The Golden Circle is a concept that focuses on the basic components of any business or product idea. Imagine three rings within each other, each one labeled accordingly:
- Why = the purpose
- What = product offered
- How = means of accomplishing
Why is the bullseye at the center you should aim for first. Many entrepreneurs focus exclusively on the What component and start to build their businesses around that single factor by jumping directly to the How.
Focusing on the Why allows more flexibility in regards to the What and How. Being purpose-focused allows you to be open to any What and How that fulfills the Why, thus increasing your chances for success substantially.
The Why clarifies everything.
You will make it much easier to be on the same page with your co-founders and investors if everyone understands Why your business exists. If you keep the Why as your moving target, then as long as you figure out how to hit that target, what you did and how you did it won’t really matter. The Why allows you to be as creative as need be in order to solve your customer’s problem.