The Real Reason Businesses Exist

"What is the true purpose of business?" No doubt, the unanimous response to such a question would be, “The purpose of business is to "make a profit."

It’s tough to argue with that answer, especially when making a profit is what businesses focus their energies on. The idea that making a profit is a "good" thing, and a necessary thing at that, is vital to the strength and power of the American economic engine.

But, what is it that makes a profit for a small business owner? What is the key to business profits and growth? The answer: customers; it’s customers that are the source and wellspring of profit for a business. Without first creating a customer...profits are merely a pleasant fiction for the business aspirant.

So again I ask the question, "What is the purpose of business...to make a profit...or is it to create a customer instead?"

The question is one of a significant nature to anyone who owns a small business, or any business for that matter. Why; because perspective determines relevance, direction, methods of operation for a business owner; and ultimately, perspective determines whether or not a business venture is successful or not successful in the end.

“The sole purpose of business existence is to create a customer.” Peter Drucker


Copyright © 2011 - Tony Cefalu