Welcome to the Business Abundance Podcast, providing
the tools and knowledge to help small business
owners succeed. For additional resources, visit
www .businessabundance .online. Hello. Welcome
back to the Business Abundance Podcast. I am
Zee and I'm here with Rowan. Hello. Ian is out
of office and so it's just Rowan and I today
chatting. Short notice cancellation. We are having
a conversation without him, but that's okay.
He'll be back in later episodes. Today we're
going to be chatting about... Starting with your
why. So a lot of businesses focus on what they
do, which is important. So that's your services,
your products, pricing, or how you do it more
efficiently. But today we're going to be talking
about something to do with your why. And that's
inspired by Simon Sinek's start with why. It's
a pretty simple concept, but we're going to unpack
that because it's not necessarily easy to. Apply
and I think that's because it doesn't necessarily
like you don't sell a product You sell a product
and you get money for it. Your wire doesn't necessarily
Bring that in immediately So we're going to unpack
what it means and lead with your purpose and
not just your offer and Why that also matters
to both your customers and your team? Rowan,
do you want to start with the golden circle?
No. It's this circle. It starts with a what?
I want to go somewhere else first. All right,
go for it. To add to chaos. But we obviously
talked to this and talked to a lot of people
about this. And most people that we've talked
to in the past, it's like, oh, why do you do
what you do? That is going to go, we want money.
Let's make the money. And, or why do you do what
you do, why is that different to anyone else?
Like, oh, we kind of do the same thing as everyone
else. We're electricians or we sell chairs or,
um, there's never too much thought past that.
So I think if you're listening to this episode,
you're like, oh, well, here to make money or
here to do this or whatever. Just probably, um,
you need a better reason. Um, we've begun, you
need a niche for your business to operate in.
not suffering from competition, you get better
prices, you get a bit of profit, you get better
team members, you know, if you can't find anyone,
it's generally because you're the same as everyone
else, you've got no difference. Yeah, if you're
selling chairs to make money, someone else is
selling chairs to make money too, so. Yeah, so
I'll just go with the one that I make the most
money at. And so some of the why is for our customers,
but it's also for our team, because people will
work for you because they believe in what you
do. Um, and we do as a business, we need to have
a purpose to exist. So just want to, to mention
that. Yeah. We're here to make money. What are
you talking about? Yeah, that's true. That's
a blog product. Yeah. It's, I can understand
it because when, when you say people buy why
you do it, not, not what you do, it is hard because
if someone's, um, looking for chairs, let's just
run with the chair example, they're going to
look for. a chair that they like the most. And
yes, but I guess then you can take into consideration
the quality if someone's, they always sell the
best quality, but then you can also get stuck
in, we sell the best quality. We can sell the
best customer service. So are there other people?
Yeah. What's your, yeah. What's your customer
service mean in comparison to theirs? Does it
mean you answer the phone? faster, because that's
a race to the bottom. We're talking about why
do we do what we do and straight away we're talking
about how we do it. Yeah, exactly. It gets stuck.
And that's the feeling. So it's easy to go back
to what we just sell chairs. And then people,
what do they want? Well, they just want to buy
a chair. And 100 % true, they do just want to
buy a chair. But if they have decided the chair
they want, they know exactly what they're after,
and they just need someone to sell them a chair,
you're probably not much more of really a business.
You're not providing any value aside from the
chair. So at that point, you're just taking orders,
aren't you? Yep. So you're an order taker. So
imagine with your supermarket, just let them
check themselves out. You'd be convenient for
them. Or, you know, if in a service firm or if
you're on the tools, for example, if people are
paying, you just put roof sheets up. You're a
sole contractor. You're not a business. You're
just taking orders from people and doing a job.
So you don't have a unique difference. They can
replace you with someone else. Part of the why
is, if we have a purpose above that, we're trying
to do something, then we've got a business, we
can charge people and we're fulfilling a purpose
or a role in the community. So that's why you
need to get a bit more scientific about it. Yep.
