Purpose of a Business?

Discuss Spyderco's products and history.
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sal
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Purpose of a Business?

#1

Post by sal »

So, for the purposes of discussion, what do you think the purpose of a business?

Naturally I have my own opinions, which I will share, but I'm curious as to what you think?

sal
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elena86
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Re: Purpose of a Business?

#2

Post by elena86 »

To promote a vision.Jobs and profit are just a bonus.It's exactly what you did Sal and I mean it.

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Re: Purpose of a Business?

#3

Post by jssaylor2007 »

Purpose of a business at the very basest level is to make a profit. Moving on from there you clearly want to provide a quality service and product, and the more successful a business is you would want to reinvest into the business to make better product, better service, and ultimately more profit. I'd be curious to hear what you think Sal.
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Re: Purpose of a Business?

#4

Post by mb1 »

At the basic level, it has to be to provide a good or service with a sustainable business plan. It could be for profit or nonprofit. The businesses that excite me are the ones that accomplish this while improving the quality of life with integrity, and sometimes charitable motives as a bonus.

I like ideas like Tom's shoes putting shoes on needy feet. I like the power company guy who made a hand cranked lantern for a village in Africa so they didn't have to walk all day to charge a phone (it made light and a power source). He provided a product that improved their lives at a price point that fit their local economy. There are others with a similar theme.
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Re: Purpose of a Business?

#5

Post by Doc Dan »

When I owned a business I had a customer who said he would never buy from me, nor anyone like me. Every person he knew were customers of mine. I had a premium product. He said I, and others, were only interested in his money. But I was worried about him and knew he needed my help in the form of my product, desperately, even if he refused to see it. One day I saw him sitting on his front porch and I stopped my car and asked him if I could come sit with him. He said I could but he would still never buy from me. We sat there, waving at the neighbors, not saying a word to each other. We just sat there as the day cooled, rocking. Nearly an hour later I started to get up to go home and he stopped me and said, "How much was that, again?" He wanted to know I actually cared about him and not my paycheck. He became my loyal, devoted customer from that time on.
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paladin
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Re: Purpose of a Business?

#6

Post by paladin »

easy...

1. To make profits
2. To provide goods and/or services that promote good health and welfare of the patrons
3. To employ human capital and engage them in a worthwhile venture
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Re: Purpose of a Business?

#7

Post by sal »

Hi Jssaylor,

Welcome to our forum.

sal
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Re: Purpose of a Business?

#8

Post by Ncmiked »

I think the purpose of a business is to provide a product or service. Depending on how big the business is or becomes will focus it's purpose both at the macro and micro level. Pleasing the end user or customer while building lasting relationships should be the ultimate goal as profits are merely a side effect of a successful business.
Last edited by Ncmiked on Fri Nov 25, 2016 10:56 am, edited 1 time in total.
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Re: Purpose of a Business?

#9

Post by demoncase »

Primary Objective 1: Satisfy your customers* while complying with relevant legal regulations at the same time as making enough profit to sustain the business (including any growth projections) and support the workforce for their labour.

Customer satisfaction is a measurable but that measure may include:
1. On time delivery
2. Lack of first pass rejects
3. Relative cost
4. Ease of integration of new product with existing product
5. Variability batch to batch at minima
Some combination of these may be standard for the customer or vary customer-to-customer

Primary Objective 2: Infinitely variable dependant upon the business product, it's market placement and the maturity of the business itself-
A research business may need to develop a new solution to a problem.
A tech start up may need to develop that 'killer app' to make them stand out
A long-term whitegoods manufacturing company may need to look at how to maintain their existing product line while staying ahead of the competition
A safety equipment manufacturer may need to redevelop their entire line of products to meet the every tightening demands of regulations
it goes on.... ;)

Sal- you and I had a great conversation about 'positive business culture' and 'the Spyderco way' in 2015 (I still reference it my workplace regularly!)-
While I 100% agree that it is the correct way of developing a strong and effective team ethic that produces excellent results for the business, I would argue that of fostering that culture is not the primary purpose of a business- more the intrinsic 'philosophy' of how a business meets those objectives....
A purpose for me is a destination- an objective, with a clear measurability- the culture and philosophy you foster and drive in a business are how you meet that purpose :)

(Aside: Can you tell I'm in objective setting mode at work? ;) )
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Re: Purpose of a Business?

#10

Post by NickShabazz »

To help people. Specifically...

