The Importance Of A Business Mission Statement, Plus 10 Examples To Help You Craft Yours

2023-02-14

As an entrepreneur, you want your business to have a strong presence on and offline. Everything you do (including your customer service, the pictures you post on social media, and the content you create for your business website) should reflect that. One breakout statement can help you accomplish just that.

In this post, we explain what a business mission statement is, the importance of a well-constructed statement, and how to create one for your business. 

What is a business mission statement?

A business mission statement is a short description encapsulating a business’s purpose, goals, values, and objectives. It explains why a company exists and the contribution it intends to make to society. This statement is usually created for the understanding of customers, employees, partners, and the world as a whole.

A business mission statement isn’t necessarily an introduction to a company. Instead, it describes what the owners think of the company and what they want it to become. This explains why some business mission statements today give essential information, such as the company’s philosophies and its competitive advantages.

A compelling business mission statement should be powerful, short, and broad so that it doesn’t limit the company’s future ventures and possibilities. An excellent mission statement should answer the following questions:

●     What does the business do?

●     Who are your customers, and where do you operate?

●     What products and services does the company provide?

●     What are the reasons for the company to do what it does? 

●     How does the business achieve its objectives? 

Note that a business mission statement is meant to be shared with the public. If your company’s business statement only resonates with the management, then it will not effectively guide the company toward its short-term and long-term goals. When creating your business mission statement, you must think about everyone who'll resonate with it. 

What a business mission statement doesn’t entail

Most of the time, people confuse a business mission statement with other aspects of the business, such as:

Vision statement

While a business mission statement describes what a business does, how it does it, and why it does it, avision statement mainly answers the question, “What do you want to become?” As a result, a vision statement comes first and provides the foundation for a business mission statement. 

A business vision statement should be short, and all areas of management should have a say in the final vision statement. For most businesses, profit is their primary motivator and not mission or vision. 

However, as an entrepreneur, you should know that profit alone can never motivate the people in your company. Vision statements that both management and employees have developed are capable of creating a commonality of interests that will inspire everyone involved, driving the company forward. 

Goals 

These refer to the tangible outcomes a business wants to achieve in the short-term or long-term. These goals usually take many forms and can either be motivational or inspirational. An example of a tangible business goal is pushing a company toward a common objective, such as excellent customer service. 

Business goals can also take the shape of specific objectives, such as attaining a particular profit margin and net income and generating a certain amount of revenue in a given period. Setting clear and realistic business goals provides a measure of success and ensures that the business is headed in the right direction. 

Core Values 

Core values refer to critical personal beliefs that help unite the team to realize the company’s vision, mission, and goals. They mainly develop the identity and culture of the business. They’re essential when it comes to making critical decisions, handling customer service, and solving problems that emerge along the way. 

The importance of a business mission statement 

Your mission statement establishes your business’s identity and guides employees as they execute their tasks.

A powerful mission statement acts as the bedrock of your company and guides managers and employees to develop strategies that keep the business stable, even during difficult financial times. 

The importance of a business mission statement is not just theoretical. It existsin the real world in several influential ways:

It creates identity 

A mission statement createsyour business’s identity based on its core values and objectives. It also establishes a decision-making format for everyone in the company, including managers and employees, encouraging unity among those who support or work for the company. 

When a company establishes its own identity, it sets itself apart from its competitors in the industry. As a result, your company needs to showcase its identity to the general public by posting its mission statement on its official website and various social media platforms.

It shapes the company culture 

A well-written mission statement will help shape your company’s culture. A mission statement perfectly aligned with the company’s core values and fundamentals will develop and maintain a positive work environment for everyone in the company. Whether your company’s main objective is to go global or promote a spirit of progress, the mission statement will serve as the ideal decision-making template. 

This is why your company’s mission statement should reflect positive norms, beliefs, and core values to help guide management’s decisions and employee actions in the company. The ideal mission statement will help employees develop a positive attitude towards their jobs and remove any cloud of uncertainty in their minds. 

Every employee will know what is expected of them before they begin their first dayin your company. They’ll also customize their working style to fit your company’s mission statement, resulting in a positive and harmonious working environment for everyone involved.

It attracts top talent 

A simple and coherent mission statement will play a significant role in the company’s hiring process. Everyone applying for a job in the company will likely read the mission statement and decide for themselves whether the company would be a good fit for them. 

This means that, in the end, you’ll only be left with potential employees who’ll fit perfectly in the available job positions. These types of employees are usually dedicated to their work and have the right skills to take your company to the next level. 