So this golden circle, there's three layers to
it. It's like an onion. The outside layer is
the what, because everyone knows what they do.
They are the products or services that you sell.
And then you go into the middle, which is the
second layer. That's how you do it. So some know
how you can do it. That's the part, I guess,
that makes you a little bit special or set you
apart. And then in the middle, you've got the
why. And I would probably argue very few businesses
know why they do it. Very few. It's not, it's
not about making the money. That's, that's the
result. It's the purpose of you and your, your
business. So the, the belief that you have and
the very reason that you exist as a business.
An example for example, an example for an example.
Beja, I think that's how you say. Spell it out
so we can check in. B E J A. Cool. So this is
a French sneaker company and the reason I found
it was interesting. I was listening to a podcast
episode about it and it was talking about how
a lot of people use sustainability now as a marketing
ploy. It's just a bit of a buzzword. People love
sustainable businesses. Yeah. Everything on the
package says this is sustainable, whether it
be socks or even just the packaging itself. But
this model focuses on sourcing its natural rubber
from the Amazon rainforest and their focus is
protecting the Amazon rainforest. And I think
they also mentioned that they wanted to employ
the people that they thought was unemployable.
And so what they do is they actually partner
with the local communities in the Amazon rainforest
and Uh, they're the ones who are sourcing the
rubber for them. These, this rubber is sourced
from rubber trees, which I didn't actually know
existed, but I also didn't realize like how rubber
came to be. So that was a fun learning curve.
I was like, Oh, you'd tap it from trees. That's
random. But also then, yeah, I don't even know
how you made it, but that was a fun little learning
curve. Anyway, they tap it from this tree. Uh,
and they were saying that when you. when you
consider keeping the trees upright, as opposed
to flattening it, because the alternative is
cow farming, they would prefer to keep the trees
upright. And so they employ the local communities
for the same amount, if not more, to be sourcing
this for them. So that's their sustainability
and everything that they do. focuses on that.
And so I would argue that's probably sustainability,
not the buzzword. Yeah. So they're there to save
their own forest. That's, that's their why. Um,
so when you, when you look at, uh, your purpose,
how would you apply that to a small business
in a small community? To answer that question
and talk about something else. Go for it. Cause
I'm good at doing it. Um, it's interesting. You're
talking about the sustainability is the buzzword
and all these. that's sustainable with this and
with this. And the reason they're doing it is
you can just put it on a label and then people
are more likely to buy it or more likely to pay
more for it. It's like the eggs. I remember us
talking about eggs in a previous podcast. Yeah.
So this is nicer to the chicken. So we're going
to buy this one or it's a Tassie devil or whatever
it was. Yeah, it was. And that's a really easy
to understand example of why you should know
the purpose of the business and why you should
communicate that. Because even if you don't have
anything to support it, just saying it. You can
see examples of people getting behind it. And
that can work two ways. And there's the, probably
talk about it full, but the, you buy canned tuna.
And they haven't heard this one. Some say, I
can't remember how you say it before. I don't
know how to say it. Go on, spell it. Or it's
sort of in French, court. And it says dolphin
friendly. Oh, random. And one of my fun things
to do is when I see someone eating tuna, just
check the can. just tell them they're killing
dolphins. Yeah, yeah, yeah. It's not very nice.
It's really mean. But obviously dolphins and
whales and turtles and things get caught in the
giant nets. Yeah. There's other things that they
catch them with. So there's more friendly ways
than others. But so you look up, so saying it's
dolphin friendly tuna, massive on the can. And
this is pursin caught. I hope you say that. Sorry,
I should learn how to say that. Is that the tuna
brand? No, that's the the way it's caught, the
method. So no fish aggregating devices and per
se in court. And the safest method is pole and
line. Okay. So, you know, is that French for
pole and line? Is that French? It's French for
a net. Pretty much. So it's saying we're not
using fish aggregating devices and it's just
a nice way of saying something people don't like
because no one's got to look it up. But it's
more friendly on the top and it's more, it's
friendlier. Yeah, definitely. So it's one of
the better ways to do it. But then there's some
cans that are more expensive that say pole and
line caught that are also dolphin friendly, but
you can't catch a dolphin on a pole and a hook.
