“The purpose of any business is to create and keep a customer” – Peter Drucker
Five years ago, even two years ago, I would have said that the purpose of a business is to create value. Before that I would have said that the purpose of a business is to make a profit or to make “money”. As I understand the purpose of a business, it has been incredibly important to have an understanding of the story that business tells its customers. Take 15 minutes to watch this video if you are not already familiar
Start with why – Simon Sinek
What I have finally realized is this. The purpose of the business owner is to make money. The whole concept of a business centers around the notion of a customer from whom that money will flow to the owner. A business is not an arbitrary concept, it is a structure through which wealth flows from customer to owner. The value that the business produces is specific to the needs or perceived needs and wants of the customer that business creates. But that is not the “why” of the business…