Mission Statement Template & How to Write Your Own Mission Statement

ByJulija A.
February 09,2022

If someone were to ask you to sum up your business in a quick sentence, you’d probably feel a little uncertain about what to say. We all know that making a great first impression is priceless, which is why you can’t afford to fluff your lines when it comes to the crunch. With the right mission statement, you won’t. 

As a business owner, creating a great mission statement may not feel like an overly important task, but it is a key ingredient in the recipe for building a strong company profile. Whether you want to learn more about their importance in business or need a free mission statement template to help you get your goals in order, this guide is just for you.

Mission Statement Definition

The term mission statement is just one of many that you will hear in the business arena. So, the first question you’ll want to ask is: what is a mission statement? Oxford Languages defines it as:

A formal summary of the aims and values of a company, organization, or individual.

It should be a brief statement no longer than one paragraph (or 100 words) that clearly defines the purpose and objective of the business, covering what it does and why. It should set out the core values of the company in a way that resonates with workers and clients alike. 

As such, it should be more than just a catchy slogan and should focus on establishing and expressing the true purpose of the company. We’ve listed some good mission statement examples from major organizations below to help inspire you:

  • To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. (Starbucks)
  • To accelerate the world’s transition to sustainable energy. (Tesla)
  • To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online. (Amazon)

The mission statement examples above show how they define the company profile to cover what, why, and how the company performs in just one short and succinct paragraph. As such, the mission statement you settle upon should feel unique to your business and industry.

Why Is a Mission Statement Important for Your Business?

A deeper appreciation of the role that a personal mission statement can play in your business should motivate you to get it right. A strong mission statement is a foundation on which you can continue to build your business. 

For starters, it gives your company a brand identity that employees and customers can buy into. This can be an important feature, as over 80% of millennials actively want to work with companies that they feel aligned to. However, the mission statement can additionally direct all future planning, performance analysis, and goal-setting activities. It provides clear guidance for all stakeholders and employees.

Whether you’re dealing with internal dilemmas or interacting with customers, a powerful mission statement is something that can be revisited time and time again to reestablish a sense of clarity. In turn, this may help the business stay on track while avoiding distractions and wasting time or money.

If you don’t have a mission statement, ambiguity can impact your productivity and profitability. Mission statements can be used by companies across all industries; they’re just as good for local brick-and-mortar firms as they are for eCommerce retailers.

How to Write a Mission Statement for Your Business

You’d be forgiven for thinking that writing a paragraph of no more than 100 words could be completed in a matter of minutes. However, the influence a mission statement has on your daily and overall functions means that you absolutely must get it right, not least because the content of the paragraph is unlikely to change much over the years to come.

As such, you can expect the process to take hours, days, or even weeks depending on the size of your business. Indeed, many companies will hold several in-depth meetings to perfect their mission statement. The following business mission statement template should help you master the process in style.

Step 1: Research

Before writing your mission statement, you must first take the time to interview key people to gain an understanding of how they view the business. You should ask them about the following issues:

  • The challenges your company works to solve
  • What attracted them to the company
  • The company’s purpose 
  • What separates you from other firms
  • The company’s overall public brand image

After this, you can analyze the findings to spot trends and common themes. In turn, you’ll be able to build a mission statement that is clear, attainable, and motivational. It should feel unique to your company by setting out its USPs. Aside from inspiring your team, it can create the consistency to boost sales by up to 23%.

Step 2: Write

After collecting the necessary and relevant information about your company profile, you can focus on actively using the template mission statement to confirm your core values. To complete your mission statement, you should:

  • Write down a sentence or two about the fundamentals of what your business does.
  • List the core values and then combine them into a sentence or two.
  • Write down why your company serves the purpose it does.

The final stage is to combine the sentences and turn them into a more concise paragraph. The statement must be all killer, no filler while simultaneously showcasing your brand personality. There should also be room for inspiration and interpretation rather than just facts. This way, employees can turn back to the statement for motivation when they need to improve their productivity or get their ideas back on track.