Dolphins know the difference between dead bait
and live bait and they won't go for dead stuff.
They're so smart aren't they? And you're not
catching turtles, you're not catching whales
with pole and line and you see the videos of
a bunch of people on the side of the boat just
going whoop, whoop, whoop with their poles. giant
tuna over the back, their backs and chuck them
in the water. That easy. Well, no, you look it
up. I've never done it. Yeah. So, um, yeah, it's
an interesting one. Just having that label obviously
sells a whole lot. Yeah. The dolphin friendly
because of the emotional. Yeah. Yeah. Correct.
And then I'll, I'll go. the other way and say,
you're killing the dolphins because you're not
using the pole and line court. But most people
won't look that far in it. They can be covered
and bossed over. But the best businesses have
something that's meaningful that people get behind
and if anyone checks, they go, oh yeah, that
checks out and they tell everyone and then everyone
else believes it even more. And then you're in
your own little spot that's very hard to compete
with. Very hard for someone to take off for you.
What was the question? That's a good question.
Let's talk about why this matters. Or talk about
why it matters. Well, yes, because customers
are emotionally driven and they're obviously
going to connect to the brands that share their
beliefs. And I guess that comes back to the dolphin.
Like if you're particularly fond of dolphins,
the thing I probably caught more into was the
turtles, obsessed with turtles. And so if someone
said this is... Killing turtles. Killing turtles,
I run the other way. Yeah. So yeah, what should
we be doing to figure it out? Was that the question?
Yep. Yeah. Okay. So I think I'm looking at what
your business does or what your business can
contribute and figure out what that means. So
I know something we've said here in the past,
and I'll say potential clients. So we've got
people that are experienced, we've got people
that are new. We also have clients that are experienced
and clients that are new. So we try to mix people
up along the way. So, you know, if you don't
need the rolls Royce when you're just starting
out, but you need good and you need to be quality,
but we're trying to partner with people. We want
a good place for our team to work and have a
good career and learn lots. And we want our clients
to have a good business, learn lots and be successful.
And I don't think anyone's ever gone to be, oh
gee, that's no good. Good feedback if they do.
Well, that sounds nice Rowan, but what's that
sort of countering, I guess, and especially in
this professional place, we want the best. I
want to deal with the best. Yeah. So you have
some excellent professionals that deal with a
lot of people they shouldn't be dealing with.
They're well outside and they might be paying
more than they need to just to deal with them.
There might be they're not getting paid enough
to do that work. But they come in and say, what
are you going to do with me? What are you going
to do for me? Like, why are you the best? Well,
it's not about that. It's about the result. And
this is what we're about. Now, do you like that
or not? And most people go, yeah, that sounds
fantastic. That's great. Cool. And then it's
not about what we're doing or how we're doing
it. Obviously, you've got to have that taken
care of as well. But that's not the discussion.
The discussion is, that's fantastic. Yeah, we
want to be a part of that. So how do you figure
out yours? It's going, well, what do we like
and what do we dislike? you know, passionate
about. So if you're an electrician, are you passionate
about green energy? Are you passionate about
cool lighting? You know, because you can do some
cool lighting stuff these days. Are you passionate
about comfort? If you're selling chairs, well,
that sounds pretty boring. I was like, I don't
want to do examples with chairs. That sounds
really hard. But it could be, we're passionate
about comfort. I think, what does that mean?
Okay, well, most people have whatever couch that
looks nice, but they have back issues or mobility
issues. Don't know, you get out of that path.
So we're about having, you know, the comfiest.
