How To Write - Business Purpose Statement Speaking From Heart
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Business purpose aka. ‘brand purpose’ is often referred to as the ‘heart and soul’ of a business because it gives a brand a distinct and compelling reason to exist beyond just making a profit.
Purpose-driven brands like Nike (see example at bottom), Toms, Patagonia, Tesla, Coca-Cola, and several others have commitments to a purpose beyond profit, to improve lives, and to create a better society and world, not just for shareholders.
This is such an important part of branding that sadly, small businesses that register their business (as an LLC or Inc) do not fully understand this foundational element before cementing in their brand name.
So, how do you answer the llc purpose statement? (skip to these 8 steps)
Writing a business purpose statement is developed and written from these 5 principles:
A Convicting Core Belief That’s Felt At The Heart
The core belief of a business is the fundamental conviction driven by the ‘reason’ it operates. It answers the question, “Why do we exist?” It’s the underlying philosophy that shapes its mission, vision, and core values.
This belief could be
- a commitment to superior quality
- a devotion to customer service
- a dedication to sustainable practices, or
- any other principle that the business holds as essential.
When a business’s belief aligns with its brand purpose, it creates a coherent and authentic narrative that resonates with both internal and external stakeholders.
For instance, if a company believes in promoting sustainable practices and its brand purpose is to provide eco-friendly products, the business will naturally attract customers who share this belief and want to support this purpose.
Simultaneously, it can inspire employees who value sustainability and want to contribute to this cause.
Ultimately, the belief of a business, when embodied in its business purpose, can act as a powerful magnet that attracts customers, motivates employees, and differentiates the brand in the market. It gives the business not just a ‘what’ and a ‘how,’ but a ‘why’ – a reason to exist beyond profit, and a cause to champion that adds meaning to every business decision and interaction.
Create An Emotional Connection
When you are firm in knowing your belief, you’ll want to create an emotional connection of forging lasting relationships with your customers. It answers the question, “In what way(s) are we emotionally connecting with our audience?”
This process goes beyond selling products or services it’s about:
- shared values
- stirring emotions that resonate with your customers.
When your brand purpose deeply aligns with the values and aspirations of your customers, you inspire more than just loyalty; you cultivate a sense of belonging and purpose.
Your customers see your brand as an extension of their identities, not just a provider of goods or services.
Successful companies like Patagonia, Nike, and Tesla have mastered this art. They’re not just selling clothing, shoes, or cars; they’re selling sustainability and ambition – powerful concepts that resonate emotionally with their customers.
When you connect emotionally, you tap into a profound, enduring aspect of human nature, making your brand unforgettable.
Address Your Target Market's Problems Head-On
As you forge lasting relationships with your audience through emotion, you’ll address their problems by demonstrating a deep understanding of their needs, struggles, and desires. It answers the question, “What are we solving for our customers?”
It’s also about proving to them that your business exists not just to turn a profit, but to offer solutions that enrich their lives or ease their burdens.
For instance, if your target market is environmentally-conscious consumers like Patagonia who are concerned about the ecological impact of their purchases, your brand purpose might be “to provide sustainable, eco-friendly products that allow customers to make choices they feel good about.”
This immediately signals to your audience that you not only understand their concerns, but are also committed to offering solutions.
Essentially, a business purpose that addresses market problems stands as a promise – a commitment that your business is there to meet specific needs and solve particular problems, making your customers’ lives better in a way that matters to them.
Explain The ‘Why It Matters’ Solution
Addressing your audience’s problems by offering solutions explains to them ‘why your products and/or services matter’ to them and makes their lives better. If you can answer why your business matters, you’re already in position to write a solid purpose statement.
It extends beyond the realm of products and services, right into the heart of what your brand signifies and how it impacts customers’ lives.
It’s about why your brand should matter to your customers, your employees, and to society at large.
The ‘why it matters’ can help consumers see your brand as more than a commodity; it positions your brand as a contributor to their life narrative, a champion of their values, or a catalyst for change they want to see in the world.
In an era where consumers are increasingly making value-driven choices, this aspect of business purpose:
- helps differentiate your brand in a crowded market
- fosters deeper loyalty
- creates a community of advocates who are connected through shared beliefs and values.
Understanding ‘why it matters’ ultimately humanizes your brand and creates an emotional bridge between you and your audience, leading to more meaningful, long-term relationships.
Establish An Impact That’s Felt All-Over
The impact of a business purpose is far-reaching and multifaceted, with both internal and external implications.
Internally, it serves as a guiding principle for decision-making, influencing everything from product development to marketing strategies. It can foster a sense of unity and direction among employees, fueling motivation and commitment. It answers the question, “How is the health of our team within our company?”
Externally, it can differentiate a business in a crowded marketplace, making it stand out to consumers who align with its values and mission. It plays a crucial role in building deeper, more meaningful connections with customers, fostering loyalty and often resulting in higher customer retention rates. It answers the question, “How are our customers benefiting from our products and services?”
