We have been taught that the primary purpose of any business is to make money (by which we mean, to produce a net profit).
Did you also know that the primary purpose of any human life is to breathe, drink, sleep, and eat?
I would like to assert that this teaching is false. Profit is not the purpose of a healthy, functional business, it’s merely a result of having one.
Do I mean that no business that pursues net profit as its highest objective can be successful? It depends on what you mean by success. I could certainly pursue profit and succeed in acquiring profit. But a con man can also make a profit. So can investors who take over a business only to shut it down and lay off thousands of workers. Thieves, murderers, warmongering rulers, and slave traders have all made profits from ethically and morally questionable activities. Are their actions justified by mere profit? And are their actions repeatable and sustainable over the long term?
For a business to be healthy, it must have a healthy profit. Not just the margin in any given quarter, but its source, its sustainability, its philosophical foundations, and perhaps most importantly, its impact on the people who made it possible–employees, customers, people in the supply chain, and so on.
If my business seeks first the good of others, and creates profit as a result, then I have begun to build a healthy, sustainable business–just as eating vegetables, breathing clean air, and sleeping well every night begin to build a healthy, sustainable body. And when I seek to expand my business, my two leading questions will be, “How can I help even more people?” and “How can I help people even more?” Such questions will guide me toward sustainable growth much better than “How can I make more money?”
(The definition of “help” can be very broad, but be careful not to fool yourself into believing that doing whatever you want is “helping.” If you can’t convince someone else within fifteen seconds that what you do is helpful, it probably isn’t.)