When we think about successful businesses, it’s easy to focus on profits, market share, or stock prices. But at the heart of every enduring company lies a fundamental truth: businesses exist to create value for society. Profits are not the starting point—they are the result of delivering meaningful value and optimizing the processes behind it. This philosophy is beautifully illustrated by the story of Isaac Carasso, the founder of Danone, whose mission to improve children’s nutrition laid the foundation for a global brand.

The Core Principle: Value Creation Comes First

The most impactful businesses begin with a purpose beyond profit. They identify a societal need—a gap in health, education, connection, or convenience—and build solutions to address it. Only after delivering that value can a company capture a portion of it as profit, provided it has optimized its operations to balance quality and efficiency.

This approach flips the traditional mindset. Instead of chasing revenue, visionary entrepreneurs ask: What problem can I solve? When the solution resonates, customers respond, and financial success follows as a byproduct. But it all hinges on two critical steps: first, creating genuine value, and second, refining the processes to deliver that value sustainably.

Isaac Carasso and the Danone Legacy

A shining example of this philosophy is Isaac Carasso, the founder of Danone. In the early 20th century, Carasso, a Sephardic Jewish immigrant from Thessaloniki, settled in Barcelona. At the time, many children in Europe suffered from digestive issues and malnutrition, exacerbated by a lack of accessible, nutritious food. Inspired by the emerging science of gut health and the work of Nobel laureate Élie Metchnikoff, Carasso saw an opportunity to make a difference.

He began producing yogurt, a food rich in probiotics that could improve digestion and overall health. In 1919, he founded Danone, naming it after his son Daniel’s nickname, “Danon.” Carasso’s mission was clear: to provide a nutritious, affordable product that would help children grow stronger and healthier. His focus wasn’t on immediate profits but on addressing a pressing societal need.

Carasso’s approach was rooted in value creation. He sourced high-quality bacterial cultures, ensured rigorous production standards, and made yogurt accessible through pharmacies, positioning it as a health product rather than a luxury. By prioritizing quality and purpose, he built trust with consumers. Only later, as Danone grew, did he refine production processes to scale efficiently, capturing value through profitability without compromising his mission.

Lessons for Today’s Entrepreneurs

Isaac Carasso’s story offers timeless lessons for modern businesses:

  1. Start with a Purpose: Identify a real problem and build a solution that matters. For Carasso, it was children’s health; for your business, it could be sustainability, education, or community empowerment.

  2. Prioritize Quality Over Quick Wins: Delivering value means ensuring your product or service genuinely improves lives. Cutting corners may boost short-term profits but erodes long-term trust.

  3. Optimize for Sustainability: Once you’ve created value, focus on efficiency. Streamline operations, reduce costs, and scale responsibly to capture value without diluting your mission.

  4. Build Trust Through Impact: Carasso’s commitment to health earned him loyalty that transcended borders. Today, Danone remains a global leader because its foundation was built on purpose, not profit.

Conclusion: Value as the Foundation of Success

Isaac Carasso’s journey with Danone reminds us that businesses thrive when they prioritize societal value over immediate financial gain. Profits are the reward for solving problems effectively and efficiently, not the starting point. Whether you’re launching a startup or leading an established company, the lesson is clear: create value first, optimize relentlessly, and the rewards will follow.

As entrepreneurs and innovators, let’s take inspiration from Carasso’s vision. What value can you bring to the world? Start there, and the rest will fall into place.