Defining your business’s purpose is not an easy task. Every business has its own brand, so in setting your mission statement, you should identify the attributes of your product or service that define the brand and its long-term positioning.
When delineating your mission statement you should answer 3 important questions:
- What is the exact reason of your existence (what is the market opportunity you have identified)?
Identifying the set of favorable circumstances that create a need or an opening for a new business is not easy. To make sure that as many as possible favorable circumstance are present when identifying an opportunity you must investigate whether there is really a market need and whether the solution you have for this need is feasible. To do that you should see if you can answer the following questions:
- Is there really a market? Can you frame and visualize your target market as specific as possible?
- Is the market large enough? Can you recover your investment in a decent amount of time?
- Is the market sufficiently unhappy with existing products? Is the competition tough?
- Are the economic conditions favorable? Will the market be able to patronize your product/service long enough?
- What are you doing to solve the problem (what is your business core activity)?
The solution you believe best capitalizes the opportunity you have identified must be clearly stated. Avoid metaphors or fancy wording and make sure everyone understands exactly what are you doing. A common mistake here is not to distinguish the business concept from the opportunity. In general when you define your business concept you must think what makes your product or service stand out. By describing its uniqueness and perks you will make sure that your business will remain in the market long enough to guarantee you the reward required.
- What are the principals that you follow in your day to day business?
Letting customers know how you are going to go about your business will improve their confidence in the product or services you are offering. The values that you stand for are like the tools that you use to accomplish your mission. Hence believing in them it’s essential. They should not be simple words but a reflection of your credence in achieving the sought success.
To exemplify the three points mentioned above here is an analysis of a mission statement.
Kraft Foods
Mission: “Anywhere, anytime, everyday. No matter what the occasion, we take food to heart. Our higher purpose, make today delicious, is about much more than the products we make. It defines us, unites us, and inspires us to make a delicious difference in our company, in our communities, and in our world.”
The reason: to make food available “anywhere, anytime, everyday”
The business: to make delicious food
The values: creativity, union, care for others
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