It may sound a bit existential, but being able to answer the question, “why does your business exist?” is an important and powerful exercise. For the purpose of this exercise, we’re answering the question from the perspective of those outside your business not your reason for the business to exist (as an example, because you thought you could build a better mousetrap).
The answer to the question of why your business exists is influenced by what you sell, but it’s more than that. How your customer’s benefit also matters, but that still doesn’t answer the question.
Ask yourself what would happen if your business went away. What would the world be missing? See if you can shorten the answer to one concise sentence. There’s power in breaking something down to its core—to the very heart of why it exists
As an example, I provide my clients with business planning and they benefit by gaining clarity, focusing behaviors, and measuring results. But, the reason my business exists is to improve the prosperity and success of privately-held businesses. It’s basically the sum total of all that your business does, and it’s reason for existing. And the good news is that getting clear on that reason and being able to communicate it succinctly lays the foundation for more strategic planning and decision making.