The downfall of many businesses often lies in their inability to clearly define their purpose. What are they truly trying to accomplish? Most businesses talk about their competitive advantages or unique selling points, but what they call a competitive advantage is vague and can hardly be understood. Essentially, a competitive advantage is how they gain superiority over rivals using pricing, features, marketing, and different attributes.

Being competitive implies a focus on being the best, but this narrow perspective can lead to stagnation. When a business shifts its focus toward purpose and genuinely meeting people’s needs, the concept of “competitive advantage” becomes irrelevant. That term often suggests a strategy aimed at outsmarting others rather than creating real value, ultimately fostering a mindset that prioritizes manipulation over meaningful service.

Many companies have destroyed their businesses out of securing and protecting their competitive advantages even though they were unsure of what set them apart from the crowd. Ultimately, profit maximisation is the number one goal and decisions are always expressed in financial terms.

WHAT IS THE ALTERNATIVE?

The question of whether an entrepreneur aims to make money or create an impact reveals the true source of their inspiration. The key distinction between a good and bad business lies in how clearly people can understand its purpose, which directly reflects the entrepreneur’s vision. While making money is undeniably important for any business, it’s not the ultimate goal—just as people don’t live to eat, but eat to live. Great entrepreneurs focus on the broader impact they want to have, and they generate profit by enhancing this positive impact on others. Their success is driven by purpose, with financial rewards being a natural byproduct of creating meaningful value.

Leading companies don’t rely on competitive advantages—they have leadership. A true “leading advantage” is what sets business leaders apart, demonstrating entrepreneurship and leadership through action, not just words. The key question is: what is your leading advantage that isn’t tied to competitiveness? This question captures the essence of the business, reflecting its purpose and core values, and is far more insightful than simply focusing on outpacing competitors.

Have you identified the leadership edge for your business?