I’m privileged to have a business ownership journey of over 30 years, across multiple businesses. Have I enjoyed the journey, for the most part yes! Of course, there have been many challenges along the way, some big, some small. But I’ve learned so much, and it’s one of those key lessons I would like to share with you today by answering this question:
What can we learn from not-for-profit organisations?
I’ve worked with 100’s of organisations over the years and I asked myself why is it that some organisations can get 10’s or even 100’s of people to show up regularly, on time and with a positive mindset when they are not paid a wage, have any employee benefits, or any other form of compensation for turning up and giving their time?
One word came to mind – Purpose.
Traditionally we have on one side, profit driven businesses, and on the other side we have not-for-profit businesses. We even call them not-for-profit. I’m including charities, social enterprises etc. Any organisation where to serve is the aim, not to build profits.
So, if they are not-for-profit, what do they stand for? I think ‘purpose’ is the answer.
For years, profit and purpose have seen mutually exclusive. You can’t have both. What I’m discovering, and I think this is what thriving organisations are discovering too, is that purpose and profit fuel one another. The more purpose you have, the more profit you have, and the more profit you have, the more purpose you can have. I’m also finding that the younger demographic are saying, “what are you doing as a business and as a business leader to help the world improve? What are you doing beyond selling your products and services to grow socially, sustainably and ethically? This is very encouraging to me as our world evolves where I’m seeing our younger generations really wanting to help the world become a better place, and they’re looking to engage with businesses and organisations to do that.
Having a compelling purpose really helps your business. The most interesting thing about that is it’s not just about attracting more customers. A recent GALLUP poll discovered that now employees and team members want to be part of an organisation with purpose at its heart. Of course, the monthly wage packet is important, but more and more want to know what purpose is waiting for them at the office when they get there.
Not-for-profit, charities and social enterprises have always known that purpose drives their organisation. As business owners, this is a very profitable lesson to learn from them.
Let’s dig a little deeper…
As a successful business owner, I know that when I compete on price, my margins are squeezed, and if I keep doing it, I will become less and less profitable.
We have all at some point been attracted by a price matching offer, for some businesses, it’s how they gain market share, but it’s fundamentally flawed as it restricts the ability of a business to increase profits. I’ve written extensively about this approach elsewhere, so I’m not going to repeat myself, suffice to say – in our modern world, purpose wins every time and we are willing to pay a little more for a product or service if we love the company.
When you connect with and promote your purpose, what you’re actually doing is connecting with the heart of your customer, and the heart of your customer is where buying decisions are made. When you win their heart, your greatest competitor can never beat you. You may be thinking this doesn’t apply to me, but I have news for you – it does!
Whether you are service or product based, B2B or B2C, at the heart of every buying decision, at any level, lies a human who makes decisions based on how they feel, and how they feel about you.
So how does an organisation get 10’s or even 100’s of people to show up and give their time when they are only paid in coffee and cake? Answer – They have a compelling reason or purpose for doing so. When you can take your great product or service and combine it with a really compelling purpose, you can win the heart of your customer, and that’s a game changer. That’s a win win win.
How does a FOR profit organisation find a purpose?
Apart from a very few exceptions, most businesses are built around an idea that has to do with a product or a service, not a purpose. So, your business is up and running, you’ve already got a board of directors, you’re already manufacturing something, selling a product or service, and now I’m saying you need to add purpose to it? The challenge lies in making this genuine, because it can feel like a gimmick to everyone both inside and outside the business.
How does an existing business or organisation find or discover purpose?
This is an interesting question because most, if not every, business or organisation did start with a purpose. The reason the founder decided to start the business was not because they had a product or service they wanted to bring to market, but because they recognised a gap in the market that their product or service could fill, and by extension, make the world a better place. As the business grows and scales, that purpose very often gets lost, and it’s purpose that makes a difference in the modern world.
What I’ve realised over the last 10+ years as our world has evolved is that a business is no longer about what it tells customers in their marketing, advertising and sales messages, it is about what its customers tell other customers it is. That’s where the game has a changed. When you can create a compelling purpose and get other customers to talk about it, they will fuel your growth and when customers fuel your growth, that creates sustainable and healthy growth – and it increases loyalty in your teams.
When was the last time you purchased something without reading a review?
