Now, don’t get me wrong I’m a great believer in corporate purpose and I understand the importance of setting out the guiding principles as a ‘NorthStar’ for any ambitious company. But having been involved in several early-stage start-ups, I now believe that momentum is every bit and sometimes more important than purpose.
If you haven’t yet defined a corporate purpose, let me try to explain some of the elements that I think should be prioritised, to ensure communications don’t stall at the first hurdle.
A corporate purpose is very important in bringing ideas and concepts together has many benefits, especially in attracting the right talent, aligning culture with values, and generally becomes more relevant as the company begins to scale and mature. The very best purpose statements take time, creativity, multiple iterations, and a great deal of thought. If it’s not there yet, don’t let that slow you down – build momentum in your communications and keep going.
In the early stages of a company's growth (often whilst still fundraising) my belief is that the marketing narrative should not be stifled because the corporate purpose hasn’t yet been nailed down.
Communicate the company’s origin story, its vision for the future and how it intends to get their (its mission), the key stakeholders, and some demonstration of a proof of concept. These stories haven’t yet been heard and will be more critical, in the early stages, than having a fully articulated corporate purpose statement - and here’s why.
Origin Story - The origin story is compelling because it connects emotionally with listeners, whether they are potential investors, customers, or partners. It tells why the founders started the company and the problem they are passionate about solving. This story can significantly influence engagement and support, as it makes the business relatable and the mission personal. In time, this will inform the purpose statement, but it can easily be communicated sooner and has all the credibility of the purpose statement baked in.
Vision and Mission - The vision and mission statements define the company's long-term goals. In early stages, these align the team and provide a clear direction that guides all strategic decisions and communications. They help stakeholders understand where the company aims to go and how it intends to get there, which is more important at this stage than a carefully crafted purpose statement.
Key Stakeholders - When fundraising, highlighting key stakeholders — including founders, key employees, and initial investors — helps to establish credibility above and beyond a purpose statement. Senior leaders and respected stakeholders often bring with them a track record of success, skills, and networks that can reassure potential investors and partners of the company’s potential. The expertise and reputation of these individuals can be a strong endorsement of a start-up’s viability.
Proof of Concept - Perhaps most importantly, having a proof of concept demonstrates that the start-up’s idea is viable and has the potential for success. This can be a prototype, a pilot project, or initial sales figures that confirm market interest and potential profitability. It’s critical for potential investors and partners to see tangible evidence that the concept works, that it has the potential to bring in revenues and that it meets a real need in the market.
While a corporate purpose statement is valuable in the early stages, it may not be as critical as the elements listed above. During initial growth and fundraising, the immediate concern is often about proving the business model, securing capital, and building a customer base.
A purpose statement is more about long-term brand identity and corporate responsibility, which, although important, can (and often is) refined as the company evolves.
For early-stage companies, the immediate goal is often survival and proving the business model, which means attracting the necessary support and resources to ensure ongoing operations and growth. As such, the elements that directly support these objectives—origin story, vision and mission, key stakeholders, and proof of concept—tend to take precedence.