where is the mission statement in a business plan

How to Write a Mission Statement + 10 Great Examples

16 min. read

Updated March 20, 2024

Why is an effective mission statement so valuable? It’s worth taking a minute to ask what it is about certain brands that keep us coming back. What is it about them that makes us spend more time, money, or effort over other options? Is it the price? Maybe the convenience? Or is it something more?

The brands and businesses that we really connect with do more than just supply a product or service . They showcase a purpose, a mission that we can get behind. This can be displayed in how they interact with customers, the organizations and communities they support, and even the way they develop their products.

And there’s no better way for a business owner to showcase this purpose, than through a well-written mission statement.

On this page

• What is a mission statement?

Mission statement or vision statement?

• Why write a mission statement?
• How to write a great mission statement
• 10 Examples of Great Mission Statements

A mission statement is a simple action-oriented statement that explains your company’s purpose. It summarizes what your company does for customers, employees, and owners, and typically includes general descriptions of your organization, its core function, and its goals. In short, you’re explaining what you do and why you do it within a mission statement.

Depending on the focus of your business, your mission statement may be even broader. Explaining not just how you serve your customers and employees, but your community and the world at large. Some businesses even opt to separate this larger aspiration into what’s known as a vision statement.

A vision statement is exactly what it sounds like. It’s a vision for the direction of your company and what it aspires to be. 

These two statements aren’t really interchangeable. They both reflect the purpose and goals of your business, but serve completely different purposes. Your mission statement is the roadmap to achieve your vision. Your vision statement is a much broader picture of the aspirations for your business. 

These can be completely separate written statements for your business, or they can be combined into a more comprehensive mission statement. Having all three does allow you to utilize them for different business purposes, so it may be worth developing variations over time.

Speaking of variations, it’s important to note that your mission statement will likely evolve over time as your business grows and changes. So, don’t be afraid to make adjustments when it seems necessary, and avoid looking for the perfect version of your mission statement. 

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I’ve had a 30-year love-hate relationship with mission statements. I’ve read thousands. I love it when a mission statement defines a business so well that it feels like strategy—which does happen—and I hate it when a mission statement is generic, stale, and completely useless. 

Just because a traditional business plan often includes a mission statement isn’t a reason to do one. If it’s not going to be useful for you and help guide your business, don’t bother. The vast majority of the mission statements are just meaningless hype that could be used to describe any business.

Don’t fall into the trap of writing a mission statement just because some checklist or expert said you had to. There are actually sites that poke fun at how most mission statements use vague, high-sounding phrases to say nothing. You should write a mission statement if you want to add clarity to your business goals and you want to get your employees, investors, and customers to understand what your organization is all about. 

Developing your company’s first mission statement, or writing a new or revised one, is your opportunity to define the company’s goals, ethics, culture, and norms for decision-making. The daily routine of business gets in the way sometimes, and a quick refresh with the mission statement helps you take a step back and remember what’s most important: the organization has a purpose. 

So how do you make a useful mission statement? Over the decades I’ve spent reading, writing, and evaluating business plans , I’ve come up with a process for developing a useful mission statement, and it boils down to these five steps.

1. Start with a market-defining story

A really good market-defining story explains the need, or the want, or—if you like jargon—the so-called “why to buy.” It defines the target customer or “buyer persona .” And it defines how your business is different from most others, or even unique. It simplifies thinking about what a business isn’t, what it doesn’t do.

Imagine a real person making the actual decision to buy what you sell. Why do they want it? How did they find your business? What does it do for them? The more concrete the story, the better. And keep that in mind for the actual mission statement wording: “The more concrete, the better.”

This isn’t literally part of the mission statement. Rather, it’s an important thing to have in your head while you write the mission statement. It’s in the background, between the words. If you’re having trouble getting started, make a quick list of what your company does and doesn’t do.

2. Define what your business does for its customers

Start your mission statement with the good you do. Use your market-defining story to suss out whatever it is that makes your business special for your target customer .

Don’t undervalue your business: You don’t have to cure cancer or stop global climate change to be doing good. Offering trustworthy auto repair, for example, narrowed down to your specialty in your neighborhood with your unique policies, is doing something good. So is offering excellent slow food in your neighborhood, with emphasis on organic and local, at a price premium.

This is a part of your mission statement, and a pretty crucial part at that—write it down.

If your business is good for the world, incorporate that here too. But claims about being good for the world need to be meaningful, and distinguishable from all the other businesses. Add the words “clean” or “green” if that’s really true and you keep to it rigorously. Don’t just say it, especially if it isn’t important or always true.

For example, Apple Computer’s 2020 mission statement is:

“Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms—iOS, macOS, watchOS, and tvOS—provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it..”

That one obviously passes the test of defining the company with flying colors. Nobody could mistake that mission for generic hype. And it’s an interesting change from the early mission as defined by founder Steve Jobs:

“To make a contribution to the world by making tools for the mind that advance humankind.”

Ikea, on the other hand, starts its mission statement with something that could be any company anywhere. “Our vision is to create a better everyday life for the [sic] many people.” To its credit, it goes on to define a “rest of the mission” that could only be IKEA:

“We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”

And note, in this mission statement, how Sweetgreen incorporates a world vision into a product-oriented mission statement:

“Founded in 2007, Sweetgreen is a destination for delicious food that’s both healthy for you and aligned with your values. We source local and organic ingredients from farmers we know and partners we trust, supporting our communities, and creating meaningful relationships with those around us. We exist to create experiences where passion and purpose come together.”

3. Define what your business does for its employees

Good businesses are good for their employees too or they don’t last. Keeping employees is better for the bottom line than turnover. Company culture matters. Rewarding and motivating people matters. A mission statement can define what your business offers its employees.

My recommendation is that you don’t simply assert how the business is good for employees—you define it here and then forever after make it true.

Qualities like fairness, diversity, respect for ideas and creativity, training, tools, empowerment, and the like, actually really matter. However, since every business in existence at least says that it prioritizes those things, strive for a differentiator and a way to make the general goals feel more concrete and specific.

Don’t worry about being fully unique

With this part of the mission statement, there’s a built-in dilemma. On the one hand, it’s good for everybody involved to use the mission statement to establish what you want for employees in your business. On the other hand, it’s hard to do that without falling into the trap of saying what every other business says.

Stating that you value fair compensation, room to grow, training, a healthy, creative work environment, and respect for diversity is probably a good idea, even if that part of your mission statement isn’t unique. That’s because the mission statement can serve as a reminder—for owners, supervisors, and workers—and as a lever for self-enforcement.

If you have a special view on your relationship with employees, write it into the mission statement. If your business is friendly to families, or to remote virtual workplaces, put that into your mission.

You may not need to focus on employees

And this is rare in mission statements. The vast majority are focused on messaging for customers. My recommendation here is not the norm. I include it because it’s good practice, even though not common.

While I consulted for Apple Computer, for example, that business differentiated its goals of training and empowering employees by making a point of bringing in very high-quality educators and presenters to help employees’ business expertise grow. That was part of the culture and, to my mind, part of the mission; but it wasn’t part of the mission statement. It could have been.

American Express, however, includes the team in its mission:

“We have a mission to be the world’s most respected service brand. To do this, we have established a culture that supports our team members, so they can provide exceptional service to our customers.”

4. Add what the business does for its owners

In business school, they taught us that the mission of management is to enhance the value of the stock. And shares of stock are ownership. Some would say that it goes without saying that a business exists to enhance the financial position of its owners, and maybe it does. However, only a small subset of all businesses are about the business buzzwords of “share value” and “return on investment.”