Any business can tell me all day long how much better they are than their competitors and why their products are superior, but there’s a little bit of a lack of credibility because there’s obvious bias, but when others say how great you are, that wins the day. There are so many on-line review platforms popping up for this very point.
We all know that positive word of mouth advertising is the most powerful form of advertising available to us, but because we don’t know how to work that out, we usually end up spending all our time and energy, and sometimes money, on paid advertising, marketing and social media, where we only shout about ourselves, what we are doing and what we’ve done. Is it any wonder that more and more people are realising that they are just adding to the noise because it’s not building a sustainable solution to growth.
How does this connect to purpose?
Simply this – word-of-mouth is really about sharing your purpose, same for genuine referrals. Again, I’ve written and spoken on this topic extensively in my blogs and podcasts, it’s so important, I have a full course available that shows you how to unlock and communicate your purpose as it applies to your marketing, sales, brand and team loyalty.
Let’s get you started on the right path.
By asking yourself these simple questions, you can start to remember, unlock or discover your purpose. I can help you do this too if you want to talk: https://calendly.com/markjarvis/grow-scale
Question one: What do you want to be known for?
Pretty straight forward question, but to answer it fully, it has to be answered in terms of how you are making the world a better place, not just why your products and services are bigger and better than others. Ask your team members what you are known for and if there’s confusion in the office, there will be confusion in the marketplace and amongst your prospects. Answering this question gets you on the path to clarifying your compelling purpose.
Question two: What ARE you known for?
The first question is all about clarifying your compelling purpose. This second question can be difficult, many shy away from it because it feels too hard, or perhaps answering the question might reveal something you don’t want to know.
This is what most people don’t know – When what you want to be known for is what you ARE known for, your compelling purpose becomes your unique niche in the marketplace and you create a sales force for free.
There is no perfect organisation.
The reality of having the answer to these two questions expertly connected with no gaps is, of course, the aim, but does anyone actually get there. I suspect very few. What we can learn is that the main goal of every business or organisational team should be to shrink the gap between these two questions, and we shouldn’t be scared of that. We should embrace that fact that we are imperfect, and every day we get to work on closing that gap.
How do you close the gap?
By changing your focus… Every business or organisation has a focus. For most it’s firmly rooted in themselves, who are we, what are we doing, what we will do next. This forms the core of almost every form of advertising, marketing and internal goal setting, and we have already discussed why that’s not sustainable in an increasingly noisy world. I’ve realised that every business or organisation has to be, and exist for more than just themselves. In our modern world, if your goal is just to stay in business and make money, then you probably won’t. A sweeping and harsh statement you may think, so let’s explore.
When the focus or spotlight of a business is on themselves, their purpose (back to that again) is never clear and they will most likely end up competing on a level they wish they could escape from (typically price as discussed).
When your focus is on your customer, you will ask them how you can serve them better, you will win their hearts, they will create positive word-of-mouth for you and become your sales force. That may sound a little too easy, it’s not. However, it is simple and most give up on this modern reality because they don’t know how.
When your focus is on your team and they share your compelling purpose, they will rally behind the organisation and its message and they will prosper in their role.
When your focus is on your community, everyone around you whether paid or unpaid, knows and understands the purpose and vision of the organisation and talks about it openly and proudly with others.
What have we learned?
Two key points, one; When what you want to be known for is what you ARE known for, your compelling purpose becomes your unique niche in the marketplace and you create a sales force for free.
Secondly; Thriving organisations are more concerned with becoming fans of their customers, team and community instead of trying to get their customers to become fans of the business. When you compare this statement to a lot of the marketing and advertising out there, it’s the opposite. It’s all about them.
Customer, team and community engagement is about winning their hearts to your purpose by proactively engaging with them, putting the spotlight on them, and taking the spotlight off the organisation.
What have we learned from not-for-profit organisations?
When you have a compelling purpose, you don’t need flashy advertising to win the hearts of your customers. We’ve been spending money with charities etc for decades, with no hint of a product or service in return. It’s simply because we believe in their purpose.
I’ll close with this suggestion.
Next time you’re talking with your customers, your team, and in your community, ask them what they think your purpose is. Now all you have to do is close the gap.
Work with me:
I help owners, founders and leaders create a scalable business that works without them, build a world-class team, and 10x profitability. Book a call with me here to see if we could work together.
Remember, there are only three types of people – those who make things happen, those who wait for things to happen, and those who talk about why things don’t happen for them. Which one are you?
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