What is a mission statement?

Have you ever wondered what drives your business or organization? What keeps your team motivated, makes your business an attractive place to work and keeps the revenue rolling in? Chances are, it comes down to a great mission statement and purpose.

Here’s more about what a mission statement is, how they work and how to write one for your business.

What is a mission statement?

A mission statement is the reason your company exists - it captures what you do, who you do it for, and the benefit or impact. If done right, your mission statement can guide business decisions, rally your team, enable economic growth, and attract ideal customers.

Mission statements should describe a company's purpose, clearly and concisely. It tells employees, stakeholders and customers why your organization exists and what you're all about.

A mission statement would include things like:

·      Who you serve: Your target audience or your customers

·      Your value offering: The key benefits and solutions you offer

·      How you work: Your business philosophies or core values

It's usually just a couple of sentences or a short paragraph, but it guides your decision-making and keeps you focused.

Why you need a strong mission statement

A strong mission statement is essential for successful companies. Here are a few reasons why:

Gives employees a sense of purpose

When staff understand the core values and objectives of the business services, they feel more engaged in their work. They know the "why" behind what they do each day and how their role contributes to the overarching vision.

Keeps everyone on the same page

A good mission statement allows managers, employees, partners, and customers to understand the company's primary goals and values. This consistency and alignment mean less confusion and more productivity.

Guides decision-making

With a mission statement to refer to, choices become easier. New opportunities can be evaluated based on whether or not they align with your mission statement. It helps determine the best path forward.

Attracts top talent

The best employees want to work for companies with solid mission statements and core values. Your mission statement communicates your organization's purpose and priorities to prospective staff.

Builds trust

When you have a thoughtful mission statement and operate with transparency, you establish credibility. People can see your values in action, which creates goodwill and loyalty among your customers, employees, and community.

How to write your mission statement

If you follow the guidelines below, you will be well on your way to a good mission statement.

Keep your statement concise

Keep your mission statement short, simple, and straightforward. Your mission statement should be easy to understand and remember. Use common language and avoid industry jargon to make sure your mission statement is clear and compelling.

Define your business’ purpose

Clearly state the entire company purpose of your business in one sentence. Express why your business exists and the key goals or problems you aim to address. Think about why your company exists, who benefits and how?

Share your business values

Include 2-3 sentences highlighting your company’s core values and priorities. Your values shape your company culture and brand. What principles guide your work and interactions? Things like excellence, integrity and innovation.

Display your competitive advantage

What makes you unique? What can you offer that others can't? Talk about what you’re doing differently or better within your industry/location!

Have an inspiring vision

What is your long-term goal or aspiration? What will success look like? Use an active voice and emphasize meaningful words to craft an inspirational message.

Review and refine

Once you have a drafted mission statement, review and refine it to ensure its compelling and memorable. Gather feedback from various stakeholders and revise as needed. Once finalized, share your mission statement internally and externally on your website, marketing materials, employee handbooks, and more.

Need help with your HR documentation?

Your mission statement is meant to guide your company's strategic decisions and daily operations, which will impact your HR. Is your HR documentation consistent and compliant? Book a free demo call today and talk with our business advisors.