In the early years of my business, I wanted peace of mind about cash flow more than I wanted growth, and I wanted growth more than I wanted profits. So I wrote that into my mission statement. And at one point I realized I was also building a business that was a place where I was happy to be working, with people I wanted to work with; so I wrote that into my mission statement, too.

However, this element too, as with the suggestion about including employees, is unusual. Few mission statements do it. That’s understandable, since most mission statements are outward-facing only, aimed at customers and nobody else.

Still, some of the best mission statements incorporate a much broader sense of mission that includes, or at least implies, the mission of ownership.

Warby Parker, an eyewear company, does a great job at voicing a higher mission that includes customers, employees, and owners.

“Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price while leading the way for socially-conscious business.”

5. Discuss, digest, cut, polish, review, and revise

Good mission statements serve multiple functions, define objectives, and live for a long time. So, edit. This step is worth it.

Start by considering developing a full mission statement for internal use and using a customer-facing subset for general publication. That’s common. Many companies have segmented mission statements, with sections set aside and categorized by type or goal. Use bullet points or sections if that works for you. Part of the reason people confuse mission with mantra and vision is that many businesses use them together, and many others also redefine them to fit their context. So what a company does for customers is often called vision, despite the formal definition.

Remember, form follows function, in mission statements, as in all business writing. Make it work for your business. Or don’t do it at all. If you want to call it a vision, and that works for employees and customers, then do that.

Cut out general terms

As you edit, keep a sharp eye out for the buzzwords and hype that everybody claims. Cut as much as you can that doesn’t apply specifically to your business, except for the occasional special elements that—unique or not—can serve as long-term rules and reminders. Unique itself, the word, means literally, the only one in the world. Use it sparingly. Phrases such as “being the best possible,” “world-class,” and “great customer service” mean little because everybody uses them. Having great customer service is way harder than writing that into a mission statement.

Read other companies’ mission statements, but write a statement that is about you and not some other company. Make sure you actually believe in what you’re writing—your customers and your employees will soon spot a lie.

Then, listen. Show drafts to others, ask their opinions and really listen. Don’t argue, don’t convince them, just listen. And then edit again.

And, for the rest of your business’s life, review and revise it as needed. As with everything in a business plan, your mission statement should never get written in stone, and, much less, stashed in a drawer. Use it or lose it. Review and revise as necessary, because change is constant.

• Great Mission Statements: 10 Examples

If you’re looking for some inspiration to get you started on your own mission statement, here are a few of my favorites.

1. Southwest Airlines

“The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.”

What’s most interesting about Southwest’s mission statement is that they don’t mention anything about getting from point A to point B. Their mission is all about how they differentiate what, these days, can be seen as a commodity experience. They also focus on their own employees and the “spirit of the company”, not just the customer experience.

2. Urban Outfitters

“A lifestyle retailer dedicated to inspiring customers through a unique combination of product, creativity and cultural understanding. Founded in 1970 in a small space across the street from the University of Pennsylvania, Urban Outfitters now operates over 200 stores in the United States, Canada, and Europe, offering experiential retail environments and a well-curated mix of women’s, men’s, accessories and home product assortments.”

Urban Outfitters focuses on the experience that they deliver and the focus on what they do. Their mission drives what their stores look like and what their goal is: to inspire. They also nod to their heritage of starting small and growing.

“At Recreational Equipment, Inc. (REI) we believe a life outdoors is a life well-lived. We believe that it’s in the wild, untamed and natural places that we find our best selves, so our purpose is to awaken a lifelong love of the outdoors, for all.”

REI’s mission focuses mostly on what it wants to do for its customers, but hidden in the mission statement is a mission to preserve the environment as well. Their focus on “getting outside” is what creates a connection between them and their customers.

4. Starbucks

“To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”

Starbucks expands on its mission statement by stating its core values. This is really an extension of the mission statement and explains how they focus on their customers, how they grow their company, and how they work with employees. You can read their values here .

5. Walgreens

“Walgreens’ mission is to be America’s most-loved pharmacy-led health, well-being, and beauty retailer. Its purpose is to champion everyone’s right to be happy and healthy.”

Walgreen’s mission really defines their goals: what they want to achieve and in what product categories they want to achieve it in. They also bring in their broader purpose when they talk about “everyone’s right to be happy and healthy.”

“Make work-life simpler, more pleasant, and more productive.”

While Slack’s mission statement is short, it implies a lot. “Work” doesn’t just mean their customer’s work, it means their own work at their company. Their mission statement serves them both internally and externally.

7. The Coca Cola Company

“Refresh the world. Make a difference.”

Coca Cola takes a slightly different approach with a statement of purpose and then a vision statement. Their purpose is essentially their mission statement and says a lot for being so short. They want to refresh people in both body and spirit while making a positive impact on the world. Their vision also implies their goal of serving the entire world’s population which hits on their corporate and shareholder goals.

8. Patagonia

“We’re in business to save our home planet.”

Another short mission statement that says so much more than you would think at first glance. First and foremost, Patagonia doesn’t say that they are a non-profit – they state that they’re a business. And, this implies that they need to be a strong, healthy business to meet their goal of saving the planet. Their mission applies to their employees, their customers, their products, and their activism.

9. charity: water

“charity: water is a nonprofit organization bringing clean and safe drinking water to people in developing countries.”

charity: water’s mission statement is clear and to the point – it simply describes what it does and who it does it for. For most non-profit mission statements, this is enough.

 10. Asana

“Asana’s mission is to help humanity thrive by enabling the world’s teams to work together effortlessly.”

Similar to other mission statements, Asana blends a message about what they do with a higher goal of enhancing the world outside of their company. Yet, they still hint at their target market and goals of being a world-wide company, thus improving the lives of their employees and shareholders.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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Mission statements, what is a mission statement.

Your mission clearly states why your organization exists. A company’s mission statement helps clearly articulate your core purpose. It is the summation of your organization’s core reason for being, answering the question, “Why are we here?” A mission needs to boldly state why you exist, and what impact you hope your organization has on the world. The best mission statements clearly express these things to your customers in a way that resonates and engages with them.

When developing your strategic plan, it is important to not overlook the foundation of your plan, including your mission statement. Every organization should have one! Crafting a mission statement may be challenging at first, but with the help of our guide, you’ll be well on your way to making your own great mission statement!

Free Canvas & Guide to Creating a Mission Statement

Whether you’re writing a new mission statement or revisiting your old one as part of a strategic planning process, we’ve created a canvas you can use to create a mission statement that inspires your team. Get started on creating your mission statement today, and download our guide for free!

Why Are Mission Statements Important in Strategic Planning?

A good mission statement is a foundational element in any strategic plan because it helps define your organization’s core purpose, serving as a vantage point from which to look down the road. Combined with your vision statement , it helps define why your organization exists and what you stand for.

Mission statements are sometimes confused and grouped with different kinds of foundational statements or forgotten about entirely. Some of the common planning elements that mission statements get mixed up with are vision statements and value statements.

All three are closely linked but serve entirely different functions and roles in your strategic framework. Below, we explain how the vision and values elements compare against a mission statement, and how they can all be used together to complement your mission statement for a strong foundation to your strategic plan.

Mission Statements Versus Vision Statements – The Differences

While a company’s future vision statement describes the organization’s future state, the mission directly relates to the vision by articulating the greater reason why that vision matters. A powerful mission keeps the organization on track and rallies around the direction the organization is headed. Learn how to write your mission statement here .

Mission Statement – Why You Exist

• States why your organization exists and articulates your core purpose.
• Written in the present tense.
• Helps define the area where you play.

Vision Statement – Where You’re Going

• States your organization’s bold vision for the future and why that is important.
• Written in a future tense.
• Helps create the roadmap for the future.