Our business is about we want you to be as comfortable
as you can be. And how do we do that? We have
a range that suits lots of different people's
lots of different conditions, but we help you
find that. Not just which one looks cool and
what color. Yeah. So I guess you can figure that
out. Ideally, you'd figure it out before you
started your business, wouldn't you? Or would
you think people, people would come into it knowing
that sort of in the back of their mind? Maybe
a lot of people go into business for freedom,
for money, you know, more time with family. Yeah,
let's get the opposite. Yeah. But what I'm, I'm
trying to play devil's advocate or just sort
of one of the pushbacks is, um, well, that means
then I have to change my business model because
we, I, that's a nice idea. And I want to do that,
but I then have to change X, Y, and Z, which
is a lot of time and effort. And I don't have
time for that. Yep. So what would you say in
response to that? Well, if you don't have time
for any of that, then you've basically competing
with everyone, just providing the service at
the bottom dollar. You just say, contracted to,
yeah, we need you to do this. there's nothing
else. So, you know, if you don't have a bigger
purpose, like saving the Amazon, it could be
that we donate to local sporting clubs. Okay,
well, that's, you can get behind that. If you
like sport, if you don't, don't. It doesn't have
to be we're changing the world, but it can be
changing a community or we commit, you know,
we have an employee program. We want to be a
great employer because people have families and
we want them to have a good job. Yeah, a wide
range of things, but you ideally can have it
before it starts because there's no point having
a business that no one wants to deal with or
there's not a need for. But if you've already
started and you don't have it, then it's just
look at what's important to you or what's important
to your team. And then how can you integrate
that into your business? I think a great example
with the shoe company you just mentioned. You
want to save the rainforest, we could be a shoe
company because there's rubber in the rainforest.
I don't know how they came to it. There's rubber
trees there. Well, instead of using. chopping
everything down, putting cows there, which doesn't
make that much money. We could use rubber that's
already there, it makes more money. Everyone's
better off and we can sell shoes. Yep. Fantastic.
Rather than just looking from the other side
of the world going, oh, gee, I wish I'd saved
that, but there was nothing about it. So there's
two ends of the spectrum there, change your local
community or change something far away. Yep.
Yeah, so. I guess the higher purpose definitely
isn't just some buzzwords that you chuck on the
wall in the office and hope everyone looks at
it as they walk past. But it is worth putting
it together in sentence, paragraph, something
that you can reflect on and make sure that every
decision you make aligns with that because I
guess it's a good, oh, when they say that you
create a business plan and they want you to make
the mission and vision. I think we've said before
in a previous podcast, they seem one of the same
things. Yeah, it's hard to tell the difference.
They're technically different, but really. Yeah.
Yeah. So you put this high purpose together and
it is a good guide. It's good compass to direct
your business in a particular way. So if you're
looking at employing employees and you've got
a high purpose that... focuses on the Amazon
rainforest, for example, and your, your employee
has no interest or opposes that, then they're
probably not worth employing. So it runs from
any part of your business from employees to the
suppliers. You probably won't think you're worth
working for either. Yeah. But just with the high
purpose, we jumped into talk to, to the high
purpose. We didn't explain what it was, but I
guess it's like a mission or vision, but we prefer
the high purpose term. Um, because it's like
what? can your business do even if it's not selling
chairs? So we sell chairs, but we help business
owners. So in 50 years time, maybe there's no
accounts, there's no this, there's no whatever.
We can still help business owners, right? Because
there's still going to be business owners. And
yeah, obviously, the running company can be along
the lines of saving the rainforest or saving
the environment, for example. So you don't have
to sell shoes to do that. You can do it other
ways, but that's the purpose. So yeah, it's giving
a guide for you. another reason why you should
have it. And when people go, oh, I don't know
how to do blah, blah, blah. Yeah, it's your team.
So if we can't go and find good staff, that's
because they're working somewhere else. Why are
they working somewhere else? Probably because
they believe in it more. And sports, always a
good thing to relate to because a lot of people
understand it. Some people don't, but yeah. But
a team that has a common purpose is probably
going to be more successful. Common goal, right?
