Too often, small–business owners won’t bother creating a mission statement because they’re unaware of the importance of one. While it seems like an entrepreneurial mission statement has no value, it can significantly impact your brand.
First, let’s make things easier and clarify the meaning of a mission statement. Then, you can discover why you need one in your business.
What Is a Mission Statement?
A mission statement is what defines your company’s existence. It describes the purpose of your business and the overall intentions it has. Generally, the mission statement will support your vision and serve as a way to communicate your company’s values, ethics, culture and goals.
In addition, it provides direction for your employees, clients, vendors and stakeholders. It’s what gets people excited about what your business does and motivates them to become part of your company.
A mission statement also defines your business strategy and should only be one to two sentences long.
Why You Should Have an Entrepreneurial Mission Statement
While creating a successful startup is something that doesn’t happen overnight, part of that success will include your mission statement. Here are some reasons this short message is essential to your small business.
1. It Redirects Attention for Accomplishing Your Company’s Goals
An important part of why your business needs a mission statement is because it reminds your team of what direction your company is heading.
Often, a mission statement can be political in what your company wants to achieve and where it stands. Yet, when you have various things happening within your company, it can be challenging to remain focused on the goals you intend to reach.
That’s where your mission statement comes into play. It can remind your employees of your main purpose and what they need to do to achieve those goals.
Essentially, it’s only a simple short sentence that can serve as a reminder.
2. Informs Customers of Your Company’s Purpose
While it might not seem as critical to state your company’s mission to customers, on the contrary, it’s the opposite. Many younger generations, even older ones, are starting to care about what companies believe.
If they don’t align with those companies’ beliefs, 42% of consumers say they walk away from a brand in frustration.
And not only does it matter to your customers, but vendors also want to be aware of your company’s intentions. Vendors care about which companies they partner with in business.
Therefore, a mission statement’s purpose is to develop a sense of connection between you and your customers and partner merchants.
Think of a mission statement as part of your branding. It spreads awareness of your company and how customers will perceive it.
3. It Guides Your Business Strategy and Decisions
A strategy is always needed in business to reach a company’s goals. However, business owners don’t create them out of a vacuum. Many entrepreneurs make plans by looking at the latest trends or following whatever their competitors are doing successfully.
A good leader knows that an effective strategy is possible when trying to accomplish the company’s mission.
The same goes for business decisions. When you have a clear mission statement, you can set boundaries. Making decisions based on your feelings alone won’t allow you to stay on one path.
A mission statement provides you with a framework for this kind of thinking. That helps you stay in your lane when thinking about what you need to do next for your organization.
Define What’s Most Important to You
Writing your mission statement is crucial to your branding and your business success. It defines what you believe in and aligns you with what your customers think as well.
To start writing your mission statement, think of what your core values are in your business. Doing this will help you build it around who you are and shape every possible decision you make within your company.