C4E
C4E is a small, tight-knit collective of dreamers and doers. We solve branding, marketing, and communication problems for startups and large businesses.
At an event venue near you
+91-9819981337
sg@c4e.in
Follow us

Brand purpose: how to find a real one, and when to keep it off the wall

Brand purpose: how to find a real one, and when to keep it off the wall

Brand purpose is the reason a company exists beyond making money, stated in a sentence that its founder, staff and customers would all agree is true. A real brand purpose is found in what the company already does when nobody is watching. It is a mistake to put it on the wall when the company’s daily conduct contradicts it.

Key facts

  • Brand purpose is a statement of why the company exists, distinct from its mission (what it does) and its vision (where it is going).
  • A purpose is discovered through founder, leadership and customer interviews, not written in a workshop by a copywriter.
  • In the 4R method, purpose is an output of Roots, the brand discovery step, which takes 2 to 4 weeks.
  • The test of a purpose is whether it has cost the company money at least once; if it never has, it is a slogan.
  • Purpose is most useful to founder-run companies between USD 3M and 60M revenue that are at a turn: a new market, a second generation, a funding round or a crowded category.
  • A purpose that staff cannot repeat in their own words has not been adopted, whatever the wall says.

What brand purpose is

Brand purpose is the answer to one question: why does this company exist, other than to make money for its owners? The answer is a sentence, not a paragraph. It names who the company is for and what changes for them because the company is there.

The word has been abused. Around 2015 large consumer companies discovered that “purpose” tested well with younger buyers, and within five years every detergent had a cause. Founders watched this and drew the wrong lesson: either that purpose is a marketing tactic, or that it is a luxury for companies with a billion-dollar advertising budget. Both are wrong. Purpose is older than the trend and it will outlast it.

For a founder-run company, purpose is simpler than the conglomerate version. A founder started the company for a reason. Sometimes that reason was “I saw a gap and I wanted to make money.” That is fine, and it is honest, but it is not a purpose. More often the founder can tell you, if you ask the right way, about the day they got angry enough to start. A diagnostics founder who waited nine days for a report that should have taken two. A packaging founder whose father lost a contract because the box arrived crushed. That anger, translated into what the company now does about it, is the purpose.

Purpose, mission, vision and values

These four get mixed up in most brand documents, so here is the distinction. Purpose is why you exist. Mission is what you do about it, this year and next. Vision is what the world looks like if you succeed. Values are how you behave along the way. A company needs all four, but purpose comes first because the other three are derived from it.

TermQuestion it answersTime horizonWho has to believe it
PurposeWhy do we exist?PermanentFounder, staff, customers
MissionWhat do we do about it?Two to five yearsLeadership, staff
VisionWhat does success look like?Ten years and beyondFounder, investors
ValuesHow do we behave?DailyStaff, above all

What brand purpose is not

Brand purpose is not a cause. A pet care company does not need to save the oceans. A housing finance company does not need to end poverty. Attaching a cause to a company that has no operational connection to it is the fastest way to lose the trust of your own staff, who know what the company actually does all day.

Brand purpose is not a tagline. A tagline is a line of copy written for an audience. A purpose is a statement of fact written for the company itself. Some purposes make good taglines. Most do not, and they should not be forced to.

Brand purpose is not a substitute for a brand story. The story is the narrative: where the company came from, what it believes, where it is going. The purpose is one sentence inside that story. You can have a story without a stated purpose. You cannot have a purpose that lands without a story around it.

And brand purpose is not something you write. It is something you find. The moment a founder sits down with a blank page and tries to compose a purpose, the result is aspirational and generic, and it is usually false. The purposes that work were already in the company, usually in a decision the founder made years ago that cost money and that nobody thought to write down.

How to find a real one

The method is interviews, not workshops. A workshop puts twelve people in a room with sticky notes and asks them what the company should stand for. The answer is whatever the most senior person in the room says first. Interviews put one person at a time in a room with someone who does not work for the company and asks them what it does stand for. The answers differ, and the differences are where the truth is.

Three questions that surface it

Ask the founder: what is the decision you made that your CFO or your board thought was wrong, and that you would make again? The answer is almost always a purpose in disguise. A fragrance founder who refused a large private-label order because the brief asked for a formulation she thought was cheap. A robotics founder who kept a service team in a region that did not pay for itself because customers there had trusted him early. These are not stories about generosity. They are stories about what the company will not do, and a purpose is defined as much by its refusals as by its aims.

