Mission, Vision and Purpose are important elements of any business, including start-ups.
Written by Matteo Marica in his Column "What drives successful start-ups?" for The Young Economist.
Mission, Vision and Purpose are important elements of any business, including start-ups. These elements can help drive the decisions and provide access to financial resources, as well as retaining talents and providing long-term direction.
Start-ups are typically focused on short-term growth and are often looking for ways to expand their user base and drive revenues. Some key factors that can contribute to the success of a start-up include a strong business plan, an exclusive product or service, a motivated and skilled team and effective efforts for marketing and sales. In order to cover the costs of the business, it is also essential to have access to financial resources, such as funding from investors or debt loans.
But any business can raise funds and face steady growth only if some guiding principles of decision making are taken into account, which are Mission, Vision and Purpose.
- Mission: The mission of a start-up is a statement that describes the purpose of the business and its goals. It should highlight why the business exist and what it does, as well as what it hopes to achieve. The mission should be specific and should reflect the values and goals of the business.
Google’s Mission: “Our mission is to organise the world’s information and make it universally accessible and useful”.
- Vision: The vision of a start-up is a statement that describes the future that the business hopes to create. It should outline the long-term goals and aspirations of the business and provide a clear strategy of what the business hopes to achieve in the future.
Google Vision Statement: “To provide access to the world’s information in one click”.
- Purpose: The purpose of a start-up is a statement that describes the reason why the business exists and why it is important. It should outline the value that the business brings to its customers and to society as a whole. The purpose should be meaningful and should inspire the team to work towards achieving the mission and vision of the business.
In the past, businesses were successful if they sell a great product or service. However, modern customers are increasingly looking for firms with a positive impact towards the worlds, and which attempt to solve social issues. The most successful firms are those motivated by their social purpose for causes they believe in, for example environmental safeguard, justice reform and diversity.
To conclude, it is vital to distinguish between social purpose and firm’s mission on their Corporate Social Responsibility (#CSR): social purpose it is not a mission statement or vision (more short term and profit driven), but it is embedded within the company’s core.
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