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Mission statements, what is a mission statement.

Your mission clearly states why your organization exists. A company’s mission statement helps clearly articulate your core purpose. It is the summation of your organization’s core reason for being, answering the question, “Why are we here?” A mission needs to boldly state why you exist, and what impact you hope your organization has on the world. The best mission statements clearly express these things to your customers in a way that resonates and engages with them.

When developing your strategic plan, it is important to not overlook the foundation of your plan, including your mission statement. Every organization should have one! Crafting a mission statement may be challenging at first, but with the help of our guide, you’ll be well on your way to making your own great mission statement!

Free Canvas & Guide to Creating a Mission Statement

Whether you’re writing a new mission statement or revisiting your old one as part of a strategic planning process, we’ve created a canvas you can use to create a mission statement that inspires your team. Get started on creating your mission statement today, and download our guide for free!

Why Are Mission Statements Important in Strategic Planning?

A good mission statement is a foundational element in any strategic plan because it helps define your organization’s core purpose, serving as a vantage point from which to look down the road. Combined with your vision statement , it helps define why your organization exists and what you stand for.

Mission statements are sometimes confused and grouped with different kinds of foundational statements or forgotten about entirely. Some of the common planning elements that mission statements get mixed up with are vision statements and value statements.

All three are closely linked but serve entirely different functions and roles in your strategic framework. Below, we explain how the vision and values elements compare against a mission statement, and how they can all be used together to complement your mission statement for a strong foundation to your strategic plan.

Mission Statements Versus Vision Statements – The Differences

While a company’s future vision statement describes the organization’s future state, the mission directly relates to the vision by articulating the greater reason why that vision matters. A powerful mission keeps the organization on track and rallies around the direction the organization is headed. Learn how to write your mission statement here .

Mission Statement – Why You Exist

• States why your organization exists and articulates your core purpose.
• Written in the present tense.
• Helps define the area where you play.

Vision Statement – Where You’re Going

• States your organization’s bold vision for the future and why that is important.
• Written in a future tense.
• Helps create the roadmap for the future.

Pro Tip: Language Matters. We always recommend mission statements be written in present tense using concrete language. Writing in present tense allows your mission to be easily deciphered from your vision statement, which is written in future tense . Solid language leaves little room for interpretation of what exactly your mission statement means.

How Your Vision and Mission Statement Informs & Creates Strategy

Mission and vision statements are really two sides of the same coin. Your mission statement tells them where you are and why you exist, while your vision statement describes your desired future state or aspirational impact.

These two elements combine to inform and create your strategy, which is your plan for how to overcome your current and potential future competitors. The mission and vision are essentially your corporate aspirations, and your strategy is your meticulous plan for achieving it. Because these two statements used in tandem define why you exist now and what you aspire to offer in the future, this can make it easier to pinpoint your unique value proposition within the market.

A vision statement also helps you outline the actions and steps you need to take to make your vision a reality. If you can anchor your plan to your mission and vision, you’ll never lose your direction, even if you must pivot your strategy periodically to respond to different market or environmental conditions and customer feedback.

Mission Statement Versus Core Values Statement

As we’ve stated earlier, a business’s mission statement is all about defining the company’s purpose and objectives. It’s a concise statement that outlines what the business is trying to achieve and how it aims to achieve it.

A value statement , on the other hand, is focused on the core values and beliefs that are central to the organization’s culture. While these statements may serve different purposes, they are not in opposition of one another. Ideally, mission and values statements should be created in tandem, as they complement each other quite well.

For example, an organization’s mission statement may be focused on growth and expansion, while its values might include ideals such as honesty and fairness. By combining these two statements, you get a clear picture of what the organization hopes to achieve and how it aims to do so, while also highlighting the values it holds dear.

Mission Statements – Why You Exist

• Are usually written in the present tense.

Values Statements – How You’ll Live Out Your Mission

• Clarifies what your organization stands for, what it believes in, and how you expect your team to behave.
• Are typically written in present tense.

How Your Mission and Value Statements Complement Each Other

Value statements are the guiding principles your organization has chosen to live by, which give direction to the company culture and behaviors. Core values help businesses remain true to their mission and purpose by providing a framework for decision-making and actions.

A mission statement provides a sense of direction, whereas values give employees a sense of pride and purpose in working to achieve that mission. So, while your mission statement helps to guide the direction of your company, your value statement creates the behaviors that keep you in line with your mission.

Together, these statements complement one another and form a solid foundation for any successful organization. The mission statement outlines the company’s primary objectives, while the core values ensure that the company is meeting its goals the right way. By aligning a organization’s mission statement with its core values, everyone involved in the company, from the management down to the customers, can easily understand its objectives and what it stands for.

Mistakes to Avoid When Drafting Your Mission Statement

Crafting the perfect mission statement can be challenging and potentially lead to pitfalls when not approached carefully. Here are some mistakes to avoid when creating a mission statement:

Being Too Vague or Generic

It’s important to make sure you’re writing a mission statement that is unique to your organization and sets you apart from your competitors. Avoid generic and bland statements like “highest standards” or “quality customer service delivered.” Instead, explain what those statements would mean in the context of your organization.

Pro Tip: You may also want to avoid phrases that feel particularly jargon-y or industry specific. Your mission statement is meant to be public-facing, so ensure that your mission statement is understandable to the general public.

Focusing Solely on Profits

We get it. Of course, we all want to make money and ensure that our business or organization is successful and turning a profit. But is that really what your mission is? Your mission should, ideally, be impact driven. Think about the needs you identified that needed to be fulfilled that inspired you to start your organization in the first place. That’s what your mission statement should stem from.

Forgetting to Consider Stakeholder Input

Unless you’re running a one-person operation, your team and stakeholders should have input in the mission. Interview or conduct surveys with your employees to gain their insight and opinions. You can then elect a smaller, more central committee to come together and find consensus on common themes and craft your mission statement from there.

Neglecting to Update the Mission Statement as the Organization Evolves

Your mission statement needs to reflect your organization’s purpose, above all else. Although you wouldn’t change your mission statement yearly or even bi-yearly, don’t be afraid to update or make tweaks on your mission statement. If your organization grows or changes to the point where your original mission statement doesn’t quite fit anymore, don’t be afraid to update!

Not Reflecting Your Company’s Values

This should go without saying, but a mission statement should clearly express and reflect your organization’s values and purpose in a way that resonates with your team and your customers. Make sure your mission statement describes and accurately reflects your company’s identity.

By being mindful of these potential missteps, your organization can create a mission statement that accurately reflects your values and goals while inspiring your team and community.

What Makes Mission Statements Powerful?

Mission statements help your entire organization clearly understand its core purpose and why you do what you do. As a leader, it’s important to have clarity and a cohesive understanding of why your organization exists. Great leadership requires connecting your organization’s core purpose and vision of the future to your team’s day-to-day activities.

As leaders, we are put under a lot of undue stress to generate a perfect, short, sing-songy mission statement. The result is meaningless drivel, leaving everyone irritated and underwhelmed. The goal is to bring inspiration and innovation to the company for the long term. Don’t let being pragmatic get in the way of this important stage of building a strong foundation of consensus for the organization.

Video Transcript – Video Title XYZ

Hi, my name is Erica Olsen.

Today’s whiteboard session is on how to write a mission statement. Mission statements are foundational to any strategic plan. You normally build one after you develop your SWOT. And before you go into the rest of your planning process, it’s foundational because it answers the question, “Why do we exist.”

It clearly explains the space that we play in what’s in and what’s out of what we do. And it’s not where we’re going, which is vision. So, let’s break it down.

We’ll use this example to explain the components of a mission statement. We’ll use this checklist to talk about what makes a good mission statement. And we’ll walk through a simple process to create yours.

So let’s jump in.

The example we have up here is Google’s. And we love using Google’s Google’s examples because they’re, they’re great. And why not borrow from the best.

So, starting with our mission, I like to start with our mission, because it gives us a place to go and keeps us thinking about mission, you might get rid of it later, but start it there. It has a verb with present tense to organize. We explain what we do organize the world’s information for whom, in this case, the world?

And what’s the benefit to us existing, what’s the benefit to the world to make information universally accessible, and useful? Really straightforward. We know mission statements are not that easy to write. So, here’s a checklist to make sure that yours is great.

Starting with, it needs to be original. This is really clearly original to Google; they didn’t rip it off from somebody else. It doesn’t sound like anybody else’s mission statement. It sounds like Google’s mission statement. So, make sure yours is original.

Connect with staff, a great mission statement. And you know, yours is great when every single staff member wakes up in the morning and knows that their purpose and the reason, they come to work every day is expressed in your mission statement.

And to do that, it needs to be memorable. Memorable means short and concise. And of course, that’s the balance to strike with a great mission statement. So, here’s your litmus test. It needs to fit on a t shirt, and your staff would wear it that achieves those two goals, you know, you’ve got a great mission statement.

So how do you write one, sometimes it can be hard. So it’s great to get input or ideas from your organization. So, gather staff input, if you’d like via survey, or maybe focus groups, take all that information, synthesize it down and create a couple of versions, you can do it yourself or use one of those folks in your organization who loves to copyright and have them write a couple of different versions.

Take those versions and either have your planning team pick one or put them out to your organization and have people vote on them. So that simple process will help you not go in all kinds of different directions and spend forever doing mission statement development.

With that, I hope this helps you write yours. Thanks for tuning in.

If time isn’t dedicated to articulating your mission on the front-end before developing strategy, the result will likely be goals and objectives without a crystal-clear strategic direction.

A Good Mission Statement the Following Elements:

• Label: We like to start with “Our mission…”
• Verb: Use an action verb in the present tense.
• For Whom: Describe who you do it for.
• Result: What is the result or benefit of your work?
• What You Do: Briefly state what you do and how.

Mission Statements Answer At least One of These Core Questions

What is our organization’s reason for existing.

A mission helps clearly articulate your organization’s reason for existing. At the absolute minimum, your mission statement should answer this question above all else: What’s your core purpose?

Example: “LinkedIn – To connect the world’s professionals to make them more productive and successful.”

Why Is It Special to Work for This Organization?

The best way to answer this question is to connect to the heart of your employees, customers, or the population you serve. Be compelling, and let people understand and connect with your core purpose. How does your reason for existing impact people in a special way, or why do your employees show up to work every day?

Example: “Tesla – To accelerate the world’s transition to sustainable energy.”

What Is Our Business and What Are We Trying to Accomplish on Behalf of Whom?

Some mission statements benefit from clearly stating who benefits from your business, or what you’re setting out to accomplish on behalf of whom. Who does your purpose impact the most and why?

Example: “Google’s mission is to organize the world’s information and make it universally accessible and useful.”

More mission statement examples can be found here.

Checklist for Good Mission Statements

When evaluating the quality of your current or newly drafted mission statement, it’s important your company’s mission statement meets these four simple criteria:

• Your Mission Must Be Foundational: It clearly states why your organization or business exists.
• It’s Original: It’s unique to your organization. If you were to read the mission statements of all the organizations in your industry, yours would be different than your competition.
• It’s Memorable: Memorable = motivating to employees, prospective employees and customers.
• It Fits on a T-Shirt: Peter Drucker famously advised that your mission statement should be short and compelling enough to fit on a t-shirt your staff would actually wear.

Other Mission Statement Tips

If you are refreshing your mission statement, complete your swot first.

Mission statements should be developed after completing the SWOT analysis , and before going into the rest of the planning process. This allows your team to be grounded and in alignment with where your organization is today and what the organization’s strengths and contributions are.

The mission statement motivates and inspires staff. Every single staff member knows that their purpose is defined in the mission statement. (e.g. Starbucks’ mission: To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time.)

A Great Mission Statement Can Be Easily Recited at a Party

Develop the mission statement on a “party level”—it can quickly and briefly be understood by people at a party or on an airplane. The statement gives a profoundly simple focus for everything the team does as an organization. (e.g. Marine Stewardship Council’s mission: To safeguard the world’s seafood supply by promoting the best environmental choices.)

Now that you’ve finished your mission statement, writing your core values and vision is up next.

Get Started on Creating Your Mission Statement

Mission Statement FAQs

What questions do you need to answer to create a mission statement?

Answering these three questions will help create a mission statement:

• What is our organization’s reason for existing?
• Why is it special to work for this organization?
• What is our business and what are we trying to accomplish on behalf of whom?

What are the 5 elements of a mission statement?

The five parts of a mission statement are Label + Verb in Present Tense + Who You Serve + Result You Wish to Achieve or Reason for Existing + What You Do

What is a mission statement?

The definition of a mission statement is a concise description of your organization’s core purpose, answering the question, “why do we exist?”. A mission needs to boldly state why you exist, and why you do what you do. The best mission statements express your core purpose and why you exist with clarity.

How are mission statements and vision statements different?

A mission statement defines why your organization exists. A vision statement expresses where your organization is going in the future. They work together to express your reason for existing and how you’re setting out to change the world.

How do you know if you have a good mission statement?

Patrick Lencioni said that a mission statement should be able to fit on a t-shirt, and that your staff would want to wear that t-shirt.

