What’s the purpose of your business?

passion

So, you’re thinking about launching a business, or maybe you’re getting serious about growing your startup. What should you do to grow quickly and successfully? 

Let’s start with answering this question: what is the purpose of a business? 

If your answer was anything other than “to create a customer,” you may want to read on.

It’s common for entrepreneurs to think that business is about “creating profits”; however, there are no profits without customers. Ironically, prioritising profits can lead to business choices that drive customers away.

As a consultant to organisations of all sizes (from start-ups to global enterprises like Mercedes-Benz, MindChamps or Starbucks), here’s a lesson I’ve learned from established brands when it comes to “customer creation” and the secret sauce required for businesses to thrive in this new customer landscape.

Customer attraction and retention: it’s a simple matter of value!

I’ve devised what I consider to be six key components of creating and exchanging the customer value needed to drive entrepreneurial success:

  1. Explore value: Understand the wants and needs of your consumers.
  2. Create value: Craft solutions to address your consumers’ needs.
  3. Market value: Communicate the benefits of your solutions to your consumers.
  4. Sell value: Help consumers find sufficient value in your offering so they will provide something of value to you in return (e.g., make a purchase).
  5. Deliver value: Ensure your consumers receive the value you promised.
  6. Prosper through value efficiency: Deliver value economically to sustain and grow your business (or else you have a hobby).

I will concede that my value formula is a lot easier to capture on paper than it is to deliver in day-to-day business operation.  However, a few key questions can help you ensure you think about your value delivery:

  • What have you done to uncover your target customer’s stated and unstated wants and needs (market research)? 
  • How do you know your products/services will meet a sizable need (focus groups/beta testing)?
  • How can you gain access to the customer segments that will find your solutions attractive (targeted marketing strategies)?
  • What benefits, attributes, or experiential elements of your product/service are you emphasising your sales process (sales tool development and training)?
  • How are you ensuring that your customers receive the value every time they interact with you – no excuses (service skill tools and customer experience design)?
  • Have you tested pricing options to guarantee you are maximising profitability to fuel your sustainability (pricing optimisation)?

Large businesses benefit from individual departments that focus on all elements of value creation and delivery: however, smaller businesses are closer to their customers and are more able to nimbly pivot to address the changing wants, needs, and desires of those they serve.

May you leverage your size advantage to continually pursue value that results in customers’ creation, profits, and growth!

Dr Joseph Michelli, international organisational consultant and psychologist