06.26.07
Having a Clear Purpose
Two of the most important questions any business owner should ask themselves is “why am I in business and what do I want out of it?” It doesn’t matter if you are just starting out or if you are an established business, you should always have a clear and precise answer to these questions because they are the foundation for defining your business purpose.
A clear business purpose is important for several reasons:
- It keeps the business focused on its mission and target markets.
- Helps identify new markets for expansion.
- Provides prospective lenders and investors looking to finance your endeavor with insight into the strategic direction of your business and its possibility for long-term success.
When committing your purpose to paper, be sure to remain precise. Not only is it important that you understand exactly who your customer is when drafting your purpose, but also how your business is distinctly different from your competitors. Resist the urge to develop a long, flowering statement that says nothing or promises to deliver everything to everyone. That’s simply is realistic.
A well-worded purpose will assist you in setting valuable boundaries for your business. It can help keep you focused on what your business strives to do and what it is best at doing.
