To be financially successful you need to know how to use the Golden Circle every day

When starting a business, we all have an idea what we want to offer (product or service) our customers. This is the main thought we focus on. We get so excited and enthusiastic about what we offer that how we offer it or how we represent our business to the outside world often takes a back seat. People will want to buy a product or service without a doubt, right? Wrong. If we do not firstly know who we are as a business or how we reach out to people to offer it, we are missing an essential part of the fundamentals a business a built upon. The good news is that as a business grows, it can evolve and further develop, meaning that it is not necessarily too late to get these principles into place.

Today, I will discuss the principle of the Golden Circle for your business. This is an incredible set of principles to build your business on and is guaranteed to bring a positive change.

Understanding the Golden Circle

The “Why”: As stated in the illustration above, the “Why” is the purpose, cause or belief of the business. It is the essence of why your business exists. When you started the business there had to be a reason why you are starting the business in the first place. It could have been to become self-sufficient with something you can do well. It could be that you want to make the lives of others more convenient, or even to be the leader in your field by making innovative products. The motivation behind your business is incredibly important as it forms the centre of your Golden Circle and the core of your business function.

To be financially successful you need to know how to use the

The “How”: Simply put, this is the way you sell or promote your products or services to your potential clients. While it seems like a simple concept, it is either the triumph or downfall of a business depending on how successfully they are able to differentiate themselves from the competition. Knowing the “Why” of the Golden Circle well is a great starting point to apply the “How” successfully. It is also quite important to know the “How” of your competitors to ensure that your approach is fresh, unique and appealing.

The “What”: This is the easiest section as all business know what they sell. Whether your product is the most advanced or great value-for-money it is the items that depends whether your business is a success or failure since that is what brings in the money.

Why you must start changing how you run your business, from “What” to “Why”

To be financially successful you need to know how to use the Golden Circle every day‏

As stated in my opening paragraph, it is really easy to know what you offer your potential clients. The success of each business is to motivate and convince individuals to make use of your products and services instead of going to your competitors. This motivation you want to evoke in consumers is very closely linked to the reason why your business exists. Let me explain.

In the Golden Circle, the “Why” is the core of the business and the source of motivation why you started your business. You believe in something strongly enough to do it professionally and are convinced that it will make a positive change and appeal to others. This is the core belief of your business and the reason why your potential customers should believe in your product as well.

Many business focuses on the “What” as the most important aspect, but it is not the core of the business. Selling an excellent product without proper motivation will not appeal to a discerning buyer in a competitive market. Therefore we need to shift our focus to work from the core of the Golden Circle and focus on why we do business more intensively.

When we can communicate from the inside of the Golden Circle (from the “Why” to the “How” and then the “What”), we are first appealing to the consumer what we believe and why we want to improve their lives. This directly appeals to consumers since it creates a message they can relate to emotionally. We can then follow up with the things we say and do – our marketing message and sales pitch.

If we do not know why we do what we do, then how will we ever get people to buy something from us, or become loyal to our brand or products? The goal is not just to sell to people who need what you have; the goal is to sell to people who believe what you believe.

When it comes to your staff, you should also apply the Golden Circle. The objective is not to employ individuals who simply need a job but to look out for those individuals who believe in what you do. By believing in what you do, they do not only work for money; they work for the cause and will go out of their way to convince others likewise.

Why is the Golden Circle important for business?

To be financially successful you need to know how to use the Golden Circle every day‏

Consumers have advanced past the era where they simply buy what you sell. They want to buy something they believe in and be part of a greater cause. If you communicate about what you believe, you will attract those who believe what you believe. A fantastic example is the company Apple. They have an extremely loyal and ever-growing following worldwide who believes in what they do as a company. Their message is clear: We offer innovative products to simplify your life and make you more productive. This is something people want to believe in.

Have you noticed that starting with the “Why” of the Golden Circle also positively affects the “How” of the business? If you know why you do what you do, then it is easier to communicate it to consumers. This means your marketing campaigns and messages will be more effective and communicate why you believe in what you do.

In conclusion: Applying the Golden Circle correctly in your business requires you working from the inside out. This will allow your business to achieve a level of effectiveness it did not have before. You will live and breathe the reason why you are doing what you are doing, which is an essential part of a strong corporate identity.

Like knowing yourself, you and your staff will get to know your business and the core values thereof. Not only will you be able to communicate better to consumers what you believe and get them to use what you offer but your employees will also have a feeling of purpose and inclusion which will grow to more job satisfaction of your employees. These are signs of a healthy and growing business.

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