In a recent article on Entrepreneur, the Rader brothers (who created the Gluten Free Bar) talked about what it takes to become a successful startup in today’s business environment. At one point, Marshall Rader said, “If you don’t stand for something, you seem to go away pretty quickly.”

 Although he may have been talking about his specific industry, it seems he hit an important nail on the head that all entrepreneurs need to examine.

Nowadays, if you want to succeed as a modern entrepreneur, you need to have a clear purpose and a moral compass. Survival is a matter of earning consumer trust and loyalty, and without a goal that extends beyond profit, entrepreneurs will struggle to thrive. The question is, why?

People Want to Support Businesses With a Clear Purpose

Right now, Americans have a pretty negative view of capitalism. People ages 18 to 29 now back socialism over capitalism – 51 percent to 45 percent. Companies that actively pursue profit without any social, charitable, or unique objectives are openly scored by many.

About 75 percent of people are more likely to start shopping at a company that supports an issue they agree with, and 71 percent of shoppers feel that it’s important for businesses to take a stance on social movements. This focus on companies’ beliefs and values, as well as their purpose, forces entrepreneurs to do more than just advertise their services. Startups need to prove to their audiences that they have an ulterior motive for existing – other than earning money.

New businesses aren’t the only ones who have taken a stand and announced their purpose recently. Think about Nike, the number one shoe company in the world. Over the past few years, the brand has made several big stands on political subjects. Their marketing campaign featuring Colin Kaepernick made waves across the entire nation and gave “Just Do It” a new feel.

It doesn’t matter if you run a t-shirt making business or a technology company – it needs to stake a spot in society’s culture.

Think about what your startup company offers the modern-day consumer other than a product. Whether your business supports a charitable cause, provides solutions to problems, or engages in social controversies, it needs to be something bigger than your product/service. Give people something intangible but powerful to support.

Purpose Is Essential to Company Culture

As an entrepreneur, you’re trying to get your ball of successful business ideas rolling. This takes time – you need to find the right people, products, and processes to ignite the startup. A huge part of this initial period of development comes from your company’s energy.

Ask yourself:

  • Why do people want to be a part of this startup?
  • Is it because they’ll make money?
  • Are they excited about the product?
  • What’s their purpose?

All of the questions will lead you to determine where your startup’s energy is coming from and what your culture offers new employees.

At least 12 percent of employees surveyed by OfficeTeam would quit their current job to find a company with a higher purpose or a stronger mission. The only other reason for quitting that was more prominent was to earn more money. Clearly, purpose is a big deal. A lack of engagement and big goals can drive down employee productivity significantly, and without purpose, your company culture will inevitably deflate.

Your purpose doesn’t just help your company have a strong culture – it is a part of your culture. Just think about Google: you’ve probably heard a great deal about their non-traditional work environments, employee benefits, and dedication to innovation.

When you envision Google, you can immediately assign some descriptive terms to their culture, and all of them tie back to the company’s purpose of providing an easy, new way of life for everyone.

During your first few months (or even years) as an entrepreneur, think about how your company culture reflects the purpose of your brand. If you’re a clothing producer who values ethical fabrics, how does that affect your green practices in the workplace?

If your company donates 10 percent of its sales revenue to a cancer charity, where do you see the charity’s influence and engagement in your day-to-day lives?

Company culture isn’t just a vague idea floating around the office. It should be a real, ever-present part of working with your company, as well as something that fuels your employees. The first step to getting to that point is deciding how your purpose and culture intertwine.

Your Personal and Business Brand Identity Comes from Your Purpose

When an entrepreneur gives birth to a business idea, it’s not fully developed. You’ll watch it stumble around on shaky legs as it figures out who it is and what it’s about. To some extent, you’ll do the same in your role as an entrepreneur.

Defining your purpose as a company and business owner can accelerate your development process. The more fully fledged your company’s goals and morals become, the stronger your identity will be. This can drive productivity and steer you in the right direction with all of your marketing campaigns.

For example, look at the brand GoPro. It produces an action camera as its main product, but the company name embodies so much more than that: adventure, travel, bravery, experiences, memories. All of these identity concepts flow from the brand’s core mission: helping people “celebrate the moment.”

Define what your company’s goal is, other than to turn a profit. Then, incorporate that higher purpose into everything you do, from hiring to social media marketing. You’ll find that a well-defined company personality will come with time. People will recognize you for more than just your products and services, and that’s when the real success will begin.

In Summary

We’ve covered a lot in a short amount of space in this article, but if you walk away with one message, let it be this: you and your new business need to stand for something.

Everything from your public reputation to your company culture and identity depends on your big goals and priorities. Without a purpose, you’re just another capitalistic innovator who will burn out quickly.

This guest post is by Manish Dudharejia,  Founder & President – E2M