Purpose of a Business?

[embry386]

The purpose of a business varies, depending on the purpose of the person/people who started/own it:

If I quit my job in IT and start a business fixing computers, my purpose is to earn money in a way that's easier and more fun than working at the 9-to-5 job. If I invent a super cool thing and start a business to manufacture and sell it, my purpose might be to research and develop the cool invention further, and improve upon it, and see what it can become -- to have fun. Being in business can sometimes give you the resources -- income, tools, licenses, etc -- that you need to take your hobby to new heights.

Both good reasons to do it.

[MatZio]

An off-topic discussion.
This is a forum for knives, not for economics.
:)

[Danke]

An off-topic discussion.
This is a forum for knives, not for economics.
:)

The guy that started the thread gets as many mulligans as needed.

[Michael Janich]

Dear JulioBerger:

Welcome to the Spyderco Forum.

Stay safe,

Mike

[KITROBASKIN]

Interesting ideas in this thread and all valid, yes?

For 99.8% (give or take) of humanity’s existence it has been a matter of living another day; to provide for family, tribe, your people. Now we have a chance at this incredible luxury of choosing a purpose, choosing a way to live. The potential of satisfaction with our purpose is amazing. Yet if we don’t have compassion for all those people who are struggling, who are miserable, who are stuck, well then we should. And be thankful for what we have, right?

[SpyderPhreak]

The purpose of a business can depend on a variety of factors, including the goals and values of the business owners, the industry and market in which the business operates, the needs and wants of its customers, and the impact the business aims to have on society and the environment.

AI Bot post? ^^^ Sure looks like it could be. I’ve been seeing more and more of these on various forums lately…

They’re usually necroposts (check), vague (check), and don’t really make much of a point (check). Thinking out loud.

[akapennypincher]

My take on why one would want a business is freedom to succeed, or fail.

Freedom to make more money than someone’s employee.

I did my own thing about 30 years, had fun, did not have to comply with a dress code, did not have to attend meeting that accomplished nothing.

Last the money was great, hours were 70-90/week. Got lots of memories you don’t get working something like factory worker.

[kerrcobra]

I'm late to responding, but I've been reading this since yesterday. Lots of good opinions. I'm not a business owner, but I'll throw my .02 in as well.

I think the purpose of a business is to address "something" (a need, an issue, a problem, an opportunity for improvement, an unaddressed opening in a specific market, a response to something else, etc.) that the business owner/founder has identified via providing a product, or a service they've developed to meet or solve that "something".

[Mushroom]

The purpose of a business can depend on a variety of factors, including the goals and values of the business owners, the industry and market in which the business operates, the needs and wants of its customers, and the impact the business aims to have on society and the environment.

AI Bot post? ^^^ Sure looks like it could be. I’ve been seeing more and more of these on various forums lately…

They’re usually necroposts (check), vague (check), and don’t really make much of a point (check). Thinking out loud.

I had the same thoughts as you, that is definitely a bot.

[KITROBASKIN]

I think the purpose of a business is to address "something" (a need, an issue, a problem, an opportunity for improvement, an unaddressed opening in a specific market, a response to something else, etc.) that the business owner/founder has identified via providing a product, or a service they've developed to meet or solve that "something".

More good stuff

Could the highest purpose of a successful business be an offer to prospective employees a decent purpose in life beyond the basics? Compassion for the downtrodden is not about handouts that can further humiliate someone stuck in life. What better way to lift a person up than to lead an enterprise that workers believe is worthwhile?

There’s that aspect of the importance of outstanding leadership again. Even the person who sweeps the floor, or keeps the sewer system up and running can work in dignity with that kind of higher purpose.

A business still needs to crack the nut with room to spare, though.

[James Y]

I think there are probably as many definitions of a business's purpose as there are businesses.

I'm just starting my own business. I know that my purpose is to do what I love to do, and truly be of service to those who come to me for my services, in an ethical manner, and make a good livelihood while doing it. My goal is to get it going, be professional and to become successful and profitable, and to earn a good reputation. And for my business to grow and evolve over time. I'm a one-man operation, so it's as simple as that.

Jim

[Jurmuscle]

I think it depends on the business and who runs it. Some people value money over services/impact, and some the opposite. And a good business of course has to make profit. Just my opinion.

[Dodge]

To provide a service or good that is better/less expensive/more effective than a competitor while maintaining an ethical environment that everyone can prosper in.

[LeeARB]

Guess we all find our own purpose. My son and I have ended up starting a business because there is a need for something we enjoy doing. I'd never do it on my own, but to get to work with my son is a special opportunity. We aren't trying to make a living, so all we need to do is break even as we build the business. We really don't have a long term purpose yet.

[sal]

Hi LeeARB,

Welcome to our forum.

Congratulations on your and your son's business venture. We love entrepreneurs and folks that like to work.

[LeeARB]

Thanks sal. Been a Spyderco fan for decades but only recently found the forum.

[JD Spydo]

Not trying to over-simplify the question but I do think the main purpose of a business is to fill a void for the end line customer.

