What Is a Company Statement: Everything You Need to Know
What is a company statement? A company statement, or a mission statement, clarifies the reason for the existence and the goal of the business.3 min read
What is a company statement? A company statement, or a mission statement, clarifies the reason for the existence and the goal of the business. A company statement should clarify who are the customers you serve, what products and services you offer, and your business or service location. An important part of your business, the company statement clarifies the "who" and the "what" of your business goals.
It is common for a company statement to change with the business as the business grows. A mission statement is an important foundational tool for your business, and it needs to be strong and well thought out.
Mission Statement and Vision Statement
A company may have a mission statement and a vision statement. The mission statement gives the reason behind the company, and it usually has a general overview of the:
- Organizational structure
This then leads into the vision statement, which outlines the future goals and aspirations of the business. Together, these statements define the foundation of the business, its current status, and the outlook for the business in the future. This is very helpful for both internal and external customers such as:
- Board members
A mission statement is not something that is done in the beginning and forgotten about; it should be consulted during every major decision. Focusing on the principles of the company statement can help refocus communication between team members and work through ideas.
Advantages of a Mission Statement
There are several advantages to having a company statement, or a mission statement. When making vital decisions for the future of the company, it is an important reference point to make sure your decisions align with your goals and vision.
- A mission statement and vision statement are very helpful in making and clarifying company goals. By better understanding the purpose of your company, it becomes easier to make clear goals to lead you in the right direction.
- Once the business has some strong, clear goals, a strategy can develop to help your business reach those goals. In doing so, you create a strong foundation for your business to ensure its stability through any future challenges.
- A mission statement will also help you focus your attention on what is important. By separating only the most important purpose of your company, it can give you clarity during times of confusion.
- Developing your company statement may instigate new and innovative ideas by shifting your perspective, which can benefit your business tremendously.
- Mission statements are important in shaping how employees think about their job and the overall culture of the company as a whole. It will help to attract candidates with similar values to those of the business.
- Culture is an important component in employee happiness. When there is a clear, well-communicated mission statement, employees know what is expected of them, and this can shape their work to help meet the mission. Not only will employees feel more secure, but they will feel more loyal towards the business.
- As you continue to grow and face challenges, the mission statement will remain a consistent message your employees can rely on.
- A strong company statement is not just for internal customers but external customers as well. Customers will look to your statement to learn more about your company's values and goals.
- Your mission statement should be exciting and incite action by detailing not only your mission but how the company will accomplish the mission. The company statement should reflect your determination to solve your customer's problems through your products and services.
Writing an Effective Mission Statement
To write an effective mission statement, have in mind a market-defining story, and put yourself into the mindset of someone who would actually buy your product or service. Ask yourself the important questions:
- Why does this person want to buy your product?
- What problem does it solve?
- How does he or she find your product?
Your target customer should be kept in your mind as you are crafting your statement. Your statement should also tell people the good that your business does for the community, for employees, and for customers. It should create a sense of trust and tell the customer why your business is unique and make him or her feel good about supporting your mission.
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