Mission Statement vs. Vision Statement: An important aspect of corporate governance and providing clear messaging to stakeholders is the creation of a mission statement and a vision statement.

These are two distinct concepts.

And this article will provide an understanding of the differences.

When considering a mission statement vs. a vision statement.

Mission StatementImage result for Mission Statement vs. Vision Statement

A mission statement has a more ‘present day’ focus and really describes how a company plans on achieving its objectives.

This is really a statement to employees, shareholders.

And others with an interest in the organization that clearly articulates what an organization is doing.

How it’s going to do it, and ultimately why it’s doing it.

Read also: Top 58 Money Making Teaching Business 

For many small businesses this can seem like a trivial item but large organizations spend countless hours.

Meetings, and dollars considering their mission statement and its significance.

Changing a company’s mission statement can be a major undertaking with numerous consultations and even external advisors being hired.

Mission Statement vs. Vision Statement

For any growing business this should underline the significance of creating an effective mission statement.

Particularly when it’s not part of the business model (or not possible).

For the owner to personally convey the companies mission to everyone.

The key questions to answer in a mission statement include:

  • What does the organization do?
  • Who does the organization service (i.e. customers)?
  • What benefit does the organization provide?

Read on: 6 Tips on Air Freshener Production Business 

Vision Statement

A vision statement has more to do with the future.

And really describes what an organization plans or hopes to be in the future.

This is more of an inspirational or motivational statement that is meant to drive employees and also clearly demonstrate an organizations goals to stakeholders (customers, investors, etc.).

A vision statement shouldn’t really discuss the present state of the organization.

Mission Statement vs. Vision Statement

But more what the organization wants to be and how it wants to be viewed.

To be effective the message should be clear, optimistic, and of course realistic.

An unrealistic vision statement, i.e. a corner store owner saying that in five years the company will be bigger than Walmart, won’t be motivating or inspirational but end up being comical.

See also: How to Start Plastic Recycling Business

The key questions to answer in a mission statement include:

  • Where does the organization want to be in 5 years or 10 years?
  • How do we want to get there?

Mission Statement vs. Vision Statement

When considering a mission statement vs. a vision statement the key aspect to remember is the current vs. future context.

A mission statement is where you are and why you do it, a vision statement is where you are going to be and how you want to get there.

While these may seem like soft topics it can be very important to ensure that the mission and vision of an organization or company’s leadership is clearly conveyed to the people who need to know it.

Employees, shareholders, and other stakeholders can be provided with quick answers to how an organization views itself and where it plans on being in the future.

Conveying this message to them in two well-thought-out statements can be a very useful communication and governance tool.

Mission Statement vs. Vision Statement

Essential Sections

A formal business plan is an important document for any business.

Entrepreneurs just starting out may find putting their thoughts, goals and in some cases dreams to paper an intimidating process. Nevertheless, it is vital to the success of your business.

A business plan details every aspect of business operations.

Writing a business plan need not be an overwhelming task if you consider the following information.

Read on: How to Start Basket-Weaving Business

Purpose of Business Plan

Before drafting a business plan it is important to understand why this document is so important to the success of your business.

Your business plan will detail all aspects of your business operations.

From marketing to organization and management.

This document not only helps owners see where the business is headed.

It is also required by most lenders and potential investors.

9 Essential Parts of a Business Plan

There are several essential elements of a good business plan according to the Nigerian Small Business Administration.

Focus on the following nine elements when drafting a business plan for your small business.

Read also: 10 Tips about Plastic Production business 

Executive Summary

Although this is the first section readers will see, it should be the last section of your business plan written.

The executive summary is an overview of the entire business plan.

and will either capture the readers attention or make them lose interest before reading any further.

A crucial part of the business plan, the summary will basically tell readers the history of your company.

Where it is today and what direction it is headed.

This is where you sell other on the potential success of your business idea

Mission Statement vs. Vision Statement

Market Analysis

Include in this section a description of the industry.

Information on your target market, evaluation of your competition and market test results.

Company Description

Brief description of your company including the nature of your business and factors that will make your business a success.

Include a description of how your product or service will meet a need and any potential clients identified as having that need.

See also:  6 Tips to Start Roofing Business 

Mission Statement vs. Vision Statement

Management and Organization

Details about ownership of company, management and board of directors (if applicable).

Qualifications, experience and education are important to provide readers with an insight.

As to how these individuals fit into the organizational structure.

And what they can bring to the table in their designated roles.

Read also: How to Start Fertilizer Supplying Business in Nigeria

Mission Statement vs. Vision Statement

Marketing and Sales Management

Describe the marketing strategy and how you intend to drive sales.

Include market penetration strategy, growth strategy, distribution strategy and communication strategy.

Sales strategies should also be included to provide information on sales staff and activities.

Mission Statement vs. Vision Statement

Product or Service Line

Describe to readers what you are selling and how the product or service will benefit current and potential customers.

Provide evidence that your company offers a product or service that serves as a solution to a problem identified by your target market.

Information regarding service or product costs, suppliers and any new services which may be added should be included in this part.

Mission Statement vs. Vision Statement

Request For Funding

Include current and future funding requirements, how that funding will be used and long range strategies that impact funding request.

Any factors which directly impact your ability to repay your loan should be included.

Such as acquisitions, sale of the business in future or a buyout.

Financials

Both past financial data as well as prospective financial data will be required by potential lenders.

Include the following financial statements for the past three to five years; cash flow statements.

Balance sheets and income statements.

The same statements should be prepared with forecasted data for the next five years.

Mission Statement vs. Vision Statement

Appendix

A separate section which should not be included in the main body of the business plan is the Appendix.

Proprietary and confidential information may be part of the appendix and as such should not be easily accessed by all individuals requesting your business plan.

Creditors may need access to this information, therefore it should be available on an as-needed basis.

Documents which may be included in the appendix.

Mission Statement vs. Vision Statement

Include market study details, reference letters, personal and business credit history.

Patents, permits, contracts and contact information for consultants.

As you can see, writing a business plan requires a commitment of time.

And resources to ensure all relevant information is present.

A crucial document in securing funding from creditors and investors.

The business plan should be well organized with a focus on specific strengths that set your business apart from the competition.

Get More, Click Here.