Also, talented and self-driven individuals are more likely to apply for jobs in your company if they see how well-defined your goals are. You may also suggest to the hiring panel to use the company’s mission statement when conducting interviews for various job positions. This way, you’re left with like-minded individuals who want to work for your company. 

It encourages accountability 

Entrepreneurs start businesses to fulfill a specific purpose or need which is usually highlighted in their mission statements. One of the best ways a company can keep moving in the right direction is by holding itself accountable. This could prove problematic if a business doesn’t have a coherent mission statement that its shareholders, managers, and employees can all relate to. 

Conversely, referring back to a good business mission statement helps the management and employees hold themselves accountable for the goals they intend to achieve in the future. When a company remains true to its purpose and steers the wheels toward its long-term goals, it becomes much easier to measure its progress.

It inspires new ideas 

When you’re in the process of crafting a mission statement, it opens your mind to new and better ideas. This is why business owners should involve everyone when it comes to the development of the company’s mission statement. Managers and employees will gain a better understanding of how their actions and decisions influence the company’s short-term and long-term goals while others involved will develop better ideas that will help the company grow while still upholding its core values. That said, a mission statement needs to be reviewed and adjusted over time to help suit new teams and new business goals. 

It guides the company forward 

Your company’s success is dependent on its short-term and long-term goals. Your company must craft a mission statement that will guide it in the right direction. Such a mission statement will explain how the company’s management sees the company’s future in the coming years. This will help motivate the employees and create a good reputation for the company in the industry.  

While it’s easy to point out what has helped you start your company, a mission statement serves as a declaration of how your company will operate and improve itself in the future. Therefore, a mission statement is the ideal navigation tool that your business needs to attain its short-term and long-term goals and also overcome obstacles along the way. 

It establishes consistency 

Creating an effective and universal mission statement for your company is not an easy task. However, a well-crafted mission statement will give your company strength and a sense of direction when the founders are no longer around. As your company grows, new employees will come and new departments must be established. One of the founders may retire, or an entire department may change. Such changes can easily make your company lose its culture and focus.

A coherent mission statement puts a stop to this in ample time. Since everyone joining the company is acquainted with the mission statement, their decisions ideally will be in the best interest of the business. 

The mission statement ensures that new and old employees work together towards the company’s goals. Additionally, a mission statement guides the new leadership to walk in the footsteps of those who served before them. 

It facilitates collaboration 

When a company has a solid mission statement, employees and managers are more likely to collaborate andset aside workplace politics, looking beyond their differences and working together to actualize the company’s mission statement. 

Additionally, a well-crafted mission statement makes partners, customers, and suppliers feel like they’re part of something bigger than themselves. As a result, they’ll feel proud working with you as opposed to your competitors, helping your company reach even greater heights. 

It boosts overall performance 

An excellent mission statement provides all employees with clear goals. They become well-informed on what’s expected of them and why they’re doing the work, motivating them to meet deadlines and attain consistent performance standards.

Everyone becomes more accountable to the company and is encouraged to deliver the best results possible. In the long run, this will help the company increase its production and generate more revenue. 

It helps to align behavior

When a powerful business mission statement is in place, everyone in the company will align their character and conduct towards the same goals. A mission statement can be used to evaluate a business model or even guide the company’s decisions on vital policies and procedures. 

When the entire company adheres to the same mission statement, different departments are more likely to work together effectively to help the company reach its full potential. As the company keeps working on attaining its goals, a mission statement keeps everyone’s behavior consistent with the desired outcomes. 

It improves the company’s reputation 

A mission statement isn’t a mere proclamation that describes a company. It’s one of the most vital messages you can give the public. Having a well-written mission statement will have a positive impact on how the general public sees your company. You should use your company’s mission statement to explain what your business does and why it does it.  

Customers will likely view your company’s mission statement as a perfect embodiment of your values and character. If your mission statement doesn’t reflect what you believe in, it may be best to adjust it. You want the mission statement to describe the passion that drives your company in a way that reassures and appeals to the general public. 

When crafting your company’s mission statement, ensure that the message is clear and straightforward for everyone to understand. 

How long should a business mission statement be?

the ideal mission statement for your business

A business mission statement should be brief, easy to understand, and memorable to everyone in the company and beyond. Two to three sentences can make up the ideal mission statement for your business. A business mission statement shouldn’t be a long essay about when and how the company started and its challenges. 

Rather, it should be concise in a way that it acts as your business’s primary headline. If you feel that you have a lot of descriptive content to write about your company and how it started, you should do it on the ‘About Us’ page. 

