Aspiring entrepreneurs and entry-level businesses ask one of the most frequent questions: what is a mission statement? Why is it fundamental to my organization?
According to The Balance Careers article, mission statements aren’t only a fundamental part of multinational corporate firms; they’re just as necessary for small-scale companies. Here’s what a mission statement of an organization represents:
The real purpose behind the company’s existence
The core values and beliefs the organization stands for
The demographics it targets for business purposes
The type of products and services it offers
A mission statement defines how entrepreneurs express their goals, aspirations, and organizational targets.
5 Reasons Why Your Company Mission Is Necessary
1. It shapes the future of the business
Every goal-oriented entrepreneur ventures into a niche with a vision, i.e., to achieve a specific target within a predetermined time frame.
Let’s say you’ve just begun a textile business with a vision to achieve a specific market share by the 5th year. Here, setting a mission helps the company stay focused on taking specific actions that will help you reach that level of growth and success within the time.
2. It helps in making profitable decisions
Have you seen how a compass helps sea explorers figure out the right direction to travel? That’s exactly how a strong and purposeful mission statement helps an organization sail its ship.
Setting a mission enables you to understand your company’s goal. Also, it sets guard rails, so you’re not diverting from your original goal.
Once you introduce the entire team to your long-term vision through the statement, they become aware of their responsibilities to help accomplish the milestones you’ve set. Overall, this helps make better decisions that can increase sales and revenue stream and support business growth.
3. It boosts engagement
A recent Forbes study claims that workers of companies driven by a strong mission statement are 54% more likely to last more than five years.
What does it tell? A mission statement helps boost employee engagement – and that’s why every company must have one.
As the workforce shows improved engagement, the workflow improves, and attaining the organizational targets becomes a cakewalk. But most importantly, it means that your staff is more driven, motivated, satisfied, and aligned with the company’s values than ever.
Does it get any better than this?
4. It helps measure your progress
What’s the best part of having a concrete mission statement? It’s always measurable.
Your company should always have a simple and to-the-point written statement, as it makes it possible to evaluate your progress, based on the targets you’ve set, from time to time. As per renowned leadership coach Glenn Smith, “Clarity of mission brings clarity on every other level of the company.”
5. It makes room for positive changes
Non-mission-driven companies often diverge from their organizational goals due to their internal shenanigans. And when it happens, people who don’t welcome changes graciously fail to prevent the ship from sinking.
However, when your company’s mission is crystal clear to the entire team, it becomes effortless to identify the hidden disruptions when they occur. And when the unit is aligned with the same values, it creates a positive culture that welcomes any necessary change that brings the team closer to its mission.
To sum everything up, a meaningful, simple-worded mission statement is the foundation of every successful business venture. It keeps you on track so that you don’t get distracted from achieving what you’re headed out for.
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