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How to Write a Mission Statement + 10 Great Examples

17 min. read

Updated May 10, 2024

Why is an effective mission statement so valuable? It’s worth taking a minute to ask what it is about certain brands that keep us coming back. What is it about them that makes us spend more time, money, or effort over other options? Is it the price? Maybe the convenience? Or is it something more?

The brands and businesses that we really connect with do more than just supply a product or service . They showcase a purpose, a mission that we can get behind. This can be displayed in how they interact with customers, the organizations and communities they support, and even the way they develop their products.

And there’s no better way for a business owner to showcase this purpose, than through a well-written mission statement.

On this page

• What is a mission statement?

Mission statement or vision statement?

• Why write a mission statement?
• How to write a great mission statement
• 10 Examples of Great Mission Statements

A mission statement is a simple action-oriented statement that explains your company’s purpose. It summarizes what your company does for customers, employees, and owners, and typically includes general descriptions of your organization, its core function, and its goals. In short, you’re explaining what you do and why you do it within a mission statement.

Depending on the focus of your business, your mission statement may be even broader. Explaining not just how you serve your customers and employees, but your community and the world at large. Some businesses even opt to separate this larger aspiration into what’s known as a vision statement.

A vision statement is exactly what it sounds like. It’s a vision for the direction of your company and what it aspires to be. 

These two statements aren’t really interchangeable. They both reflect the purpose and goals of your business, but serve completely different purposes. Your mission statement is the roadmap to achieve your vision. Your vision statement is a much broader picture of the aspirations for your business. 

These can be completely separate written statements for your business, or they can be combined into a more comprehensive mission statement. Having all three does allow you to utilize them for different business purposes, so it may be worth developing variations over time.

Speaking of variations, it’s important to note that your mission statement will likely evolve over time as your business grows and changes. So, don’t be afraid to make adjustments when it seems necessary, and avoid looking for the perfect version of your mission statement. 

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I’ve had a 30-year love-hate relationship with mission statements. I’ve read thousands. I love it when a mission statement defines a business so well that it feels like strategy—which does happen—and I hate it when a mission statement is generic, stale, and completely useless. 

Just because a traditional business plan often includes a mission statement isn’t a reason to do one. If it’s not going to be useful for you and help guide your business, don’t bother. The vast majority of the mission statements are just meaningless hype that could be used to describe any business.

Don’t fall into the trap of writing a mission statement just because some checklist or expert said you had to. There are actually sites that poke fun at how most mission statements use vague, high-sounding phrases to say nothing. You should write a mission statement if you want to add clarity to your business goals and you want to get your employees, investors, and customers to understand what your organization is all about. 

Developing your company’s first mission statement, or writing a new or revised one, is your opportunity to define the company’s goals, ethics, culture, and norms for decision-making. The daily routine of business gets in the way sometimes, and a quick refresh with the mission statement helps you take a step back and remember what’s most important: the organization has a purpose. 

So how do you make a useful mission statement? Over the decades I’ve spent reading, writing, and evaluating business plans , I’ve come up with a process for developing a useful mission statement, and it boils down to these five steps.

1. Start with a market-defining story

A really good market-defining story explains the need, or the want, or—if you like jargon—the so-called “why to buy.” It defines the target customer or “buyer persona .” And it defines how your business is different from most others, or even unique. It simplifies thinking about what a business isn’t, what it doesn’t do.

Imagine a real person making the actual decision to buy what you sell. Why do they want it? How did they find your business? What does it do for them? The more concrete the story, the better. And keep that in mind for the actual mission statement wording: “The more concrete, the better.”

This isn’t literally part of the mission statement. Rather, it’s an important thing to have in your head while you write the mission statement. It’s in the background, between the words. If you’re having trouble getting started, make a quick list of what your company does and doesn’t do.

2. Define what your business does for its customers

Start your mission statement with the good you do. Use your market-defining story to suss out whatever it is that makes your business special for your target customer .

Don’t undervalue your business: You don’t have to cure cancer or stop global climate change to be doing good. Offering trustworthy auto repair, for example, narrowed down to your specialty in your neighborhood with your unique policies, is doing something good. So is offering excellent slow food in your neighborhood, with emphasis on organic and local, at a price premium.

This is a part of your mission statement, and a pretty crucial part at that—write it down.

If your business is good for the world, incorporate that here too. But claims about being good for the world need to be meaningful, and distinguishable from all the other businesses. Add the words “clean” or “green” if that’s really true and you keep to it rigorously. Don’t just say it, especially if it isn’t important or always true.

For example, Apple Computer’s 2020 mission statement is:

“Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms—iOS, macOS, watchOS, and tvOS—provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it..”

That one obviously passes the test of defining the company with flying colors. Nobody could mistake that mission for generic hype. And it’s an interesting change from the early mission as defined by founder Steve Jobs:

“To make a contribution to the world by making tools for the mind that advance humankind.”

Ikea, on the other hand, starts its mission statement with something that could be any company anywhere. “Our vision is to create a better everyday life for the [sic] many people.” To its credit, it goes on to define a “rest of the mission” that could only be IKEA:

“We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”

And note, in this mission statement, how Sweetgreen incorporates a world vision into a product-oriented mission statement:

“Founded in 2007, Sweetgreen is a destination for delicious food that’s both healthy for you and aligned with your values. We source local and organic ingredients from farmers we know and partners we trust, supporting our communities, and creating meaningful relationships with those around us. We exist to create experiences where passion and purpose come together.”

3. Define what your business does for its employees

Good businesses are good for their employees too or they don’t last. Keeping employees is better for the bottom line than turnover. Company culture matters. Rewarding and motivating people matters. A mission statement can define what your business offers its employees.

My recommendation is that you don’t simply assert how the business is good for employees—you define it here and then forever after make it true.

Qualities like fairness, diversity, respect for ideas and creativity, training, tools, empowerment, and the like, actually really matter. However, since every business in existence at least says that it prioritizes those things, strive for a differentiator and a way to make the general goals feel more concrete and specific.

Don’t worry about being fully unique

With this part of the mission statement, there’s a built-in dilemma. On the one hand, it’s good for everybody involved to use the mission statement to establish what you want for employees in your business. On the other hand, it’s hard to do that without falling into the trap of saying what every other business says.

Stating that you value fair compensation, room to grow, training, a healthy, creative work environment, and respect for diversity is probably a good idea, even if that part of your mission statement isn’t unique. That’s because the mission statement can serve as a reminder—for owners, supervisors, and workers—and as a lever for self-enforcement.

If you have a special view on your relationship with employees, write it into the mission statement. If your business is friendly to families, or to remote virtual workplaces, put that into your mission.

You may not need to focus on employees

And this is rare in mission statements. The vast majority are focused on messaging for customers. My recommendation here is not the norm. I include it because it’s good practice, even though not common.

While I consulted for Apple Computer, for example, that business differentiated its goals of training and empowering employees by making a point of bringing in very high-quality educators and presenters to help employees’ business expertise grow. That was part of the culture and, to my mind, part of the mission; but it wasn’t part of the mission statement. It could have been.

American Express, however, includes the team in its mission:

“We have a mission to be the world’s most respected service brand. To do this, we have established a culture that supports our team members, so they can provide exceptional service to our customers.”

4. Add what the business does for its owners

In business school, they taught us that the mission of management is to enhance the value of the stock. And shares of stock are ownership. Some would say that it goes without saying that a business exists to enhance the financial position of its owners, and maybe it does. However, only a small subset of all businesses are about the business buzzwords of “share value” and “return on investment.”

In the early years of my business, I wanted peace of mind about cash flow more than I wanted growth, and I wanted growth more than I wanted profits. So I wrote that into my mission statement. And at one point I realized I was also building a business that was a place where I was happy to be working, with people I wanted to work with; so I wrote that into my mission statement, too.

However, this element too, as with the suggestion about including employees, is unusual. Few mission statements do it. That’s understandable, since most mission statements are outward-facing only, aimed at customers and nobody else.

Still, some of the best mission statements incorporate a much broader sense of mission that includes, or at least implies, the mission of ownership.

Warby Parker, an eyewear company, does a great job at voicing a higher mission that includes customers, employees, and owners.

“Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price while leading the way for socially-conscious business.”

5. Discuss, digest, cut, polish, review, and revise

Good mission statements serve multiple functions, define objectives, and live for a long time. So, edit. This step is worth it.

Start by considering developing a full mission statement for internal use and using a customer-facing subset for general publication. That’s common. Many companies have segmented mission statements, with sections set aside and categorized by type or goal. Use bullet points or sections if that works for you. Part of the reason people confuse mission with mantra and vision is that many businesses use them together, and many others also redefine them to fit their context. So what a company does for customers is often called vision, despite the formal definition.

Remember, form follows function, in mission statements, as in all business writing. Make it work for your business. Or don’t do it at all. If you want to call it a vision, and that works for employees and customers, then do that.

Cut out general terms

As you edit, keep a sharp eye out for the buzzwords and hype that everybody claims. Cut as much as you can that doesn’t apply specifically to your business, except for the occasional special elements that—unique or not—can serve as long-term rules and reminders. Unique itself, the word, means literally, the only one in the world. Use it sparingly. Phrases such as “being the best possible,” “world-class,” and “great customer service” mean little because everybody uses them. Having great customer service is way harder than writing that into a mission statement.

Read other companies’ mission statements, but write a statement that is about you and not some other company. Make sure you actually believe in what you’re writing—your customers and your employees will soon spot a lie.

Then, listen. Show drafts to others, ask their opinions and really listen. Don’t argue, don’t convince them, just listen. And then edit again.

And, for the rest of your business’s life, review and revise it as needed. As with everything in a business plan, your mission statement should never get written in stone, and, much less, stashed in a drawer. Use it or lose it. Review and revise as necessary, because change is constant.

• Great Mission Statements: 10 Examples

If you’re looking for some inspiration to get you started on your own mission statement, here are a few of my favorites.

1. Southwest Airlines

“The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.”

What’s most interesting about Southwest’s mission statement is that they don’t mention anything about getting from point A to point B. Their mission is all about how they differentiate what, these days, can be seen as a commodity experience. They also focus on their own employees and the “spirit of the company”, not just the customer experience.

2. Urban Outfitters

“A lifestyle retailer dedicated to inspiring customers through a unique combination of product, creativity and cultural understanding. Founded in 1970 in a small space across the street from the University of Pennsylvania, Urban Outfitters now operates over 200 stores in the United States, Canada, and Europe, offering experiential retail environments and a well-curated mix of women’s, men’s, accessories and home product assortments.”

Urban Outfitters focuses on the experience that they deliver and the focus on what they do. Their mission drives what their stores look like and what their goal is: to inspire. They also nod to their heritage of starting small and growing.

“At Recreational Equipment, Inc. (REI) we believe a life outdoors is a life well-lived. We believe that it’s in the wild, untamed and natural places that we find our best selves, so our purpose is to awaken a lifelong love of the outdoors, for all.”

REI’s mission focuses mostly on what it wants to do for its customers, but hidden in the mission statement is a mission to preserve the environment as well. Their focus on “getting outside” is what creates a connection between them and their customers.

4. Starbucks

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

Starbucks expands on its mission statement by stating its core values. This is really an extension of the mission statement and explains how they focus on their customers, how they grow their company, and how they work with employees. You can read their values here .

5. Walgreens

“Walgreens’ mission is to be America’s most-loved pharmacy-led health, well-being, and beauty retailer. Its purpose is to champion everyone’s right to be happy and healthy.”

Walgreen’s mission really defines their goals: what they want to achieve and in what product categories they want to achieve it in. They also bring in their broader purpose when they talk about “everyone’s right to be happy and healthy.”

“Make work-life simpler, more pleasant, and more productive.”

While Slack’s mission statement is short, it implies a lot. “Work” doesn’t just mean their customer’s work, it means their own work at their company. Their mission statement serves them both internally and externally.

7. The Coca Cola Company

“Refresh the world. Make a difference.”

Coca Cola takes a slightly different approach with a statement of purpose and then a vision statement. Their purpose is essentially their mission statement and says a lot for being so short. They want to refresh people in both body and spirit while making a positive impact on the world. Their vision also implies their goal of serving the entire world’s population which hits on their corporate and shareholder goals.

8. Patagonia

“We’re in business to save our home planet.”

Another short mission statement that says so much more than you would think at first glance. First and foremost, Patagonia doesn’t say that they are a non-profit – they state that they’re a business. And, this implies that they need to be a strong, healthy business to meet their goal of saving the planet. Their mission applies to their employees, their customers, their products, and their activism.

9. charity: water

“charity: water is a nonprofit organization bringing clean and safe drinking water to people in developing countries.”

charity: water’s mission statement is clear and to the point – it simply describes what it does and who it does it for. For most non-profit mission statements, this is enough.

 10. Asana

“Asana’s mission is to help humanity thrive by enabling the world’s teams to work together effortlessly.”

Similar to other mission statements, Asana blends a message about what they do with a higher goal of enhancing the world outside of their company. Yet, they still hint at their target market and goals of being a world-wide company, thus improving the lives of their employees and shareholders.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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How to Write the Perfect Mission Statement (With Examples)

Learn what a mission statement is, why you need one and how to write the perfect one for your business.

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Developing a mission statement is a lengthy process that involves the input of team members who fully understand your business, employees, customers, industry, and the products and services your company provides.

Once completed, your organization can share its mission statement so consumers, employees, investors and other stakeholders know precisely what your organization does (or doesn’t do), what it values and why it exists. Often a mission statement can help clarify an owner’s ideas about their business’s “whats” and “whys.”

We’ll explore mission statements, why companies need them, and how to craft the perfect mission statement for your organization. 

What is a mission statement?

A mission statement is a declaration of what your company does and why it exists. This message is designed for internal and external audiences; it should ignite interest in the organization as it builds its brand .

The best mission statements have two primary objectives: 

• Educate: Mission statements educate by sharing what the organization does, how it does it and why.
• Inspire: If it’s a well-written mission statement, its second objective is to inspire. The best mission statements energize people to learn more about the brand and become supporters.

How to create a mission statement

When creating your mission statement, you’ll need to understand its essential components and ask probing questions to define precisely what your organization does and how. Finally, you’ll need to outline your organizational mission so it’s clear to everyone reading it. 

1. Include three essential components. 

According to Chris Bart, a retired professor of strategy and governance at McMaster University, a well-written mission statement has three essential components. Address each of these components when creating your mission statement:

• The business’s key market: Who is your customer base ? What industry does your business serve?
• The company’s contribution, or “what”: What product or service does your business offer? How does it better your local community or humanity?
• Distinctions between your solution and competing ones: What makes your product or service unique? Why should your audience buy your product over the competition’s?

2. Dig deeper to uniquely portray your business. 

While incorporating the essential elements, ask yourself – and your team – probing questions to truly understand who your business serves, what your organization does and how it works. Here are some questions to start with:  

• Why do we exist?
• What do we do?
• How do we use our products – or services – to achieve our goals?
• Who do we serve?
• How do we serve them?
• What do we do better than anyone else?
• What differentiates us from our competitors?
• How do our customers describe us?

3. Define your organizational mission. 

Creating an accurate, inspiring mission statement isn’t purely a philosophical exercise. It has to be practical, too. A mission statement must make sense to those who read it, whether they know about your organization or not.

Keep these four tips in mind as you define your organizational mission:

• Make the connection obvious: People unfamiliar with your company who read your mission statement should come away with a clear, concise understanding of what your organization does and why it exists.
• Be brief, yet informative: Keep the statement under 25 words. If it’s longer, people won’t read it or remember your company.
• Talk to stakeholders: Before finalizing your mission statement, speak to as many stakeholders as possible to see if it makes sense to them. Encourage feedback by seeking out board members’, long-time customers’ and trusted vendors’ opinions.
• Develop a long-term mission: This may be one of the more challenging aspects of writing a mission statement because defining what your organization is about today can be easier than providing predictions. However, you can update your long-term goals as  events and changes occur. 

Avoid common mission statement mistakes

Since your mission statement helps define your business, getting it right is crucial. Avoid these typical mistakes: 

• Using elaborate language: Avoid the pitfalls of “fancy” writing and using ambiguous words. Aim for clarity and brevity, and don’t make your mission statement overly formal. You want people to relate to it, not misunderstand it.
• Failing to update your statement as your business evolves . Revisit your mission statement over time to ensure it still resonates with your company’s current purpose. While it may seem like a clear, concise mission statement should cover all your bases – like any business-defining feature – it must also evolve as your business grows.

What do effective mission statements have in common? 

Effective mission statements are succinct and thoughtful.  

• Succinct: The more succinct your mission statement, the more likely it will resonate with audiences. A lengthy mission statement that’s challenging to remember can fall flat. A good test to see if your mission statement hits the mark is if your employees can recite it. For example, the mission statement of media organization TED, famous for its TED Talks, is “Spread ideas.” In two short words, TED outlines what it does and why people might be interested in learning more about it.
• Thoughtful: Other companies take a more creative, thoughtful approach. LEGO, whose mission statement, “Inspire and develop the builders of tomorrow,” clearly defines what the company does – inspire and develop – and who its target customers are – the builders of tomorrow. In 2009, LEGO’s CEO Jørgen Vig Knudstorp said, “We make very clear the values we promise everyone we interact with – whether they are colleagues, partners in retail, the wider community, or – most important of all, of course – the children we deeply care for.” Its mission is woven through the entire organization, which is when mission statements come to life.

When companies don’t have well-constructed mission statements (or any mission statement), customers, potential customers and the public are forced to identify for themselves what the company is and why it exists.

What’s the difference between mission and vision statements?

Mission statements and vision statements are both crucial, but they have different objectives. A mission statement is focused on today, while a vision statement is focused on the future – what you want to become and how you want to impact people. 

Here are some questions that will define your vision statement:

• What are the organization’s goals and dreams?
• What will the world look like if we are successful?
• What problem(s) is the organization solving for the greater good?
• Who and what are we inspiring to change over the long term?

To help understand how mission statements and vision statements differ, compare Airbnb’s mission and vision statements.

• Airbnb’s mission statement: “Belong anywhere.” This mission statement is short and to the point. The message conveys that you can stay anywhere in the world and feel included when doing business with Airbnb.
• Airbnb’s vision statement: “Tapping into the universal human yearning to belong – the desire to feel welcomed, respected, and appreciated for who you are, no matter where you might be.” This message taps into a larger picture of what a future could look like when the global community imbues Airbnb’s philosophy.

Examples of effective mission statements

Here are examples of effective mission statements from well-known brands. These mission statements briefly define the organization, its purpose and its impact on humanity:

• Nike: “To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”
• JetBlue: “To inspire humanity – both in the air and on the ground.”
• Warby Parker: “To offer designer eyewear at a revolutionary price while leading the way for socially conscious business.”
• Tesla: “To accelerate the world’s transition to sustainable energy.”
• LinkedIn: “Connect the world’s professionals to make them more productive and successful.”
• Microsoft: Early days: “A computer on every desk and in every home.” Now: “To empower every person and every organization on the planet to achieve more.”
• Disney: “To entertain, inform, and inspire people around the globe through the power of unparalleled storytelling.”
• Ford: “To help build a better world, where every person is free to move and pursue their dreams.”

Finding your mission statement language

To get started, start tossing around words with trusted stakeholders. However, remember that you’re not looking for what “sounds good” as much as gaining clarity about what your business does. Brainstorm with others in low-stake sessions and see what language resonates with your brand. 

Remember that sounding good is important, but first you must define yourself. If your mission statement includes a nod to your business’s philosophy, values and culture of ethical behavior , the more benefits you’ll reap.

As with any other business plan or project, you may need to explore dozens of ideas before landing on your best fit. 

Patrick Proctor contributed to the writing and reporting in this article.

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Purpose, Mission, and Vision Statements

Purpose, Mission, and Vision Statements explain why a company exists, how it plans to achieve its goals, and what the business will ultimately achieve.

• January 31, 2023

What Are Purpose, Mission, and Vision Statements?

A Purpose Statement is an explanation of the company’s motivations and reasons for being, and why it works the way it does.

A Mission Statement is a definition of the company’s business, who it serves, what it does, its objectives, and its approach to reaching those objectives.

A Vision Statement is a description of the desired future state of the company. An effective vision inspires the team, showing them how success will look and feel.

Usage and satisfaction among survey respondents

How are purpose, mission, and vision statements implemented.

Typically, senior leaders will write the company’s Purpose, Mission, and Vision Statements with inputs from the broader organization. The development process usually begins by clarifying the purpose, then defining the mission, and then painting the vision. This requires leaders to:

• Clearly identify the corporate culture, values, strategy, and view of the future by interviewing employees, suppliers, and customers
• Address the commitment the firm has to its key stakeholders, including customers, employees, shareholders, and communities
• Ensure that the objectives are measurable, the approach is actionable, and the vision is achievable
• Communicate the message in clear, simple, and precise language
• Develop buy-in and support throughout the organization

Related Topics

Corporate Values Statements

Cultural Transformation

Strategic Planning

What Are Common Uses of Purpose, Mission, and Vision Statements?

Purpose, Mission, and Vision Statements are used both internally and externally.

They are used internally to:

• Guide management’s thinking on strategic issues, especially during times of significant change
• Help define performance standards
• Inspire employees to work more productively by providing focus and common goals
• Guide employee decision making
• Help establish a framework for ethical behavior

They are used externally to:

• Enlist external support
• Create closer linkages and better communication with customers, suppliers, and alliance partners
• Serve as a public relations tool

Abrahams, Jeffrey. 101 Mission Statements from Top Companies: Plus Guidelines for Writing Your Own Mission Statement. Ten Speed Press, 2007

Blount, Sally, and Paul Leinwand. “Why Are We Here?” Harvard Business Review , November/December 2019.

Collins, Jim, and Jerry I. Porras. “Building Your Company’s Vision.” Harvard Business Review , September/October 1996, pp. 65–77.

Kirkpatrick, Shelley A. Build a Better Vision Statement: Extending Research with Practical Advice. Lexington Books, 2016.

Knowles, Jonathan B., Tom Hunsaker, Hannah Grove, and Alison James. “What Is the Purpose of Your Purpose?” Harvard Business Review, March/April 2022.

Kotter, John P., and James L. Heskett. Corporate Culture and Performance . 1992. Reprint. Free Press, 2011.

Nanus, Burt. Visionary Leadership. Jossey-Bass, 1995.

Quinn, Robert E., and Anjan V Thakor. The Economics of Higher Purpose: Eight Counterintuitive Steps for Creating A Purpose-Driven Organization , Berrett-Koehler Publishers, 2019.

Raynor, Michael E. “That Vision Thing: Do We Need It?” Long Range Planning, June 1998, pp. 368–376.

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What is a Mission Statement?

Learn what makes a Mission Statement unique, and how to write one. Includes frequently asked questions about Mission Statements.

Updated on March 4th, 2022

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A mission statement is a brief description of why a company exists. It states the goal of the organization and describes the nature of the product or service. Every company should have a mission statement to show its purpose. In order to reveal the goals of an organization, the mission statement should articulate what the business does, how it operates, and why the business does what it does.

Mission Statement Template - Free Download

Download our Mission Statement Template in Microsoft Word format.

How to Write a Mission Statement:

1. define your business's purpose..

It's crucial for a business to share the value of its products or services. In this step, describe what the company does for its customers, discuss the problems it solves or the needs or wants it fulfills, and how it does this.

For Example:

"The purpose of my business is to provide accounting services to customers in remote areas through our reliable video conferencing and secure file sharing solutions."

This example includes what the business offers, describes its value, and mentions a problem and how the business can solve it.

2. State what the company does for its employees.

A mission statement must incorporate what the business offers to its employees. This step includes a brief outlook of the qualities and culture of the company. Depending on the type of company you have, your company could provide multiple products or services. However, because mission statements are very brief, only include 1-3 qualities.

"At [company name], we ensure our employees have access to fair compensation, creative workspaces that encourage teamwork, and a wide variety of growth opportunities."

This example mentions at least three qualities or opportunities provided by the company.

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3. Describe the company's goals and objectives.

The whole purpose of a mission statement is to mention what your company strives to achieve and deliver, whether it's excellent customer service or superior quality. This step should reveal what the company desires for its future. It specifies what should be done to achieve the mission. Goals and objectives should be measurable and realistic.

"[Company name] strives to always deliver high-end quality products and excellent customer service."

4. Be specific and brief.

Be mindful not to use jargon as it may be ineffective, making it difficult to remember. When writing your mission statement, be concise by keeping it straight to the point.

How many characters should a mission statement have?

This depends on your business. We recommend a character limited of between 140 and 450. However, many medium to large-sized businesses, mainly in the corporate industry, opt for lengthy and more detailed mission statements.

10 Mission Statement Examples:

Mission Statement vs. Vision Statement:

Businesses often combine their mission and vision statements to create a full statement about the business's long-term objectives, values, and overall purpose. However, the two statements are not the same thing. A mission statement is a concise and short description that defines a business's goals and it's strategy for reaching these goals. A vision statement refers to the business's desired future position in the industry or community it's trying to grow in.

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What is a good mission statement?

A good mission statement should be inspiring and reveal the values of the company. The most effective mission statements reflect the company's culture and assist in leading it into the future.

How do you write a mission statement?

• Summarize the company's purpose .
• Discuss what it does for its customers and employees .
• Describe the company's goals and objective .
• Be concise .

What are the 3 parts of a mission statement?

The three components of a mission statement include the purpose, values, and goals of the company.

What are the 9 components of a mission statement?

• How the company will benefit customers.
• Products or services on offer.
• Geographical markets in which you operate.
• Commitment to growth and financial survival.
• Core values of the company.
• Strengths and competitive advantages.
• Social and environmental responsibility.
• Treatment of employees.

How long should a mission statement be?

A mission statement should be between 2 and 4 sentences, and should not exceed 100 words.

75 Mission Statement Examples That Define Companies and Inspire Customers

Plus a guide on how to write a mission statement.

Some skeptics are eager to criticize mission statements. They see them as generic and platitudinous , another startup box that founders need to check.

 Turns out, though, a mission statement’s success depends on how it’s written.

What Is a Mission Statement?

In his influential 1998 research article , consultant and business professor Chris Bart found “a significant and positive correlation” between organizational performance and mission statements when managers were satisfied with those statements . He also found a correlation between performance and the process used to develop statements. Simply having a mission statement was a non-factor, but one created with real buy-in delivered the goods.

Related Reading Tips for Effective Business Storytelling

Mission Statement Examples

Later, we’ll tease out what exactly makes a mission statement effective and explore tips for writing one. But first, here are some examples to fuel your inspiration.

• Apple: “To bring the best user experience to customers through innovative hardware, software and services.”
• Procter & Gamble: “To provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.”
• Reddit: “To bring community and belonging to everyone in the world.”
• Nike: “To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”

Geode Capital Management

Mission statement: “To manufacture precision building blocks to help our clients efficiently achieve their investment objectives.”

Piaggio Fast Forward

Mission statement: “Our mission is to build technology products that move the way people move.”

Supernova Technology

Mission statement: “At Supernova, our mission is to enable investors to achieve financial wellness.”

Jabra Hearing

Mission statement: “We empower people with hearing loss to connect with their world through effortless technology and delightful care.”

Mission statement:  “At Hivebrite, our mission is to help organizations build vibrant communities.”

Mission statement: “Humanizing brands to move people.”

Bectran, Inc

Mission statement: “Our mission is to reshape the credit industry and disrupt traditional processes. We believe in leading our business partners into the digital age to adapt to the tools and technologies that will allow them to remain at the forefront of their industries. Here at Bectran, we are committed to helping businesses leverage the power of SaaS solutions to save time and money and actualize their full growth potential through innovated, automated software.”

Mission statement:  “To save lives and minimize loss by identifying active threats globally and facilitating timely communications when an emergency situation threatens personal safety and business continuity.”

Mission statement: “We help people secure their future and protect the ones they love.”

Mission statement:  Make a difference: Improve community health and safety through the power of data.

Mission statement: “We’ve built the nation’s leading social care network with a clear focus on our mission — to connect people to the help they need with dignity and ease.”

Mission statement: “In a world rife with complex relationships and hidden risk, we stand as torchbearers of corporate transparency, aiming to illuminate the intricate connections that exist between businesses, people, supply chains and the inner workings of a globalized economy.”

Mission statement: “Our mission is simple: To provide employers with a uniquely fair, predictive, and easy-to-use assessment that helps them identify the candidates most likely to succeed in all their open roles.”

Mission statement: “Our mission is to make the best care possible for all pets.”

Mission statement: “Our mission is to help financial institutions win and keep customers by delivering flawless customer experiences. Pinwheel’s activation and lifecycle management solutions remove friction, increase transparency, and help create a fairer financial ecosystem for all.”

Mission statement: “Founded on the mission to simplify healthcare and improve outcomes.”

Mission statement: “Our mission: deliver powerfully-simple email marketing software for small businesses that does 90 percent of the work for you. We leave the last 10 percent for you to have fun!”

Bridge Legal

Mission statement: “At Bridge Legal, our mission is simple: To improve access to legal services in America.”

Mission statement:  “At Personio, our mission is to help HR focus on what matters most: people.”

GrayMatter Robotics

Mission statement: “Our mission is to help your people and your industrial assets become smarter and more visible.”

Inspira Financial

Mission statement: “We solve complex problems for countless strategic partners and thousands of employers. We help millions of individuals to thrive today, tomorrow and into retirement.”

Scythe Robotics

Mission statement: “To provide the most advanced and sustainable autonomous technology for maintaining off-road environments safely, effectively, and responsibly.”

Biz2Credit Inc.

Mission statement: “Our mission is to provide small businesses with the best funding options for each and every project or capital need, with technology that makes business financing easy to understand and easy to access.”

Gradient AI

Mission statement: “Gradient AI is on a mission to increase precision and automation throughout the insurance industry.”

Mission statement: “At Inato, we’re on a mission to bring clinical research to each and every patient, regardless of who they are and where they live.”

Formation Bio

Mission statement: “Our mission is to bring new treatments to patients faster and more efficiently. We are a tech-driven, AI-native pharma company changing the way drug development is done.”

Mission statement: “Our mission is to empower every homeowner. We’re creating a world where home ownership comes with ease, security, and financial know-how.”

Bilt Rewards

Mission statement: “Renting should be rewarding.”

Mission statement: “FPFX Tech delivers technology solutions that bridge the gap between what brokers offer and what traders want, with innovative products and applications that create points of differentiation and client loyalty.”

Mission statement: “Our mission is to make authentication and authorization simple and secure for every developer.”

Mission statement: “Our mission is to place the right person in the right shift, every time.”

Invoice Home

Mission statement: “We strive to maximize business efficiency with an affordable and easy-to-use billing and invoicing service. We cater to time-strapped small businesses and freelancers who seek to grow their business and build their brand.”

LoanStreet Inc.

Mission statement: “Our mission is to provide the most efficient, transparent and robust tools for financial institutions to manage their balance sheets, connect with partners and effectively share risk.

Mission statement: “Meetup’s mission is to help people grow and achieve their goals through real-life, human connections. From professional networking to craft brewery crawls to coding workshops, people use Meetup to get out of their comfort zones, meet new people, learn new things, pursue passions, and find supportive communities that will help them thrive.

Gogo Business Aviation

Mission statement: “To keep your passengers, pilots and planes seamlessly and continually connected worldwide.”

Snap! Mobile

Mission: “To empower coaches and educators in their dedication to develop the leaders of tomorrow. Our vision is to strengthen developing programs through technology-driven, community-first solutions that support dedicated leaders and champion the next generation.” 

VelocityEHS

Mission statement: “Making the world’s best workplaces safer and more sustainable.”

OTR Solutions

Mission statement: “OTR’s mission is to create exceptional value for our clients by providing industry leading financing and back-office solutions. Three pillars that are crucial to supporting that mission are outstanding customer service, technology that creates efficiency for ourselves and our customers and a culture that provides the opportunity for employees to achieve greatness.”

Mission statement: “To be a trusted partner in providing homeowners and their families safety, enjoyment, convenience, and peace of mind through innovative, professionally installed solutions that protect the condition and grow the value of their homes.”

GameChanger

Mission statement:  “Help families elevate the next generation through sports.”

Mission statement:  “We exist to advance the economic power of people living and working in the real world.”

Mission statement: “Always with you, building a more confident future. MetLife contributes to a more confident future as an employer, an investor and a provider of financial solutions and expertise. Our purpose is at the heart of our virtuous circle of delivering for our colleagues, our communities, our customers and our shareholders.”

Mission statement:  “We bring together brands and their audience to make connections that matter.”

Mission statement:  “For over a decade, we’ve been building tech for food people, so restaurant owners can save money, staff members can save time, and diners can order better. Because when restaurants thrive, they can keep serving food that gives your community its unique flavor. We want to keep it that way.”

MobilityWare

Mission statement: “Bringing joy to others one game at a time.”

Mission statement:  “We empower everyday people to move forward on the path to a better financial future.”

First Entertainment Credit Union

Mission statement:  “We build lifelong financial relationships with the people in entertainment based on a deep understanding of how they live and work.”

Mission statement: “Our mission is to rebuild the infrastructure of the travel industry in order to bring freedom, simplicity, and trust to travelers everywhere. We are bringing change to an industry that has been held back by outdated technology and complicated financial incentives that solve for the needs of middlemen instead of providing the best experience to users. Travel matters when communication is essential to building trust, commitment, and a shared sense of purpose. In essence, business travel is a necessity any time success depends on the strength of human connections.”

PatientPoint

Mission statement:  “ PatientPoint is on a mission to make every doctor-patient engagement better, and that goal is at the core of everything we do. We are the patient engagement platform for every point of care. Our digital solutions impact 750 million patient visits every year, helping drive better health outcomes that enable people to live longer, healthier lives.”

Mission Statement:  “At Trupanion , we’re on a mission to help loving, responsible pet owners budget and care for their pets.”

Mission Statement :  “We’re on a mission to simplify the complexities of payments to help you grow.”

Mission Statement : “Our mission is to bring the best user experience to customers through innovative hardware, software and services.”

Mission Statement : “To help humanity thrive by enabling the world's teams to work together effortlessly.”

Mission Statement : “To be the most trusted and convenient destination for pet parents (and partners), everywhere.”

Mission Statement : “Our mission is to increase economic freedom in the world. Everyone deserves access to financial services that can help empower them to create a better life for themselves and their families. If the world economy ran on a common set of standards that could not be manipulated by any company or country, the world would be a more fair and free place, and human progress would accelerate.”

Mission Statement : “DoorDash is a technology company that connects people with the best of their neighborhoods across the US, Canada, Australia, Japan, and Germany. We enable local businesses to meet consumers’ needs of ease and convenience, and, in turn, generate new ways for people to earn, work, and live. By building the last-mile logistics infrastructure for local commerce, we’re fulfilling our mission to grow and empower local economies.”

Mission Statement : “Our mission is to design a more enlightened way of working. Dropbox helps people be organized, stay focused and get in sync with their teams.”

Bright Horizons

Mission Statement :  “Dedicated to the highest quality education and care; making a lasting difference, one child, one student, one teacher, one family, and one employer at a time.”

EFFECT Photonics

Mission Statement : “To interconnect humanity through fast, affordable, sustainable, and effective communication technologies.”

Mission Statement:  “Our mission is to build the most popular car subscription platform. Our aim is to help anyone who loves driving a car of their own but fears the struggle, commitment, and intransparent costs associated with ownership to get behind the wheel.”

Mission Statement : “The Fivetran mission is to make access to data as simple and reliable as electricity. The invention of the lightbulb spawned generations to change the world through electricity, creating millions of new products, devices and services. We’re empowering future ‘Thomas Edison’s’ to transform the way the world makes decisions through our always-on access to accurate data. This helps drive better data-driven decisions in pursuits like discovering new drugs, serving humanity in ways big and small (think: banking the underbanked, keeping hospital records up to date, and more!), and enabling social good organizations to do what they do best by improving lives everywhere.”

Mission Statement : “It is GitLab’s mission to make it so that everyone can contribute. When everyone can contribute, users become contributors and we greatly increase the rate of innovation.”

Intel Corporation

Mission Statement : “We create world-changing technology that improves the life of every person on the planet.”

Mission Statement : “Our mission is to empower every person and every organization on the planet to achieve more.”

Mission Statement : “Our mission is to ensure the Internet is a global public resource, open and accessible to all. An Internet that truly puts people first, where individuals can shape their own experience and are empowered, safe and independent.”

NBCUniversal

Mission Statement : “To be the premier content provider for television and digital platforms, spanning all television.”

Mission Statement : “To bring inspiration and innovation to every athlete* in the world.

*If you have a body, you are an athlete.”

The Pokémon Company International

Mission Statement : “At Pokémon, our mission is to become an entertainment leader and bring the fun of Pokémon to people around the world!”

Procter & Gamble

Mission Statement : “We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.”

Mission Statement : “Our mission is to bring community and belonging to everyone in the world.”

Mission Statement : “We help people achieve independence by making it easier to start, run, and grow a business. We believe the future of commerce has more voices, not fewer, so we’re reducing the barriers to business ownership to make commerce better for everyone.”

Mission Statement : “At Smartsheet, our mission is to empower anyone to drive meaningful change — for themselves, their businesses and even for the world.”

Warby Parker

Mission Statement : “To inspire and impact the world with vision, purpose, and style.”

Mission Statement : “We’re empowering everyone to create for the web — and leading impactful, fulfilling lives while we do it.”

How to Write a Mission Statement

When it comes time to draft your company’s mission statement, consider the following:

Tips for Writing a Mission Statement

• Make it simple, aspirational and memorable.
• Direct it toward stakeholders, but don’t prioritize shareholders.
• Keep employees — current and future — top of mind.
• Avoid saying you’re “the best.”
• Leave room for the mission to evolve.

Make it Simple, Aspirational and Memorable

A successful mission statement has three important traits, according to Jeffrey Abrahams, author of 101 Mission Statements From Top Companies . They are simplicity, aspiration and memorability.

There’s no magic word count, but experts agree that concision is best. Abrahams recommends aiming for a single-sentence statement. “That has greater impact and can be communicated easily, both within the company and to the target audience,” he said.

Bart, meanwhile, recommends capping at around 70 words. And Inés Alegre, a professor at the business school of the University of Navarra who led a 2018 review of mission-statement research, told Built In that three sentences or so is appropriate.

Your precise mileage may vary, but the “KISS” recommendation put forward by Bart in his 1998 paper still seems appropriate: Keep it simple and straightforward.

It’s common to find an organization’s mission statement posted on an “About” page, but it doesn’t have to be merely descriptive; incorporate some ambition, Abrahams suggested. He invoked Microsoft’s statement: “Our mission is to empower every person and every organization on the planet to achieve more.”

Memorability

Action verbs, wariness of jargon and bizspeak — these are a CEO’s allies when drafting a statement. It should be organization-specific, too. 

“If the mission statement could be used by a number of companies, especially competitors, it’s not going to be either memorable or serve the company very well,” said Abrahams. “You want it to be distinctive.”

