do?

• What purpose does it serve?

If you cannot explain your purpose to the marketplace in a story that motivates customers or clients to do business with you, then you will not succeed. You may manage to keep the doors open, but you won’t soar to great heights. The same is true for your eventual employees, whenever you start to hire them. What motivates them to come to work each day? Loyal employees are motivated by more than just a paycheck. Your team needs to be fully engaged. Each should understand the role he or she plays, because everyone needs to feel part of the company’s purpose—its heart and soul.

When business founders and their teams understand the business’s purpose and vision, they project an energy that’s exciting to all. I’m sure you’ve walked into businesses that feel, well, blah—flat, with no life. Such businesses go from project to project with no purpose other than making sure they make money on the deal. Then there are businesses that have an upbeat, energetic, focused atmosphere—and it’s contagious. It makes you, the customer or client, feel good about doing business with this group.

For me personally, knowing the purpose of my business is extremely important for another practical reason: It drives me and gives me the courage and confidence to “sell” my company.

I’ve never liked or wanted to be in sales. In fact, I tried a couple of sales positions during my professional career, and, well, let’s just say I didn’t set the world on fire. Yet everyone tells me I’m a master when it comes to selling my own business. The reason has to be that I don’t feel as though I’m selling, because I truly believe in what I’m doing and why I’m doing it. In fact, someone commented to me recently, “You don’t do it for the money, do you?” Of course, I like—make that love—making money, but I am equally driven by my purpose. That is, I also love the excitement of doing something I feel is rewarding for the customer, as well as for my business.

Live It Like It’s Today

If your business is in the planning stages, whatever your business purpose and big picture may be, you need to begin living as if they exist today. It isn’t just a remote possibility or something you merely wish for; it’s going to happen. By living it as if it already exists, you’ll begin to see opportunities and take actions that fit appropriately with your business vision and purpose. Furthermore, by using stories and language to describe your business venture in a clear, positive, confident manner, you are in many respects helping to make it a reality.

Back in the ’70s and ’80s, books on “dressing for success” were popular. That’s when “image experts” began recommending that people dress for the job they want to have, regardless of their current positions. You should use that same strategy when it comes to building your business. Present yourself and your business as if you have already reached your goal. The attitude and image you project today can help bring you to the next level.

You may have heard people say, “Fake it until you make it.” Clearly, there is some truth to that. Of course, don’t ever misrepresent yourself or your business. But look and act the part and it will help you become what you want to be.

Purpose, Meet Mission Statement

Writing a mission statement for the business is a task many business owners don’t take seriously—and that’s a big mistake. Your mission statement is the foundation of your company. It’s the voice of your brand. It formally answers the question we discussed earlier: “Why do we exist?” Additionally, it demonstrates that you are making a promise to your stakeholders (e.g., your customers, employees, and the community).

Here are some of my favorite mission statements as of this writing, which expertly define the business purpose of each company:

Mary Kay Cosmetics: “To give unlimited opportunity to women.”

Wal-Mart: “Saving People Money So They Can Live Better.”

Walt Disney: “To make people happy.”

Each company’s mission statement both articulates the business purpose and makes a promise. Remember that the promise you make to your customers is something you should never take lightly. It should incorporate the core values of your operations and serve as the cornerstone of your organization’s culture.

Don’t confuse core values with marketing slogans. For example, “We are the number one customer service company” is a slogan, and not representative of an organization’s core values. Thus, if you look at Walt Disney’s core values, they expand on the intrinsic promise in their mission statement:

Three core principles help guide our daily decisions and actions:

• Act and create in an ethical manner, and consider the consequences of our decisions.

• Champion the happiness and well-being of kids, parents, and families in our endeavors.

• Inspire kids, parents, employees and communities to make a lasting, positive change in the world.¹

In short, your business success will be integrally connected to the strength of your core values and business beliefs. Business is all about relationships built on trust and integrity. Your core values are important because they reveal what is of paramount importance to you. They are the promises—to your employees, clients, investors, and community—that you must be ready to live up to.