It's going to be more successful. Yep. Um, if
a team's believes that they can get up to the
next division, that's how, you know, that's what
we're going to try to change the vision. Cause
it's going to be huge in the community. Like,
it's going to be fun. Like we're going to get
there. Everyone's going to try and get behind
it. Everyone loves the underdog. Isn't that one
too? Yep. Yeah. If it's literally a club, we
rock up, we train, we play like, that's what
we do. We're just a football club. Like, why
would you be there instead of somewhere else?
Yep. So you get a lot of people that will go
there cause they don't want to have to do all
the extra effort. They don't want to train hard.
So you get all that and they're off. We can't
get those good people. It's not going to happen.
They're not out there. That's what they'll be
thinking. Yep. But then that's because all the
other people don't want to go there. Yep. Yeah.
And they're not going to go tell you that are
they? No, but it would be, even if they don't
realize it themselves, it'll be a subconscious
decision that they make. Yeah. I actually had
an experience with that over the weekend, our
football club. celebrated there a hundred years,
um, and in the room sold out tickets and there
was people from all walks of life. And, um, there
was very much a common theme of why people were
there supporting for such a long time. I mean,
one person was on the committee for over 40 years,
I think, and there's a reason that they stick
around. And that's that, in this case, common
theme of my understanding is the people, which
being a part of that football club is very. There's
a large community. Yeah. Huge community. Um,
and yeah, it's a bit, um, people want to stay
around and that's what builds it. And so you
could compare that to maybe a different football
club that. Yeah, people turn up and just want
to play football. I argue most clubs would be
like that though. Yeah, yeah. And that's the
thing, the people there would have that connection
to the community or the club, they have that
purpose, together we're achieving something or
if I don't do it, no one else will do it, but
we need to do it. Yeah. And we sort of lose that
in business because it's about the business side
of making money. Yeah. As far as that means to
anyone, nothing. So then why would they stick
around? Yeah. No reason. So we're just trying
to capture that. Yeah. Yeah, so. When you put
this higher purpose together, you need to focus
on not the business that you feel people want
to have. It needs to be your, so for example,
you can't, don't be swayed by what people feel
the need is, if that makes sense. So I'm not
going to shape my higher purpose around what
I think you think I should be doing. You've got
to agree with it, I guess. Well, but then wouldn't
you make your business model? You want to make
it around customers? It's a great idea. You want
to make it around your customers too, though?
It would, but if you're not living it out. You've
got to believe in it. Yeah, there's got to be
some sort of integrity behind it. It's no point
having a business that you don't want to. be
involved with. So I think it's finding a purpose
that people believe in, that you also believe
in. You know, you can make some change with that.
Whereas if you, if you, it doesn't matter how
well you love it, if no one else loves it, there's
no business, right? But yeah, what you're saying
is you want it to be authentic. So it needs to
be backed by you actually believe it. Yeah. And
then your team, like team members will believe
it. Yeah. So Cinex take Cinex? Cinex? We should
learn how to say things. Not at all for some
internal feedback. That's okay for each other.
Um, his takeaway, uh, yes. The goal is not to
do business with people who need what you have.
The goal is to do business with people who believe
what you believe, which I think sums it up. Yeah.