Direct It Toward Stakeholders

“Missions describe why an organization exists, but in particular, they should describe the relationships that the organization wants to have with the stakeholders upon whom it depends for survival, growth and sustainability,” Bart said.

According to him, an effective mission statement should at least speak to two audiences: customers and employees. He cited Southwest Airlines as an illustrative example:

“The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit.   To our employees: We are committed to provide our employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, employees will be provided the same concern, respect and caring attitude within the organization that they are expected to share externally with every Southwest customer.”

In addition to customers and employees, a strong statement will also often address shareholders and the community at large, Bart said. Here’s one he helped draft for a casino resort that directly targets all four groups:

“Our mission is to provide every guest with a ‘blow away experience’ that is inspired by a celebration of the sea and the myth of a lost civilization. We accomplish this by bringing the myth of Atlantis to life by offering warm, positive, engaging service.   At Atlantis, we are a team of individuals who are passionate and committed in everything that we do. We continuously strive for perfection. We are proud to work at Atlantis because we are a caring and learning organization, which rewards accomplishment and promotes teamwork, respect and innovation.   At Atlantis, we are the pride of our community while providing enduring value for our shareholders. When Atlantis succeeds, we succeed as individuals, and we contribute to the success of the Bahamas.”

… But Avoid Prioritizing Shareholders

It may be more obvious today — after the rise of sustainable investing , office-perk culture that caters to employee happiness and the fact that we’re in the midst of a job seekers’ market — but the thrust of the mission can’t simply be shareholder yield.

Statements that center the returns of the investor class will align approximately zero employees to an organization’s mission. “Shareholder value was the typical mission in the nineties — not anymore,” said Alegre.

One possible symptom of such misalignment? Jargon creep. “When buzzwords and platitudes happen, they usually happen when the focus of the company moves from customer to shareholder,” wrote entrepreneur and Built In expert contributor Joe Procopio.

Read Next 3 Reasons to Prioritize Mission Over Profit in Tech

Resist the Superlatives

As mentioned, mission statements should have an air of the aspirational. But, especially in this era of superlative fatigue , beware of “the biggest,” “the boldest” and “the best.” They’ll inspire more shrugs than hearts, especially when unsupported.

“When a company says its mission statement is to be the best [category here] company in the world — the best steel company in the world or the best clothing company in the world, it’s too general,” said Abrahams. “It needs to be backed up by strongly worded core values, a vision, and guiding principles and beliefs.”

Think of It as a Management Tool

Even though mission statements address multiple audiences, they shouldn’t pretend to think each audience is listening with equal attention.

“There’s a question of prioritization of stakeholders — is it the clients, employees, suppliers, investors? You probably cannot satisfy all at the same level,” said Alegre.

That begs a question: Should companies think of mission statements more as an internal compass for culture and strategy, or an external branding — or even recruiting — element? That is, are they management or marketing? 

“My answer is yes,” said Abrahams. 

Ideally, it can serve as both, experts told Built In, but it should be considered first and foremost a management tool. (Indeed, most research on the topic is published in management, not marketing, journals.) “My impression is that it’s much more useful as an internal alignment tool than external branding,” said Alegre.

Think of the statement primarily as something for employees, Bart said, a true north against which the workforce can always orient itself.

Reinforce the Mission Statement in All Your Communications

Once the statement is finalized, think of it as a muscle: Exercise it often to prevent it from losing definition. Reference the mission during onboardings, training, team meetings, board reviews of key projects and wherever else reinforcement makes sense. Post it on your website, of course, but also your wall. “I work in a business school where the first thing you see after the entrance is the mission,” Alegre said.

Mission statements are especially important during times of uncertainty, such as early in an organization’s life or during growth pushes, Alegre said. Still, lean on them in times of greater stability, too. That provides room for the mission to organically evolve.

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Ownr Blog  > Ownrship 101  > Business Stages  > Managing Your Business  > Marketing  > How to Write an Effective Mission Statement for Your Business

How to Write an Effective Mission Statement for Your Business

Writing a mission statement is a fundamental step for any business. A good mission statement effectively communicates to customers, investors, employees, and other businesses who you are, what you do, and why you do it. In this guide, we describe what a mission statement is, provide some mission statement examples to inspire you, and walk you through how to create a mission statement for your own business.

• What is a Mission Statement?

A mission statement is a clear, succinct explanation of the purpose of a business. You already know exactly what your business does and why, but your mission statement needs to summarize all of that information into a single sentence or short paragraph. 

Unless your company changes drastically, a business mission and mission statement usually don’t change too much over time.

• What are the 3 Purposes of a Mission Statement?

A mission statement explains a business’s objectives, and in doing so, fulfills the following 3 specific purposes:

• 1. Communicate Business Values

The main purpose of a mission statement is to clearly express what your business is all about, including your company values. A unique, memorable mission statement can provide you with a competitive advantage by differentiating you from the competition.

• 2. Connect with Customers and Team Members

A good mission statement fosters genuine connection with potential customers and employees, which in turn can lead to growth in reputation, brand loyalty, and overall profitability.

• 3. Guide Business Decisions

Being a business owner means having to make all kinds of decisions constantly, both big and small. Your mission statement should act as a guide you can refer back to for all manner of business decisions, as well as a means of evaluating how your company performance is measuring up to the goals you set.

• Mission Statement Examples

To give you a better idea of exactly what mission statements involve, here are some mission statement examples from leading companies:

• 1. Starbucks

To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.

Why it works: Starbucks is more than a utilitarian coffee shop where you go to get your caffeine fix and leave. They “inspire and nurture the human spirit” by inviting customers to linger and relax in coffee shops outfitted with art and inspiring images and stories about their coffee growers – their “partners”. To create a sense of community and provide a personal touch they ask for customers’ names, making customers feel welcome “one person, one cup and one neighborhood at a time.” We get a strong sense of Starbucks’ “why” from this mission statement.

To bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete.

Why it works: Nike provides an excellent example of how you can employ your brand’s tone of voice effectively even in something as brief as a mission statement. Here, their famous commitment to being innovators in the sports apparel space is clear. This mission statement communicates that one of their core “whys” is to inspire. The best part, though, is the cheeky and unexpected asterisk accompanied by the inclusive declaration that “if you have a body, you are an athlete.” This perfectly communicates that Nike is committed to empowering all people, regardless of body type or athletic ability, in an unexpected mission statement structure that is both memorable and on-brand. 

To enrich the lives of everyone in WestJet’s world. We’re proud to have won awards that show us you think we do.

Why it works: This is a great example of a mission statement that reflects a commitment to both customers and employees. By stating that its mission is to “enrich the lives of everyone in Westjet’s world,” Westjet conveys its commitment to provide a satisfying work environment for employees, as well as a rewarding travel experience for customers. By using the word “world” instead of, say, community, it invokes the idea of travel and exploration, reminding us that “Westjet’s world” spans the globe. The second line offers proof their mission statement isn’t just empty words. Not only has the company won awards, they indicate gratitude to the reader for helping them with that achievement. 

To make work life simpler, more pleasant and more productive.

Why it works: Slack’s “why” is all about keeping things uncomplicated, and achieving more with ease. This mission statement shows that brevity can be very effective. It’s short even by mission statement standards, but it reflects the experience that Slack wants its users to have on the platform: simple, pleasant, and productive. The choice of the term “work life” instead of just “life reminds us that work is a major part of life, so we should aim to make it less stressful and complicated, something Slack achieves with their product. Finally, their stated aim to make work life “more pleasant”, evokes their generally positive outlook about work and their mission to make it even better.   

To accelerate the world’s transition to sustainable energy.

Why it works: Tesla is a car manufacturer known for its pioneering electric vehicles. Tesla is certainly a car manufacturer with a mission, and even people who don’t know much about cars can associate the name with electric vehicles. Their mission statement reflects a commitment to reducing the world’s reliance on fossil fuels by speeding up a transition that is already underway. Notice that they don’t even mention cars in their mission statement, but rather allude to driving with the word “accelerate”. It’s great copy that is subtle and clearly demonstrates their vehicles are a means to a greener world. 

To create a better everyday life for the many people

Why it works: Ikea’s products have changed the way people furnish their homes by offering sleek, innovative solutions for every room at an affordable price. Their mission statement indicates their broad range of products with the phrase “better everyday life”. And “the many people” conveys their mission to serve as many people in the world as possible. The slightly awkward use of “the” in “for the many people” cheekily invokes their Swedish origins and their often idiosyncratic ads, typically delivered in a Swedish accent. This mission statement is uncomplicated, just like their products. 

To be a company that inspires and fulfills your curiosity. 

Why it works: Since Sony makes such a wide range of electronics and technologies, from cameras and gaming consoles to robotics and AI, they keep it simple by focusing on one thread that runs through their enterprise: curiosity. Whether it’s curiosity about the world, art, music, technology, or entertainment, Sony conveys that their products will not only inspire their customers’ curiosity but also provide the means to fulfill it through innovative products, themselves the result of curiosity and ingenuity.  

• 8. Microsoft

To enable people and businesses throughout the world to realize their full potential

Why it works: Microsoft’s mission statement is clear, simple, and to the point: their products are made for people and businesses, and by using Microsoft’s suite of products, individual and corporate customers can reach their full potential.  

To organize the world’s information and make it universally accessible and useful.

Why it works: Google’s concise statement reveals an enormous mission: to catalogue all of the world’s information so that it can be accessed by anyone, anytime. This statement indicates Google’s commitment to democratizing access to information in an organized and easy-to-use manner. 

• 10. Ben and Jerry’s

To create fantastic ice cream (for its own sake). 

Why it works: Ben and Jerry’s is known for its delicious, ever-expanding variety of ice cream flavours. Its mission statement explains what they do in simple terms: make fantastic ice cream. This clearly indicates their commitment to a delicious, high-quality product. The unique use of parentheses to explain why they do this—”for its own sake”—keeps the tone light and fun, and cheekily affirms that ice cream, itself, is inherently reason enough (as if to say, who doesn’t like ice cream?)

• 11. sweetgreen

“Building healthier communities by connecting people to real food.”

This mission statement concisely informs the audience of the type of products they provide, while tying into sweetgreen’s broader commitments to animal welfare and becoming carbon neutral.

“Discover and spread ideas that spark conversation, deepen understanding, and drive meaningful change.”

TED’s mission statement effectively communicates their core idea: that sharing ideas can change the world for the better. It’s a lofty goal, but it seems more achievable because of the way they break it down.

“The mission of The Walt Disney Company is to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world’s premier entertainment company.”

In their mission statement, Disney makes a point of first emphasizing the power of storytelling before moving on to graciously acknowledge and bring attention to the brands, employees, and technology that sets them apart from the competition.

“Giving people the power to build community and bring the world closer together.”

Meta makes it clear right off the bat that they are all about empowering their customers, giving them the ability to connect with consistent innovation and development.

• 15. Penguin Random House

“To ignite a universal passion for reading by creating books for everyone. We believe that books, and the stories and ideas they hold, have the unique capacity to connect us, change us, and carry us toward a better future for generations to come.”

With their initial statement, Penguin Random House emphasizes that they serve everyone. They go on to explain how they believe that books can connect and change present and future generations. These values can be seen in their focus on equity, inclusion, and amplifying diverse voices.

“Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon.”

Amazon opts for a lengthier mission statement that lists their business principles before expressing their desire to be not only the most customer-centric company, but also the best employer and safest place to work. They then list a number of innovations which may be recognizable to consumers, emphasizing their impressive market share. 

• 17. YouTube

“Our mission is to give everyone a voice and show them the world. We believe that everyone deserves to have a voice, and that the world is a better place when we listen, share and build community through our stories.”

YouTube keeps their mission statement relatively simple, focusing on giving everyone a voice while providing access to all of the other voices around the world. They take it a step further by expressing the belief that sharing our stories and listening to others makes the world a better place.

“Keep Commerce Human Etsy is the global marketplace for unique and creative goods. It’s home to a universe of special, extraordinary items, from unique handcrafted pieces to vintage treasures. In a time of increasing automation, it’s our mission to keep human connection at the heart of commerce. That’s why we built a place where creativity lives and thrives because it’s powered by people. We help our community of sellers turn their ideas into successful businesses. Our platform connects them with millions of buyers looking for an alternative – something special with a human touch, for those moments in life that deserve imagination. As a company, we strive to lead with our guiding principles and to help spread ideas of sustainability and responsibility whose impact can reach far beyond our own business.”

Etsy’s statement is unique since they choose to summarize their mission in three words, before going into detail about what their business offers the consumer and how they support their sellers, all while emphasizing the human touch.

“We are revolutionizing commerce globally. With this mission as our North Star, we are aligned around one central vision: to make sending and receiving money, selling, and shopping simple, personalized, and secure. Our beliefs are the foundation for how we conduct business every day.”

This statement immediately expresses PayPal’s mission to revolutionize commerce around the world, going on to provide further context by mentioning what services they offer, emphasizing  keeping the experience simple and safe, and stating that these values guide their everyday operations. 

• 23. Alzheimer’s Association 

“The Alzheimer’s Association leads the way to end Alzheimer’s and all other dementia — by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support.”