Pro Tip: Language Matters. We always recommend mission statements be written in present tense using concrete language. Writing in present tense allows your mission to be easily deciphered from your vision statement, which is written in future tense . Solid language leaves little room for interpretation of what exactly your mission statement means.

How Your Vision and Mission Statement Informs & Creates Strategy

Mission and vision statements are really two sides of the same coin. Your mission statement tells them where you are and why you exist, while your vision statement describes your desired future state or aspirational impact.

These two elements combine to inform and create your strategy, which is your plan for how to overcome your current and potential future competitors. The mission and vision are essentially your corporate aspirations, and your strategy is your meticulous plan for achieving it. Because these two statements used in tandem define why you exist now and what you aspire to offer in the future, this can make it easier to pinpoint your unique value proposition within the market.

A vision statement also helps you outline the actions and steps you need to take to make your vision a reality. If you can anchor your plan to your mission and vision, you’ll never lose your direction, even if you must pivot your strategy periodically to respond to different market or environmental conditions and customer feedback.

Mission Statement Versus Core Values Statement

As we’ve stated earlier, a business’s mission statement is all about defining the company’s purpose and objectives. It’s a concise statement that outlines what the business is trying to achieve and how it aims to achieve it.

A value statement , on the other hand, is focused on the core values and beliefs that are central to the organization’s culture. While these statements may serve different purposes, they are not in opposition of one another. Ideally, mission and values statements should be created in tandem, as they complement each other quite well.

For example, an organization’s mission statement may be focused on growth and expansion, while its values might include ideals such as honesty and fairness. By combining these two statements, you get a clear picture of what the organization hopes to achieve and how it aims to do so, while also highlighting the values it holds dear.

Mission Statements – Why You Exist

• Are usually written in the present tense.

Values Statements – How You’ll Live Out Your Mission

• Clarifies what your organization stands for, what it believes in, and how you expect your team to behave.
• Are typically written in present tense.

How Your Mission and Value Statements Complement Each Other

Value statements are the guiding principles your organization has chosen to live by, which give direction to the company culture and behaviors. Core values help businesses remain true to their mission and purpose by providing a framework for decision-making and actions.

A mission statement provides a sense of direction, whereas values give employees a sense of pride and purpose in working to achieve that mission. So, while your mission statement helps to guide the direction of your company, your value statement creates the behaviors that keep you in line with your mission.

Together, these statements complement one another and form a solid foundation for any successful organization. The mission statement outlines the company’s primary objectives, while the core values ensure that the company is meeting its goals the right way. By aligning a organization’s mission statement with its core values, everyone involved in the company, from the management down to the customers, can easily understand its objectives and what it stands for.

Mistakes to Avoid When Drafting Your Mission Statement

Crafting the perfect mission statement can be challenging and potentially lead to pitfalls when not approached carefully. Here are some mistakes to avoid when creating a mission statement:

Being Too Vague or Generic

It’s important to make sure you’re writing a mission statement that is unique to your organization and sets you apart from your competitors. Avoid generic and bland statements like “highest standards” or “quality customer service delivered.” Instead, explain what those statements would mean in the context of your organization.

Pro Tip: You may also want to avoid phrases that feel particularly jargon-y or industry specific. Your mission statement is meant to be public-facing, so ensure that your mission statement is understandable to the general public.

Focusing Solely on Profits

We get it. Of course, we all want to make money and ensure that our business or organization is successful and turning a profit. But is that really what your mission is? Your mission should, ideally, be impact driven. Think about the needs you identified that needed to be fulfilled that inspired you to start your organization in the first place. That’s what your mission statement should stem from.

Forgetting to Consider Stakeholder Input

Unless you’re running a one-person operation, your team and stakeholders should have input in the mission. Interview or conduct surveys with your employees to gain their insight and opinions. You can then elect a smaller, more central committee to come together and find consensus on common themes and craft your mission statement from there.

Neglecting to Update the Mission Statement as the Organization Evolves

Your mission statement needs to reflect your organization’s purpose, above all else. Although you wouldn’t change your mission statement yearly or even bi-yearly, don’t be afraid to update or make tweaks on your mission statement. If your organization grows or changes to the point where your original mission statement doesn’t quite fit anymore, don’t be afraid to update!

Not Reflecting Your Company’s Values

This should go without saying, but a mission statement should clearly express and reflect your organization’s values and purpose in a way that resonates with your team and your customers. Make sure your mission statement describes and accurately reflects your company’s identity.

By being mindful of these potential missteps, your organization can create a mission statement that accurately reflects your values and goals while inspiring your team and community.

What Makes Mission Statements Powerful?

Mission statements help your entire organization clearly understand its core purpose and why you do what you do. As a leader, it’s important to have clarity and a cohesive understanding of why your organization exists. Great leadership requires connecting your organization’s core purpose and vision of the future to your team’s day-to-day activities.

As leaders, we are put under a lot of undue stress to generate a perfect, short, sing-songy mission statement. The result is meaningless drivel, leaving everyone irritated and underwhelmed. The goal is to bring inspiration and innovation to the company for the long term. Don’t let being pragmatic get in the way of this important stage of building a strong foundation of consensus for the organization.

Video Transcript – Video Title XYZ

Hi, my name is Erica Olsen.

Today’s whiteboard session is on how to write a mission statement. Mission statements are foundational to any strategic plan. You normally build one after you develop your SWOT. And before you go into the rest of your planning process, it’s foundational because it answers the question, “Why do we exist.”

It clearly explains the space that we play in what’s in and what’s out of what we do. And it’s not where we’re going, which is vision. So, let’s break it down.

We’ll use this example to explain the components of a mission statement. We’ll use this checklist to talk about what makes a good mission statement. And we’ll walk through a simple process to create yours.

So let’s jump in.

The example we have up here is Google’s. And we love using Google’s Google’s examples because they’re, they’re great. And why not borrow from the best.

So, starting with our mission, I like to start with our mission, because it gives us a place to go and keeps us thinking about mission, you might get rid of it later, but start it there. It has a verb with present tense to organize. We explain what we do organize the world’s information for whom, in this case, the world?

And what’s the benefit to us existing, what’s the benefit to the world to make information universally accessible, and useful? Really straightforward. We know mission statements are not that easy to write. So, here’s a checklist to make sure that yours is great.

Starting with, it needs to be original. This is really clearly original to Google; they didn’t rip it off from somebody else. It doesn’t sound like anybody else’s mission statement. It sounds like Google’s mission statement. So, make sure yours is original.

Connect with staff, a great mission statement. And you know, yours is great when every single staff member wakes up in the morning and knows that their purpose and the reason, they come to work every day is expressed in your mission statement.

And to do that, it needs to be memorable. Memorable means short and concise. And of course, that’s the balance to strike with a great mission statement. So, here’s your litmus test. It needs to fit on a t shirt, and your staff would wear it that achieves those two goals, you know, you’ve got a great mission statement.

So how do you write one, sometimes it can be hard. So it’s great to get input or ideas from your organization. So, gather staff input, if you’d like via survey, or maybe focus groups, take all that information, synthesize it down and create a couple of versions, you can do it yourself or use one of those folks in your organization who loves to copyright and have them write a couple of different versions.

Take those versions and either have your planning team pick one or put them out to your organization and have people vote on them. So that simple process will help you not go in all kinds of different directions and spend forever doing mission statement development.

With that, I hope this helps you write yours. Thanks for tuning in.

If time isn’t dedicated to articulating your mission on the front-end before developing strategy, the result will likely be goals and objectives without a crystal-clear strategic direction.

A Good Mission Statement the Following Elements:

• Label: We like to start with “Our mission…”
• Verb: Use an action verb in the present tense.
• For Whom: Describe who you do it for.
• Result: What is the result or benefit of your work?
• What You Do: Briefly state what you do and how.

