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Building a Business with Integrity
TRIBE Newsletter – September 6, 2024
Hey founders!
This week, we’re diving into a company that has built not just a business, but a legacy: Patagonia.
Over the past 50 years, Patagonia has earned a reputation not just for great products, but for staying true to their values. They created a brand that people trust. It’s no wonder they’re ranked as one of the most reputable brands in the U.S.
But here’s the thing:
Patagonia didn’t achieve this by accident.
They made intentional decisions. They aligned with their purpose from Day One.
Let’s break down what we can apply to our businesses:
The Power of Purpose
From the beginning, Yvon Chouinard (Patagonia’s founder) was clear on the company’s purpose: to protect the planet. His commitment to sustainability was a non-negotiable, even when it came at a financial cost.
As the founder of your company, you must have a strong sense of purpose. Your purpose is your north star. The thing that guides every decision you make.
Beyond money, why does your business exist? How can your values shape your long-term thinking?
If you can build a business that stands for something, you will build trust with your customers.
People don’t just buy Patagonia jackets – they buy Patagonia’s mission.
Quality Over Everything
Patagonia built a reputation for making the highest quality products on the market.
Whether it’s a climbing jacket or outdoor gear, their products are durable and built to stand the test of time. This focus on craftsmanship made Patagonia a trusted brand.
As founders, we need to make sure our product or service is so good that it speaks for itself.
Are you delivering value? Are you exceeding customer expectations?
By delivering the highest quality product or service, you build credibility, trust, and long-term loyalty.
Innovation Inside Constraints
Patagonia placed sustainability-driven constraints on themselves. They committed to using eco-friendly materials and cutting out harmful practices.
But instead of seeing these limitations as roadblocks… they innovated.
Because the company’s core mission was sustainability, they had to innovate within certain constraints (such as switching from pitons to aluminum chocks).
It’s easy to look for shortcuts.
But creating long-term success often means embracing constraints that are core to your missions. Challenge yourself to innovate within the boundaries of your business values.
This will force you to be creative and will differentiate you from your competitors.
Transparency Builds Trust
Patagonia – like any company – isn’t perfect.
The only difference? They don’t hide their imperfections.
They’ve openly discussed the environmental challenges they still face (such as mills powered by coal). This transparency has deepened its reputation as an honest and trustworthy brand.
Transparency is the key to building a reputable business.
Be open about the areas where you are still improving. Show customers you are committed to making progress.
It’s not about being perfect –– it’s about being honest.
Long-Term Thinking Over Short-Term Gains
Time and again, Patagonia has made decisions with the long-term in mind.
Whether it was rejecting fast growth or donating their entire fortune to environmental causes, they prioritize legacy over immediate profits.
It’s normal for founders to feel pressure to hit short-term goals. Revenue, subscribers, numbers, data, etc.
But if you want to build a business with lasting impact, think long-term.
What can you do today that will strengthen your reputation in 5, 10, 50 years? Sustainable growth beats rapid growth every time
Building a reputable business isn’t easy.
It takes intentionality, resilience, and staying true to your values. But as Patagonia’s story shows, it’s absolutely worth it.
That’s it for this week! Have a nice weekend and start to September!
– The Tribe Team