- August 29, 2022
- By Joshua Reid
- Advice , Company Structure
- goals , growing a business , mission , mission statement , start-up company , startup , startup company
Why Does a Start-Up Company Need a Mission Statement?
No matter what type of business a CEO creates, there needs to be a shared vision amongst the employees, managers, and supervisors. For start-up companies, this is even more so. Start-up companies are companies that are in the beginning stages of their development. They not only have the task of building their business from the ground up, but according to Investopedia’s definition, “Until the business gets off the ground, a start-up is often financed by its founders and may attempt to attract outside investment.”
Because founders often finance their own start-up companies, it’s their responsibility to craft the vision or mission statement for their company. Companies will run into issues if they don’t focus on a product that is in high demand. Problems could also arise if the founder of the start-up doesn’t have a mission statement that defines the goals and values of the company.
Why does a start-up company even need a mission statement?
According to a 2019 article by ULP University Lab Partners titled “Why Mission Statements and Company Values are Essential for any Startup,” having a mission statement would give a start-up company the ability to identify themselves and the purpose of their company. A mission statement would allow the company to “more effectively develop a business strategy going forward.” Having a mission statement also enables start-up companies the opportunity to refocus if a particular product or service falls short of their values.
“When you’re building a mission statement, keep in mind that you need to know who your target audience is in order to do so. Your mission statement sends a message to the public, which is why this message must be centered around your core audience.”
University Lab Partners
By knowing their target audience in the beginning, crafting a mission statement that speaks to that specific audience would allow a start-up company to market itself in a manner that draws their demographic. Additionally, as the start-up company grows and expands, the mission statement could also expand to encompass a broader range of demographics. However, the article does note a piece of advice that should be a reminder for start-up companies:
“Do not set unrealistic goals in your mission statement… If the goals that you set are unattainable, this could negatively affect the morale of your employees.”
University Lab Partners
If a start-up company creates unrealistic goals, not only could it negatively affect employees’ morale, but it could also affect the trust the consumers have for the company. As the start-up company expands, the founders and leadership team could subsequently broaden the company’s goals without sacrificing their core values and mission statement. By having a mission statement, start-up companies can better connect with their target audience while steadily growing their company. By connecting with your target audience early on, start-up companies can also get a sense of what kind of service and products their audience is looking for.
In a 2021 article by Indeed titled “Why Is a Company Mission Statement Important?” the editorial team points out nine reasons why start-up companies need a mission statement:
- Creating identity.
- Attracting talent.
- Guiding culture.
- Developing purpose.
- Improving performance.
- Building community.
- Envisioning the future.
- Aligning behaviors.
- Encouraging critical thinking.
Each of the points the article makes should be something that founders and the leadership team of a start-up company think about when discussing how they’ll create their mission statement. Perhaps the company wants to envision the future of the company or improve its performance. Creating a mission statement and community will help businesses grow depending on their company’s values.
Bibliography
Grant, Michelle. “Startup.” Investopedia. Accessed 19 July 2021.
“Why Is a Company Mission Statement Important?.” Indeed. Accessed 19 July 2021.
“Why Mission Statements and Company Values are Essential for any Startup.” ULP University Lab Partners. 19 July 2021.
Photo by Mika Baumeister on Unsplash
