45. Why Does Your Business Exist? (Other Than Making Money)
Sep 20, 2018
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Why does your business exist other than making money? Most entrepreneurs don't have an answer to this question. Money is a byproduct of value, not value itself. Shifting from making money to striving for excellence leads to long-term success. Material possessions led to emptiness and confusion. Creating the best product and having a purpose beyond money is crucial.
Prioritizing value over money is key to business success and financial returns.
Focusing solely on making money can lead to a lack of motivation, failure, and missed opportunities for competition to thrive.
Deep dives
The importance of having a purpose beyond making money
Many entrepreneurs realize that their businesses lack a purpose beyond making money, which can be detrimental to their motivation and success. Business is about providing value to customers by solving their problems or helping them achieve their desired outcomes. By focusing solely on making money, entrepreneurs miss the bigger picture of adding value, which is the real driver of financial success
The case of Boeing: The consequences of prioritizing money over value
The example of Boeing illustrates the negative consequences of prioritizing financial returns over the value provided to customers. Initially, Boeing's mission was to create the best airplanes in the world, and they were highly motivated to achieve this goal. However, a change in leadership shifted the focus to profit maximization, leading to cost-cutting measures and disregard for quality. As a result, Boeing lost money, their airplanes suffered, and they created an opportunity for competition (Airbus) to thrive by prioritizing value over money
Shifting perspective to add value and achieve financial success
The key to business success lies in shifting perspective from solely making money to prioritizing value creation. When entrepreneurs focus on providing the best possible product or service and genuinely helping customers, financial success becomes a byproduct. By going above and beyond, investing in quality, and solving customers' problems, businesses can attract loyal customers and create a positive reputation. This approach not only motivates entrepreneurs but also enables them to build successful teams and achieve long-term growth.
Why does your business exist other than for the purpose of making money? This is the MOST important question you can ask! And what's scary is that most entrepreneurs don't have an answer to this question. The only reason their business exists is to make money for themselves. What's wrong with this? Legally there's nothing wrong with this at all and people can do whatever they want! The problem is that these people will fail at making money and wonder "WHY?". Money is a byproduct of value when you create value you make money. And money isn't value. So you can't create money by trying to make money, it just doesn't work that way! Companies who aim to solve problems and improve people's lives create value, the byproduct of this is money. Lots of money. If you want to be motivated, have fun, help people and make a lot of money while doing so -- this video is for you!
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