Applying the Golden Circle in Business Strategy

Let's imagine you're an entrepreneur about to launch a new fitness app. This app uses the latest AI technologies to customize workouts and diet plans for users, making fitness goals more achievable. However, you're struggling to differentiate your product in the overcrowded fitness app market. Here's where Simon Sinek's 'Golden Circle' takes center stage, offering an innovative approach to organization and product messaging.

What is the Golden Circle?

The Golden Circle is a principle that encompasses three critical questions in the following order: Why, How, and What?

1. Why: What's your purpose? Why does your business exist? Why should people care?
2. How: How do you bring your 'Why' to life? This can refer to your business process or unique selling proposition.
3. What: What exactly is your product or service?

Unlike traditional methods that start with 'what,' the Golden Circle strategy begins with 'why,' which focuses on the purpose behind your product or service.

Why use it?

This method goes beyond explaining what your product is and how it works—it emphasizes why it matters. It appeals to your audience's emotions, resulting in a deeper connection and increased brand loyalty.

Applying the Golden Circle

Let's apply the Golden Circle to your fitness app scenario:

1. Why: You believe in empowering individuals to lead healthier lives through accessible, tailored fitness.
2. How: Through your proprietary AI technology, users receive personalized fitness routines and diet plans, making their health goals more achievable.
3. What: You offer a fitness application that makes fitness personalized and user-centric than ever before.

Conclusion

By starting with 'Why', you are focusing on driving the purpose of your company, tapping into the emotional level of customers that resonates closely with their beliefs. It no longer presents your fitness app as just another product in the market, but as a tool that allows individuals to live healthier lifestyles. The Golden Circle thus offers a richer and more meaningful way to communicate your value proposition, fostering a deeper connection with your users.