1) To provide useful and quality products or services to the customers, at a reasonable price
2) To help the employees of the company to thrive and live good lives by offering safe, fair working conditions and generous pay
3) To help the community around the company (e.g. Golden, CO, USA, Earth) through offering jobs, paying taxes, using resources smartly and cleanly, and doing community outreach
4) Once all the above is taken care of, then the rest can be used to help the shareholders make money. But that's the least important thing a company can do.

That's perhaps a naïvely optimistic view of what business is, but that's the kind of business I want to work with.
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Re: Purpose of a Business?

#11

Post by JD Spydo »

I think one big purpose of a business is the super innovations of what you guys at Spyderco have done up till now. You all have been one of the most innovative companies I've ever dealt with. Your goals of super high quality should also be part of the mix of a good business plan and example to others>> and I believe you all have done that in a superior fashion. I can also tell you that the great positive attitude that your company employees has for it's customers and end line users. Your customer service is absolutely second to no one else I can think of.

One other item I believe that has catapulted your great company is how you all constantly strive for better quality and constantly doing things better and different from the rest of the pack. One last item>> providing products that no one else does provide>> several of your unique knife designs like the Dodo and several other unique blades you all have made available I believe continues to draw a growing customer base. You all at Spyderco are a model of what true American entrepreneurs should be. All of my friends and family that I've given your knives to I have never yet had anyone not like them. And if what I've mentioned is indeed part of your overall business plan then I think it's as good as it gets IMO.
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Re: Purpose of a Business?

#12

Post by twinboysdad »

2 things and either can work by itself; financial gain and personal fulfillment. You can make profit but not be fulfilled, you can be fulfilled and barely be profitable but if there is no profit, a business can't lose money indefinitely
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Re: Purpose of a Business?

#13

Post by PayneTrain »

I think that question can be answered in so many different ways, but I think the fundamental purpose of a business is to make money. To, over some period of time depending on the nature of the business, end with more money or value in some form or another than it started with. How this is done and what is done with that money or value are what sets businesses apart. Elon Musk's business ventures are trying to change the world, while the subprime mortgage lenders of ten years ago didn't care if they ended it.

I'm tempted to broaden my definition and say the purpose of a business is to achieve a goal, but I don't think that necessarily makes you a business. Organizations that we wouldn't naturally consider businesses all have goals. NPO's, churches, universities, even governments have goals and while money may be vital to its existence and function, it is the means to an end and not the focus (I know, I know, but it isn't supposed to be!). They all work to achieve a goal that they and others believe is necessary and exists or should exist independent of the economy.

Businesses, on the other hand, buy and sell goods and services. However important a business may be in the eyes of its customers or itself, their goods or services are ultimately optional. I love my Spyderco knives and wish this business could reach every person in the world, but it's not necessary. And while we may feel we're getting a great deal on some of these knives, they're still making a profit which is used at someone's discretion rather than in accordance with some vision or charter. Spyderco isn't on a mission to put quality, thoughtfully crafted and carefully manufactured cutting tools in the hands of every man, woman, and child within its ever-extending reach so they not be so disadvantaged in life by uncomfortable and quickly dulling pieces of who knows what metal. Spyderco sells those tools to those who want them, makes a profit, and grows so it can sell more.

We may be so in touch with this business that we see you, Sal, the same way we see our neighborhood butcher (for those of us lucky enough to have one) who greets us by name over the counter, but in just the same way we're still your customers and you're still in it for you, at least a little bit. But that's ok! That's business, baby! I buy Spydercos knowing full well that it's not an equal transaction, the same way I buy Uinta beers, Riverdoghemp dog collars, Surface skis, and Cooper American cheese (eat it, Land O Lakes!). I like what I'm getting and I want the people behind the businesses who got it to me to be rewarded for their efforts and continue their good work. I can't say that about the taxes I pay! Heck I can't even say that about everything I buy willingly. Gasoline, for instance. Exxon is a business that blurs the lines, but is a business for profit nonetheless. Certainly nonetheless!

Wait, where am I? Did I even answer the question? I'm hungry now...
Last edited by PayneTrain on Fri Nov 25, 2016 11:29 am, edited 1 time in total.
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Re: Purpose of a Business?

#14

Post by Surfingringo »

I don't think I'm going to sound very idealistic in my view of this, but here goes. The way I see it, the purpose of a business is to make money or profit. Period. If you aren't making money then operating the business is a massive waste of effort. Now, if along the way to creating profits you can make your customers happy and enrich the lives of your employees, etc., then so much the better. In fact, those things are typically essential to running a profitable business long term. However, I would never imply that those ideals are the "purpose" of a good business, but rather the inevitable results of one.
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Re: Purpose of a Business?

