Golden Circle: what is this tool and how can it help define your and your company's why?
Posted: Tue Jan 21, 2025 5:00 am
The Golden Circle is a method created by Simon Sinek to help companies and entrepreneurs find their purpose and generate impact. Sinek explains the concept in his renowned book Start with Why: How Great Leaders Inspire People and Teams to Take Action .
For him, the reason why some companies are more admired and profitable than others is the strong sense of purpose that inspires them to give their best for an expressive cause – the why.
This article was produced to help you use the Golden Circle tool and find your why and purpose that will drive your business.
What is the Golden Circle?
Before talking about the creature, let's talk about the creator. Simon Sinek, an English writer and speaker, decided to research companies and leaders such as Apple, Martin Luther King and the Wright brothers, who managed and still manage to mobilize a large number of people in favor of their ideas or products.
He realized that everyone has or had a very strong Belgium Phone Number Lead purpose or ideal. By studying these patterns, he came to the conclusion that people are not inspired by what you do, but why you do it.
Sinek then came up with the Golden Circle theory, which gained notoriety in a Ted talk . The theory brings together three main questions – what, how and why – in a circle with the aim of guiding people to discover their purpose.
golden circle
How the Golden Circle works in practice
Start with “why”
The purpose of the enterprise is what should drive all efforts, projects and campaigns. For a company to grow and prosper, it must define the “why” of its existence, and then develop its products, services and any other objectives. That is why this is the central circle of the Golden Circle.
For those who don't know where they want to go, any path will do. That's why this step is so important, so that the entrepreneur can think about the path to follow and what tools he needs to achieve his purpose.
Continue with the “how”
In this part of the Golden Circle, we will better specify which strategies and paths you will follow to achieve your goal. In practice, this second circle is your action plan.
The “how” consists of the processes and methods you will employ in your business. In other words, these are the planned actions that are in line with your purpose, mission and values.
It is these beliefs and values that will differentiate your company and make it stand out from the competition, transforming it into an inspiring business with a solid foundation.
Stop with the “what”
The final circle is the result of your project and the most concrete phase of your venture. This is where you must define what you do or sell. A company that says it is the best in the world does not inspire enough to make the consumer buy your product or service.
Therefore, you must communicate from the inside out, that is, starting with your “why” and only then communicating the “how” and the “what”. What you do no longer serves as a reason for purchase or choice, but serves as a way of making the cause tangible.
tools for entrepreneurs
How to apply it in your business’s day-to-day activities
Most companies present their products or services as the best on the market, emphasizing the result of the enterprise instead of talking about their mission and bringing inspiration to customers.
Successful businesses need to choose the opposite path: the goal of a purpose-driven business is to sell to people who believe in the company's mission. Following this line of reasoning means that the entrepreneur must first focus on what he believes in, and then clearly define his goals and understand what actions he needs to take to achieve them.
That's why we use the Golden Circle at Tapa na Cara , 55Lab's program to transform your relationship with work and give you back control of your career, growth and the future of your business.
For him, the reason why some companies are more admired and profitable than others is the strong sense of purpose that inspires them to give their best for an expressive cause – the why.
This article was produced to help you use the Golden Circle tool and find your why and purpose that will drive your business.
What is the Golden Circle?
Before talking about the creature, let's talk about the creator. Simon Sinek, an English writer and speaker, decided to research companies and leaders such as Apple, Martin Luther King and the Wright brothers, who managed and still manage to mobilize a large number of people in favor of their ideas or products.
He realized that everyone has or had a very strong Belgium Phone Number Lead purpose or ideal. By studying these patterns, he came to the conclusion that people are not inspired by what you do, but why you do it.
Sinek then came up with the Golden Circle theory, which gained notoriety in a Ted talk . The theory brings together three main questions – what, how and why – in a circle with the aim of guiding people to discover their purpose.
golden circle
How the Golden Circle works in practice
Start with “why”
The purpose of the enterprise is what should drive all efforts, projects and campaigns. For a company to grow and prosper, it must define the “why” of its existence, and then develop its products, services and any other objectives. That is why this is the central circle of the Golden Circle.
For those who don't know where they want to go, any path will do. That's why this step is so important, so that the entrepreneur can think about the path to follow and what tools he needs to achieve his purpose.
Continue with the “how”
In this part of the Golden Circle, we will better specify which strategies and paths you will follow to achieve your goal. In practice, this second circle is your action plan.
The “how” consists of the processes and methods you will employ in your business. In other words, these are the planned actions that are in line with your purpose, mission and values.
It is these beliefs and values that will differentiate your company and make it stand out from the competition, transforming it into an inspiring business with a solid foundation.
Stop with the “what”
The final circle is the result of your project and the most concrete phase of your venture. This is where you must define what you do or sell. A company that says it is the best in the world does not inspire enough to make the consumer buy your product or service.
Therefore, you must communicate from the inside out, that is, starting with your “why” and only then communicating the “how” and the “what”. What you do no longer serves as a reason for purchase or choice, but serves as a way of making the cause tangible.
tools for entrepreneurs
How to apply it in your business’s day-to-day activities
Most companies present their products or services as the best on the market, emphasizing the result of the enterprise instead of talking about their mission and bringing inspiration to customers.
Successful businesses need to choose the opposite path: the goal of a purpose-driven business is to sell to people who believe in the company's mission. Following this line of reasoning means that the entrepreneur must first focus on what he believes in, and then clearly define his goals and understand what actions he needs to take to achieve them.
That's why we use the Golden Circle at Tapa na Cara , 55Lab's program to transform your relationship with work and give you back control of your career, growth and the future of your business.