In our previous blog we talked about how to identify a business idea. In this week’s blog we will discuss the next step in the process, creating mission statements.
What is a mission statement?
A mission statement is a sentence or a short paragraph explaining in simple, concise terms the purpose of the organization. The mission statement helps internal employees focus on the task they have and encourage them to innovate and move towards increased productivity, thus helping the organization achieves its goals.
Why is it important to have a mission statement?
A mission statement defines the purpose of your business, creates culture, and brings clarity to your actions.
It is very easy to get distracted while starting a business. The process takes time and entrepreneurs often get new ideas as they move along with starting their businesses. Instead of focusing on the main idea, entrepreneurs tend to get overwhelmed by growth ideas (which is not a bad thing) but without a business plan these ideas will just remain ideas. In fact, one of the reasons why entrepreneurs fail is because they forgo a business plan.
The first step to begin a business plan is to identify and write the mission statement. That is one important reason for why you should articulate the purpose of your business – the problem your business is going to solve, and how you are going to achieve that. The mission statement will help you make the right decisions that are aligned with what your business is trying to achieve.
Other than defining the purpose of your business, a mission statement creates the business culture and values that would support the organization’s way of doing business. These two fundamental levers are not only important for recruiting the right employees, or setting the right environment for employees, but also are key factors to the success of the company. Shared values and unified business culture make the team – no matter how big or small – work as one, aligning business processes, pushing the business towards growth, reducing conflict between stakeholders, increasing employees’ happiness & satisfaction, and eventually rising financial rewards.
Ok, great! But how can I write a mission statement?
Some companies spend millions of dollars and years to develop and refine their mission statements; and it is important to say that mission statements should evolve in same direction as the business grow. For example, Microsoft’s initial mission statement was: “A computer on every desk and every home”, however, because of the growth and diverse service and product offering, Microsoft changed its mission statement to: “Empower every person and every organization on the planet to achieve more”.
The first thing to do is outline what your company does/going to do, that can be a service or a product. “A computer” in the above mission statement is an example. Next, describe how your company does what it does, not in technical sense, but rather the core values the organization holds. In the Microsoft example, empowering every person, which indirectly means inclusion and equality.
Finally, to help your business stand out include why you do what you do. You noticed that Microsoft wants everyone “…to achieve more” by using their products and services.
Now that you have a mission statement it will be easier for you to develop a business plan that is aligned with what you are set to do.
We will be happy to support you with your business planning. Feel free to reach out.