Mission Statements Answer At least One of These Core Questions

What is our organization’s reason for existing.

A mission helps clearly articulate your organization’s reason for existing. At the absolute minimum, your mission statement should answer this question above all else: What’s your core purpose?

Example: “LinkedIn – To connect the world’s professionals to make them more productive and successful.”

Why Is It Special to Work for This Organization?

The best way to answer this question is to connect to the heart of your employees, customers, or the population you serve. Be compelling, and let people understand and connect with your core purpose. How does your reason for existing impact people in a special way, or why do your employees show up to work every day?

Example: “Tesla – To accelerate the world’s transition to sustainable energy.”

What Is Our Business and What Are We Trying to Accomplish on Behalf of Whom?

Some mission statements benefit from clearly stating who benefits from your business, or what you’re setting out to accomplish on behalf of whom. Who does your purpose impact the most and why?

Example: “Google’s mission is to organize the world’s information and make it universally accessible and useful.”

More mission statement examples can be found here.

Checklist for Good Mission Statements

When evaluating the quality of your current or newly drafted mission statement, it’s important your company’s mission statement meets these four simple criteria:

• Your Mission Must Be Foundational: It clearly states why your organization or business exists.
• It’s Original: It’s unique to your organization. If you were to read the mission statements of all the organizations in your industry, yours would be different than your competition.
• It’s Memorable: Memorable = motivating to employees, prospective employees and customers.
• It Fits on a T-Shirt: Peter Drucker famously advised that your mission statement should be short and compelling enough to fit on a t-shirt your staff would actually wear.

Other Mission Statement Tips

If you are refreshing your mission statement, complete your swot first.

Mission statements should be developed after completing the SWOT analysis , and before going into the rest of the planning process. This allows your team to be grounded and in alignment with where your organization is today and what the organization’s strengths and contributions are.

The mission statement motivates and inspires staff. Every single staff member knows that their purpose is defined in the mission statement. (e.g. Starbucks’ mission: To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time.)

A Great Mission Statement Can Be Easily Recited at a Party

Develop the mission statement on a “party level”—it can quickly and briefly be understood by people at a party or on an airplane. The statement gives a profoundly simple focus for everything the team does as an organization. (e.g. Marine Stewardship Council’s mission: To safeguard the world’s seafood supply by promoting the best environmental choices.)

Now that you’ve finished your mission statement, writing your core values and vision is up next.

Get Started on Creating Your Mission Statement

Mission Statement FAQs

What questions do you need to answer to create a mission statement?

Answering these three questions will help create a mission statement:

• What is our organization’s reason for existing?
• Why is it special to work for this organization?
• What is our business and what are we trying to accomplish on behalf of whom?

What are the 5 elements of a mission statement?

The five parts of a mission statement are Label + Verb in Present Tense + Who You Serve + Result You Wish to Achieve or Reason for Existing + What You Do

What is a mission statement?

The definition of a mission statement is a concise description of your organization’s core purpose, answering the question, “why do we exist?”. A mission needs to boldly state why you exist, and why you do what you do. The best mission statements express your core purpose and why you exist with clarity.

How are mission statements and vision statements different?

A mission statement defines why your organization exists. A vision statement expresses where your organization is going in the future. They work together to express your reason for existing and how you’re setting out to change the world.

How do you know if you have a good mission statement?

Patrick Lencioni said that a mission statement should be able to fit on a t-shirt, and that your staff would want to wear that t-shirt.

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How to Write a Mission Statement

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When you’re first starting a business, writing a mission statement may seem like a challenge, but it can be pretty simple. Your mission statement is a critical component of your business plan . It articulates why you started your company and what you hope to achieve. And when written well, your mission statement serves as an invaluable marketing tool for your business.

In this article, we’ll show you how to craft an authentic mission statement that resonates with your customers, employees and business peers. Also, be sure to review our mission statement template infographic at the end of this guide — it will help you dive into the writing process with greater clarity and confidence.

What is a mission statement?

Your mission statement explains, briefly and concisely, the mission you first set out to accomplish when you started your business. Your mission statement should also make clear how you’re unique to your competition, hint at your business strategy, reflect your core values and ethics and take your universal or longer-term business goals into account.

If you’re starting a daycare , for instance, your mission might be to provide safe, flexible and affordable child care and children’s education for parents in your community. If you’re starting a wedding planning business , your mission may be to provide hands-on, personalized support to busy spouses-to-be who don’t have the bandwidth to deal with crazy wedding logistics. Your mission statement is simply a polished and cohesive version of your business's essential purpose.

You will usually feature your mission statement on your website in the “About” section or company overview section, and in job postings, marketing supplements and your business plan. It’s one of the business fundamentals that you’ll find will have many uses as you grow your business.

Why you need a mission statement

In his Ted Talk about effective leadership, Simon Sinek says that business leaders should be able to answer these questions: “What’s your purpose? What’s your cause? What’s your belief? Why does your organization exist? Why do you get out of bed in the morning? And why should anyone care?”

When you encapsulate your answers in a cohesive mission statement, you tell everybody:

Who you are.

Why you matter.

What you stand for.

This is critical because your mission statement should affect every future business decision — from hiring your first employee to how your brand yourself. Every choice you make should align with your company’s core purpose and beliefs.

Now, let’s move on to the nuts and bolts of writing your mission statement. It will help you create a comprehensive business plan that will guide you in launching, running and growing your business.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to write a mission statement in 5 steps

Now that you understand why a mission statement is essential, we’ll dive into the details about how to write a mission statement.

1. Free write about starting your company

Don’t expect to produce a polished and publishable mission statement as soon as you put pen to paper (or fingers to keys). To overcome any stress or writer's block, try “free writing” about your business instead.

As we’ve mentioned, your mission statement conveys your business’s “why.” What problem did you seek to solve when you started your business? Why was this particular problem important for you to take on? What inspired you to start your business? And how does your product or service solve that problem better than your competition does?

If you have or plan on hiring employees, touch on the vision of the working environment you aim to provide for them, as well. What kinds of people comprise your team, and how do they align with your business’s overall values?

At this stage, you’re simply gathering your thoughts and pointing yourself in the direction of a complete mission statement. The most important thing is to generate the raw material; you can hone and edit from there.

2. Explain what your company does

Next, you can get a little more granular and explain precisely what product or service your company provides, focusing on how your particular product or service offers value for your target customer. This explanation should touch on your broader mission and how your business differs from others like yours, either explicitly or implicitly. Keep this short, concise and specific.

For example, let’s take a look at our hypothetical wedding consultant example. If that’s you, you could write that you provide couples with wedding consulting and planning services, as well as day-of coordination. Personalize your services according to the couple’s particular needs and wishes. This thoughtful, bespoke level of service puts busy couples without the time or desire to handle planning and logistics at ease, so they can truly enjoy their big day.

3. Describe your ideal customer

Learning how to write a mission statement is a critical component of customer-facing marketing material; it must articulate who your business serves, why someone should choose to work with you, and what you can do for your customers.

Start by describing your ideal customer: What are their general demographics? What do their professional and personal lives look like? What problems or challenges are they facing? How do they find new businesses or products (i.e., Instagram, word of mouth, or another marketing tactic)? How do you want your customers to feel when they use your product or service?

On the flip side, you can consider the types of customers your business wouldn’t be best suited for. This is also known as creating a buyer persona, and it’ll help you hone in on who your target market is and how to fashion your mission statement so that it resonates with their particular needs and desires.

This probably won’t appear verbatim in your final mission statement, but it’ll help you hone in on what you do, why you do it and the unique value you bring to your customers’ lives.

4. Define your core values

Your mission statement should convey your business’s values and ethics as much as it does your literal product or service.

