How To Be Profitable Without Focusing On The ROI

      

Don’t focus on your bottom line. Yes, you have to have an understanding of how your business will make money.  Yes, you have to monitor your profits. So what’s wrong with focusing on it?

Because you can only focus on one thing at a time. And that one thing should be your mission-your purpose for existing as a business. When you have a purpose that is bigger than money, all of your decisions take you in the right direction. Not sure whether to create a new product? Refer to your mission.  Not sure whether to invest in a new initiative? Refer to your mission.

Wal Mart’s mission statement is to help people save money so that they can live better.  When they strayed from that mission they got into trouble. When they focus on it, they do just fine.  Warren Buffett’s company, Berkshire Hathaway has a mission statement that talks about responsibility, about helping people who have suffered injuries and to behaving decently toward others in the organization.

Look at the mission statements of great brands like Target, Patagonia, and Zappos.  They talk about things that are not about the bottom line like providing people with great design or saving the environment or happiness.

As a consumer, I want an experience or a product that elevates me, even if it’s in a small way.  If that’s your business I’ll choose you more often and be wiling to pay more for the pleasure.

Recommended reading:  What I Learned About A Mission Statement From Starbucks (from this blog)

 

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