In most cases, it’s also wise to avoid industry jargon or buzzwords. Your mission statement should be clear, concise, and relevant to you, not just a series of cliches.

Step 3: Review

After writing your mission statement, you should be left with a single thought that encapsulates your company's purpose and values. However, you should be prepared for the idea to be finalized through the process of iteration. This is because:

  • The company mission statement needs to be approved by all leaders.
  • It must cover all key aspects without missing any relevant info.
  • You will probably use the same mission statement for several years.

With this in mind, you’ll find that you have several options to present to the leaders of your company. This is what allows the iterating process to hone in on the perfect solution. It can be a little frustrating, especially when your short defining paragraph feels close to the mark. Nonetheless, it will all feel worthwhile when you land on the right choice.

And you’ll know when you do.

Mission Statement Templates for Business and Beyond

While a generic mission statement template can be used by all companies, you may want to think about your specific industry or sector too. This is a step that can improve all of your intended outcomes, from sounding more professional to providing guidance to your teams.

For example, a real estate mission statement template can give you a real edge over firms that focus on a more generic approach. As a service-based business, you will be focused on the customer and what you can achieve for them. The statement should be simple, humble, and authentic while focusing on the problem your business solves.

If you’re running a nonprofit organization, you’ll want to use a nonprofit mission statement template, because the purpose of the organization is different to that of a business. Rather than being driven by financial gains, it’ll exist to support a cause or community. This philosophy should feature in the mission statement.

Mission Statement for Non-Business Matters

Mission statements do not have to be limited to businesses either. A family mission statement is defined by Stephen Covey as follows:

A family mission statement is a combined, unified expression from all family members of what your family is all about — what it is you really want to do and be — and the principles you choose to govern your family life.

A family mission statement template is very similar to a business one. You will want to call a family meeting to discuss the key issues (family purpose, what you want to be, what issues you see within the family, and family responsibilities and principles).

In turn, you should be able to develop a concise statement that your family can live by and use for guidance.

Meanwhile, personal mission statement examples show that a statement can be used for guidance and motivation in your own life. The personal mission statement template is very similar, except the research phase is completed alone. Think about who you are and what your purpose in life is for optimal results.

Mission Statement vs Vision Statement

As well as a mission statement, most companies will find that they can benefit from writing a vision statement. These two brief definitions of your business are certainly in the same ballpark, but individuals who use the two terms interchangeably are technically incorrect.

The mission statement sets out to establish what the company is, looking at its purpose and how it differentiates itself from the crowd. Conversely, LifeHack.com offers the following definition of a vision statement:

A vision statement is like a photograph of your future business, which gives your business shape and direction.

As such, it’s really a tool used to think about what the company wants to be, which will subsequently allow all parties to consider what steps are required to make that happen. Like a template mission statement, it helps identify the company’s unique characteristics to promote clarity across the organization. However, the vision statement gives further insight into the company’s strategy, whereas the mission statement focuses on the values.

Some vision statement examples are listed below:

  • To move with velocity to drive profitable growth and become an even better McDonald’s serving more customers delicious food each day around the world. (McDonald’s)
  • To become the worldwide leader of all retailing. (Walmart)
  • Our VISION, quite simply, is to be: “The World’s Premier Food Company, Offering Nutritious, Superior Tasting Foods To People Everywhere.” Being the premier food company does not mean being the biggest but it does mean being the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth. (Heinz)

The above examples show why many people think that the two statements are the same thing. However, the wording highlights that the focus of a mission statement is different to that of a vision statement. As such, the latter often builds upon the foundation established by the former.

Conclusion

As shown by customer loyalty statistics, keeping people focused on your company and developing strong bonds is a tough job. Mission statements are a valuable tool that can help define your business and make it a household name that will stick in everyone’s minds. 

And it’s not just that - vision statements make business owners, employees, stakeholders, and clients think about the purpose the company serves while also considering the how and why. Crucially, a mission statement should do this in no more than 100 words.