Let’s return to our daycare center owner example. Your business’s core values might:

Flexibility.

An accessible price point for parents with demanding or unusual working hours.

Providing children with a creative, nurturing and cooperative environment.

Specializing or focusing on a particular subject, such as art, music, or group projects.

This is as important for your customers to understand as it is for your current and prospective employees, as well as key stakeholders like lenders, investors and other owners. Those core values shape your company culture, offer your current employees both an ethical and goal-oriented guidepost and attract the right employees. You will also help lenders and investors understand your larger, longer-term goals (and why they should invest in your business).

5. Revise and condense your mission statement

We’ve noted that your mission statement should reflect your business’s purpose and goals and that you should be authentic — but don’t mistake your mission statement for an essay, op-ed, or journal entry. At its core, your mission statement is a marketing asset. That means it should be relatively short and concise.

Once you’ve written to your heart’s content, try to cut your statement down to a few paragraphs. Then, try to condense it even further so you can easily use this one- or two-liner in your marketing materials; think of this as the elevator pitch version of a more comprehensive mission statement.

Get some readers on board, too. If you have employees, run your mission statement by them to gauge their opinion (after all, this is as much for them as it is for you and your customers). Also, consider sharing your mission statement with your advisors and even trusted customers to ensure that your statement accurately portrays your business and reflects your long-term goals.

Mission statement examples

If reading about how to write a mission statement still leaves you feeling stuck or lost, you can always consult the brands you admire to get a sense of how they approached their statements. Typically, brands include their mission statements on the “About,” “Our Story” or “Our Mission” page of their websites.

Here are just a few mission statement examples we collected from successful brands. Note that some of these mission statement examples are longer than what we’ve included here, so if one resonates with you, we’d recommend heading directly to their website to read the full statement.

Glossier: “You have now entered a people-powered beauty ecosystem. Here you’ll find products inspired by the people who use them, along with people to be inspired by, and for you to inspire. Glossier was founded on the fact that beauty isn’t made in a boardroom — it happens when the individual is celebrated. Personal choice is the most important decision a brand can never make.”

Spotify: “With Spotify, it’s easy to find the right music or podcast for every moment — on your phone, your computer, your tablet and more. There are millions of tracks and episodes on Spotify. So whether you’re behind the wheel, working out, partying, or relaxing, the right music or podcast is always at your fingertips.”

Patagonia: “At Patagonia, we appreciate that all life on earth is under threat of extinction. We aim to use the resources we have — our business, our investments, our voice and our imaginations — to do something about it.”

SoulCycle: “Our mission is to bring Soul to the people. Our one-of-a-kind, rockstar instructors guide riders through an inspirational, meditative fitness experience that’s designed to benefit the body, mind and soul. Set in a dark candlelit room to high-energy music, our riders move in unison as a pack to the beat and follow the signature choreography of our instructors. The experience is tribal. It's primal. It's fun.”

Casper: “We believe sleep is the superpower that charges everything people do. We’ve spent years studying the magic and science of sleep. The more we learn, the more we’re sure: Great sleep changes everything. It makes us friendlier, faster, smarter… even warmer-and-fuzzier. If we all got great sleep, the world would be brighter.”

Start Your Dream Business

The bottom line

In the beginning, you may be tempted to bump learning how to write a mission statement to the bottom of your very, very long starting-a-business checklist. But the very start of your venture is arguably the most auspicious time to write your mission statement. Right now, you’re deeply in touch with your business’s “why” — otherwise, you wouldn’t be putting in the hard work of starting your business at all. That motivating purpose underlies your mission statement.

As you grow and evolve, you’ll be grateful that you took the time to put that passion and energy into words. Use it as a kind of ethical guidepost as you and your team face increasingly challenging decisions over your business’s lifetime. Plus, your mission statement will be an essential marketing tool that you’ll use both to draw in potential customers and employees.

And keep in mind that your mission statement isn’t an essay — it should be the opposite. Your finished mission statement should be a few paragraphs at most. As you get to work drafting your mission statement, be sure to craft an authentic and memorable story about your company.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to write an effective mission statement (with free template)

A mission statement explains your company’s purpose. You should write a mission statement when starting a business so you have a clear idea of what you stand for. Read on to learn how to write an effective mission statement that can help you tackle company goals.

It’s natural to face challenges when leading teams and managing projects, and one way to push forward despite the hard times is to remember your “why.” Your company mission defines why you do what you do, who you do it for, and the impact you’ll create by doing it. When you know your mission, you’ll feel good about where your company is going, even through ups and downs. 

What is a mission statement?

A mission statement is a brief declaration of your company’s what, who, and why. You should share this statement with everyone in your organization so team members understand your collective goals. While a mission statement isn’t specifically for marketing, you’ll likely share it externally as well. This is why it’s important to write it eloquently.

Your mission statement is a foundational piece of content you can use as a jumping-off point for various other materials, including:

Value propositions

Business plans

Company vision statement

Once you’ve solidified your core values and initiatives, you’ll have an easier time expanding on those ideas and getting the message out to your audience.

5 steps to write a mission statement

Your mission statement isn’t something you can craft by yourself. Before you sit down to draft it, recruit other senior and executive leaders at your company who have a sense of what you’re aiming for. Together, use the steps below to get to the root of what your company stands for and the message you want to spread.

1. Answer fundamental questions

To figure out what your mission statement should say, you’ll need to answer fundamental questions about your business. 

What do we do?

What do we create?

Who is our audience?

How do we make a difference?

Once you’ve answered the basics, consider questions that can help you craft a strong mission statement.

How do we differ from others in the industry?

How can we make our mission statement stand out from our competitors?

Can we use other mission statements for inspiration?

Consider having each member of your mission statement tiger team answer these questions separately, then pool your answers together. Your mission statement should be evergreen, so think about it in a way that incorporates business growth. It’s important to consider what your company’s purpose is in the context of what your future might be. 

2. Use your answers to brainstorm copy

Now that you have the ideas for your mission statement, you need the right words. Use brainstorming techniques to help you and the other leaders at your company come with creative ways to express yourselves. The goal is to inspire your team without sounding cliché or overly complex.

Some helpful brainstorming techniques include:

Mind-mapping: Mind mapping is a visual brainstorming technique you can use on your own or with your team. Start with one word or idea and use it to inspire other ideas. You’ll need a large piece of paper or whiteboard to write down a topic. Then, draw lines connecting tangential words or ideas to it.

Brain-netting: Brain-netting is great for remote collaboration , and it involves brain dumping ideas virtually, whether on a Slack channel, Google Doc, or through your project management tool . Team members can add ideas whenever inspiration strikes, and the list will be ever-evolving. 

3. Write your first draft

Now that you have solid ideas about what to put in your mission statement and creative ways to express those ideas, you can start experimenting with what sounds best. The following formulas can help you get started:

To [contribution/goal] so [impact] .

Our mission is to [contribution/goal] by [what you offer/how you do it] for [target audience] so [impact] .

To build/offer [what you offer/how you do it] for [target audience] to [contribution/goal] and [impact] .

For example, if you work for a content marketing company, here’s how your first draft might look:

To increase the value and visibility of content so companies can build strong relationships with their audiences . 

Our mission is to increase the value and visibility of content by offering content marketing services for companies so they can build strong relationships with their audiences . 

To offer content marketing services for companies to increase the value and visibility of their content and help them build strong relationships with their audiences. 

4. Ask for feedback

Draft a few versions of your mission statement so you can ask for feedback from current team members. Because the mission statement applies to everyone, it’s nice to include everyone in the feedback process—even if executive feedback gets slightly more weight. Don’t rush through the writing process. Take your time and get your mission statement to a place everyone is comfortable with.