I also think that a company should be able to offer up a product or service that no other company can or will offer up. Spyderco's cutlery and sharpening tools both seem to fit that description. Not to mention Spyderco's ability to bring new stuff to the table consistently.

[TTFulltimer]

From my Knothole Spyderco seems to be a business to provide for a family and supply products that perform well at reasonable prices. The tinkerer element certainly shines with all the models and steels, up to and including the Mules.

I have worked for a similar family owned business. They made great profit and had superb quality. They managed to do that with one strong leader, and good management up and down the line. The biggest factor to their success was something called the Scanlon Plan for profit sharing. They tailored that to make the distribution based on savings making product. Every employee had a say. The family leader decided to retire, chaos ensued, key people quit or were let go, the company devolved into going public. It is now gone.

I have seen many businesses. For example in the old days, mobs, now gangs and cartels run ruthless businesses that purposely prey on people.

Some businesses are started by well meaning people and over the years devolve into a mess. Internal politics, product quality declining, and from time to time a head honcho that is malevolent. The "business" press and media will laud such a malevolent person since they more or less liquidate human and physical capital to boost their ego.

Most large public businesses run on low margins since no one person is pocketing the profits. They are blown by the winds of the "stock market" which is just a big casino with sum zero game and skimmers. They ebb and flow usually with a lot of employee turnover at all levels. Just barely scrape by in bad times and get fat and lazy in good times.

Some large businesses have in place sufficient products in counter cyclical markets such that they run on more or less an even keel. They use contractors and overtime to produce when there is an order surplus, and run with the base staff in the lean times. They also have an outlook that values employee contribution. I have worked for such companies. Retired from one that continues to provide for employees and retirees when things such as Obamacare come along and upset the apple cart.

Then there are thousands of companies that start well and do not last long. Many reasons one being under capitalized, and either borrowing or worst going public. Some are able to sell the business. Another is one my friend had happen, growing too fast. And last but not least, some sort of crusade, or tilting at windmills objective. The most recent is the "Get Woke Go Broke" movement.

Now we have a lot of youngsters that have had a very easy life. For some crazy reason any large company must be bad in their eyes. Economy of scale in some markets is essential. No small company can provide sufficient product. In other areas a large portion of profit must be reinvested to provide a sufficient stream of new or improved product both in human efforts in research and development, and in physical construction, and outfitting. I constantly see big this or big that is the problem. The reason is graft and corruption in both government and business. Even when exposed, no one goes to jail. It is not the size of the organization, it is the lack of moral compass on the part of the participants.

All businesses rely on their employees to put in their best. How many comments I see on what is now basically called "quiet quitting", doing the bare minimum to not get fired. My best advice to younger people when I was working was to do way above and beyond. No matter what there are people in businesses that recognize that and will be sure the person performing is rewarded over time. Like all I have had many Stupid Advisors and Manglers. Whenever you get a new one they want to talk to you. I would tell them right off the bat, I would do anything. To illustrate I would tell them I had a price for licking out toilet bowls if that is what they wanted.

I started going to the library with my mother when I was three and she would take out books for me to read. Actual novels and the like. For my whole life I have always researched every day. I am lucky to have a memory that contains everything from the time I was two. Libraries were my hangout many times. Now with the internet I can and do read from 100 to 1000 pages of content every day. I read all three versions of Obamacare before it was passed when none of our representatives read it. That was during a time when I was working 12 to 14 hours a day 7 days a week. I am now 80 years old, healthy as an ox since I am my health provider, have not been to a sick provider (quack) in 20 years and did not get Covid since I discovered in one week that quinine was effective against corona virus. Fauci co-authored a paper in 2005 saying fake quinine (chloroquin) was effective against corona virus. I drink a bit of tonic water each day which I had been doing for some time to help with night time leg cramps.

Just some rambling over morning coffee. I hope all of you live a great life, I certainly have and continue to do so.

[electro-static]

I think there are three questions here:

What purpose does a business have to it’s owners?

What purpose does a business serve in society?

How does a business serve both purposes well?

This requires a lot of thought, I need to compose my ideas.

But Suffice to say spyderco answers all thee questions with a “yes we do”. They make a profit, an an excellent product, move technology forward, and create new markets and value. As well as act in the best interest of their consumers. I need to generalize more for businesses in general. But needless to say Sal, Gail, and Eric have done everything exceptionally. I work at a startup and the way that spyderco meets the needs of it’s customers, innovates, collaborates, constantly learns is an inspiration.

[electro-static]

From my Knothole Spyderco seems to be a business to provide for a family and supply products that perform well at reasonable prices. The tinkerer element certainly shines with all the models and steels, up to and including the Mules.

I have worked for a similar family owned business. They made great profit and had superb quality. They managed to do that with one strong leader, and good management up and down the line. The biggest factor to their success was something called the Scanlon Plan for profit sharing. They tailored that to make the distribution based on savings making product. Every employee had a say. The family leader decided to retire, chaos ensued, key people quit or were let go, the company devolved into going public. It is now gone.