Businesses of all sizes across all industries can benefit from taking this approach. When writing yours using a mission statement template, be sure to make it concise, accurate, attainable, and unique. The right statement is one that can support the organization throughout its business journey.

FAQ
What is an example of a mission statement?

Virtually all successful companies boast a clear, concise, and complete mission statement that defines who they are and what they do. For example, fashion brand ASOS states its mission as follows: “To become the number 1 fashion destination for 20-somethings globally.”

How do I write a mission statement?

To write a mission statement you’ll need to find a sentence or two that can set out the fundamentals of what your business does and why, along with its core values. You’ll probably find that it's best to write a short paragraph about what, how, and why your company operates. It will subsequently be easier to chop it down to a suitable mission statement

What are the components that make a good mission statement?

Generally speaking, a mission statement will cover the company’s purpose, values, and goals in 100 words or fewer. It looks at how the business serves its employees, clients, and the wider community. A powerful mission statement should also come across as dedicated to your brand

What’s the difference between a vision and a mission statement?

A mission statement and a vision statement are quite similar. The big difference is that a strong mission statement focuses on what your organization currently is, while a vision statement focuses on what you want it to become. Together, they can provide the guidance needed for sustained success.

About the author

Julia A. is a writer at SmallBizGenius.net. With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.

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Take Advantage of Digital Tools There are a number of digital tools that can help you improve your eCommerce business. From marketing automation software to customer relationship management systems, there’s a variety of features that can make it easier to run your business and provide a better experience for your customers. Check the data and sales figures, and invest in analytical tools so you can understand where your customers are coming from and what they are looking for. 3. Learn From Your Competitors It’s important to keep an eye on your competitors to see what they are doing and how they are reacting to the latest eCommerce retail trends. You can learn a lot from observing their strategies and understanding their strengths and weaknesses. Should they fail, you can learn from their mistakes. If they succeed, you can try to replicate their success. Final Words As the global eCommerce ecosystem continues to grow and evolve, it's important to stay on top of the latest trends. Instead of leaning on traditional shopping methods, more and more consumers are turning to the internet to purchase items. Mobile phones play a big role here, as they provide a convenient way to shop on the go. What's more, consumers are getting more comfortable with new technologies such as AI, AR, chatbots, and voice search. These eCommerce trends in technology are changing the way we interact with eCommerce platforms and retailers. With all that said, we're confident that you now have a solid understanding of the current eCommerce landscape. Just remember to keep your eyes peeled for new trends so you can stay ahead of the curve.
By Danica Djokic · September 15,2022
As a business owner, you are likely responsible for overseeing all aspects of your company’s operations. This includes setting your own salary. This decision can be difficult to make, especially if you’re not sure what’s standard or how to determine what’s appropriate for your situation. In this article, we’ll discuss some factors you should consider when deciding how much to pay yourself as a small business owner. What To Consider When Setting Your Salary Setting your own salary can be daunting, especially if you’re a freelancer or small-business owner. After all, you need to make enough money to cover your expenses and earn a profit, but you don’t want to price yourself out of the market. So, what factors should you consider when paying yourself from your business? Business Structure One of the first things you should consider is your company’s business structure. Are you a sole proprietor? Do you have a business partner? Are you an S corp? Your company’s business structure will affect how much money you take home and how much in taxes you need to pay. For example, if you’re a sole proprietor, you’ll likely take home less money than if you’re running a corporation because you’ll be paying taxes on both your business income and personal income. On the other hand, if you’re running a corporation, you’ll only be taxed for your corporate income. This means that more of your business profits will stay within the company, which can be reinvested or distributed to shareholders. Business Expenses Another factor to consider when paying yourself as a small business owner is your business expenses. How much does it cost to run your small business? You should consider expenses like rent, utilities, payroll, and marketing. You’ll need to make enough money to cover these costs, plus your personal living expenses. One common mistake small business owners make is not accounting for all of their business-related expenses. Make sure you have a clear understanding of all the costs associated with running your business before you start setting your salary. Personal Living Expenses In addition to business-related expenses, you also need to account for your personal expenses, such as housing, food, transportation, and health care. Again, one common mistake people make is not accounting for all their personal expenses when calculating the business owner’s salary. Industry Standards Another factor to consider is industry standards. What do other businesses in your industry pay their employees? This will help you determine a reasonable salary for yourself as the business owner. Of course, you don’t want to undervalue your services.  