Create an Effective Business Plan Mission Statement

Posted on May 15, 2015 By

Effective business plans needs mission statements.  It immediately communicates the business plan goal.  It should be written in clear language and only be three sentences long.

Don’t make them guess, ponder or wonder what the goal is.  Compare the following:

  • Deliver 200,000 units this year

vs.

  • Inspiring Puzzle Designs that Stimulate the Mind

One is a sales goal and one is a mission statement.  It’s very possible that the operational goal is what the funding will enable.  However, the mission goal let’s the banker or investor know what the overall goal is.  Inspiring Puzzles.

The 200,000 puzzles sold this year is a sales goal.  Perhaps the loan will pay for the additional graphic artist and sales people that will be needed to fulfill the sales goal.  But what type of puzzles are being sold?  Inspiring.

The next time you apply for loan, are you sending in your sales goals?  Or are you providing your mission statement?

Puffed Up Mission Statements

The other mistake that I’ve seen is puffed up and global mission statements. Like:

  • Reverse Global Warming

If your mission statement is comfortably vague like the above, perhaps you should sharpen the mission statement.  Perhaps:

  • Reduce the Impact of Global Warming in Puget Sound

So now, it’s more tightly defined and gives a reader the understanding of what you are trying to accomplish.  You could reduce the focus even more by saying:

  • Global Warming is killing Puget Sound Oysters.  Let’s find a way to fix that.

No Mission Statement

What happens if you don’t have any mission statement whats so ever?  I was asked to vet a business plan a few weeks ago.  It wandered here and there and then back again.  I paged through it looking for the business goal, I read lots of business plans, and I had no idea what it was.  Were they creating a company?  Did they need to hire employees?  Is for a web app?

Don’t assume that the reader is familiar with your company and it’s goals.  It’s easy to be too close to the goal to effectively communicate that your company needs to update it’s app to keep current with mobile search.

 

 

 

 

Laura Dodson
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Laura Dodson

Laura Dodson, CPA is a Seattle Financial Planning & Analysis consultant.She has attended Western Washington University, Pierce College and Bates Technical College. She has written four accounting instructional books. She has worked for small family businesses, mid-sized businesses and a Fortune 500 company.She founded and operated Blue Stone Accounting LLC for five years.She currently runs Paper Butterfly Forge LLC.
Laura Dodson
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