Why do startups need a mission statement, and what should one look like?

A mission statement is defined as a formal summary of the goals and values that a company aims to follow and uphold. The popular consensus is that this short but targeted statement is critical to the overall success of a company and is especially important for startups and small enterprises as they attempt to navigate the challenges of modern business.

Why are mission statements so important? Because they unify the efforts of managers and employees around common, achievable goals and give the company a sense of direction. Without a statement, a brand can lack identity and a clear purpose, which can undermine other seemingly more important tasks and processes from the start. Great products, excellent service, long-term growth and healthy profits can all stem from a great mission statement.

Identity, culture, talent

Up and coming businesses need to differentiate themselves from the competition, create a positive company culture and attract talent to put everything they want to achieve into action. A mission statement is an excellent starting point as it expresses an identity, which allows everyone to essentially “sing from the same hymn sheet”. This guides the cultural and workplace environment too, and in turn, makes it a more attractive option for prospective, talented workers. The right mission statement will draw like-minded people to a company.

Performance and long-term vision

After building a solid foundation, a mission statement can then improve the quality of employee’s work and lead to a broader uptick in performance levels, which can drive growth and revenue. This is because a mission statement encourages people to meet high standards. By upholding core values and applying them to work on a daily basis, employees produce better work and are more motivated.

A mission statement also looks to the future and sets out a long-term vision for a company rather than just being content with the here and now. Having a clear direction and ambitious plans for the future, and being able to deliver on both fronts is an outcome that Patrick James of First Brands Group is familiar with. James has consistently been able to set out a robust mission statement which has helped his business to grow, adapt and thrive for more than 20 years.

What does a good mission statement look like?

A mission statement is very important, but what does a good one look like and what should it contain? Ideally, it should be concise, powerful and memorable with just the right blend of rallying points and core values. It should also create a brand image you want to portray to the public. That may seem like a very high bar, but it is possible to create a good one by answering several questions.

Forbes believes a mission statement should outline the purpose of the company (what), how to achieve key goals (how), the target audience (who for) and the value your business is bringing to an industry and the wider world. The purpose of the actual mission statement should be clear too with this message able to resonate with an audience.

Virgin Group founder Richard Branson believes a mission statement is essential and has stated that it must be clear and succinct without any unnecessary information. He adds: “This further backs up the idea that a good mission statement is one that is clear and answers the right questions in a simple manner, and does not over complicate things. An example of a good mission statement would be Google's, which is 'to organize the world's information and make it universally accessible and useful'."

A mission statement should be more than a single line though. Most businesses often try to write two or three sentences to get the point across. When crafting the statement, it is a good idea to use compelling, persuasive language that is both strategic yet comes across as achievable. While everyone wants to be ambitious, a statement should not be fictional or strive for something that is not tethered to real world conditions.

Fortunately, a mission statement is not set in stone and can be updated and evolve over time to align with changing business objectives and outlooks. If you are an up and coming company though, refrain from making sweeping changes too quickly as this can undermine your efforts to build a brand identity and can leave both employees and customers feeling both frustrated and confused.

To conclude, mission statements bring your values, objectives and aspirations together in a short, targeted paragraph. A good one will communicate to other people what makes your company different and what value it brings. It also rallies employees around a core vision that informs decision making and everyday work tasks. While you may already think you have a clear direction for your company, documenting it in a statement is critical for unifying efforts towards crucial long-term goals.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes