The Real Purpose of a Business

Have you ever heard someone tell you that the purpose of a business is to make money? It seems logical enough until you stop to consider that the only person who really makes money works in a US Government mint. What a business must do is to attract and keep customers. It does this by providing a service or product that its customers need and want. If it is properly done, then and only then, will it earn a profit for the company.


Not the Economy’s Fault
When a business owner believes that the only reason his company is not making money is due to the fault of the economy or the government, he is mistaken. Yes, those factors do play a part in creating a successful business climate. However, when a business owner is able to understand that as long as he can identify a need and fill it, he can make his business successful.


Stop Thinking Negative
Bob Fish, CEO of Biggby Coffee, a privately owned coffee franchise business based in East Lansing Michigan, says, “one of the biggest obstacles business owners have to growth is their own pessimistic dialogue about the bad economy.” He feels that if more business owners looked for the positive side of what was happening, their business would prosper.

Don’t Cut Your Budget for Marketing
Mr. Fish communicated to me how a lot of business owners have it backwards when it comes to growing their company in a slow economy. Most of them will cut their budgets for marketing, at a time that they need to keep marketing their business. As he said, “If you continue to spend money on marketing when your competition stops doing it, it is like getting double the amount of exposure with the dollars you do spend.”

In summary, to help your business earn a profit, make sure you are doing what it takes to attract and keep your customers. And the next time someone tells you the purpose of a business is to make money, politely ask them which US Government mint they work for?

Tom Borg is president of Tom Borg Consulting, LLC. He is a business consultant, speaker, coach and author. He helps companies and organization become more profitable by increasing their value and lowering their costs through the professional development of their managers and employees.