Is to have a purpose behind your business important?

It is a simple question, really. To ask yourself the Why behind your business than the What. When Maggi launched the ‘Atta’ version, it changed its brand slogan to ‘Taste Bhi, Health Bhi’. Although it did not come soon after the ‘maida’ version, which was the original and sold and loved as much as any comfort food around the world, it came after the health conscious took a backseat as started labelling it as fast food. HDFC Std Life’s ‘Jiyo Sar Utha Ke’, ICICI’s ‘Hum Hain Na’ and The Indian Express’s ‘Journalism of Courage’ (among many, many others) too understand the need to be purpose driven and the fact that adding something meaningful to your venture goes a long way in helping an entrepreneur make a business decision.

Many international businesses such as Walmart, BMW cars and even the most popular social networking website, The Facebook started with a purpose. Where they are now is, as they say, stuff the dreams are made of. And money, well, it could just be termed as a ‘by product’ of contributing to something that is bigger than the entrepreneur and his/her people put together. Finding a purpose should not be as superficial as having to decide on what will look good to the world, it is indeed as easy as dreaming a dream and had come quite naturally to people whose organisations today even look for candidates who possess the similar traits at the time of hiring.

Let’s understand it with the help of an example, through which we will explain how can purpose of an organisation work for the greater good of the society. The manner in which employees of Mumbai’s Taj Mahal Hotel endangered their own lives to protect customers is known to all. Eleven employees laid down their lives. A Harvard Business Review article describes how the Taj has built such a team. The Taj Group has a three-proged system of recruiting. They target small cities and towns where they feel the traditional values of respect for elders and consideration for others still persist, because they themselves stand for these values and want their customers to feel the same. They recruit from schools looking not for academic excellence but for students who display respect for elders, cheerfulness and are most in need. Selected individuals are trained for a year and a half, while being paid a stipend and are given free boarding and lodging facilities. Finally, candidates who show high potential are recruited to the Taj.

The Taj Mahal is sure known for the service, it is that which it is respected for. We can always learn from the industry leaders on how they find a purpose to live by. The names Ruchard Branson and Azim Premji are known to one and all, not only for the amazing organisations they have helped built, but also for their, not-for-profit, philanthropy work, which has helped more millions of people than their companies have affected.

What are your thoughts on it? Please feel free to write them in the comments’ section.

Why Business Owners Should Take Risks.

If you believe that entrepreneurs are simply risk takers, you are wrong. If they had been perpetual risk takers they wouldn’t make for great success stories. They are known for their ability to take “calculated” risks, and also for designing “contingency plans” or alternative plans of action to a risky business situation. It is important for budding entrepreneurs to learn from the great successes of established business enterprises the ability to view risk as not negative but incredibly positive.

For most start-ups, some risks are a must, and are almost integral to their growth if one has effective strategies to deal with them. That’s what the start-ups should learn from the entrepreneurs: The strategies the latter use for success. To start with, do not consider risks as negative or just hazards, which need smart and strategic dealing. Take some risks as they are good for the enterprise’s growth and avoid the ones which are not. Here’s the list of the ones every entrepreneur should take:

Are you the First Mover? The shift in the market trend simply provides for business opportunity. The challenge is to recognise it early and have the first mover’s advantage. Since you do not know how it will fare in the market in the near future, it indeed is risky but it is worth taking.

Social Media is Here To Stay: Are you worried about your advertising expenses? Fret not. Social media has changed the rules of the game, and so have word-of-mouth and blogging. Strategically involving customers into discussions and launching your product/service on the Web is a great way, albeit risky owing to its reach, to find your niche audience on the Internet. Many companies have started to take it seriously by way of reducing their advertising spends.

There’s No Perfect Time: Start your business right now. If you think the right time is going to present itself, then you might as well keep waiting for ever. Believe in your business idea and sow the seeds today. Don’t wait for the “perfect” time. You wouldn’t want to wait until the day you see your competitor come up with the same idea and concept.

Richard Branson Says: “But aside from any business concerns, one of the main reasons my colleagues and I undertake any adventure is because it’s fun, whether it’s a bet that ends with me serving drinks to passengers in a skirt or whether it’s one that leads to the creation of a company that transforms the space industry. Should you say yes the next time somebody proposes a challenge? You bet!”

Do you have a risk-taking spirit? Tell us the risks you have faced in the pursuit of your journey has a business owner in the comments.