The Alzheimer’s Association’s mission statement speaks to their future goal of eradicating Alzheimer’s and dementia, while succinctly stating the methods they use at present to achieve these goals. 

• Why are Mission Statements Important?

A great mission statement can be a valuable tool to keep your business on track, especially when setting goals or making big decisions, ensuring your efforts remain aligned with what you want your business to accomplish. The ability to maintain a clear vision for your business approach is a trait that distinguishes the most successful businesses . 

In addition to helping guide business decisions, a mission statement can also serve to provide guidance and a sense of identity to employees.

• Not Just for Internal Use

Potential customers, employees, or investors may look at your mission statement when determining whether to work with you. A well-written mission statement can make all the difference.

• What to Include in Your Mission Statement

Your mission statement should be unique to your business, and what you include will depend on your particular focus and values. Typically, a mission statement includes a basic description of the company, its purpose, its goals, and can also cover how the business serves customers, employees, the community, and the world.

That said, here are the 3 main things you should include in a mission statement:

• 1. What your Business Does

Anyone reading your mission statement should be able to tell what type of business you do.

• 2. How your Business Achieves its Goals

Make sure to address what you’re doing differently and why people should choose your business over your competitor.

• 3. Why you Do What you Do

Give people something to root for by talking about your larger purpose and why it matters.

• How to Write a Mission Statement

Here’s a step-by-step process to help you create a mission statement:

• Write some bullet points about what your business does, the product or service you offer, and your target audience .
• List some of your core values, including what motivated you to start this business, and what principles guide your decision making.
• Bring the two together by defining how your offering aligns with the values you’ve identified.
• Finally, take what you’ve written and condense it into a straight-to-the-point mission statement. 
• Keep it Concise

Part of the challenge of mission statement writing is figuring out how to say everything you want while keeping it brief. Remember, you can include additional information elsewhere: many leading companies have sections on their websites that go into further detail than the initial mission statement.

• Mission Statement vs Vision Statement

A mission statement differs from a vision statement, although some companies may lump them together. While a mission statement focuses on the company’s fundamental purpose, a vision statement typically outlines where the company plans to be in the future and can provide more details on its strategy to get there.

If you’re looking to craft a vision statement, the Vision Statement module of Ownr’s free business plan generator, Blueprint contains examples to kickstart your imagination and help you build a compelling vision statement for your business.

Here are some vision statement examples to help you tell the difference:

• Vision Statement Examples
• 1. LinkedIn

“Create economic opportunity for every member of the global workforce.”

• 2. Alzheimer’s Association 

“A world without Alzheimer’s and all other dementia®”

• 3. American Express

“Provide the world’s best customer experience every day.”

• Mission Statement vs Purpose Statement

Some organizations write purpose statements in addition to mission statements. A purpose statement focuses on why a business came into existence in the first place. This may include mentioning a problem the business seeks to solve or a unique opportunity the business is leveraging. It can also be a bit longer and provide a brief summary of how the business came to be. 

• How to Avoid the Pitfalls of Mission Statements

According to some experts, many companies have mission statements that are too vague , unrealistic, or contain too much business jargon. 

Here are some tips on how to avoid these common pitfalls:

• Be Accurate

Don’t include words just because they sound good. You may end up with a mission statement that sounds catchy, but serves no use as a guide for your company.

• Be Realistic

It’s good to be ambitious, but your mission statement should be realistic. If the mission statement sets a purpose and goals that are clearly unobtainable, it won’t be taken seriously.

Avoid writing a mission statement that’s generic or vague. One useful trick is to ask yourself if one of your competitors could use the exact same mission statement. This will help you focus on being more specific about your unique purpose, goals, and values.

Now you know what it takes to craft an effective mission statement. Put these tips into practice and you’ll have a clear and concise statement that keeps your company on track.

This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.

Mission Statement for Success

Mission statement is a description of what an organization actually does – what its business is – and why it does it. [1]

See also: Purpose Statement

What is a Mission Statement

Often called the “credo”, “philosophy”, “core values” or “our aspirations”, organization’s mission is the statement that defines its core purpose or reason for being. [2] It tells who a company is and what it does.

According to P. Drucker, often called the father of modern management, a mission is the primary guidance in creating plans, strategies or making daily decisions. It is an important communication tool that conveys information about an organization’s products, services, targeted customers, geographic markets, philosophies, values and plans for future growth to all of its stakeholders.

In other words, every major reason why a company exists must be reflected in its mission, so that any employee, supplier, customer or community would understand the driving force behind organization’s operations.

There are two types of statements: [1]

• Customer-oriented missions. Customer-oriented missions define organization’s purpose in terms of meeting customer needs or providing solutions for them. They provide more flexibility than product-oriented missions and can be easily adapted to changing environment. For example, Nokia’s statement “connecting people” is customer-oriented. It does not focus on mobile phones or smartphones only. It provides a solution to customer needs and could easily have worked 50 years ago, and will continue to work in the future. It also gives more strategic flexibility for the company. In Nokia’s case, it may start providing VoIP software to allow calls to be made over the internet and its mission would still be valid.
• Product-oriented missions. Product-oriented missions focus on what products or services to serve rather than what solutions to provide for customers. These statements provide less flexibility for the company because most products have short life cycle and offer limited market expansion. The company that defines its business as “providing best health insurance products” may struggle to grow to other insurance product categories.

For a mission to be effective, it must include the following 9 components: [2]

• Customers. Who are your customers? How do you benefit them?
• Products or services. What are the main products or services that you offer? Their uniqueness?
• Markets. In which geographical markets do you operate?
• Technology. What is the firm’s basic technology?
• Concern for survival. Is the firm committed to growth and financial soundness?
• Philosophy. What are the basic beliefs, values and philosophies that guide an organization?
• Self-concept. What are the firm’s strengths, competencies or competitive advantages ?
• Concern for public image. Is the firm socially responsible and environmentally friendly?
• Concern for employees. How does a company treat its employees?

Why creating a mission is important?

Many studies have been conducted to find out if having and communicating a mission statement helps an organization to achieve higher performance. [3]

The results were mixed. Some studies found a positive relationship between written statements and higher organizational performance, while other studies found none or even a negative relationship.

One of the reasons might be that most companies create a mission statement only because it’s fashionable to do so and little effort is made to actually communicate that mission to its stakeholders.

David [2] argues that if an organization constantly revises its mission and treats it as a living document, it achieves higher performance than its competitors. Nonetheless, all of the authors agree that mission brings the following benefits [3][4] :

• Informs the organization’s stakeholders about its plans and goals.
• Unifies employees’ efforts in pursuing company goals.
• Serves as an effective public relations tool.
• Provides a basis for allocating resources.
• Guides strategic or daily decision-making.
• Shows that a company is proactive.

Writing a mission

Creating a mission statement is an important first step in clearly identifying your business’ reason for being. It’s hard to do it right. Therefore, we identified these steps and guidelines to help you write an effective statement.

Step 1. Gather a team of managers, employees and shareholders. Mission is the statement that must be understood by employees of all levels. Involving more people will let you find out how each of them sees an organization and its core purpose. In addition, employees will support the organization’s mission more if they are involved in the process of creating it.

Step 2. Answer all 9 questions for an effective mission. Many practitioners and academics agree that a comprehensive statement must include all 9 components. Only then can creating a mission benefit a company. At this stage, try to answer all the questions honestly and identify your customers, markets, values etc. It may take a lot of time but it’s worth it.

Step 3. Find the best combination. Collect the answers from everyone and try to combine one mission statement out of them. During this step, you can make sure that everyone understands the company’s reason for being and that there are no conflicting views left.

Following guidelines (all taken from various studies) should also be helpful in writing an effective mission statement:

• ‘Public image’, ‘concern for employees’, ‘philosophy’ and ‘customers’ are the most important components of a mission;
• ‘Citizenship’, ‘teamwork’, ‘excellence’ and ‘integrity’ are the values used most often by companies with effective missions;
• Influential statements include words such as: ‘communities’, ‘customers’, ‘employees’, ‘ethics’, ‘global’ and ‘quality/value’; [4]
• The statement should be customer-oriented;
• Use less than 250 words;
• Be inspiring and enduring.

NOTE! Every mission must be communicated to the organization’s stakeholders to have any positive impact.

It must be constantly revised and adjusted to meet any changing situation.

Mission statement examples

The best way to learn creating an influential mission is to look at the existing examples. In the following table, we provide 3 mission statement examples and examine them using the previous guidelines.

Read also: Purpose Statement

• Rothaermel, F. T. (2012). Strategic Management: Concepts and Cases. McGraw-Hill/Irwin, p. 34-37
• David, F.R. (2009). Strategic Management: Concepts and Cases. 12th ed. FT Prentice Hall, p. 83-94
• Williams, L.S. (2008). The Mission Statement. A Corporate Reporting Tool with a Past, Present, and Future. Journal of Business Communication Vol. 45, (2), pp. 94-119
• King, D.L., Case, C.J., Premo P.M. (2010). Current Mission Statement Emphasis: Be Ethical and Go Global. Academy of Strategic Management Journal Vol. 9 (2), pp. 71-87
• Wikipedia (2013). Mission Statement. Available at: https://en.wikipedia.org/wiki/Mission_statement
• Mission Statements.com (2013). Mission Statement Examples. Available at: https://www.missionstatements.com/
• Vision Statement
• Purpose Statement: All You Need to Know

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How to Write a Mission Statement (Definition & Examples Included)

Table of Contents

What is a mission statement, mission statement vs. vision statement.

• How to Write a Mission Statement

25 Best Mission Statement Examples

Mission statements faq.

• ProjectManager & Mission Statements

When you’re creating a company or working on a business plan , the first thing you should do is create a mission statement. Your mission statement is the base for your company values, vision statement, slogan, value proposition and everything else.

A mission statement is a short action-based declaration that describes the purpose of an organization. Mission statements explain what companies do and are a very important part of their culture, along with the core values and vision statement . Mission statements are an internal guide for organizations, but they also need to be appealing to customers.

Before we learn how to write a mission statement, let’s explain the difference between a mission statement and a vision statement, two very important parts of a business plan.

There are several differences between a mission statement and a vision statement. The main difference between them is that a mission statement explains the purpose of a company, while the vision statement indicates where the company wants to accomplish in the future. Mission statements and vision statements are different but they need to complement each other to provide a clear base for strategic planning.

If you need help creating and delivering a plan for your business, then consider a project management software like ProjectManager . ProjectManager helps organizations plan, execute and track projects and tasks across teams. Make a long term plan on a roadmap, then execute the day-to-day tasks on task lists or kanban boards. It’s easy to collaborate, stay aligned and reach your goals. Get started today for free.

How to Write a Mission Statement in 6 Steps

We know that every organization needs a mission statement, but how do you create one? There’s no standardized method to writing a mission statement, but there are some guidelines that you should consider.

Follow these steps to help you with the process of writing a mission statement.

1. Define your Company Culture

The mission and vision statements are elements of your company culture. For this reason, before writing your company mission statement, you’ll need to define the core values or guiding principles of your company culture. Don’t forget to ask yourself what your team members expect from the company too.

Related: Free Team Charter Template

2. Set Goals

Your company mission defines the purpose of your organization, and where it stands now, but that’s only part of the business plan. You’ll also need to define company goals and a long-term company vision.

3. Define your Ideal Customer Profile

It’s impossible to think about a business that doesn’t care about its customers. Before writing a mission statement or a business plan altogether, you need to understand who are your customers and how you can help them. That’s why you must define your ideal customer profile through market research .

4. Create a Value Proposition

Once you have a clear idea of what your ideal customer profile looks like, you need to think about the value proposition that will differentiate you from your competitors.

5. Select a Type of Mission Statement

Every mission statement is unique, but there are some recognizable types of mission statements. The most common ones are:

• Customer-oriented mission statements
• Socially conscious mission statements
• Environmentally conscious mission statements
• Product-oriented mission statements

6. Add the Mission Statement to Your Business Plan

Now that you’ve thought about all these key aspects of your business, you can start drafting a mission statement for your business plan. Remember to think about how that company mission fits with the other elements of your business plan.

You probably know a lot of mission statements without realizing it. We’ve gathered 25 of the best mission statement examples available in the world to help you create a great mission statement for your business plan.

1. Microsoft

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

“To organize the world’s information and make it universally accessible and useful.”

3. Facebook

“To give people the power to build community and bring the world closer together.”

4. Southwest Airlines

“Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”

5. LinkedIn

“To connect the world’s professionals to make them more productive and successful.”

“To entertain, inform and inspire people around the globe.”

“To continually raise the bar of the customer experience by using the internet and technology to help consumers find, discover and buy anything, and empower businesses and content creators to maximize their success. We aim to be Earth’s most customer-centric company.”

8. Patagonia

“We’re In Business To Save Our Home Planet.”

9. Life is Good

“To spread the power of optimism”

10. Coca-Cola

“To refresh the world, to inspire moments of optimism and happiness, and to create value and make a difference.”

11. The Humane Society

“Creating animals, confronting cruelty.”

“We reach for new heights and reveal the unknown for the benefit of humankind.”

13. Smithsonian

“The increase and diffusion of knowledge.”

14. American Express

“We work hard every day to make American Express the world’s most respected service brand.”

