Are you completely clued in on why things do or don't happen in your business? Any idea how you got that customer, sold your recent services, got 10,000 shares online, received customer complaints or why you didn’t meet your quarterly financial goals? Understanding why all of these things happen and how to influence them for the better starts with understanding what drives your business at its core. Identifying and understanding what drives your business matters big time.
Every business has one. Some are known and others aren’t. You probably didn’t choose it or communicate it as an official driver of your business but, organically it came to be. This guiding force, controlling assumption and directing conviction behind everything you do makes a huge impact on your business. In the end, it influences every aspect of your business decisions and activities, whether you know it or not. What is the driving force in your business? Here's 8 possible drivers of your business.
Driven By Position
In the position-driven business, you may hear phrases like, “We aren’t there yet.” Or, “I want to be like them.” This business is entirely focused on doing and acting from a place of where it is or where it wants to be. Position can be very limiting when it’s used to compare your business to others, causing fears and doubts to surface. On the other hand, position can be used positively when it’s used to motivate a business by looking forward to what it can achieve and how to bridge that gap between where it is and where it wants to be.
Driven By Personality
In a personality-driven business, you will ask, “What does the boss want to do?” or, “Does this fit our personality as a business?” The first question is geared toward businesses that have big personalities leading them. These types of leaders will trump all discussions, sometimes missing insights someone else offers. The second type of business is entirely focused on doing anything that brings the perceived business personality to life. These companies tend to do out-of-the-box branding, marketing and promotions that catch attention but could miss the boat with their target customers if they aren't careful.
Driven By People
In a people-driven business, the question is, “What do my customers or employees want?” This business is focused on the desires of their customers and/or employees. We all know that we need to design products for our customers, target them and engage with them in a meaningful and relatable way. Letting your customers or employees drive your business can sometimes cause issues when you are focused on the loud few versus the quiet many. Those rowdy few mouthing off about their complaints, if not vetted first, could lead your business astray from delivering true value to the ones who need it most.
Driven By Product
In a product-driven business, all the energy is focused on maintaining and sustaining your products and services. This means all your worth and value is wrapped up in whether your products and services sell. This doesn’t bode well for your or your employees’ confidence if it doesn’t go well. It also means missed opportunities outside of products and services area. This business may have built it, but then no one came because they never invested in any marketing or promotions.
Driven By Process
The process-driven business says things like, “ This is just how it’s done,” or, “We’ve always done it this way.” The goal of this business is to keep the tradition and timeless ways of doing things going; at all costs. They are very scared of change and interpret stagnation as stability. Tradition and process are good for any business when it doesn’t hinder success. Overcomplicating tasks with too many processes can cause delays, issues and cost more in the end. There’s something to be said for not reinventing the wheel but when you know you can achieve efficiency and effectiveness with a new way of doing things, you need to be ready to make the change.
Driven By Profit
In a profit-driven business, it’s all about the bottom line. Everyone wants to know, “How much will it cost?” Nothing else seems to matter but how much is being spent, how much is being earned, and what is leftover. Of course, every business needs to be on top of their finances and controlling costs but letting finances steer decision making will blind you to industry changes and your customers’ needs and wants. And that will lead to disaster.
Driven By Passion
A passion-driven business is all about doing what is exciting. Many times, businesses that lead with passion, will also have a strong personality whose passion is the compass. If your business is lead by passion alone, you’re most likely chasing it all over the place without an anchor in what your purpose is. Passion can be fleeting without an anchor and there are a ton of business activities that are downright boring but essential to success.
Driven By Purpose
Say hello to the holy grail of all business drivers. Purpose-driven businesses take the best of what drives businesses and wraps it all up into one glorious driver that guides your business to success. When purpose is at the core of your business, it's anchored in rich beliefs and identity. Your business purpose is tied to something outside of just you. This leads to a healthier, stronger and more effective business that everyone wants to be a part of. Your employees feel like their work has meaning. Your customers feel like you truly understand them and are helping them. You are able to move your focus from product to profit to process and beyond without abandoning your core purpose. Purposes last forever.
Now it's your turn. Which do you think is driving your business? How is it affecting your business for the better or worse? Share your thoughts in the comments below.
Thanks for reading and be well!
Hi, I'm Tiffany! I'm a business coach and consultant who believes businesses with soul is the way to go. That's why I've made it my mission to help entrepreneurs live out their business purpose and grow their ideas into profits. Meet other like-minded entrepreneurs now in the Dreamer & Creator online community.