Collaborate with your team by holding a Q&A session or by sending out surveys to ask which version of the mission statement resonates with them most. That way, once you complete your statement, you’ll feel confident that the result was a team effort. 

5. Revise and share

After collecting feedback, revise your mission statement as needed. Then, finalize it and share it with the rest of the organization. You can also include it in your business plan and share it on your website. 

Your mission statement explains your company’s purpose to those working for the company, stakeholders who may get involved with the company, and customers or clients who may spend money at the company. While you shouldn’t craft your mission statement for selling, it’s something you should be proud of and will likely want to display.

Examples of mission statements

Most companies share their mission statements with the public, either front and center on their websites, or in an easily searchable location. By making your mission statement visible to the clients and customers, companies show what they stand for and what they strive to achieve—both as an internal workforce and with the products or services they sell.

“To help humanity thrive by enabling the world’s teams to work together effortlessly.” 

At Asana , our mission statement explains who we serve and what we want our impact to be on the world. While we have various goals we work toward as a company, our mission statement is our guiding principle among all others. 

Let's do great things together. Join our team.

“To build the web’s most convenient, secure, cost-effective payment solution.” 

PayPal’s statement is more product-focused, but it’s still effective. Businesses may imply the impact they hope to make by explaining the unique features of their product offering. PayPal’s mission is to create the best product possible for customers because doing so will improve lives.

3. Patagonia

“Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” 

Patagonia’s mission statement is complex, but it shows that their company has many layers beyond the clothing they sell. While on the surface, Patagonia offers outdoor gear, they set themselves apart from other companies by keeping the environment front of mind in all they do. 

Free mission statement template

Using a mission statement template can help you centralize your company’s most important information. Below, you’ll see how a content marketing company would’ve answered fundamental questions about their business and used those answers to design their mission statement with the provided formula.

Use the free mission statement template below to answer relevant questions about your company’s values and goals.

Why is a mission statement important?

Your mission statement is a building block for everything your team does. When you get it right, it leads to a stronger team dynamic in the workplace , more successful projects, and happier customers. Your mission statement should:

Define your brand to team members: Give your team clarity on what product you’re creating, why you’re creating it, and who you’re creating it for.

Present your brand to others: Tell others outside of your company what your team strives for everyday. 

Uphold values and objectives: Refer to your mission statement when you need to hold yourself and your team accountable to your ultimate goals.

Mission statement vs. vision statement

Many people use a mission statement and vision statement interchangeably, and while some companies combine the two, they have different meanings. A mission statement is your company’s “why” statement—in other words, your company’s purpose. Consider your mission statement as what you’re currently trying to achieve.

A vision statement can be a “how” statement or a future-focused statement. It should paint a broad picture of how you want to achieve your mission. Sometimes, companies incorporate the vision statement within their mission statement so they can state and explain their mission simultaneously. 

For example, Google's combined mission and vision statement is:

“To organize the world’s information and make it universally accessible and useful.” 

Mission statement: To organize the world’s information…

Vision statement: ...and make it universally accessible and useful.

While LinkedIn has separate mission and vision statements:

Mission statement: Connect the world’s professionals to make them more productive and successful.

Vision statement: Create economic opportunity for every member of the global workforce.

Use a mission statement to drive company success

Your mission statement is the launchpad for your company’s success. It states what you want to achieve and serves as a constant reminder of your purpose. But the only way to accomplish your mission is with small, everyday actions. A goal is just a dream until you put a process in place.

With work management software , you can set up workflows , schedules, and tasks that align with your mission statement and make your purpose a reality. Asana helps you create a purposeful and productive work experience for all your team members by giving them the clarity they need to achieve their goals.

Related resources

How Asana uses work management to optimize resource planning

How Asana uses work management for organizational planning

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9 steps to craft a successful go-to-market (GTM) strategy

Starting a Business | Templates

How to Write a Small Business Mission Statement (+ Template)

Published March 28, 2023

Published Mar 28, 2023

REVIEWED BY: Elizabeth Kraus

WRITTEN BY: Audrey Rawnie Rico

• 1 Mission Statement Template
• 2 How to Write a Mission Statement
• 3 Benefits of a Mission Statement
• 4 Frequently Asked Questions
• 5 Bottom Line

A business mission is a short statement describing the “why” behind your vision. It’s the primary reason your business exists and why you do what you do. Download our free mission statement template and follow the steps below to learn how to write a mission statement for your small business.

Mission Statement Template (Free Download)

The steps for creating a mission statement involve understanding the main components, answering questions about your business, gathering ideas, defining your mission, and creating and finalizing your draft. Download our free mission statement template and use it as you go through the step-by-step process below to write a mission statement for your business.

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Free Mission Statement Template

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1. outline the components of a mission statement.

The first step for writing a mission statement is understanding what it should include and creating an outline. Simply put, a mission statement is a brief sentence or phrase that summarizes your overarching purpose, or the primary reason your business exists. It should communicate the driving force behind your entire company and promote the brand presence you want to achieve.

Powerful mission statements typically have these three main components:

• Business goal as the reason for existing
• Relevance or impact to customers, community, employees, and other stakeholders

Your business vision is a mental image of where you want your organization to be after a certain time, whereas your mission details why you want to achieve those goals. These reasons usually have a human or social aspect attached to them. For example, your product aims to create a safer community, or your service hopes to improve people’s health.

Below are three examples:

Sources: Wix , Caribou Coffee

For more ideas and inspiration, check out our list of the best mission statement examples .

2. Answer Questions About Your Business

Now that you understand the components of a mission statement, you can start drafting yours by first simply answering questions about your business. While you can brainstorm these yourself, it’s best to do so along with the people most knowledgeable about your business, such as your co-founders or team members.

Here are some basic questions you can ask to guide your mission statement:

• What do we do?
• What are we creating?
• Why does it matter?
• To whom does it matter?
• How does it make a difference?
• What words would we use to describe our business?
• How does our business differ from our competitors?

The goal of these questions is to start interrogating the ideas and reasons behind your business. The answers to these will eventually help form your mission statement. In fact, if you’re a small business owner, you might already have answers to some of these questions—you just have to organize them into a single, powerful, all-encompassing sentence.

Here’s an example of how to use these questions. Let’s say you own a tire store—these are the answers you might give to the questions above:

• What is it we do? Install tires
• What do we create? Safer vehicles
• Why does it matter? Fewer accidents
• To whom does it matter? V ehicle owners and their families, like parents of teen drivers
• How does it make a difference? We make traveling within our community safer
• What words would we use to describe our business? Safety, tires, family, local, etc.
• How is our business different from our competitors? We’re locally owned

Keep these in mind as we revisit this example business type in step five. Note that these types of questions and answers don’t reflect anything about how much money you make or how many products you sell. Instead, they relate to what differentiates your business as well as its customers and other beneficiaries, like your community.

3. Gather Ideas Based on Your Answers

The next step is to brainstorm the content of your mission statement. Using the answers to your questions as a guide, think up words and phrases that make the most sense, keeping your business purpose top of mind. It’s important not to limit or edit yourself (or your team members). Keep the ideas flowing, and write down words or phrases that come into mind.

This is only a data-gathering phase—there are no wrong answers, and you can always edit and organize them later. At the end of the brainstorming session, you’ll end up with some common words or short phrases that will start to make sense and feel true to your business.

4. Define Your Mission

After brainstorming, the next step in terms of how to write a mission statement is to edit your ideas and start honing in on your mission. This is where your mission statement will become more defined as you clarify the central, overarching objective that best resonates with your business and brand.

You may have come up with a whole sheet of ideas during your brainstorming session, but remember that good mission statements are concise and easily understandable. From your list of words and phrases, find those that best represent your business’ main objective and why it matters to your target customers.

