Warren Buffett wisely said, “Time is the friend of the wonderful business, the enemy of the mediocre.” It’s a statement that rings especially true today. In 2023, there were over 358.7 million companies worldwide, yet only a handful rise to dominate their industries.
What makes these few businesses stand out? The secret often lies in a question many entrepreneurs overlook: What’s the purpose behind the business?
Too often, business owners focus on short-term profits—how much they can earn today—without considering whether their business will thrive tomorrow. However, companies that are driven by a deeper purpose and add value to their customers and society are the ones that endure the test of time. They don’t just aim for profits; they aim to leave the world better than they found it.
Andrew Carnegie once said, “No man becomes rich unless he enriches others.” This speaks to the heart of purpose-driven companies. The fulfilment of building something meaningful, something that benefits humanity, is far more rewarding than merely chasing financial gain. Sure, making money is great, but when you make it with purpose, it’s even better.
Businesses that innovate and prioritise their customers rarely fail. If they stumble, it’s usually because they’ve strayed from their core values, allowing more purpose-driven competitors to take their place.
In Good to Great, Jim Collins perfectly summed up the mindset of extraordinary leaders: “The good-to-great leaders never wanted to become larger-than-life heroes. They never aspired to be put on a pedestal or become unreachable icons. They were seemingly ordinary people quietly producing extraordinary results.”
At the heart of every great business is a leadership team with a clear vision and the ability to attract the right people. As Mahatma Gandhi wisely said, “The best way to find yourself is to lose yourself in the service of others.” Let’s take Jeff Bezos as an example. His primary goal when he founded Amazon was to make it the world’s most customer-centric company and it worked.
By putting customers at the centre of everything, Amazon built a resilient business. Customers became loyal, spending more and developing a deep emotional connection with the brand. This kind of loyalty is invaluable.
In today’s digital age, if you don’t serve your customers well, they won’t hesitate to share their dissatisfaction on social media, potentially damaging your business. It’s a new era, where digital reputation can make or break a company.
To be truly great, a company must put itself in its customers’ shoes, understanding their needs, pains, and pleasures. True success comes from serving humanity while delivering value to your customers.
As Jim Collins reminds us, “For, in the end, it is impossible to have a great life unless it is a meaningful life. And it is very difficult to have a meaningful life without meaningful work.” Purpose-driven companies aren’t just profitable—they’re forces for good. And that’s what makes them truly unstoppable in the long run.
Awet Ghirmay, Head of Investment Research
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The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