I have seen many businesses. For example in the old days, mobs, now gangs and cartels run ruthless businesses that purposely prey on people.

Some businesses are started by well meaning people and over the years devolve into a mess. Internal politics, product quality declining, and from time to time a head honcho that is malevolent. The "business" press and media will laud such a malevolent person since they more or less liquidate human and physical capital to boost their ego.

Most large public businesses run on low margins since no one person is pocketing the profits. They are blown by the winds of the "stock market" which is just a big casino with sum zero game and skimmers. They ebb and flow usually with a lot of employee turnover at all levels. Just barely scrape by in bad times and get fat and lazy in good times.

Some large businesses have in place sufficient products in counter cyclical markets such that they run on more or less an even keel. They use contractors and overtime to produce when there is an order surplus, and run with the base staff in the lean times. They also have an outlook that values employee contribution. I have worked for such companies. Retired from one that continues to provide for employees and retirees when things such as Obamacare come along and upset the apple cart.

Then there are thousands of companies that start well and do not last long. Many reasons one being under capitalized, and either borrowing or worst going public. Some are able to sell the business. Another is one my friend had happen, growing too fast. And last but not least, some sort of crusade, or tilting at windmills objective. The most recent is the "Get Woke Go Broke" movement.

Now we have a lot of youngsters that have had a very easy life. For some crazy reason any large company must be bad in their eyes. Economy of scale in some markets is essential. No small company can provide sufficient product. In other areas a large portion of profit must be reinvested to provide a sufficient stream of new or improved product both in human efforts in research and development, and in physical construction, and outfitting. I constantly see big this or big that is the problem. The reason is graft and corruption in both government and business. Even when exposed, no one goes to jail. It is not the size of the organization, it is the lack of moral compass on the part of the participants.

All businesses rely on their employees to put in their best. How many comments I see on what is now basically called "quiet quitting", doing the bare minimum to not get fired. My best advice to younger people when I was working was to do way above and beyond. No matter what there are people in businesses that recognize that and will be sure the person performing is rewarded over time. Like all I have had many Stupid Advisors and Manglers. Whenever you get a new one they want to talk to you. I would tell them right off the bat, I would do anything. To illustrate I would tell them I had a price for licking out toilet bowls if that is what they wanted.

I started going to the library with my mother when I was three and she would take out books for me to read. Actual novels and the like. For my whole life I have always researched every day. I am lucky to have a memory that contains everything from the time I was two. Libraries were my hangout many times. Now with the internet I can and do read from 100 to 1000 pages of content every day. I read all three versions of Obamacare before it was passed when none of our representatives read it. That was during a time when I was working 12 to 14 hours a day 7 days a week. I am now 80 years old, healthy as an ox since I am my health provider, have not been to a sick provider (quack) in 20 years and did not get Covid since I discovered in one week that quinine was effective against corona virus. Fauci co-authored a paper in 2005 saying fake quinine (chloroquin) was effective against corona virus. I drink a bit of tonic water each day which I had been doing for some time to help with night time leg cramps.

Just some rambling over morning coffee. I hope all of you live a great life, I certainly have and continue to do so.

Both my parents founded successful businesses, and i think you hit on something important. People working for that business need to be invested in it’s success. Which is achieved through respect, reward, and investment in worker’s well Being. I have worked for good and bad startups and have managed people in both and the key component was respect, listening, and a willingness to be patient and teach people why we do things the way we do, and to at least listen when they think we can do better. looking out for your people, is critical business sense to me.

I gotta disagree about the younger generation and the “get woke go broke” thing.

I think young people have it harder in so far that they aren’t given reasonable expectations before entering the workplace, and often aren’t given sufficient guidance, mentorship, or compensation once they do, my first experience was that i was thrown i to a role with not only no training, but my supervisor training me wrong to do the job he wanted me to do, I had to teach myself to do things right independently and seek out mentorship outside official channels to become a skillful worker. You can’t even rent an apartment on most starting wages these days, that ain’t an easy way to start your career. Quite simply for most young people mentorship and training is dead.

Moving further into my career I also find that respecting diversity and making sure that different people from different cultures are comfortable and feel respected in the workplace lets me get the best ideas and productivity out of them, and advocating for them lets them preform harder because they own their achievements. I find particularly women my field are given both 50% more work and 50% less credit unless they either advocate way hard for themselves or their supervisor advocates for them.

Folks don’t “quite quit” when they feel respected through compensation or simply taking their ideas seriously and challenging them to grow as professionals by providing new skills and training. It’s lost on the modern “everyone is disposable” managment culture, but building a solid team that works hard for each other matters. I just wish more people had a chance to experience it, i’ve seen so many bright motivated workers get crushed by indifferent supervisors who are content to pile as much work as humanly possible on them, and co-workers who avoid new responsibilities because they fear the same fate.

People want to work hard when they know they won’t be punished or taken advantage of for it.

A good business understands that it is in-fact made of the people who work there, and that hard work and respect is a two way street. You are the sum of the people who do the work, not your IP, or you C-Suit.

You don’t respect your workers: they leave. They don’t respect you: you find new ones.