5. Create a First Draft

With your mission defined, you’re ready to write a first draft of your mission statement. This step is where you’ll start crafting one or more full sentences from your previously defined ideas. Mix and match words and phrases until you find a strong statement that feels most true to your business and is highly relatable to your target audience.

Keep your mission statement compelling, simple, and purposeful. It should be a concise but complete thought that immediately gives readers an idea of your company’s primary, long-term purpose.

Here are sample drafts for a mission statement using the tire company example above.

Organize and refine your ideas until you find a statement that best represents your business’ purpose.

This is a step where it’s easy to get stuck. If you want professional help refining the ideas and concepts you came up with into a concise and compelling mission statement, consider reaching out to a marketing consultant or public relations (PR) expert for assistance. You can hire an affordable PR freelancer on platforms like Fiverr to get help writing a mission statement for as little as $5.

Visit Fiverr

6. Gather Feedback & Polish Your Statement

Feedback is always crucial in any creative process, and your mission statement is no exception. It’s essential because your mission statement is also influential to your overall branding, and you want to be sure that what you mean to say is understood by others.

Have several people, such as team members, advisers, or other business owners, review your mission statement before finalizing it. You can even run your draft by top customers or members of your target market to see whether it’s relatable and understandable to them.

Here are some questions you can ask others to gather feedback about your mission statement:

• What purpose does the mission statement communicate about our company?
• How does this statement make you feel about our company?
• Is the mission statement clear and easy to understand?
• Is it impactful, motivational, or compelling?
• Does the statement align with our vision and values?

Take note of the feedback you receive, and input them into your statement. Your mission statement is as valuable to the public as it is to your internal business—so you want to be sure that it’s clear and impactful to any and all readers.

7. Finalize & Share Your Mission Statement

Once you’ve polished up your mission and undergone feedback and revisions, it’s time to make it official and send it out to the world. Double-check that the statement is concise and that your business purpose is clearly defined. Then, when you’re ready, start using it in company communications.

Places to Use Small Business Mission Statements

There are many ways to share your small business mission statement. Keep in mind that you have multiple audiences, as your mission statement is a fundamental part of your company’s overall identity and branding. Share it with employees, customers, vendors, potential investors, and other stakeholders.

Here are other places to share your business mission statement:

• Company documents: An obvious place to include your company mission is in internal documents. These can be anything from your business plan to your company handbook , intranet, company newsletter, and presentation decks.
• Sales and marketing collateral: Your mission statement is one of the unique aspects of your business, helping you stand out from the competition. Include it on business cards , brochures, direct mail marketing collateral, and other marketing materials .
• Public relations content: Leave a lasting impression on anyone who reads your company’s press releases by including your mission in the boilerplate. In addition, add it to your press kit so that journalists will have access to it when covering stories about your business.
• Recruiting and hiring: Stating your business’ mission in recruiting ads and job descriptions gives candidates a better idea of whether they would be a good fit for your company (and vice versa).
• Digital materials: Add your mission statement to your website’s “About” page or footer to give site visitors a well-rounded impression of your company. The same applies to your social media profiles and other digital assets, including your Google Business page .
• Branded merch: If you plan on having branded company merchandise like T-shirts or coffee mugs, they’re also good places to add your business mission.

Keep track of every place your mission statement is displayed. If you ever modify it, you’ll want to ensure it’s revised consistently everywhere it’s used.

Why Writing a Good Mission Statement Matters

A good mission statement is more than a string of words—it is the central grounding motivation of your entire organization, guiding everything from your business decisions to your team members’ operations. Here are other benefits of having a compelling small business mission statement:

• Connecting with your target market: Having a well-defined brand identity, including a clear mission, can help you reach your target market. In 2022, 82% of consumers were more likely to purchase from a brand that shared their values.
• Attracting top talent: Employees like working for companies whose values align with their personal goals too—it ranks as the 13th top priority when candidates choose companies to work for. This helps you attract motivated employees who align with your mission, and in turn, perform their best.
• Keeping employees engaged: Beyond attracting top talent, having a mission keeps employees motivated and productive. As author Brandon Peele explains, “People who are connected with their purpose are four times as likely to be engaged and five times more productive.”
• Guiding business decisions: You’ll undoubtedly encounter difficult business decisions throughout your small business journey. Your mission can help remind you of your business’ main priorities, helping you make better decisions.
• It helps you stand out: Each company’s mission is unique. While you may share some services or features with a handful of other businesses, your mission makes yours stand out.
• It helps with branding: Your mission is one of the most meaningful, relatable, and human aspects of your company, making it great content for marketing campaigns. Include it in brand promotions, social media campaigns, and community engagement initiatives.

Frequently Asked Questions

What is a good mission statement for small businesses.

A good small business mission statement is concise and easy to understand, instantly communicating a business’ reason for existing. It should also be compelling, action-oriented, audience-relevant, and relatable. For employees, a good mission statement serves as a guiding principle when operating the business, while for customers, it provides a fundamental aspect of your brand identity.

What’s the difference between a vision statement & a mission statement?

Your vision statement communicates the “what” of your business—what your business will become when it fulfills its mission. Meanwhile, your mission statement covers the “why” behind your business, or its primary purpose and reason for existing. Vision statements are goals you want to achieve in the future, while mission statements communicate why you want to achieve those goals.

What’s the difference between a personal vs business mission statement?

A business mission encompasses the overall purpose of the organization. These statements are wide-ranging and long term, usually requiring the combined efforts of multiple people working together. Personal mission statements, on the other hand, describe the driving motivation of an individual, and may or may not be work- or career-related.

Bottom Line

Your mission explains the reason your company exists, what it does, who it serves, and why it matters. It represents the driving force behind your company and why you do what you do. The best corporate mission statements are more than just a string of words—they’re a clear and meaningful representation of your business’ purpose that will guide your company in the long term.

About the Author

Find Audrey Rawnie On LinkedIn

Audrey Rawnie Rico

Audrey is always thrilled to help small businesses in their marketing efforts. She has spent the past five years doing content marketing, content writing, and video production for startups and small businesses around the globe. She’s passionate about helping small businesses grow their online brand presence through digital marketing.

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What Is a Mission Statement?

• How It Works

Drafting a Mission Statement

Displaying a mission statement.

• Advantages and Disadvantages
• Other Statements

The Bottom Line

• Small Business
• How to Start a Business

Mission Statement: How It Works and Examples

Investopedia / Joules Garcia

A mission statement is used by a company to explain, in simple and concise terms, its purpose(s) for being. The statement is generally short, either a single sentence or a short paragraph.

Key Takeaways

• A mission statement is used by a company to explain, in simple and concise terms, its purpose(s) for being.
• It is usually one sentence or a short paragraph, explaining a company's culture, values, and ethics.
• Mission statements serve several purposes, including motivating employees and reassuring investors of the company's future.
• To craft a mission statement, consider how your company impacts customers, donors, investors, or your community and why you strive to help these parties.
• A mission statement might slightly overlap other marketing content, but it is different from a vision statement, value statement, brand, or slogan.

How a Mission Statement Works

Mission statements serve a dual purpose by helping employees remain focused on the tasks at hand, and encouraging them to find innovative ways of moving toward increasing their productivity with the eye to achieving company goals.

A company’s mission statement defines its culture, values, ethics, fundamental goals, and agenda. Furthermore, it defines how each of these applies to the company's stakeholders —its employees, distributors, suppliers, shareholders, and the community at large. These entities can use this statement to align their goals with that of the company.

The statement reveals what the company does, how it does it, and why it does it. Prospective investors may also refer to the mission statement to see if the values of the company align with theirs. For example, an ethical investor against tobacco products would probably not invest in a company whose mission is to be the largest global manufacturer of cigarettes.

