“There are leaders and there are those who lead. Leaders hold a position of power or influence. Those who lead inspire us”. – Simon Sinek
The late 20th century and early part of the 21st century has given birth to famous entrepreneurs like Michael Dell, Bill Gates and Sam Walton – All have made great contributions to the world, have or have had successful businesses, have cultivated their followers and are great entrepreneurs in their own rights. However, it is only the best entrepreneurs like Apple’s Steve Jobs and best companies like Southwest Airlines and Harley-Davison that are able to communicate something very special through their organizations and in the process cultivate not just a following of customers, but a loyal following of people that believe what they believe and are willing to not only follow them anywhere they go, but also spread their message.
It All Starts With Why
I recently read about a concept called the “Golden Circle” in what I have come to believe is one of the best entrepreneur books I have ever read – Start With Why by Simon Sinek.
In his book, The Golden Circle was inspired by the golden ratio; a simple mathematical relationship that has fascinated mathematicians, biologists, architects, musicians and naturists since the beginning of history. The golden ratio has been used to provide a mathematical formula for proportion, beauty and even supports the notion that there is more order to nature than we think (i.e. the symmetry of leaves and geometric perfection of snowflakes).
The Golden Circle was created by Simon Sinek to find the order and predictability of human behavior. In other words, to help us understand why we do what we do and to provide compelling evidence of how much more we can achieve if we simply start everything we do by first asking WHY.
The Circle
The Golden Circle consists of one big circle with two smaller circles inside of it, representing the way most people think (outside-in) and the explaining how some of the greatest leaders and best entrepreneurs develop their thoughts (inside-out).
To briefly explain from the outside in:
The Golden Circle
- WHAT – Every business or leader in the world knows WHAT they do. They can easily identify the product or service they provide or what position they hold within the organization. This may also apply to you in your business. You know exactly that product or service that you provide and can identify it with relative ease.
- HOW – Almost all businesses and leaders also know HOW they do what they do. HOW’s are usually used by businesses or leaders within an organization to describe how their products or services are different or better. Additionally, HOW’s are often incorrectly thought of to be motivating factors for a customer’s decision. How many times have you explained how your product was better than a competitor’s in efforts to help your customer make a decision and close a sale?
- WHY – Very few businesses or leaders can explain WHY it is that they do what they do. Most will say “to make money” but money is just a result of your WHAT you do. Can you explain what is your purpose, cause or belief? Being able to clearly articulate your WHY is what separates the best entrepreneurs, leaders and organizations form those that are not. Why do you exist? Why do you get out of bed every morning? And, why should anyone care?
See Simon Sinek’s 18 minute presentation on the Golden Circle in much more detail here.
WHY Steve Jobs Is One Of The Best Entrepreneurs Of All Time!
Almost everyone knows Steve Jobs is the CEO of Apple. Like most leaders and organizations, Steve Jobs knows exactly WHAT Apple produces and knows exactly HOW Apple produces it. What makes Steve Jobs an exceptional leader, and in my opinion one of the best entrepreneurs of all time, is that he also knows exactly WHY Apple produces what it produce and inspires people to take action through that WHY.
As Simon Sinek explains, Apple’s message could be the following:
“We make great computers.
They are beautifully designed, simple to use and user friendly.
Want to buy one?”
Instead, Apple’s message about their organization is the following:
“Everything we do we believe in challenging the status quo.
We believe in thinking differently.
The way we challenge the status quo is by making our products beautifully designed,
simple to use and user-friendly.
We just happen to make great computers!
Want to buy one?”
Both messages are completely different and all that was done to clearly articulate Apple’s WHY was a change in the order of the information. In the second version we are able to clearly identify Apple’s WHY and we are “inspired” to take action. We clearly understand WHY Apple believes what they believe; we share in their belief and are much more compelled to buy a computer from Apple.
By buying from Apple and sharing in their belief, we make a statement about who we are as individuals; we think different, we challenge the status quo, and we become loyal followers of Apple’s movement.
No trickeries or manipulations! The best entrepreneurs MUST Start with Why
Mastermind: What do you think about this concept? Do you now your WHY?
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[...] This post was mentioned on Twitter by The Areté Guy and Parky, Hector Avellaneda. Hector Avellaneda said: The Best Entrepreneurs Start With Why! You want to read this! http://bit.ly/hGDpeA [...]
Hector
This is a great topic that everyone who aspires to be a successful entrepreneur needs to learn more about and implement in their life and business. Simon’s books and videos are great. Knowing your Mission/Vision/Values; your organizational/personal why; your Raison d’être or your purpose is urgent and important! Whatever you call it – it is what will keep you going when times get tough.