#15

Post by Chinook3 »

1. Provide an income for the family i.e. food, bills

2. Produce a quality product or goods needed in society.

3. Give back to community via charity, local, state, legislative responsibilities.
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Re: Purpose of a Business?

#16

Post by Xplorer »

I am in the very early stages of starting a business and I have some thoughts on that subject that I didn't expect to have. To Lance's point, I see the meaning of the word business to mean monetizing your work. So, making money is what business is otherwise your work is charity. But, I've come to see purpose differently. If you start a business making or doing something you love the purpose can simply be to continue doing it. For example, I am happy as can be making one-off pieces in my shop. Up to this point I've been working on projects because I love to do them. I want to continue doing these things and continue pushing the limits and advancing my abilities. Advancing requires tooling up for new processes and that can get expensive. Plus, buying materials and supplies, investing hours of labor and passing the results on for free has it's obvious limits.
So for me, the purpose of starting my business (monetizing my work) is really just to allow me to continue doing the work I love to do.
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Re: Purpose of a Business?

#17

Post by Ryno »

The purpose of any business is to accomplish one or more goals. Those goals may or may not change over time because they may not always be relevant to the person or group that started the business, or those that started the business may realize later on that those goals are not important to the world. Either way, a business needs a goal, just like any other enterprise.
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Re: Purpose of a Business?

#18

Post by timlara »

It's different for everyone, based on their personal goals, of course.

But to me, the most important unifying concept is to improve quality of life for both the customers of the business and the owners/employees.

If a business offers a product or service that makes something easier / better / impossible --> possible for the customer and while doing so can also sustainably make enough of a profit to provide stability and an easier / better life for the owners and employees, then everybody wins. Extra credit for also providing creative enrichment / education / personal growth opportunities to employees in the process.

The key word is "sustainable". It saddens me that the trend seems to be that small-to-medium, privately-held companies that grow at a moderate, organic pace are a dying breed in the world. The market trend seems to be toward "grow or die", and rapid growth is almost never synonymous with customer or owner/employee happiness in the long run, as it is not sustainable. Something has to give, and that "something" is usually the things that made the original business enjoyable / unique in the first place.
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Re: Purpose of a Business?

#19

Post by PiggyBackJack »

Surfingringo wrote:I don't think I'm going to sound very idealistic in my view of this, but here goes. The way I see it, the purpose of a business is to make money or profit. Period. If you aren't making money then operating the business is a massive waste of effort. Now, if along the way to creating profits you can make your customers happy and enrich the lives of your employees, etc., then so much the better. In fact, those things are typically essential to running a profitable business long term. However, I would never imply that those ideals are the "purpose" of a good business, but rather the inevitable results of one.
Spot on!
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Re: Purpose of a Business?

#20

Post by Ankerson »

Well I think it depends on what business protocol one has been taught, that will vary quite a bit.

1st off the business has to make money (profit) to keep the lights on, pay the overhead etc, beyond that, it's a crap shoot depending on how greedy the owners and or Corp management/board of directors are.

The money part out of the way, and I am really trying to be nice with the last two comments.

Personally I think ideally a business is something that someone starts in a field they enjoy then find away to make it profitable while keeping the customer base happy for the most part. If they can make a reasonable profit doing it and keep it up then that is what I would call an ideal situation.

That said I have worked for a variety of companies over the years, some good, some bad.

It's the people running it that make or break it in the end, how they treat their employees and customers is paramount to success IMO.

It is a true statement the better they treat their employees the happier their customers will be, I have found this to be true over the years.

Working environment is very important.

Personally I tend to believe the current overall Corp environment is a complete disaster and it has been that way for way too long for quite a few reasons that I won't get into here because the subject is a real hot button for me.

Office politics can be and is a complete nightmare from what I have experienced over the decades, that is a direct result of Management allowing it to happen in the 1st place.

Also if the owners are living in a zillion dollar residence while their employees are living in cardboard shacks needing welfare there is a major issue. I have seen this sort of thing way too often over the years, more so in recent years though. And the companies fully expect their employees to actually care about the business in these types of situations. I do and always have found this to be pathetic on so many levels.
Last edited by Ankerson on Fri Nov 25, 2016 12:51 pm, edited 6 times in total.
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