What’s The Purpose Of A Business?
To create a chain reaction for society to thrive.
It builds up from the core out, from a single event that moves all the other pieces to ultimately build a cycle. It starts with Peter Drucker’s statement “The purpose of a business is to create customers”.
This is how it develops: The purpose of a business is
- To create customers so that
- Customers can build the brand so that
- The brand sustains the business so that
- The business adds to society so that
- Society thrives.
What Is A Business, Though?
Drucker defines a business as “an specific organ of growth, expansion and change”. Within this definition, the word that stands out is change. The only way to create change is by experimenting and looking to solve a problem that your customers have — not to create something that fits the market, but that fits the problem. Innovation.
On the part I don’t necessarily agree with is growth and expansion. An organization does not need to grow and expand to solve a problem. It doesn’t need to scale for the sake of growth. It doesn’t need to address everybody. There is nuance in this area, of course, but we can leave that to another essay.
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