15. Nordstrom

“To give customers the most compelling shopping experience possible.”

16. JetBlue

“To inspire humanity – both in the air and on the ground.”

“To build the web’s most convenient, secure, cost-effective payment solutions.”

18. Kickstarter

“To help bring creative projects to life.”

“To deliver information on the people, ideas and technologies changing the world to our community of affluent business decision-makers.”

“To be a company that inspires and fulfills your curiosity.”

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

“To attract and attain customers with high-value products and services and the most satisfying ownership experience in America.”

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

“To bring inspiration and innovation to every athlete in the world.”

1. How long Should a Mission Statement be?

A good mission statement is short, to the point and memorable. It’s like a tagline in advertising, something that sticks with a person when they hear or read it. In a true sense, the mission statement is an ad in that it identifies your company as one that a customer would want to work with or support.

2. What Is the Difference Between a Mission Statement and a Vision Statement?

Vision statements are about the future. Mission statements stay firmly in the present: who you are and what’s important to you, now. Be timely, explain who you are today and do so clearly.

ProjectManager Turns Your Mission Statement Into a Reality

A mission statement is an idea, but to get there, you need a plan. ProjectManager  is an award-winning tool that organizes your teams and projects to work more effectively. Use our cloud-based software to get real-time data and make your mission statement a mission accomplished.

Build Action Plans with Gantt Charts

Once you have a project approved, you can use the online Gantt chart to schedule your tasks. It’s a visual tool that creates a timeline that shows you the entire project in one place. Some tasks are dependent on others to start or finish. Use our tool to link these task dependencies and avoid having them cause bottlenecks later on in the project.

Track Progress with Dashboards & Reports

Another way to monitor your progress and performance is with our real-time dashboard. It’s made up of six project metrics displayed in easy-to-read graphs and charts. Our tool automatically calculates time, workload, costs and more and gives you a high-level instant status report to help you meet the goals of your mission statement.

ProjectManager has a company mission too. It’s to deliver reliable project management software that helps managers and their teams plan, monitor and report with ease for high levels of efficiency. Our cloud-based tool has a real-time dashboard for live data reporting,  online Gantt charts for effective scheduling and a collaborative platform that frees teams to work more productively. See how it can help your mission by taking this free 30-day trial .

Deliver your projects on time and on budget

Start planning your projects.

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Mission Statement

By Entrepreneur Staff

Mission Statement Definition:

A sentence describing a company's function, markets and competitive advantages; a short written statement of your business goals and philosophies

A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.

If you don't have a mission statement, create one by writing down in one sentence what the purpose of your business is. Ask two or three of the key people in your company to do the same thing. Then discuss the statements and come up with one sentence everyone agrees with. Once you have finalized your mission statement, communicate it to everyone in the company.

It's more important to communicate the mission statement to employees than to customers. Your mission statement doesn't have to be clever or catchy--just accurate.

If you already have a mission statement, you will need to periodically review and possibly revise it to make sure it accurately reflects your goals as your company and the business and economic climates evolve. To do this, simply ask yourself if the statement still correctly describes what you're doing.

If your review results in a revision of the statement, be sure everyone in the company is aware of the change. Make a big deal out of it. After all, a change in your mission probably means your company is growing-and that's a big deal.

Once you have designed a niche for your business, you're ready to create a mission statement. A key tool that can be as important as your business plan, a mission statement captures, in a few succinct sentences, the essence of your business's goals and the philosophies underlying them. Equally important, the mission statement signals what your business is all about to your customers, employees, suppliers and the community.

The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community.

More from Management

Family businesses.

A business actively owned and/or managed by more than one member of the same family

Advisory Boards

A group of individuals who've been selected to help advise a business owner regarding any number of business issues, including marketing, sales, financing, expansion and so on; a body that advises the board of directors and management of a corporation but does not have authority to vote on corporate matters

Corporate Culture

A blend of the values, beliefs, taboos, symbols, rituals and myths all companies develop over time

Government Contracts

Agreements that outline business transactions between companies and government entities

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What Is a Mission Statement?

Definition and Examples of a Mission Statement

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Morsa Images / Getty Images

A mission statement is a brief description of an entity's fundamental purpose. It answers the question, "Why does our business (or nonprofit or government agency) exist?" The mission statement articulates the company's purpose both for those in the organization and for the public.

Learn more about how a company crafts its mission statement, what makes a mission statement successful, and some examples from major companies.

A mission statement is a sentence or short paragraph that defines the existence of a business, nonprofit, government organization, or any other entity. Mission statements get at the heart of why a company exists, rather than how it exists. In other words, a mission statement isn't a business plan that explains how the entity will turn a profit; it's a statement that defines the motivation for trying to turn a profit in the first place.

It's also important to avoid confusing a mission statement with a vision statement . The difference is that a mission statement focuses on a company’s present state while a vision statement focuses on a company’s future. A mission statement answers the question "Who are we?" and the vision statement answers the question " Where are we going? "

Examples of Mission Statements

Here are the mission statements of some well-known companies and government entities.

• Amazon: "Our mission is to be Earth's most customer-centric company. This is what unites Amazonians across teams and geographies as we are all striving to delight our customers and make their lives easier, one innovative product, service, and idea at a time."  
• Tesla: "Tesla's mission is to accelerate the world's transition to sustainable energy."  
• Costco: "Here at Costco, we have a very straightforward, but important mission: to continually provide our members with quality goods and services at the lowest possible prices."  
• Internal Revenue Service (IRS): "Provide America's taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all."  
• General Services Administration (GSA): "Deliver value and savings in real estate, acquisition, technology, and other mission-support services across government."  

Many mission statements change and evolve over the years. It's a good practice to establish a mission statement from the start, but be sure you consistently review it to ensure it expresses your organizational purpose as you would articulate it today.

How Mission Statements Work

The mission statement definition itself is often the result of group consensus effort, and writing a mission statement can be a valuable team-building exercise. Once formed, the statement can then be distributed as a quick way to describe the broad goals of the entity.

Every business should have a mission statement , both as a way of ensuring that everyone in the organization is "on the same page" and to serve as a baseline for effective business planning.

Because mission statements are part of a company's public face, they are also often used in a company's marketing. Businesses frequently include them in the bio section of their website, for instance. Sometimes, a company's mission statement even becomes the core of its advertising campaigns.

Properly crafted, a mission statement can lend a strategic focus to an organization and motivate employees to work together toward a common goal. Poorly crafted mission statements, on the other hand, often consist of the latest buzzwords or business jargon and have unrealistic or unattainable goals, which can negatively affect employee morale.

Having a coherent, realistic mission statement is fundamental to engaging your employees and fulfilling your corporate goals . You can work to improve the strength of your mission statement by gathering employee input during the crafting phase. That helps create a sense of unity and shared ownership in the mission statement. You can also explicitly recognize the talents and contributions of your employees in the mission statement.

Key Takeaways

• A mission statement briefly describes the goals and purpose of a business, nonprofit, government agency, or some other entity.
• As opposed to a business plan, which addresses the how of a business, the mission statement addresses the why.
• A well-crafted mission statement can inform marketing efforts and create a sense of unity among employees.

Amazon. " Come Build the Future With Us ." Accessed June 22, 2020.

Tesla. " About Tesla ." Accessed June 22, 2020.

Costco. " What Is Costco's Mission Statement and Code of Ethics? " Accessed June 22, 2020.

Internal Revenue Service. " The Agency, Its Mission and Statutory Authority ." Accessed June 22, 2020.

General Services Administration. " Mission and Strategic Goals ." Accessed June 22, 2020.

How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

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What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .

A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.

A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

• Present the company’s mission.
• Describe the company’s product and/or service offerings.
• Give a summary of the target market and its demographics.
• Summarize the industry competition and how the company will capture a share of the available market.
• Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.

Section 2: Industry Overview

• Describe the company’s position in the industry.
• Describe the existing competition and the major players in the industry.
• Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

• Define your target market, their needs, and their geographical location.
• Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
• Give an overview of the estimated sales volume vis-à-vis what competitors sell.
• Give a plan on how the company plans to combat the existing competition to gain and retain market share.

Section 4: Sales and Marketing Plan

• Describe the products that the company will offer for sale and its unique selling proposition.
• List the different advertising platforms that the business will use to get its message to customers.
• Describe how the business plans to price its products in a way that allows it to make a profit.
• Give details on how the company’s products will be distributed to the target market and the shipping method.

Section 5: Management Plan

• Describe the organizational structure of the company.
• List the owners of the company and their ownership percentages.
• List the key executives, their roles, and remuneration.
• List any internal and external professionals that the company plans to hire, and how they will be compensated.
• Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

• Describe the location of the business, including office and warehouse requirements.
• Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
• Describe the manufacturing process, and the time it will take to produce one unit of a product.
• Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
• Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.

Section 7: Financial Plan

• Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

• Quotes of building and machinery leases
• Proposed office and warehouse plan
• Market research and a summary of the target market
• Credit information of the owners
• List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:

• Corporate Structure
• Three Financial Statements
• Business Model Canvas Examples
• See all management & strategy resources
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More From Forbes

Vision, mission, strategy and values.

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Mikhail Saidov, master coach instructor, creator of Metacognitive Programming, a coaching and therapeutic technique. Founder & CEO of IMCP .

Whether you already have your own company, are about to start one or are helping someone else start theirs, the question of vision, mission, strategy and values is bound to come up. Those with corporate experience know that formulating a company's vision, mission, strategy and values is a big deal.

I remember one company I worked for had the values written on their walls, the vision written on internal documents and the mission written on their logo. But neither I nor anyone else who worked there took those words seriously. Why? They did not mean anything to us.

Once I started my own company, I realized the importance of having a mission, vision, strategy and values and communicating them to employees (and the unimportance of writing them on your walls). I'd like to share my understanding of these concepts, as well as why each of them is essential.

Typically set by the owner, the founder or the leadership team, a vision is about where you are going and what you are trying to build as a company. A vision should be explicitly stated because it provides clarity: You know where you are headed, and so do your employees.

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People like to know what they are working for. Sure, they work for money, but there are things we value beyond money. Humans do not thrive on endlessly going in circles, living from and for short-term reinforcements. We need a direction and a destination. Where am I going? That is basically what a vision is.

If vision stands for Where am I going? , mission stands for Why am I going there? Every human being thinks, at least occasionally, about the meaning of their work, and life more generally. We need that meaning; without it, we merely exist. Having a mission makes you ready to commit, to invest your time and effort into making it happen.

Moreover, if your organizational mission resonates with your employees, they will feel more involved and prepared to push forward along with you.

Note that a mission is more stable than a vision. For example, if your mission is to leave this world at least a bit better than it was, you may do this in different ways, and the ways may change as you go, but the mission remains.

We now understand where we are going (vision) and why (mission). Strategy answers the third question: How do I get there?

People who create strategies need to conceptualize both the big picture (i.e., milestones and the resources required to achieve each of them—money, time, etc.) and the small pieces (i.e., what everyone should do every day so eventually we end up where we are supposed to). A carefully planned strategy ensures smooth movement toward the company vision.

If strategy is subordinate to vision (answering the question of how we reach where we're going), then our last element, values, is subordinate to mission—answering the question of what our why consists of.

Here's another way to look at it: If vision and strategies are about the external world (what we want to achieve and how), then mission and values are about the internal world (why we want it, why it matters, what drives our mission).

Values are inherently personal (e.g., honesty), but they can translate into business principles (e.g., transparency in employee relations).

Creating A Corporate Culture Based On Mission And Values

If you know and communicate your mission and values, you attract prospective employees who share them, who want to walk the walk with you. They then attract more people of your kind, and the group increases, increasing the potential to create a better vision and better strategies.

Sometimes, we (the owners) make mistakes, hiring people who only pretend to share our mission and values. But don't worry; that will become apparent sooner than you think. And the same applies to you. If you promote specific values (e.g., honesty and hard work) but then cut corners or cheat, your employees will see and feel the dissonance. Seeing that you act contrary to what you have written on your walls, your employees will not follow the code you've written down but rather, imitate what you do. That leads to failure.

People shape the culture. If you stick to your values, you shape a culture where values matter. Seeing you stay true to your values encourages your employees to stay true to theirs. And that will eventually benefit everyone—the company, its owners and its employees.

Don't Promise The Future

When speaking to prospective employees, I don't discuss my big dreams and goals for a beautiful future. Why? Because the future is inherently uncertain. Therefore, promising people a specific location where they will end up would be a deception, even if you have the best intentions and elaborate plans to get there.

How is this related to mission, values and culture? Instead of speaking about the future, I talk about the current culture. I talk about who I am and what drives me, and I ask my employees to do the same. This doesn't mean I have no goals or plans; just that those goals and plans are not set in stone.

Rather than having a clear goal, I prefer to have by my side a team of individuals driven by the same internal force as I am. After years of experience, I figured out that having a well-attuned team took me further than anything else.

Final Thoughts

Mission, vision, strategies and values are all important when doing business. And for me, mission and values are the most important, as they help me pick people who care about the same things, with whom I can build a healthy culture, shape a vision and choose the strategies that will ultimately lead us to success.

