The Power of Purpose: Why Start-Up Success Hinges on Your 'Why' (Part 1)

In my earlier articles, I delved into Vision, Mission, and Market Sizing. I chose these topics because they form the core of your decision to become a start-up founder. Every entrepreneur needs to articulate these aspects effectively and (hopefully) impressively. These three elements address the ‘What’, ‘How’, and ‘Is It Worth It’ questions. But in hindsight, I left out perhaps the most important question: the Why?

Why are you pursuing what you’re building? What is your cause?

And What does purpose have to do with success as an entrepreneur?..... I would say everything!.... Read on....

Purpose in Entrepreneurship: Defining Your Why

Purpose is the why. Why do you feel motivated to jump out of bed every morning and pursue entrepreneurship? If you’re a start-up founder reading this, you’ll agree that entrepreneurship is one of the hardest endeavours one can undertake. Purpose is the inspiration that keeps you going against all odds. And every entrepreneur needs a strong purpose.

But can being a millionaire or becoming famous be your purpose behind entrepreneurship? As much as I’d like to say why not, I’m afraid these reasons are fairly shallow and unlikely to sustain you through the rigorous journey of entrepreneurship. If making money is your sole purpose, there’s a high likelihood that, along the way, you’ll encounter other opportunities for wealth and you may lose your motivation. I’ve seen some examples of this.

So, I’d advise that as a start-up founder, you should seek a deeper cause to drive you. Making money or gaining fame can be secondary benefits, important but not the primary driver for entrepreneurship.

The Role of a Deeper Purpose in Start-Up Success

Let me take you back to the late 1800s. Mankind was obsessed with building an airplane. Many smart, motivated inventors were chasing the idea of flight. At that time, balloons were the leading technology for air travel. However, other inventors were exploring different approaches to achieve flight.

Now, imagine you have two teams to consider—Team A and Team B—and you need to place a calculated bet on which one will succeed.

Team A is led by an astronomer associated with the Smithsonian Institution, Harvard College Observatory, and the U.S. Naval Academy. The leader’s friends include Andrew Carnegie and Alexander Graham Bell, and thanks to these connections, the leader secured a grant of $50,000 (equivalent to about $2 million today). This grant allowed the team to hire a test pilot, a brilliant mechanical engineer, and a fantastic designer.

Team B’s leaders ran a workshop focused on bicycle sales and repair, where they built and sold their own bicycles. They also experimented with building and flying gliders and even constructed their own wind tunnel to test aerodynamic theories. They bootstrapped their funding—no government grants or connections—and their team was mostly family members and a few assistants.

With the benefit of hindsight, we might root for the underdog, but if you were in the late 1800s with $10,000 to invest, would you have chosen Team B over Team A based on these stats alone?

Team A was Samuel Langley’s team—a highly accomplished and well-connected astronomer. The New York Times followed him around, documenting his progress.

Team B was the Wright Brothers' team. They got no attention from the world around them. And we all know who was successful ultimately.

When it comes to start-up success, it’s not always about funding or having a dream team; something more fundamental is at play. David McCullough, the biographer of the Wright Brothers, noted that both brothers were deeply passionate about solving the problem of flight. They weren’t driven by fame or money—they were focused on a deeper purpose: mastering the challenge of controlled flight.

Lessons from Industry Giants: Purpose-Driven Innovation

Another example is the American railroad industry. Many of the leading companies at the forefront of inventing and growing railroad transportation didn’t survive because they saw their purpose as being in the railroad business rather than the mass transportation business.

One more example on the importance of purpose-driven innovation can be seen in the story of Creative Technologies and Apple. Creative Technologies, a Singapore-based company, was a pioneer in the digital music player space. In 2000, they released the Nomad Jukebox, one of the first MP3 players with a 6GB hard drive, capable of storing around 1,500 songs—a significant technological achievement at the time. However, while Creative Technologies introduced a product that was technologically advanced, Apple redefined the market with the launch of the iPod in 2001.

Apple didn't just replicate the idea; they transformed it by focusing on the entire user experience. The iPod wasn't just a music player—it was part of a seamless ecosystem integrated with iTunes, making digital music accessible, attractive, and easy to manage for a broad audience. Apple's deeper purpose was always about seeing the world differently and prioritizing customer experience in their innovations. It was never just about ipod. So, while Creative Technologies advertised their device as a "6GB MP3 player," Apple's vision to revolutionize how people experienced music led to their iconic "1,000 songs in your pocket" campaign, making the iPod a cultural phenomenon.

So, finding a deeper cause isn’t just about motivating yourself every day; it’s about how you connect with your customers, employees, co-founders, and other stakeholders.

Stay Tuned: How Purpose Impacts Start-Up Success (Part 2)

In Part 2 of this series, I’ll delve into some of the interesting nuances of how a deeper purpose can help you build a successful start-up. In today’s age where everyone is digitally overcharged, having and connecting at a deeper level holds one of the keys to start-up success.