06/18/2018 by Jason Smale
As an advisor it would be poor practice for us not to acknowledge the risks individuals are taking in deciding to venture into the world of self-employment. However, at Premier Business Solutions we are confident that these risks can be mitigated with diligent planning. One of the first steps an owner will take in the business planning phase is to establish a mission statement. The mission statement illustrates the purpose(reason) your business exists.
Bellow we will provide a few of the basic benefits of having a well-crafted mission statement for your organization.
Mission statements are like compasses that help a business navigate throughout the competitive marketplace. It allows a company to define its purpose beyond the simple goal of generating a profit. The purpose as outlined in the mission statement, identifies the primary customer base and will go as far as to illustrate how the organization satisfies the needs of those customers.
Helps to Resolve Conflicts
A well-crafted mission statement helps provide a resource to decision makers within the organization when conflict arises. By pointing them back at the mission statement, a written document that illustrates the organizations purpose for existence, some of the disputes among decision makers can be diffused.
Framework for Decisions
Key decision makers are constantly faced with the challenge of balancing decisions that are economically sound and at the same time meet the needs of other stakeholders. A well-crafted mission statement helps decision makers of an organization tie both objectives and strategies to the main purpose of the organization.
A mission statement has the potential to draw favor from customers when the purpose for the company resonates with personal values. An example would be an environmentally friendly business owner connecting with customers over policies that aim to reduce their negative impact on the environment.
When the time comes to source suppliers, deal with community dignitaries, or hire staff, the mission statement is used to communicate to stakeholders outside of the management team the core purpose for the business’s existence. It can be used to refocus team members, draw support from suppliers who believe in the company’s purpose, and get favor from community dignitaries who value the contributions the organization will make to their community.
We’ve illustrated in the points above some of the key advantages to having a well-crafted mission statement. The purpose of that exercise was to help you avoid writing a boring, generic mission statement that neither defines the purpose of your organization, or inspires people as readers.
As illustrated in some of the points above, a well-crafted mission statement will aim to satisfy a few key points:
- The mission statement aims to communicate the company’s products or services.
- Specify the demands of the buyer and how the company aims to satisfy those demands.
- Establish a unique identity for the company(differentiate).
A poorly constructed mission statement is one that is boring or bland, fails to communicate the needs of the buyers, and does not illustrate how the business differentiates itself from competitors. Some business’s go as far as to make the mistake of stating their mission is to “earn a profit.”
Profit is more of an objective of an organization and the result of a well managed business. It is not an answer to the organizations purpose or “who we are and what we do.”
When crafting your mission statement, remember to use the SMART principles (Specific, Measurable, Attainable, Relevant, and Timely).
If you would like to have us review your mission statement for consult purposes or to aid in the construction of a mission statement for your organization, please do not hesitate to contact us.
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