Forbes Coaches Council is an invitation-only community for leading business and career coaches. Do I qualify?

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UK election latest: Starmer hits out at 'mess' left by Tories - and warns 'tough decisions' to come

The new prime minister chaired his first cabinet meeting this morning after Labour's landslide election victory. Later on, in a sober speech before taking media questions, Sir Keir said "tough decisions" are to come - and that he would embark on a victory tour of the UK tomorrow.

Sunday 7 July 2024 00:00, UK

• General Election 2024

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Need to know

• Starmer hits out at 'mess' left by Tories | Warns 'tough decisions' to come | Announces UK tour
• New cabinet appointments announced - and one minister made a peer
• PM asked what he will deliver in first 100 days
• Braverman slams 'idiotic' Tory election strategy
• Hunt rules out Tory leadership bid | Braverman: 'No announcements today'
• Starmer's challenges: Tackling exhausted NHS | Looming chaos abroad | Defence to dominate early days | Small boats plan? | Rift with scientists needs healing
• Listen: Politics at Jack and Sam's - what's in Starmer's in-tray?
• Jon Craig: Don't be fooled by 'call me Keir' - Starmer means business
• Who will become next Tory leader?
• Meet the country's youngest MP - he's 22
• Results in every constituency

Live reporting by Ollie Cooper

 By Adele Robinson , business correspondent

It's a gloomy and grey morning in Witney town centre.

This dismal July scene provides the perfect metaphor for Conservative sentiment here.

Witney, in Oxfordshire, has been a Tory stronghold for 102 years - and was also the constituency for former prime minister Lord Cameron - but it is now officially no longer a safe seat.

A "Liberal Democrats Winning Here" sign, visible from the roadside, is a nod to the town's newly elected MP.

Charlie Maynard took the seat from the Conservatives, winning 20,832 votes to Robert Courts' 16,493.

Finding someone who voted Conservative in the election, who wants to talk about it, isn't easy.

The first willing to chat is Mark Doig, standing outside the butchers, who describes the Tories as "in a bit of a mess".

"Too many prime ministers", he tells me. "Boris Johnson, Liz Truss - they all did their bit to put the nail in the coffin."

He also says he "might vote Lib Dem" next time.

He adds: "I think the Tories have really blown it, it's going to be difficult to get back."

Another Conservative voter said: "I liked Rishi Sunak - he's a gentleman of politics - but perhaps not tough enough."

It's something a few people have said here - that they like Mr Sunak, but he wasn't a leader.

Watch: General Election round-up

So where do the Conservatives go from here in Witney?

But there's clear disenchantment with the Conservatives in this town and the ballot box was ultimately their protest.

The next Tory leader will need to do something significant to bring back voters.

Even those who remained faithful this time around appear to be slipping away.

Sir Keir Starmer will make clear that there has been a shift in British politics as he embarks on a tour of all four nations of the UK.

 The new prime minister will be meeting with the heads of devolved governments, beginning tomorrow in Scotland.

"There has been a mindset change in the way we do government," Sir Keir said ahead of his trip.

"We will do things differently, and together deliver the change that people have voted for. 

"Working people in all four nations now have a government of service.’

He will be looking to discuss how the nations can work better together to deliver the change he outlined in his manifesto.

"People across the United Kingdom are bound by shared beliefs. Fundamental values of respect, service and community which define us as a great nation," he said.

"And that begins... with an immediate reset of my government's approach to working with the first and deputy first ministers because meaningful co-operation centred on respect will be key to delivering change across our United Kingdom."

The Tory election strategy was "idiotic" and forced voters into the arms of Labour, Suella Braverman has said in the wake of the worst defeat in Conservative history. 

Writing an opinion piece for The Telegraph , the former home secretary said "we failed in office and deserved this result". 

"Losing elections has consequences: I regret them, but too many Tories do not," she added. 

"People didn't choose Labour, they rejected us."

She said the prime minister and the party employed an "idiotic strategy of intermittently and inconsistently making 'Tory right' noises - which disintegrated when set against our liberal Conservative record".

Ms Braverman is among the favourites to take over as the next Conservative leader, with the defeated Rishi Sunak set to depart, as soon as his successor is chosen. 

She retained her seat in Fareham & Waterlooville, but Labour, the Liberal Democrats and Reform UK all made gains in vote share. 

Moving to the future, Ms Braverman outlined three things the Tories must do before they can win again:

• Restore trust
• Restore credibility
• Restore hope

"We’re not a racist country needing 'decolonisation' and DEI (diversity, equity, and inclusion)and all the progressive rest of it," she said. 

She concluded by noting Nigel Farage's entry to the Commons, saying he "can just say the right things", but "we have to do them". 

By Dominic Waghorn , international affairs editor

A new beginning for Britain and suddenly we find ourselves in a world turning itself inside out, posing clear challenges to the incoming Labour government.

The swing to the left in the UK comes just as some of our closest partners appear to be veering in the opposite direction.

After the chaos of right-wing Conservative rule, Britain has embraced the opposite: a left-wing government with a huge majority and a future that looks relatively stable and calm, dare we say it, even quite dull.

You cannot say the same for our neighbours and allies. After years of mocking and deriding the British for losing our political marbles, are our friends overseas now dropping their own?

Read more from Waghorn here ... 

David Lammy will head to Poland and and Sweden tomorrow, continuing a mini-European tour which began today in Germany. 

The new foreign secretary replaced Lord Cameron when he was appointed to Sir Keir Starmer's cabinet yesterday. 

A Foreign Office spokeswoman said: "Hitting the ground running, the visit will set the tone for the new foreign policy agenda and the importance of the relationship between the UK and our European allies to tackle shared challenges and increase security.

"Amongst a range of topics, co-operation on NATO and Ukraine will be important areas of discussion."

Sir Keir Starmer has announced further additions to his cabinet. 

The King has approved the following appointments... 

• Ellie Reeves as minister without portfolio
• Dan Jarvis MBE a Home Office minister
• Jim McMahon OBE as a levelling up minister
• Matthew Pennycook as a levelling up minister 
• Douglas Alexander as a business and trade minister 
• Jacqui Smith as an education minister

Former home secretary Jacqui Smith will also be made a peer, Downing Street announced. 

Ms Smith served in Gordon Brown's cabinet.

Sir Keir Starmer and Joe Biden's first phone conversation has been shared on the world leaders' respective Instagram accounts. 

The US president shared his congratulations for the newly appointed prime minister, adding "what a hell of a victory". 

You can listen to their conversation by clicking the embedded video below... 

View this post on Instagram A post shared by Keir Starmer (@keirstarmer)

A majority of people on the Sky News YouGov voters panel have expressed a cautious optimism about the new Labour government.

Half of the 46 constituencies represented by our panel changed party in the general election, with two-thirds of our voters backing a different party from their 2019 vote.

The panel has now delivered its verdict on the election result, which saw Labour win a landslide victory - ending 14 years of Tory rule.

There was some enthusiasm. One former Conservative voter told us: "I'm quite excited to look forward to what the future is going to bring and what this party is going to bring to the table."

But another described the result as "pretty depressing". They said: "I've never been a Labour voter, pretty sad... but I don't think they're going to do anything."

One former Labour supporter who backed the Greens said: "This has been a not-the-Tories and a pro-Reform vote, rather than a pro-Labour vote."

Read on here...

A bit more after Sir Keir Starmer's cancellation of the Rwanda deportation scheme.

A spokesperson for Yvette Cooper, the home secretary, has commented, saying: "The Rwanda scheme was an extortionate gimmick. 

"Over two years, five people were sent to Rwanda at a cost of at least £60m a person. 

"If the last prime minister had believed it would work, he wouldn't have called an election before a flight went off.

"During the election campaign, the previous government had released 218 people previously detained pending removal to Rwanda were bailed. 

"At this time, only two people remain in detention - these will be bailed in coming days."

The spokesperson also said Ms Cooper, the new home secretary, had briefed officials on how Labour was going to set up the Border Security Command.

"Plans are already under way to bring in additional capacity in the National Crime Agency to go after criminal smuggling gangs," the spokesman added. 

Any football fans reading our blog today may have seen a worrying statistic on England's penalty record under Labour governments on X from our lead politics presenter Sophy Ridge .

As Sophy says after England beat Switzerland moments ago...

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Global coalition launches to boost government climate plans ahead of critical UN deadline

A coalition of real economy leaders called “Mission 2025” – representing Mayors, Governors, CEOs, investors and citizens – has launched, urging governments to align their upcoming national climate plans with the Paris Agreement target of limiting global warming to 1.5°C.

It comes less than a year ahead of a crucial February 2025 deadline, when countries are required to submit enhanced climate plans (known as Nationally Determined Contributions) to the United Nations for the period 2025-2035.

Read the full press release

For media media inquiries please contact [email protected]  and  [email protected] .

Dear Heads of State,

Join us on Mission 2025 to tip the balance.

Holding the line on 1.5°C is not an aspirational target – it is a scientific imperative.

We – as representatives of the world’s largest businesses, networks, cities, regions, philanthropies – are ready to embolden governments to set more ambitious plans and accelerate implementation. We know this can unlock trillions in private investment to protect our nature, scale cheap renewable energy, support industries to compete in a low carbon economy, and safeguard living standards equitably for our people.

Nearly 200 governments have committed to publish by February 2025 upgraded national climate plans covering the period 2025-2035 that are intended to align all sectors of our economies with 1.5C degrees, above which science shows the human and economic impacts of climate change become exponentially costly. This provides a unique opportunity to make good on the promises of COP28 to transition away from fossil fuels and triple renewable energy.

Some still want us to believe that the transformation is stalling. We know that it is happening, often faster than we think. Progress towards a 1.5-aligned economy is underway – the technology is in place, investment is scaling, business appetite is rife, and public support is building:

• The core technologies of the energy transition have already reached tipping points, beyond which fossil fuel alternatives aren’t viable. Wind and solar are meeting over 90% of global power demand growth. Electric vehicles now make up 18% of global passenger vehicle sales and as much as 20% and 40% of sales in Europe and China respectively.
• The world now invests twice as much in clean tech as it does in fossil fuels.
• 55 of the world’s leading multinationals with combined annual revenues of over $4.4 trillion have published transition plans, in line with TCFD.
• Almost all 100 members of the C40 cities network have climate action plans which are aligned with the Paris Agreement, taking courageous steps to reduce fossil fuel use, increase community resilience and putting in practice a just transition. 75% of C40 cities are slashing per capita emissions faster than their respective national governments.
• 77% of global citizens want their governments to act urgently on climate.

New analysis shows that the falling costs of clean technologies and the proven feasibility of other solutions mean governments’ upgraded national climate plans can be at least three times more ambitious than existing versions. Scaling these solutions so they benefit citizens around the world  will require governments to set the appropriate policies to give business and private capital the confidence to invest at scale. The right incentives and enabling environment can and will mobilize ambitious corporate action. Establishing national and local government partnerships will help transform national targets into tangible action.

Now we need to go much faster, together: the focus must be on implementation.

We urge all leaders to seize this decade-defining opportunity to secure the long-term success of our national economies, our people and our nature, by aligning your updated plans with 1.5C.  

Help us unlock the momentum needed for this transition to happen at the speed and scale required, and with the equity deserved. 

We are united behind those leaders in a mission to protect what we love. 

It’s time to tip the balance.

• Adair Turner, Chair, Energy Transitions Commission
• Dr. Andrew Steer, President and CEO, Bezos Earth Fund
• Christiana Figueres, Co-Founder, Global Optimism
• David Atkin, CEO, Principles for Responsible Investment
• Sir David King, Founder and Chair, Climate Crisis Advisory Group
• Helen Clarkson, CEO, Climate Group
• Jens Nielsen, CEO, World Climate Foundation
• Jess Teutonico, Executive Director, We Are Family Foundation
• Johan Falk, CEO and Founder, Exponential Roadmap Initiative
• Joshua Amponsem, Green Africa Youth Organisation
• Justin Forsyth, Co-lead and Founder, Count Us In
• Laurence Tubiana, CEO, European Climate Foundation
• Nat Keohane, President, C2ES
• Leah Seligmann, Interim CEO, The B Team
• Mark Watts, Executive Director, C40 Cities,
• Maria Mendiluce, CEO, We Mean Business Coalition
• Peter Bakker, President and CEO, World Business Council for Sustainable Development
• Sandrine Dixon, President, Club of Rome
• Sherry Madera, CEO, Carbon Disclosure Project

Mission 2025 is made by possible by the radical collaboration of partners across the climate community, including but not limited to: ACT Climate Labs, the Bezos Earth Fund, The B Team, C2ES, C40, CDP, CECG, the Climate Champions, Climate Group, Club of Rome, Climate Crisis Advisory Group, Count Us In, E3G, Energy Transitions Commission, Exponential Roadmap Initiative, Green Africa Youth Organisation, Media Bounty, Potential Energy Coalition, PRI, We Are Family Foundation, We Mean Business Coalition, and the World Business Council on Sustainable Development (WBCSD). 

Mission 2025 is convened by Groundswell – a collaboration between Global Optimism, Systems Change Lab, and the Bezos Earth Fund.You can get in touch with the Groundswell team here:  [email protected] .

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