I put together a phrase on passion and purpose: Your passion and your purpose are the sails and the rudder in your life. If either be lost or broken; you will be at a standstill or will aimlessly wander in life ~ subject only to where the winds blow not where you want to go.
Best Wishes For Your Continued Success
Glenn
PS: Love the image your put together too!
Glenn – Thanks for your great comment.
Excellent phrase on passion! It goes perfect with “starting with why”. I think if more entrepreneurs were in touch with their mission/vision/values, as you mentioned, we’d have a lot more success stories out there.
Thanks for stopping by!
Awesome post Hector! Thanks for shooting me a mail. Great concept man. Now, i understand why steve job was able to stand out from the rest. Understanding the WHY is mandatory for entrepreneurs who wants to be successful. I think i need to check out simeons book. Great post once again. Keep up the good work. Have fun.
Sam – thanks for the comment!
Absolutely! Get your hands on this book as soon as possible. There is a lot of psychology to business and really understanding your purpose in your business.
There is a reason why people like Steve Jobs (Apple), Sam Walton (Wal-Mart) and organizations like Southwest Airlines, Harley Davison are able to create a following of loyal customers and inspire us through their leadership.
I always thought I knew myWHY but after reading this book, I really sat down and meditated on my purpose for being an entrepreneurs. Help[ed me get clear on my WHY!
Hi Hector,
I think this is quite interesting. Most people normally will ask how you do it rather than why you do it. Understand why will differentiate us from others and stand out from the rest.
Good post for people to ponder about. Thanks for sharing.
Lye
Hi Lye!
Yes, if you really think about it. Most people (entrepreneurs) can easily tell you WHAT they do and HOW their product or service is better than someone else’s. However, if you were to ask them WHY they do it, most would not be able to clearly tell you why.
That is because most entrepreneurs enter their industry with one end result in mind; make money. If we start everything we do with WHY, and focus on delivering on that principle, we can develop of loyal following (like Apple has done) and money will automatically be produced through that following.
Hector
I have to say that I love Apple. In fact, I’ve loved Apple from the very first time I bought an ipod. The reason I fell in love with Apple and became somewhat of a loyal customer, as you put it, is because they were different than everyone one else at the time and offered a very unique product.
After reading your article… IT ALL MAKES SENSE!
I am completely amazed at how you were able to explain Simon Sinek’s research behind successful leaders and organizations.
I definitely have to read this Book! Thanks you so much for posting this article!
Gabby – Thanks for your comment!
I’m glad you enjoyed my discussion on Simon Sinek’s book.
In my opinion, this is a definite must read for all entrepreneurs. However, I think the principles in this book can definitely be applied to one’s life as well.
Thanks again!
[...] recently wrote an article explaining why the most successful internet entrepreneurs always Start With Why. If you missed that article, you will want to go back and read it to fully understand this [...]
Hey Hector,
Thanks for sharing this awesome article with us!
I have never thought of my business like this, I’m glad I you commented my article and I followed you back to your site. This was really a good article for someone who has never heard of the golden circle. You make a good point with that quote you provided us with. Apple could be a ordinary and have a ordinary quote like the first example, but instead like you mentioned apple’s Steve jobs is brilliant! Apple does do exactly what they claim to do in their quote that is why I’m love apple! I’m the biggest apple fan haha I have a apple laptop, iPad, and phone! I’m all apple’d out!
Really good message here dude, and I’m glad I came across your site. Glad you took the extra time to single me out earlier. ( ;
I would have to agree with you that the best entrepreneurs start with “why”. I’m in the process of developing my own product right now and after reading your article I want to take some more time to analyze “why” it is I’m making what I’m making. If I can identify “why” I’m making what I’m making it will put me one step ahead of the next person that is just making a product for the money.
Then after I know exactly why it is I’m making what I’m making I can then I will know exactly what & how it has to be done. I will have a better understanding of the audience I’m trying to reach.
Steve jobs is brilliant! & so are you! Keep up the good work dude.
Thanks again!
God bless,
William Veasley
Hey Will!
Thanks for the very insightful comment!
I would love to take all the credit for the information in this article but the reality is that this article is just a production of my research of one of the most sought after speakers today, Simon Sinek.
Simon’s work is amazing and I am a true believer and practitioner of his WHY concept.
You can literally start seeing results instantly! Thank you so much for your comment and I wish to bring more thought provoking articles like this one in the future, Will.
All the best!
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