Why Do You Need A Company Mission Statement?
Why Do You Need A Company Mission Statement?
How would you describe the goal of your business? It’s an important question that needs an answer! Read here to learn why you need a company mission statement!
A company mission statement can be one of the most overlooked components of building an organization.
Mission statements aren’t reserved for Fortune 500 companies. They’re wonderful tools and a must for startups and solopreneurs.
A mission statement can challenge you to think about why you’re truly in business, beyond the financial rewards. It can also define your company and lay the foundation for your culture.
Keep reading to learn why you need a mission statement in your business.
What Is a Mission Statement?
A mission statement is a short statement that describes why the company exists, who it serves, and/or how the service is delivered.
The tricky thing about a mission statement is that it must inspire people, outline something definite, and set the tone of the organization.
Develop your mission statement correctly, and you’ll find that it’s easy to get employee buy-in.
How Is a Mission Statement Different from a Vision?
This question gets asked quite often. Many organizations confuse a company’s mission with vision or consider them to be one and the same.
A mission statement is about where the company is now. A vision statement is where the company is going.
Let’s look at Zappos as an example.
The mission is simply “To provide the best customer service possible.”
The vision is:
- One day, 30% of all retail transactions in the US will be online.
- People will buy from the company with the best service and the best selection.
- Zappos.com will be that online store.
These are also reflected in the company’s core values, all of which define the company’s culture and guide employees every day.
Why You Need a Company Mission Statement
When you’re building a startup, you’re more concerned about building your organization and focused on creating a viable business. Don’t make the mistake and think that a mission statement isn’t part of creating a viable and profitable business.
It’s actually the core of your company. Here are other ways a mission statement can make a difference in your business.
Missions Make Decision Making Easier
Have you ever been in meeting with various stakeholders in your group and cannot come to an agreement on a simple decision?
A mission statement can help with that. Your mission statement should guide all decisions in your company. If you or your management team are having trouble reaching a consensus, look at your mission.
Is the decision at hand consistent with your mission?
If so, then move forward. If not, then walk away.
You Attract the Wrong Clients
Do you work with clients who think of you as a therapist or best friend? Maybe they aren’t the right fit for your business, but you work with them to help your cash flow.
Do that over and over again, and you will be drained and miserable.
With your mission statement, you are clear on who you’re serving and you select your clients according to your mission.
With that clarity, you can seek out clients who are a right fit for you. That creates a better overall experience.
Your Hiring Is Haphazard
Hiring the right person is hard work. Your company mission statement can make it easier to hire right the first time.
Not only do you want someone who has the technical skills, you want to hire someone who understands the essence of your company. That’s easy to communicate in your mission statement.
Let’s say your company mission statement talks about collaboration. You have a candidate who has the skillset to do the job well, but they would rather work independently.
You can know right away that’s not a good fit for your company, rather than hire them and six months later find they’re not a good fit.
You Take on Any Work You Can Get
As a startup, you’re probably eager to be profitable as soon as possible. Many companies lose their identity in the process of trying to become profitable too quickly. That’s because they take on any work they can get.
For example, let’s say you’re an accounting software company, and you do it well. An opportunity presents itself to provide similar service to a fitness company.
At first, you might say yes because you think it’ll make you more profitable. What you don’t realize is that you forgot about who you are as a company – an accounting software firm.
A mission statement that says “We are the best accounting services provider” would prevent you from making a decision that would lead you astray and confuse the marketplace.
Marketing Decisions Become More Strategic
Do you have a marketing strategy for your business? Is your strategy to try shiny object after shiny object to find that nothing works? With a company mission statement, your marketing becomes mission-centered.
Every marketing plan should start with your mission. That will inform the rest of the plan and strategy, from your target market to the content marketing objectives you use to reach your campaign goals.
Create the Culture of Your Startup
Do you have high turnover in your company? It could be because employees don’t understand how their work makes a difference every day.
Employee turnover is expensive, costing companies one and a half to two times the employee’s salary.
Employees who feel that they make a difference in the world are more engaged with their work.
A mission statement can clearly state how people make a difference every day. Going back to Zappos’ mission, they demonstrate who they make a difference for. They also say how, by providing the best customer service.
The Art of a Company Mission Statement
There’s an art to writing a mission statement. When done right, a mission statement can inspire employees and give your company direction.
On top of that, having your mission statement in writing for the world to see forces you to live it every day.
If you can do those two things, you have laid the foundation for a successful company.
Need help crafting the perfect mission statement for your organization?
Contact me for a consultation.
