A mission statement is a declaration of what a company does and its purpose for being. (Gorton, 2023) The best mission statement is short, usually a sentence or two or a small paragraph; it is easy to understand while painting a great picture of what the company does and why it exists. This will be a concise statement that boldly states the purpose of the company’s existence. The mission statement is best when it is worded in a way that really grabs people in a way that they can connect and feel engaged with the mission of the company. The mission statement serves the purpose of telling the employees, the customers, and the investors what the company’s purpose was when it started and what the purpose is. It states why the business is there. This is the real reason the company does what it does. The mission statement will usually include the culture, the values, and the ethics of the company. The mission statement focuses on the present, meaning right now what the company is doing, and explains what the day-to-day business of the company is. There are three elements of a mission statement. The mission statement answers “why”, “who”, and “how”. The mission statement helps the employees stay focused on what needs to be done to fulfill the purpose of the company. This helps the employees to find creative and ingenious ways to move toward the company’s goals. Other sources say there is more to a mission statement than just why, who, and how. For example, OnStrategyhq.com has an article that says: A Good Mission Statement Contains the Following Elements (Olson, 2023):
- Label: We like to start with “Our mission…”
- Verb: Use an action verb in the present tense.
- For Whom: Describe who you do it for.
- Result: What is the result or benefit of your work?
- What You Do: Briefly state what you do and how.
In this article, Erica Olson says there are some questions that should be addressed in your mission statement. Such as why the company exists, why it is special to work there, or what the company is “trying to accomplish on behalf of whom.” (Olson, 2023) Most mission statements will explain the intended benefit or contribution the company makes. It will also explain the problem that the company aims to solve, as well as the motivation that drives them.
A mission statement is important to a new business venture as it serves as a guiding principle for the company. It provides a clear and concise statement of the purpose and values of the business, which can help to align the team and keep everyone focused on the same goals. A well-crafted mission statement can also be a powerful marketing tool because it communicates to customers what the company stands for and what they can expect from its products or services. Additionally, having a mission statement can help to differentiate the business from competitors and create a unique brand identity. A mission statement is an essential element of any new business venture, as it provides a roadmap for success and helps build a strong foundation for the company’s future growth.
A vision statement is a brief and concise statement that describes an organization’s long-term aspirations and goals. It typically outlines what the organization aims to achieve in the future and provides a sense of direction for the company’s growth and development. A vision statement is often used as a motivational tool to inspire employees, stakeholders, and customers to work together toward a common goal. It should be inspiring, forward-thinking, and reflective of the company’s values and mission.
A vision statement is critically important to a new business venture because it lets everyone know what the company’s long-term goals and vision are. When starting a new business, it’s important to have a sense of direction and purpose, and a vision statement can help provide that. It allows the business owner to communicate their goals and values to stakeholders, employees, and customers, and provides a framework for decision-making and strategic planning. (Hoy & Hoy, 2023) A well-crafted vision statement can inspire and motivate employees, attract investors, and help the business stand out in a crowded market. Additionally, having a strong vision statement can help ensure that the business stays focused on its long-term goals, even as it navigates the ups and downs of the startup journey.
An example of a new technology venture might be a domain name broker. The name of this new company can be “The Venture Domain.” This would be a company that can help new entrepreneurs think of a name for their new company and find domain names that they can use, much like a brand. The company will provide advertising for new entrepreneurs. The mission statement could be “The mission of The Venture Domain is to provide a place for all entrepreneurs to start their business by providing environmentally friendly advertising through the internet, emails, and social media. To show our commitment to the environment we promise to plant a tree for every new domain created.” And the vision statement would be “Our vision is to be the world’s most used, most loved, and most profitable domain broker.”
References
Gorton, D. (2023, October 22). Mission statement explained: How it works and examples. Investopedia. https://www.investopedia.com/terms/m/missionstatement.asp
Hoy, W. by T., & Hoy, T. (2023, February 28). What is a vision statement and why is it important?. BoardEffect. https://www.boardeffect.com/blog/what-vision-statement-why-important/
Olson, E. (2023, May 22). What is a mission statement? A must-use guide + cheat sheet. OnStrategy. https://onstrategyhq.com/resources/mission-statements/
