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What is at stake?
The purpose is the direction given to the startup 🚩 It's a long-term promise that links the startup's activity to a positive contribution to society and the planet (collective interest).
Why is this important?
From the outset, every company has a “raison d'être”, whether explicit or not.
Explaining this “raison d'être” enables us to answer the question: What is the role of the company in society, beyond economic considerations?
In the MVP phase, the first definition of a “raison d'être” makes it possible to:
➡️ Align the founding team around founding values and federate efforts around a common vision;
➡️ Maintain consistency in the choices made and successive iterations (it's a decision-making tool);
➡️ Anchor the business for the long term.
3 actions to implement right now
1️⃣ Start with individual introspection
- What are my personal motivations for this entrepreneurial project?
- What am I passionate about?
- What values do I want my company to embody?
- Why does the company exist and why is it essential to society?
- What role does it play in society? What does the company bring to society?
- What would society lose if the company disappeared?
- How does the company contribute to the creation of a new, "desirable" future?
- What is my company's "unique" objective? What distinguishes it from its competitors?
→ Use classic brainstorming methods to encourage reflection, and set a time limit for this exercise to bear fruit!
2️⃣ Gather the results of individual work
This allows co-founders to engage in discussion to establish shared values for the entrepreneurial adventure and arrive at a consensus on the company's “raison d'être”.
The aim of this work is to ensure that the personal values of the co-founders and the startup are aligned.
3️⃣ Continue with collective iteration to arrive at an initial formulation
- Identifying and formulating a company's raison d'être is an ongoing, iterative process.
- Get your first customers, suppliers and partners on board.
- Test formulation proposals by sharing them with others, and ensuring that they correspond to the shared values and vision.
- Continue the iterative process until you arrive at a clear, coherent formulation of the “raison d'être”.
- The “raison d'être” must be embodied on a daily basis by the entire team.
- Once it has been formulated (and only then), the “raison d'être” can be shared on a large scale using all appropriate communication media and with all stakeholders (employees, partners, suppliers, customers, etc.).
It's by creating a dialogue and welcoming feedback from all its stakeholders that the founding team can define a raison d'être that is relevant, differentiating, understandable and embraced by all.
This collective approach gives greater meaning to the company's “raison d'être” and unites people around a common goal.
How can we avoid this? By confronting it as much as possible with the people in its ecosystem, and by adopting a genuine approach to transparency.
📚 Further information
📖 Defining your “raison d'être”: a process of introspection (”Communauté des Entreprises à Mission”)
Report published by the “Communauté des Entreprises à Mission”.
The above actions are inspired by this report.
To deepen these reflections, here are the 2 fundamental questions that the “raison d'être” answers:
- Its existence: Why does it exist, and why will it still exist in 50 years' time? How is it useful to its ecosystem and to society as a whole?
- Its future direction: Who will it be tomorrow? What contribution will it make to its ecosystem and to society as a whole?
→ See p.14 to 16
📖 The difficulty of defining a “raison d'être” for startups (”Communauté des Entreprises à Mission”)
Report published by the Communauté des Entreprises à Mission.
This report presents the testimonies of 5 entrepreneurs who share their approach to defining the purpose and commitments of their startup (presentation of tools used, steps followed, etc.).
The authors also raise the following question:
Should the “raison d’être” be defined gradually throughout the entrepreneurial journey or right from the launch of the startup?
Indeed, the question arises because the “raison d’être” must ensure stability in the commitment of the startup, and for that, it needs to anticipate the future activities and directions taken by the company. This is nearly impossible in the context of a startup!
- Ideally, the purpose should be formulated from the beginning of the entrepreneurial adventure to serve as a guide for pivots
- while remaining flexible to be consistent with the iterative approach of the startup…
To overcome this impasse, the authors propose distinguishing 3 types of startups:
- Startups that are highly committed from the start, operating in an engaged sector
- Startups that are highly committed from the start, operating in a sector that is not particularly engaged
- Non-"mission-native" startups that wish to define commitments in a sector that is not particularly engaged
Each of these types of startups will have a different approach in formalizing their mission. The most important thing is to start this process as early as possible!”
🎤 Some examples of corporate “why”
Contentsquare : To help companies of all sizes and industries create a more human digital world.
Frichti : Making good eating accessible to all.
Too good to go : Saving food that is just “too good to go”
Morning : Improving everyone's workday.
Openclassroom : Making education accessible.
Recyclivre : A book's place is not in the trash.
Luko : Help households access safer & greener Homes
ManoMano : Co-inventing a sustainable future and committing to building it now.
Doctolib : Working towards a healthier world.
Blablacar : Bringing freedom, equity, and a spirit of sharing to the world of travel.
⚖ Loi Pacte
In 2019, the PACTE law requires every company to "take into consideration the social and environmental challenges of its activity" and offers the most proactive companies to include a purpose ("why" of their company) in their statutes, along with social and environmental objectives and governance. The company then becomes a "Mission-driven Company."
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