You Are Part of the Promise and Purpose

Why you? Because it is nearly impossible to separate the business owner from the business, especially in the early days of any business operation. You are an integral part of the vision, mission, purpose, and promise of your business. So you need to be able to answer the question: Why am I the best person to build this business?

When you write your business plan, you’ll need to include information about your own managerial experience and background, along with those of any others who will be involved in the business. Many people assume that all that’s necessary and expected is to include a standard résumé. However, your business plan will be stronger if you use this opportunity to really sell yourself. Selling yourself is especially important if you are presenting your plan or business idea in person.

Customers, clients, and potential investors will all want to do business with people they believe are winners. But how do they make that determination? It comes when they gain confidence in your ability to do what you say you will do. If it appears that you don’t believe in your own abilities, they won’t either. If you’re shy about telling others why they should believe in your ability to deliver, don’t expect them to feel comfortable betting on you and your business. Building a successful business requires an incredible amount of self-confidence. Answering the question “Why you?” will give you the opportunity to toot your own horn.

Stand by Your Personal Values

Your personal values must align with your business values. You must walk the talk. Sometimes that means walking away from a cash-rich opportunity because it doesn’t align with your personal and business values. Though this is not an easy choice to make when you are trying to build a business, it is absolutely essential.

My three most important business and personal values are professionalism, respect, and integrity. And those values have been tested over the years. However, as difficult as it has been at times, I have remained steadfast to my values, and it has always turned out to be the best decision in the long run.

Let me share one such example. In 2003, I was awarded a contract to serve as the spokeswoman for a small-business program being sponsored around the country by a major national brand. The scope of the work required that I take on additional staffing, that there would be extensive travel on my part, and that I would have to decline a number of other opportunities. (This is what is known as the opportunity cost, which many entrepreneurs don’t take into account. Every time you consider taking on a new project or taking your business in a new direction, you need to calculate the cost of losing the business you won’t be able to manage or the deals you may have to forgo as a result of your decision.)

Soon after the contract was signed, there was a change in management, and I found myself working with new people who had a new set of rules and expectations. That alone was problematic. But the situation was further complicated by the fact that I was closely associated with the old team. If you’ve ever worked in a large organization, you know how brutal office politics can be. Even though I was an independent contractor, I was caught in the turmoil. Nonetheless, I was hopeful that tensions would subside and the project would move forward.

Then, I met “the man.” He was an independent contractor like myself, and he had been assigned the role of project manager. In truth, he was one of the most abusive, unprofessional, unethical, mean-spirited individuals I’d ever met. (Now ask me what I really think about him.) He would call me in the wee hours of the morning and scream at me. He lied and degraded me in front of others. Soon, his behavior started making me physically ill. I realized I didn’t have the stamina or desire to fight someone of his nature, nor did I want to be involved any longer with such a toxic human being. So I decided to take control of “me.”

I called my primary contact at the big-name company and explained that my personal values of respect, integrity, and professionalism had been egregiously violated by “the man.” I respectfully withdrew from the contract and wished the company much success with the project. He tried to talk me out of my decision, but I held my ground. And when I hung up the phone, I felt empowered. A lot of people thought I was nuts for having walked away from such a lucrative contract, but I knew it was the right thing for me to do.

As it turned out, two weeks later the opportunity to purchase the domain name SBTV.com appeared. I saw the big-picture chance for a new business I could create that had endless possibilities. If I had compromised my principles and remained with that project just for the money, I would never have had the chance to build the award-winning, multimillion-dollar company that SBTV.com became.

In the early days of your business it may be hard to remain committed to your purpose, promise, and principles, but remember that they are important ingredients for your ultimate success. When you compromise those principles, chances are you’ll pay a significant price.

Forgive me for using this cliché, but my mother always said, “When God shuts a door somewhere He has opened a window. You simply have to turn around and look for it.” There is too much opportunity in this world to compromise who you are and the values and principles for which your business stands.

Note

1. In March 2011, Disney published its second Corporate Citizenship Report, detailing its approach and progress in these areas for its fiscal year 2010.