Don't make the mistake of separating business from purpose

by María Paula Russo

The famous economist Alfred Marshall coined an expression to explain the relationship and balance between different variables, which we resort to when explaining the importance of the purpose.

Don't make the mistake of separating business from purpose

In his partial equilibrium model, Marshall's purpose was to observe, individually, the relationship between different variables within a certain context. To this end, possible scenarios can be projected assuming that the rest of the variables do not move.

The expression is ceteris paribus. Ceteris paribus is a Latin phrase that literally means “on equal terms” but that we must translate as “everything else constant”. This idea is useful if you want to isolate the variations that occur in one variable due to the effect of another and so that the rest does not affect the analysis.

For us, the challenge of achieving a balanced relationship between the variables of a business has a fundamental component that makes us rethink this correlation. Why? In our proposal, the purpose is the only variable - which can evolve in its intention - but which remains fixed as a guide in the construction of the business model. It is the personal reason why each one embarks on the adventure of undertaking or carrying out a project that involves their life.

Doing business in our methodology requires a flexible, fluctuating, malleable logic. Instead of studying the correlation of a variable component considering that all the others will remain fixed, we seek to dynamically relate all the components - customer segment, channels, cost model, revenue model, resources, activities, among others - setting our purpose.

The personal challenge of being sincere with what we really want to achieve, the humility that implies the willingness to listen and understand what we are doing. What the other wants in order to give it value and the intellectual challenge of playing with all the other variables with the potential of the business model tool is a wonderful learning experience.


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