How to write a compelling and powerful business mission statement 

Your mission statement talks about every aspect of your business, including the products you sell, how you treat your customers and employees, and how you create your products and services in a way that stands out from the rest. Developing a business mission statement that touches all these subjects within just a few sentences is not easy. 

Here’s a step-by-step guide to help you create a compelling mission statement for your business:

1. Define the purpose of your business 

The first step when writing a mission statement for your business is to define its true purpose. This may include:

●     What type of business you have

●     The products or services it provides 

●     What makes your products or services different from those of competitors

●     The problems you’ll solve in society 

●     The benefits your products offer 

●     Your brand personality and secrets 

●     Your target customers 

●     Your geographic allocation 

For example, if your business is in the fashion industry, you can say that its purpose is to provide quality clothes, accessories, and/or shoes. When highlighting the products and services that your company deals with, take your time to create the unique features of your brand that differentiate it from your competitors. 

2. Define how your business operates 

When defining how your business operates, you don’t have to go into detail about the physical operations. Instead, you can base this on the core values driving your business. For example, you may talk about how your business is focused on delivering the best customer service or high-quality products. 

3. Explain why you’re involved in this business 

When writing a mission statement, you should always mention what motivates your company to operate in the industry. This way, everyone who comes across your business mission statement will understand what sector of your field your company belongs in. 

4. Explain what the business does 

You should explain why customers keep coming back. If you have many returning customers, it means your business is doing something unique that motivates customer loyalty. Be sure to define it from the customers’ point of view. 

For example, a footwear store will likely witness repeat customers if they stock the latest shoes on the market. That information is crucial to include in your business mission statement. Use the right words to resonate with the public and attract even more customers.

5. Define what the business does for its employees and owners 

A business cannot succeed without the hard work and dedication of its employees. Satisfied employees will likely transfer a good mindset to the company’s customers. So, ensure that your employees are well-paid and involved in business decisions. This way, the employees will confirm what you mention in the mission statement. 

Explain whether the company rewards its employees and whether they get the support they need when working. Mention all the good things you do for your employees. Phrases like “on-the-job training”, “diversity”, “gender equality”, “empowerment”, and “fairness” should appear here. 

On the other hand, it’s also important to mention what the company does for its owners and shareholders. A company that does well for its shareholders is likely to attain its long-term goals.

6. Gather all the right words together 

At this stage, you’ve likely written all the fundamental things that make your business what it is. You need to gather all this information and ensure that all vital questions have been answered. When gathering the information, remember your company’s main objective so that you don’t omit critical aspects that could strengthen your mission statement. 

7. Edit and cut back the words 

By the time you’re done writing all the essential elements, you’ll likely have several sentences and over a hundred words. Edit the statement and remove any words you don’t relate to or that don’t describe your business in the manner you prefer. 

While editing, keep an eye on all the buzzwords. You should get rid of all unnecessary words so that you’re left with about two phrases that are unique and not a copy of someone else’s mission statement. Once you’re done, reread everything and make any necessary corrections. 

8. Review your mission statement 

After writing a mission statement that reflects your company’s purpose and beliefs, it’s time to get other people’s feedback. Give several trustworthy people a copy of your business mission statement and listen to their assessments. Write down all the suggestions and avoid arguing with them over their opinions. You don’t need to prove yourself or try to convince people that your business mission statement is the best. 

Proceed to write down another mission statement with the help of the suggestions you’ve received. Once you’re done, you can compare the two versions and decide on the one that captures the image of your business in the best light. Or, better yet, combine the best of both for a comprehensive mission statement.

9. Release it to the public 

An excellent mission statement should resonate with everyone associated with the business, including the owners, managers, employees, customers, and society in general. After writing the business mission statement, release it to the public and gauge the reaction. 

A compelling business mission statement will stick in the minds of everyone who comes across it. That’s why it’s important to structure it memorably. Since a mission statement explains why your business is ahead of its competitors, you may want to make it part of your advertising campaign. 

Here are a few ways to do this: 

●     Create a dedicated page for your business mission statement, vision statement, core values, and goals

●     Use it on the homepage headline if your mission statement is concise

●     Use it on various social media accounts dedicated to the business, such as Facebook, LinkedIn, Instagram, and Twitter

●     Link to your business mission statement in job postings

10. Adjust your mission statement as needed 

Your business will transform in the coming years to adapt to the latest technology trends and changing environment. The business will see new managers and employees come onboard. Additionally, your business may eventually need to rebrand or merge with another company. 

This means that the business’s purpose, objectives, and goals may also shift at some point. Keep on revising and making the necessary adjustments to your business mission statement each year to ensure that it relates to the changing culture and business environment. 

