Next you need to clarify what business you’re in—your core purpose. Core purpose, according to BUILT TO LAST authors Jim Collins and Jerry Porras, is the fundamental reason your company exists beyond making money. It’s the one thing that will never change about your business. For example, Google’s stated purpose is to organize the world’s information and make it universally accessible; Disney’s purpose is to make people happy. These are very different companies, but what they have in common is a clear sense of who they are and why they’re doing what they do. Without a clear sense of purpose, companies tend to grab at short-term gains while incurring the long-term loss of their identities.
The partners in the wine bar have gotten their purpose statement down to seven words: To bring people together through wine education. While someday they could make small adjustments to their purpose, they’ve agreed on a differentiating idea—education.
How many words will it take to articulate your purpose? If it takes more than 12, go back to checkpoint 1, or set it aside and return to it later.