Why Defining a Mission is a Top Priority for a Founder

Defining a mission statement is one of the fundamental challenges that every founder faces when launching a startup. A mission statement is a concise summary of a business’s purpose and values, and it plays a crucial role in guiding the company’s direction, strategy, and identity. Yet, despite its significance, many startup founders still struggle to create a clear and compelling mission statement representing their business’s essence.

Have you defined your startup’s mission?

In this article, we will explore why having a clear mission statement is essential for startup success, its positive impact, and how a weak or nonexistent mission statement can backfire on business.

What does the mission statement do?

1. Provides direction and helps a startup to identify its core purpose and values. Formulating a mission statement sets off a know-yourself process and allows founders to define what they do, why, and for whom. YCombinator states: “Building a Startup Is Not About Building a Product, It’s About Solving a Problem”. To build a unicorn, one has to solve a specific problem, addressing a significant audience. That’s why the mission serves as a foundation for strategic planning by making setting achievable goals in the long term possible. Understanding your roadmap for 5–10 or more years is vital for building a billion-dollar company.

NB: Since defining a startup’s mission equals understanding global goals and direction, a startup with a clear mission is more likely to attract investors.

1. Aligns the team around a common purpose and values. Sales win rates can increase by up to 38% when sales and marketing teams are aligned. A defined mission can provide a sense of belonging and motivation and let members understand how their roles contribute to the company’s success. Employees who believe that their personal values and principles align with their employer’s mission, vision, and values are almost 3 times more inclined to recommend their company as an excellent workplace to others.
2. Helps with branding/marketing and differentiates a company from competitors. This means a mission statement can help the startup stand out in a crowded market by clearly articulating what the startup stands for. Having determined the positioning in the market, a startup identifies its target audience and tailors its branding and marketing efforts to that audience. 53% of consumers feel more connected to brands whose values align with theirs.

So why haven’t you defined the mission yet?

Despite the statement being an essential issue for a startup, defining the mission is still a problem for some founders.

How to come up with a mission statement?

1. Start with your “why”: Define what your company does and why it matters. Identify your target audience, and figure out who your customers are and what they need.
2. Create a company values framework: Identify the values important to your company, such as innovation or sustainability, to create a foundation for your mission.
3. Draft a mission statement: Write a catchy statement summarizing your company’s purpose and values.

• Keep it simple and concise: Your mission statement should be easy to understand and communicate, so keep it succinct and simple.
• Make it measurable: Try to make your mission statement measurable, so you can track progress and determine whether you’re achieving your goals.

4. Test your mission statement: Try it on others to ensure it resonates with your audience.

5. Integrate your mission: Use your mission to guide branding and make sure it’s integrated into your company culture.

A piece of inspiration:

1. Google: “To organize the world’s information and make it universally accessible and useful.”
2. Meta: “To give people the power to share and make the world more open and connected.”
3. Amazon: “To be Earth’s most customer-centric company.”
4. Uber: “To help people go anywhere and get anything and earn their way.”
5. Microsoft: “To empower every person and every organization on the planet to achieve more.
6. Tesla: “То accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”
7. Dropbox: “To design a more enlightened way of working.”
8. InDrive: “Challenging injustice.”
9. Zoom: “To make video communications frictionless and secure.”
10. TED: “Spread Ideas, foster community and create impact.”

In conclusion, while defining a mission statement may seem like heavy lifting for some founders, it’s should be taken as a fundamental element in building a successful startup. As Albert Einstein once said, “If you can’t explain it simply, you don’t understand it well enough.” In the same way, if founders can’t clearly articulate the breathtaking company mission, it’s unlikely that their employees, customers, and investors will be able to support their vision.

Do you run an innovative tech startup? We are investing in early-stage revenue-generating software startups worldwide and would love to hear from you! You can reach us at info@leta.vc.