Ultimately, setting your salary comes down to determining what you need to earn to cover your costs and make a profit and then finding the right balance between pricing yourself too high and too low. By taking the time to consider all the relevant factors, you can ensure that you set a fair and competitive price for your services. How to Calculate Your Owner’s Pay You should consider a few balance sheet items when calculating your salary as a small-business owner. These include your monthly net income, all business-related taxes and fees, and business expenses.  According to some small business revenue statistics, 86.3% of small business owners earn less than $100,000 a year. However, this does not mean you must stay within this bracket. Below are some steps you can take to get a clear picture of a small business owner’s salary and how to calculate it yourself. Calculate Your Monthly Net Income Your monthly net income is the total revenue your business brings in minus any taxes or fees. This number can fluctuate from month to month, so it’s important to take an average over a period of time to get an accurate number.  Next, you’ll need to subtract all business-related taxes and fees. This includes income taxes, self-employment tax, and any other business-related expenses. Once you have your monthly net income minus taxes and fees, you’ll be left with your profit.  Calculate Your Tax Savings The next step in calculating owner pay is determining your tax savings. This includes any deductions you can take for business expenses, home office expenses, and health insurance premiums. You can consult with a tax professional or use a tax calculator to get an accurate number. Once you have your tax savings figured out, you can add this amount to your monthly net income to get your total monthly compensation. Calculate Your Business Expenses The final thing you’ll need to consider when setting your salary is your business expenses, including office rent, utilities, supplies, and employee salaries. Once you know how much it costs to run your business each month, it will be easier to calculate how much to pay yourself as a small business owner. One mistake many small business owners make is not accounting for their salary when calculating their business expenses. This can lead to severe financial problems down the road, so be sure to include yourself in the equation. By following these steps, you should be able to come up with fair and reasonable compensation for yourself as a small business owner. Remember to avoid common mistakes, and you’ll be on your way to success.  Ways To Pay Yourself As a business owner, you have two options: Either pay yourself a salary or take distributions from your small business. Here are the pros and cons of an owner’s draw vs. a salary.  Paying Yourself a Regular Salary To pay yourself a regular wage, just like you would an employee, you’ll need to set up payroll for your business and withhold taxes from your paycheck. One advantage of this method is that it can help you separate your personal and business expenses and make it easier to track your business expenses come tax time. The downside of drawing a salary is that it’s subject to payroll taxes, which can eat into your earnings. Additionally, if you have a slow month or two, you may find yourself struggling to cover your personal expenses if you’re relying solely on your business income. An Owner’s Draw If you are self-employed and paying yourself a salary, an owner’s draw is another method you can use. This method is often used by small business owners with irregular or variable income. With an owner’s draw, you simply draw money out of your business bank account as needed to cover your personal expenses. One advantage of this method is that you don’t have to worry about payroll taxes. Additionally, it can give you more flexibility regarding how much money you take out of your business each month. However, one downside is that it can be challenging to track your small business expenses come tax time. So, which method is right for you? How to pay yourself as a sole proprietor? Ultimately, it depends on your circumstances and the needs of your business. If you have a stable and predictable income, having a regular salary may be the best option. However, if your income is variable or unpredictable, an owner’s draw may be a better option. Final Thoughts Paying yourself as a business owner can be a tricky task. And there’s no universal rule on how much business owners should pay themselves. However, by following some simple guidelines, you can ensure that you are fairly compensated for your work without putting your business finances at risk.  What’s most important is to find a method that works for you and your business. And, of course, to avoid any common pitfalls.
By Nikolina Cveticanin · September 14,2022

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