Perfectly from the man himself. Um, I had a client,
uh, well, we have a client and, um, a friend,
a friend came around and they're looking at the
solar Pagola, which I think it's been on another
podcast, but there's a solar Pagola. It's a Pagola
in the backyard. It's got solar panels on the
top. It's just makes more sense than having a
Pagola without solar in a solar system. Solar
Pagola. won an award and um he's looking at he's
asked me questions about and he's really interested
and he's an electrician and he goes oh who did
it i told him the company and uh he goes oh yeah
i was looking at them i've heard they're gonna
they really believe in this renewal energy stuff
and i read and this other company doesn't look
after their stuff that's a short story and um
i didn't say anything because don't want to be
biased or influenced and i like to hear what
people say um unfiltered but that's a great example
of it that they believe in that. That's the first
thing they mentioned. Not, oh yeah, they sell
lights. He's gone, oh yeah, I'm going to deal
with it because I've heard this, you know, I
think they really believe that. So I'm going
to go down that path. There's nothing to do with,
I'm going to price check them or it's gotta be
reasonable. Yeah, a hundred percent. So pretty
nice. Yep. Yeah. It's a good, um, good practice,
I guess, if things are feeling a little bit chaotic
or you're not really sure of the direction, sit
down and. think about the way that you want the
business ahead and what you believe in. The impact
it's going to have. Yeah. And I think, yeah,
if you can look at that from that point, what
impact is the business having on the world as
a whole? If you can get that right, the rest
will follow pretty well. You'll find team members
that believe and they're happy to help and put
in an extra effort. You'll find customers that,
you know, we're happy to pay and we actually
appreciate what you do. And if you're in a position
where you're like, oh, that's too far a jump,
like we don't make money and no one wants to
work for us and it's all horrible. you definitely
can't do that. So you already know that's not
working, so that's probably more reason to change.
Yeah. Oh, Simon also talks about the law of diffusion
innovation. Tell more. In his talk, so basically
we've got a bit of a bell curve on a graph that
you've got the early majority and the late majority
when we're talking about customers and people
adopting new technology. So the further along
the curve of the people that don't change unless
they have to. So, you know, my auntie back in
the day, I bought her a mobile phone for Christmas
and she cried and got really upset because she
didn't want one. But everyone, everyone had one.
She's still using the landline. Like it's not
even a thing then. So she's, she was on the,
the laggards. Then she still had a, I can't remember
what they're called, but the washing machine
is just open top and just goes swish, swish,
swish. And then it's got a roller out the side.
You put the clothes through to ring them out.
It doesn't even spin, you know? She's still,
still washing with that. Just getting parts made
for it. To this day. Pretty sure. Yeah. Impressive.
It was five years ago. Commitment. Two years
ago, actually. Yeah. So it gets parts made for
it. Cause I don't make the parts anymore. Yep.
Anyway, but on the other end of the bell curve
before the early majority, you've got the innovators
and early adopters. So they're the people that
want to try the newest gadgets. Yeah, well, that's
cool. We just want to show off what we want to
try. We want to be first with lots of different
reasons, but there's a very small, especially
there's like 0 .5 and it's followed by a 2 .5%.
Very small number of people, but they're not
buying the product. the chair, same as everyone
else, they're buying the latest TV. He talks
about the flat -screen TV and they just talk
about the latest drone or the newest phone or
whatever feature you want. And so they buy into
why you do something and where we're going to
go, what we believe in, and then a lot of the
mainstream then follow. So you need, I know a
friend who has that. If it's the newest, latest
thing, they'll be like, oh, I don't know what
that is. I don't trust it. I don't believe it.
I'll let someone else. Yeah, it might go away.
It might not be a thing. But then once you start
seeing people pick stuff up, then, oh, my friend
has that. Everyone's got that. And then this
large chunk of people follows through. So it's
another reason he talks about why you need to
sort of understand your why. You need to have
those people that are going to lead the way and
be accustomed with you and try that new service
and give you a whirl and they'll promote you
to everyone else. But the general thing is we're
not marketing to everyone, we're marketing to
those who will believe on what we believe. in
his explanation or in his book, because he does
have an entire book. So if you're interested,
go have a read. He's pretty well out of his TED
Talk. Yeah, out of his TED Talk. He does also
talk about, I guess, the biology behind it with
the limbic brain and everything like that. Talks
about the Wright brothers and flying. He might
as well have a listen to it. He says this whole
thing is a lot better than we have. Yeah, he's
very talented. Yeah, so I guess there's more
information that can come with all of this. And
if you want to know the science behind it, we
can write that out in one of our knowledge posts
on the website. But yeah, this is very important
to help direct your business and I guess ensure
or give you the best chance of longevity. So
have a read. We'll add some more information
in the notes and also have some more information
on our website. But we'll be talking to you soon.