Starting a business is an exciting adventure. It’s easy to get caught up with one task and ignore another because everything is coming at you so quickly. That’s one reason why it’s so important to understand how planning works and to implement good preparations whenever possible. In establishing the processes of a business, many entrepreneurs learn a whole lot about its operations, but ignore the philosophy. For this reason, it’s surprising to many entrepreneurs when they hear that the most important details of your business are not found on the balance sheet.
Your business shouldn’t exist solely to make a profit. In fact, profit is little more than a perk. Granted, it’s a good perk and one that most business owners want to have, but profit is not “the point” of this whole endeavor. More than anything, the revenue a business earns can be thought of as a good way to keep score. The better you perform, the more you’ll earn. It allows you to continue doing what you’re doing and it lets you know that you’re doing something right–but it isn’t the point.
What is “the point”?
That’s a great question! The point of a business may vary depending on what it does. The point of a bakery is different than the point of an auto body shop, but generally speaking the answer is twofold. The point of a business can be summarized aptly by examining its purpose and its objective.
If you’re trying to identify the purpose of your business, you may need to ask yourself some other questions first: The answers to these questions should have one thing in common–customers! The purpose of a company should be to meet the needs of your customers. You entered the industry to offer them something. That’s what you do. Hopefully, it is evident in your daily operations.
The purpose of PolyCleanUSA is to assist clients by saving them frustration, time and money by recovering plastic resins onsite. We want them to maintain control of their business processes and become more efficient.
If a business exists to fulfill a purpose, then what is its objective? Well, the objective states where you want to go with your purpose. It’s your overall plan, your biggest goal. PolyClean’s objective is to become the world’s biggest and best mobile polymer sorting company. More than anything, the objective is a horizon. It’s an identifiable goal that everyone within the company can help to achieve.
Understanding your business
Even today’s business owners can benefit from that ancient Greek maxim, “Know thyself.” By identifying the purpose and objective of one’s business, an owner can improve the overall quality of the venture. Without purpose, employees and customers may be unclear what the business is all about. Make it evident. When there is no objective, its easy to accept complacency. Complacent businesses become stagnant and, eventually, are unable to continue fulfilling their purpose (meeting the needs of their customers).
What is the purpose of your business? Are you making strides towards achieving your objective?