Everything has a purpose, so goes the old adage. And when you say everything, that means literally every single thing that you do, see, and feel. That includes your small business.
You might say that a small business doesn’t need a purpose, particularly a mission statement. However, it is as important as any small business accounting software that it uses for its operations. So before you immediately conclude that, it would be worth knowing what a mission statement is.
Basically, a mission statement is the company’s statement of its purpose. When the employees see it, they will be reminded of why the company they are working for is there. It will serve as a guide to its goals and what it will become in the future given 5 to 10 years.
Ideally, the mission statement should be formulated at the beginning, even before the business becomes a solid concept because it will guide the business owner with the many decisions that he will make. For some, it is the business owner who makes it while for some others, it is the result of the concerted efforts of the owner and the employees.
With this fact, there are still many businesses that do not come up with their own mission statements. There are also those who only make one for the sake of compliance or to have something to hang on their walls. More than that, a mission statement has to be made for several reasons. These include:
- It helps ensure proper branding. Branding is what makes your customers learn about your company and retain that name in their heads for the longest time. So that customers will know if they need you and your products and services, you have to define your company through your mission statement.
- It encourages employee excellence. A mission statement serves as a guide or reminder for your employees of what kind of company you are. With it, they are able to understand what the purpose is of your business and what social responsibility it has to its customers.
- Your mission statement bonds the company to the employees and both to the society. It is said that in our similarities, we are one. So if the employees and the company are one with their goals and views of themselves, then they are able to achieve more.
- The mission statement defines its customer base. Part of becoming a business is knowing your customers so you would be able to pattern your products and services according to their needs and demands. Along this line, it is important to identify your customer base which can be achieved by having a mission statement.
How can you make a mission statement?
- It has to be brief and concise. No one would like to read any mission statement that is too long. As it is just a statement, it should not exceed one hundred words while making sure that all necessary details are incorporated.
- It should also answer the 3Ws and 1H questions. It should answer who (your customers are), what (your services are), where (can people avail your services and products), and how (you do business).
- Avoid using jargons. Jargons are a set of words or terms or a language that is unique to a certain group of people. If you use these, you defeat the purpose of explaining what you are to people.
- Apart from the need to use accounting software for business, there is a need to develop the mission statement of your business to help it grow and create a name in the niche where it belongs.
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