Every Business Should Think of Their “Golden Circle”

Every Business Should Think of Their “Golden Circle”
March 19, 2020 Laisa Lopes

Simon Sinek gave the idea of The Golden Circle, which appears to resonate well with most businesses and entrepreneurs. He used the model to explain how popular names like Wright Brothers and Steve Jobs could inspire others instead of manipulating them to get the desired results.

He discussed the concept in his TED Talk titled “Start with Why“. The idea challenges the status quo and pushes businesses to identify their purpose.

Sinek says that most businesses do not fully understand why a customer chooses them over competitors. However, he believes that successful companies allow their customer approach to get driven by the following main questions that make up The Golden Circle. Let’s have a look. 


Simon asks you, business owner, to take a break and think about why you existHere, it’s of vital importance to know the reason behind your business’s existence. He says: 

“Very few organizations know why they do what they do. And by why I don’t mean to make a profit: that’s a result…I mean, what’s your purpose?” 

In other words, he’s pushing businesses to think about other aspects, and not just money. This point refers to a purpose, belief, or cause and inspires others to join in your cause

Actually, communicating your passion can be an excellent way to connect with your buyer’s limbic brain. This is the part of our body that is associated with feelings, including loyalty, trust, and decision-making.


This section concentrates on defining how your business intends to achieve its goalsAs mentioned earlier, the key thing isn’t to establish your business’s goal as only ‘making money’. Let’s have a look at an example.

The purpose of a medical firm can be to find a more effective or affordable vaccine to a widespread disease. If the vaccine is efficient, a profit will follow as a result.

How your company achieves its goals is what will set it apart. For example, a medical firm can join hands with other pharmaceutical companies or hire some of the best scientists in the world.


Almost every business owner or entrepreneur is well aware of what you’re out there to do. No doubt you’re clear about your business’s mission and aim, and you have all the required information on your products or services, including costs and profits. 

In today’s world, most firms live by the ‘what’ factor. This is the basis for how they’ve been interacting with their audience and potential clients. The marketing team usually follows a simple formula where they explain what their business does and how. 

If the prospect likes what they hear, this can turn into a proper chat and a positive conversion. While this model works, it is not very effective in the long run. Hence experts are pushing for businesses to choose a ‘why’ first approach.

Simon Sinek believes that businesses can get more customers by first telling them about why they exist. It’s about finding people who have the same agenda as you, i.e.,adopting a sustainable production method, make organic products accessible to everyone, etc. 

Once you get your potential customer’s attention, you can move the conversation to how and what, eventually pitching your product or service. 

Apple – a company that’s doing the Golden Circle right

Apple appears to be following The Golden Circle, which is why it’s such a massive success.

It first concentrates on why. The company starts by highlighting its vision instead of what it does. It tells potential buyers what it’s out there to do.

Next, it answers how it does so by highlighting its unique features and designs. It talks about partnering with some of the best names in the business to bring top products to buyers.

In the end, the company answers the what and finally pitches its products, ranging from computers to mobile devices.

It’s due to companies like Apple that consumers today opt to buy ‘iPhones’ and not mobile phones. When they get their hands on a product from Apple, they know they’re buying an item that comes from a company that is selling more than just a smartphone.

If you want to succeed, then you must rethink your business plan with The Golden Circle in mind. Ask yourself what is ‘Why’ of your business, and the ‘How’ and ‘What’ will follow. Sinek says that companies that find success do not always do different things, they do things differently. 

To watch the entire TED Talk, click here.



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