How to Create a Great Business Purpose Statement
Every successful business is built on a purpose statement.
A business purpose statement is a short, clear summation of what your business does and why it exists. It should be concise, specific, and describe the main goal of your business. It is an essential component of any company’s culture that should show a clear, concise description of what makes your business different from other companies in your industry and how you intend to grow in the future.
A purpose statement is the foundation of a successful business – it gives direction and clarity to your team, and helps you make decisions that align with your overarching goals.
Starting with your business purpose is crucial. You, your team, and anyone who represents your company should be able to articulate why you exist because your purpose affects all aspects of the business:
- It has an effect on the way you talk about your team, how you see the work, and how you think about your business
- It influences how you’re perceived in the marketplace
- It impacts what type of person you need on your team, how you show up in the world, and the kind of clients who will buy from you
The Importance of a Business Purpose Statement
A business purpose statement is important because it:
- Helps you clarify your business goals
A business purpose statement can help you clarify your business goals. And by gaining clarity on your goals, you can better focus your time and energy on the activities that will help you achieve your objectives.
- Allows you to better articulate your brand message
A well-crafted business purpose statement can help you effectively communicate your brand message to customers and clients. By taking the time to define your business purpose, you can ensure that your marketing efforts are more focused and effective.
Your business purpose statement should capture the essence of your brand and what makes it unique. Keep in mind that your statement will serve as a foundation for all of your marketing materials, so make sure it is clear and concise.
- Helps you stay on track
A business purpose statement can help business owners stay on track by reminding them of why their business exists in the first place. By having a clear and concise statement of purpose, business owners can create a roadmap for themselves and their employees, which can make it easier to stay on track and avoid distractions.
- Make better decisions based on goal progress
In addition, the business purpose statement can also be used as a tool to measure progress and identify areas where changes need to be made. By periodically revisiting their statement, business owners can ensure that they are still on track and making progress towards their goals.
What Should Be Included in a Business Purpose Statement
A business purpose statement is a short, clear summation of what your business does and why it exists. It should be easy to understand and remember, and should encapsulate the core values and goals of your business.
There are a few things you should remember to create an excellent business purpose statement.
- Make sure your statement is clear and easy to understand. It should encapsulate your business’s core values and goals, and it should be something you can remember and recite easily.
- Make sure your statement is relevant to your business. It should be something that inspires you and drives you to work hard every day.
- Realistic. Make sure it’s achievable. You don’t want to set yourself up for disappointment by making unrealistic goals.
To further understand how you can establish a great business proposal statement, here is a guide to get you started:
Start with the short version.
The first step is to write a one-sentence statement of your company’s purpose. This exercise may appear silly, but it can help you focus on what is truly important to your company. Make sure to get others involved with the project because they can provide feedback on whether or not the statement accurately describes what they believe the business does.
The sentence should not be too long or too boring, but should contain just enough information to describe the central concept of your organization. If it becomes too long, split it into two sentences: one describing what your organization does and another explaining how it works.For example , the sentence “Our company is a global provider of software and services for finance, health care and technology businesses” would be too long. A better option might be, “We help our clients improve their business operations through information technology.”
Include your mission and vision statements.
It’s important to include your mission and vision statements in your purpose statement. Your mission statement is the reason for your business, while your vision statement helps guide you toward that goal. Even if you don’t have a written mission or vision statement, they can still be helpful when deciding how to prioritize tasks at work so that they align with what’s most important to you personally.
Here’s an example: “Todd’s Bakery exists so that people may eat delicious baked goods every day.”
Use clear, easy-to-understand language.
There are several ways to use clear and easy-to-understand language in your business purpose statement. First, avoid jargon and industry-specific terms that may be confusing to outsiders looking at your company. For example, if you’re writing about a marketing agency, don’t say that you specialize in “brand strategy” or “digital advertising.” Instead, keep it simple: “We help companies create effective strategies for their brands.”
Define the people you serve by looking at them as individuals.
To write an effective purpose statement, you must first define the people you serve. Looking at them as individuals is a good way to do this.
For example, assume you’re a service provider who wants to help people in your community improve their quality of life by teaching them better financial habits. You know from your conversations with them that their main issue is not having enough money on hand when they need it for unexpected expenses like car repairs or medical bills. You also know that they want assistance in saving more money so that they can live happier lives without having to worry about finances so much.
Your research has revealed that these customers handle money in one of two ways: they budget or they don’t budget at all. You could offer different services depending on the type of person each customer is, but if the goal is simply to help everyone get out of debt and save more money while improving their overall financial health rather than just getting rid of one specific problem then this approach would be ideal for defining your target audience as individuals rather than types.
Think about the specific problems you solve and how they impact your customers’ lives.
To write a meaningful business purpose, you need to learn about your target audience. You must be able to see the world through their eyes and understand what they value. This can be obtained by speaking with them directly, but it is also beneficial to examine data or surveys that provide an idea of what they want.
Next, think about specific problems that you solve for your customers. For example:
- We help our customers save money by reducing their energy costs.
- We help our customers feel more confident in their ability to get results by teaching them proven methods for getting things done more efficiently.
Now ask yourself how this impacts the lives of those who are using your product/service/software? For example, If you sell paper clips, one advantage is that people will not have to buy new ones because the old ones will be clipped together properly, allowing more of them to be used before having to throw away those that bend out of shape from everyday use in an office environment.
Make sure your purpose statement is something you can achieve as a company.
You should make sure your purpose statement is something you can achieve as a company. A good business purpose statement should be realistic and achievable, so that it’s not just some lofty dream that never comes to fruition.
If your goal is to become the most trusted brand in your market, but no one has heard of you or believes what they hear about you, this is unlikely to happen anytime soon and if it does, it may not be sustainable.
It’s important for every company to have a business purpose statement aimed at helping them achieve their goals. However, if those goals are unrealistic or unattainable for them right now, this can lead to problems down the road. For example, if my goal was to “be the largest restaurant chain in North America,” but I only had one location and had no idea where my next customer would come from, that goal would not be met.
Be clear about who you are as a company and what you want to achieve.
When creating a purpose statement, it’s important to be clear about who you are as a company and what you want to achieve. A good business purpose statement is focused on the most essential points in your business, the ones that will best help people understand what you’re about. For example, if you have a business that provides accounting services to small businesses, it’s not enough to say “We help small businesses.” This is too vague and doesn’t really tell anyone what you do. Instead, your purpose statement might be something like: “We provide affordable bookkeeping and accounting services to small businesses in the area.”
A purpose-driven business
Creating a business purpose statement can be a challenge, but it’s worth taking the time to get it right. When done correctly, it can help you focus on what’s important and inspire you to reach new heights.
Creating a purpose statement is not a one-time exercise – it should be reviewed and updated regularly as your business grows and changes. But taking the time to craft a well-defined purpose statement will pay off in spades, by helping you build a thriving business that makes a positive impact on the world.
Do you want to establish a solid foundation for your business with a well-crafted business purpose statement but don’t know where to start? Check out our business growth solutions!