Strong brand purposes attract like-minded partners, investors, and stakeholders, strengthening the overall business network.
On a broader scale, when a business purpose includes a commitment to social, environmental, or economic causes, it can lead to tangible positive impacts in these areas, contributing to a company’s reputation as a responsible and value-driven entity.
Ultimately, the impact of a brand’s purpose extends far beyond the walls of the business, influencing not just its bottom line, but its relationships, its reputation, and its legacy.
What is an example of a business purpose?
Nike – Our purpose is to move the world forward through the power of sport. Worldwide, we’re leveling the playing field, doing our part to protect our collective playground, and expanding access to sport for everyone.
Patagonia – For our 50th year, we’re looking forward, not back, to life on Earth. Together, we can prioritize purpose over profit and protect this wondrous planet, our only home.
Coca-Cola – The Coca-Cola Company purpose remains clear: To refresh the world and make a difference. This purpose is uniquely us. It’s why we exist, and it’s needed now, more than ever.
Tesla – In a Tesla quarterly conference call with CNBC, Elon Musk stated, “The fundamental goodness of Tesla … so like the ‘why’ of Tesla, the relevance, what’s the point of Tesla, comes down to two things: acceleration of sustainable energy and autonomy,”
Toms – We believe in a more equitable world. That’s why we give ⅓ of profits for grassroots good.
How to answer the LLC Purpose Statement
Based on the 5 principles above, here’s a step-by-step guide to help you craft a powerful purpose statement:
Step 1: Identify Your Company’s Core Values. What are the guiding principles that your business upholds in all its actions and decisions? Identifying these values will help set the tone for your purpose statement.
Step 2: Understand Your Customers. Who are your customers? What do they value, and what problems they face that your business can solve. This insight will help you align your purpose statement with your customers’ needs and expectations.
Step 3: Articulate Your Company’s Goals. What are your business goals and objectives? Your purpose statement should reflect these goals to give direction to your business strategies.
Step 4: Define What Sets Your Business Apart. What makes your business unique? This could be anything from a unique product feature, a commitment to sustainability, or an exceptional customer service record. Incorporating this aspect into your purpose statement can help differentiate your business from competitors.
Step 5: Write a Draft. Based on the information gathered from the above steps, write a draft of your purpose statement. Keep it concise, clear, and inspiring. Make sure it communicates who you are as a company, what you do, why you do it, and who you do it for.
Step 6: Get Feedback. Share the draft with stakeholders (e.g., employees, partners) to get their input. This feedback can offer valuable perspectives that help you refine and improve the statement.
Step 7: Revise and Refine. Based on the feedback, revise your purpose statement. It’s important to get this right, so take your time and make sure the final statement genuinely reflects your business’s purpose.
Step 8: Communicate Your Purpose Statement. Once you’re happy with your purpose statement, share it with everyone connected to your business – employees, customers, suppliers, investors, and the wider community.
According to LLC University, LLCs are very flexible. They can be used for 1 purpose or multiple purposes (there are no limits). And that LLC purpose (or purposes) can change and evolve as your business grows.
You can always change the purpose of your LLC later (by filing an amendment), but it’s really not required.
In conclusion, understanding and integrating your business purpose is a game-changer for businesses in today’s highly conscious market. At its core, a brand purpose is not just a statement, but a conviction that resonates deeply within your organization, felt at the very heart and soul of your operations and decision-making.
When a business imbues its brand purpose with genuine emotional depth, it doesn’t just create a connection with its customers; it fosters a bond, a sense of shared values, and a mutual journey that can stand the test of time. This emotional connection becomes a conduit through which you can address your target market’s problems head-on, demonstrating a clear understanding of their struggles and offering effective solutions that resonate with their needs.
Crucially, business purpose clarifies the ‘why it matters’ factor, not just for your customers, but for your team as well. It gives context to your business operations and the solutions you offer, ultimately showing the significance of your brand beyond its products or services. It’s this very understanding of ‘why it matters’ that drives the impact of your brand purpose.
This impact, cultivated through a solid purpose, is felt throughout your business and beyond. It enhances employee engagement, customer loyalty, business growth, and even societal wellbeing, reinforcing the inherent value and power of a strong business purpose.
In the end, your purpose is not just a tool for differentiation or a marketing strategy. It’s the light illuminating out from the heart of your business, shining on its path in the market, and touching the lives of customers, employees, and society at large. Whether you’re defining it for the first time or revisiting it to ensure it aligns with your evolving business, remember that your brand purpose is more than just words—it’s your business’s soul, and it’s worth nurturing.
Nicole Andrew is a 20 year brand designer, Level-C certified brand strategist, educator, and co-owner of 28Lions, a branding & marketing consultancy agency.