Ask the longest-serving staff: what would you be embarrassed to see this company do? The embarrassment test is more reliable than the pride test, because people are polite about pride and honest about shame.

Ask customers: what do you tell people when you recommend us? Not why you buy from us. What you say. The words a customer uses to recommend a company are the closest thing to an external read of its purpose that exists, and they are almost never the words in the company’s own deck.

When the three sets of answers overlap, you have found it. When they do not overlap, you have found something more useful: the gap between what the company says and what it does. That gap is the first thing to fix, and it is the reason brand culture and brand purpose are two halves of one job.

When it is a mistake to put it on the wall

Putting a purpose on the wall is a promise to the people who walk past it every day. If the promise is being kept, the wall reinforces it. If the promise is not being kept, the wall becomes evidence for the prosecution. Staff read it, compare it to Tuesday, and conclude that leadership is either blind or lying.

Here is the test. Take the sentence you want to paint. Now list the last five hard decisions the company made: a pricing change, a hire, a fire, a customer you dropped, a corner you cut. Does the sentence predict those decisions? If it predicts four of five, paint it. If it predicts two, do not paint it yet. Fix the decisions first, or fix the sentence.

There are three specific situations where the wall does damage.

The first is right after a funding round, when a company writes a purpose to satisfy an investor deck and then paints it before the operating model has caught up. The staff who were there before the round notice.

The second is during a second-generation transition. The son or daughter joining a family business often arrives with a purpose that is really a critique of the parent. Painting it on the wall while the parent is still chairman starts a fight that the brand does not need.

The third is when the purpose is really a category claim. “We exist to make healthcare accessible” is a purpose that six hundred companies could paint. If a competitor could hang the same sentence, it is not yours.

What a purpose is for, once you have it

A purpose earns its place by making decisions faster. When a company knows why it exists, the number of things it has to argue about shrinks. Should we enter this market? Should we take this client? Should we build this feature? A clear purpose answers about a third of these questions before the meeting starts, and it makes the other two thirds shorter.

It also changes hiring. A company with a stated purpose that its staff can repeat attracts people who already agree with it and repels people who do not. Both effects are good. The cost of a hire who does not believe in what the company is for is higher than the cost of an empty seat.

And it anchors the founder story. A founder story without a purpose is a biography. A founder story with one is an argument, and arguments are what get repeated by staff, quoted by press and remembered by customers.

How BrandBuddy does it

Brand purpose is an output of Roots, the first step of the 4R method. Roots is brand discovery: founder, leadership and customer interviews over 2 to 4 weeks. The output is a one-page read of what the company stands for and where it is out of line with itself. The purpose is on that page, and so is the list of places where the company’s conduct does not match it.

The purpose is then tested in Routes, the brand framework step. Two directions are drafted, one is chosen, and it is tested with customers and staff over 3 weeks. If the purpose does not survive contact with a customer who is asked “does this sound like them?”, it is rewritten before anything is designed. Design is step three. Most agencies sell design as step one. It is step three.

BrandBuddy works with founder-run companies between roughly USD 3M and 60M in revenue, across healthcare, financial services, industrial and consumer sectors. The companies that get the most from a purpose engagement are the ones at a turn: a new market, a new generation, a round, or a category that has filled up since they started.

Questions people ask

Does a small company need a brand purpose?

A company with fewer than ten people usually has a purpose already: it is whatever the founder cares about, and everyone can see it daily. The need for a stated purpose appears when the company grows past the point where the founder is in every room. That is usually between 30 and 100 staff, or when a second site or a second market opens.

How long does it take to find a brand purpose?

In the 4R method, purpose emerges from Roots, which runs 2 to 4 weeks and involves interviews with the founder, the leadership team and a set of customers. Testing it with staff and customers happens in Routes over a further 3 weeks. A purpose that is written in an afternoon is usually a slogan that has not yet been challenged.

Can a brand purpose be about profit?

A purpose can be commercial without being about profit. “We exist to make small manufacturers as creditworthy as large ones” is commercial and it is a purpose. “We exist to be the most profitable lender in our segment” is a goal. The difference is whether the sentence names a change for someone other than the company’s owners.

What happens if staff do not believe the purpose?

Then it is not the purpose yet. Staff disbelief is data. It usually means the sentence describes what leadership wishes were true rather than what the company does. The fix is either to change the sentence to match conduct, or to change conduct and hold off on publishing the sentence until the gap has closed. Publishing first is the mistake.

Send one paragraph about your company to sg@c4e.in. We reply with the first question we would ask you in the room.