10 examples of good business mission statements 

The following are some examples of strong and well-composed mission statements of real-life businesses:

1. Coca-Cola

Coca-Cola uses bullet points to give detailed information about the company’s culture, market, values, and vision. If Coca-Cola used a phrase like ‘to quench the world’s thirst’ for its mission statement, people likely wouldn’t find it unique. That’s why Coca-Cola explained its strategy and purpose as the leading brand in the beverage industry.

Coca-Cola’s mission statement reads:

●     To refresh the world 

●     To inspire moments of optimism and happiness 

●     To create value and make a difference 

2. Cisco 

Cisco is one of the biggest tech companies in the U.S., using its mission statement to address the broader community and reveal the approach it takes to create a better experience for all its customers. Cisco intends to make accessing the internet much easier and more profitable for its customers and investors. 

The company’s mission statement reads:

“To shape the future of the internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners.”

3. Disney 

Over the years, Disney has consistently delivered great entertainment to its customers and prioritized society’s welfare. The primary reason is that the company has a mission to fulfill for all its business operations, including theme parks, retail stores, restaurants, and hotels. Disney is also keen on empowering people from all walks of life and changing their life situations. 

The company’s mission statement reads:

“The mission of The Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services, and consumer products, we seek to develop the most creative, innovative, and profitable entertainment experiences and related products in the world.”

4. Tesla 

In recent years, Tesla has become one of the leading manufacturers of electric vehicles on the planet. Tesla’s steady growth since 2013 indicates that the general public is responding well to the company’s products. In addition to electric cars, the company is now venturing into other sustainable products and services to realize its mission. 

Tesla’s mission statement reads:

“To accelerate the world’s transition to sustainable energy.”

5. Nike 

Nike has a simple and inclusive mission statement focusing on the company’s influence in the sports industry. This mission statement clearly shows that Nike aims to inspire every athlete to become the best version of themselves. As a leading manufacturer of sports footwear, apparel, and equipment, the company inspires all athletes to develop a winner’s mindset and believe in themselves. 

The company’s mission statement reads:

“To bring inspiration and innovation to every athlete in the world. If you have a body, you’re an athlete.”

6. IKEA 

IKEA is renowned worldwide for selling affordable and stylish furniture and accessories. The company also ensures that its employees and partners are treated well, which is why its mission statement resonates with the general public. 

IKEA’s mission statement reads:

“To create a better everyday life for many people.”

7. Microsoft 

Microsoft’s mission statement focuses on empowerment and the strategies the company uses to achieve this. The company is focused on producing reliable computing products to empower both people and organizations around the globe.

Microsoft’s empowerment includes improved information access, easy-to-use products, and unlocking a trusted and secure experience for customers, employees and organizations.

Microsoft’s mission statement reads:

“To empower every person and organization on the planet to achieve more.”

8. Amazon 

Amazon prides itself as the biggest e-commerce company on the planet. The company’s mission statement focuses on customers and bettering their experience. 

The company’s mission statement reads:

“We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.”

9. Starbucks  

The company’s mission statement is focused on much more than providing good coffee. Starbucks’ mission statement also shows that the company focuses on inspiring people to live better lives. 

The company’s mission statement reads:

“To inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time.”

10. The American Red Cross 

The company’s mission statement is easy to understand because it explains the main reason the company was founded and why it continues to operate today. 

Its mission statement reads:

“The American Red Cross prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors.”

Contact us at Smith.ai today

At Smith.ai, we can help you extend the courtesy and care inherent in your mission statement to your customers. As you create a powerful mission statement that will inspire everyone in your company to reach their full potential and attract even more customers, we at Smith.ai can assist those customers with quality support.

Your mission statement needs your attention, especially if it evolves as your business grows. While you handle this task, let us assist you with others. Here at Smith.ai, we know just how many things are on your company’s to-do list, and we’re here to help in multiple ways. As your virtual receptionists, we can help you with these and many other tasks: 

●     Booking appointments for your current clients and your potential leads

●     Answering overflow calls if your call answering team can’t get to all of your calls

●     Answering calls all day, every day, even when you’re not around

●     Blocking spam calls for free, so your employees aren’t bogged down with robots and scammers 

We’re proud to offer a 14-day, money-back guarantee so you have plenty of time to decide if we’re the right fit for your small business. Schedule a free 30-minute consultation today for more information.

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Business Education
Elizabeth Lockwood is the content marketing associate at Smith.ai. She focuses specifically on writing and editing engaging articles, blog posts, and other forms of publication.

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