It is not uncommon for large companies to spend many years and millions of dollars to develop and refine their mission statements. In some cases, mission statements eventually become household phrases.

Mission statements aren't just for small or large companies. Many successful individuals, professionals, and investors have taken the time to craft a personal mission statement. These personal mission statements often incorporate the financial, professional, spiritual, and relational aspects of life. This, in turn, helps an individual maintain a healthy work/life balance that increases their personal achievement in all of these areas.

While it may be difficult to narrow down the focus of your company in a single statement, here are some tips to help you write a good mission statement.

• First, outline what your company does. This may be a good you produce or a service you provide to your customers —whatever makes your business run.
• Next, describe the way in which your company does what it does. Instead of being technical—that's not the point here—think of what values go into the core of your business. Maybe you value quality, customer service, or being sustainable. Alternatively, you may foster creativity and innovation in your business. These are key points to outline in your mission statement.
• Finally, include why you do what you do in your mission statement. This is key. It helps you stand out as a business, highlighting what sets you apart from the others in your industry. Remember to keep the mission statement short and to the point.

After you've drafted it, remember to look it over, edit it, and have someone else give it a once over. After you've approved it, you'll need to find a way to incorporate it wherever you can. In addition, be mindful to periodically review your mission statement. Although it's never ideal to constantly pivot your image and change your mission statement, your company may outgrow or shift directions resulting in the need of a new statement.

A company’s mission is its identity, and its vision is its journey to accomplishing its mission. A company should take as long as it needs to craft the right statement to describe its mission.

Once a mission statement is crafted, it's up to the company to make it publicly known. A mission statement only holds value if it is shared with existing and potential customers, vendors , donors, or employees.

Because a company's mission statement is often pretty short, it is easy to incorporate into marketing material. A mission statement should always be found somewhere on a company's website. In addition, it can also be used in marketing documents. A company may solicit employees to incorporate adding its mission statement as part of a company-wide standard e-mail signature block.

A mission statement is also a perfect "elevator pitch" sentence that key members of your company should know. Because it's so brief, it is easy to memorize. In addition, it's a perfect introduction for someone who has never heard of your company or wants to know more. Whether it's at a networking event, social gathering, or bus ride to work, a mission statement is an easy way to captivate a stranger's interest in your company should they ask what your company does.

Advantages and Disadvantages of Mission Statements

Companies can benefit from having a mission statement. First, it outlines a company's goals and position in the industry for its customers, competitors, and other stakeholders. It also helps the organization focus and stay on track to make the right decisions about its future.

Furthermore, the mission statement helps clarify a company's purpose. With a mission statement, a company's customers and investors can rest assured that the company is fully committed to achieving its goals and maintaining its values. It is also useful to guide and motivate employees, keeping them in line with the company's values.

Last, a mission statement adds validity to an organization. From the outside looking in, a mission statement demonstrates that a company has considered the big picture and the major goals it wants to accomplish. It demonstrates thoughtful leadership, reputability, and inspiration to potential investors, employees, or donors.

There are drawbacks to having a mission statement. Mission statements may sometimes be very lofty and far too unrealistic, which can distract employees from the company's goals. Management may become too distracted with high-level targets that shorter-term, necessary steps to get there become neglected.

Even though a mission statement is short and concise, it may take a lot of time and money to develop. The resources spent on a bad mission statement could be better spent elsewhere, creating an opportunity loss . The difficulty of crafting such a concise statement is many parties often have ideas, and there's not room for many of them. After the bulk of the work has been done, companies may struggle with "wordsmithing" or simply rearranging words instead of trying to generate value.

Last, by publicly announcing to the world the company's mission, some people on the outside (or even the inside) may disagree with the mission. In the examples below, some individuals may be skeptical of alternative sources of energy and may be scared away when learning of Tesla's mission statement. A mission statement doesn't give much opportunity for a rebuttal to clarify or further explain what a company is all about.

A mission statement is not required, though it may be a grant application for a nonprofit or asked for by an interested investor of a company.

Mission Statement Examples

Mission statements vary considerably from company to company. The following examples are the mission statements of some of the world's largest companies:

• Nike ( NKE ): "To bring inspiration and innovation to every athlete* in the world."
• Walmart ( WMT ): "We save people money so they can live better."
• Starbucks ( SBUX ): "With every cup, with every conversation, with every community - We nurture the limitless possibilities of human connection."
• Tesla ( TSLA ): "To accelerate the world's transition to sustainable energy."
• JP Morgan ( JPM ): "We aim to be the most respected financial services firm in the world."

Mission Statements vs. Other Statements

A mission statement is often confused or grouped with other types of organizational statements. Here are some other types of content and how they vary from a mission statement.

Mission Statement vs. Vision Statement

A company’s mission statement differs from its vision statement. While the mission statement remains unchanged for the most part and represents who the company is or aspires to be for the entirety of its existence, the vision statement can change. The latter outlines what the company needs to do to remain the way it has presented itself to be. In effect, a company’s mission is its identity, and the vision is its journey to accomplishing its mission.

Mission Statement vs. Value Statement

A company's value statement is also centered around a company's core principles and philosophy. However, it is more direct in guiding how decisions will be made and what will impact the daily culture of the organization. A value statement often includes actionable direction such as "taking ownership", "acting ethically", "doing what is right", or "being transparent." Whereas a mission statement describes the highest level of purpose, a vision statement starts to describe how that purpose will be achieved.

Mission Statement vs. Company Goals

A company's goals or business plan may be publicly disclosed or kept private/internal. In general, a company's goals are often even more specific, potentially referring to specific business lines, growth percentages, geographical regions, or new initiatives. While a mission statement often does not mention a specific aspect of the business, company goals are often measurable relating to departments or products so a company can track progress. A company's mission statement should drive the goals that are set.

Mission Statement vs. Brand

A brand is an suite of elements that encompasses a company's identity. This includes its marketing materials, engagement in community events, reviews from current and former employees, and its logo presence. A company's brand is also shaped by its mission statement. Though a small component, a mission statement helps customers, employees, and investors form an opinion of a company.

Mission Statement vs. Slogan

A slogan is a very brief, often memorable phrase that people primarily outside of your company can remember. Utter a great slogan such as "Just Do It" can invoke memories, commercials, logos, brand ambassadors, and emotions through a successful ad campaign . Although a mission statement is brief, it is longer and relatively more detailed compared to a slogan. A mission statement isn't meant to necessarily be catchy; it's meant to be informative and useful for guiding high-level decisions. Alternatively, a slogan is a very pointed marketing phrase used to be memorable even if it is less informative.

A mission statement is a brief description of the overarching meaning of the company or nonprofit. A mission statement does not explain what a company does or how it does it. It attempts to succinctly explain why a company exists and what its purpose is.

What Is an Example of a Mission Statement?

Microsoft's mission statement is: "Our mission is to empower every person and every organization on the planet to achieve more."

What Is in a Good Mission Statement?

A good mission statement is concise. It should be limited to one sentence, though it shouldn't be too limiting as it should encompass the entire company's purpose. A good mission statement also focuses on the long-term goal it wishes to deliver to customers.

How Do You Write a Mission Statement?

There's no single best way to come up with a mission statement. In general, the mission statement writing process should start with considering what a business does for the customers, employees, and general public. It's often best to begin by collecting more content than needed, then later refining the mission statement into a single sentence.

One method of brainstorming ideas of a mission statement is to think about personal experiences from the company. This could also include soliciting ideas or memories from employees. Instead of focusing directly on the narrow business element of your company, embrace the broader aspect. For example, Microsoft did not craft its mission statement around delivering Windows '98. Rather, it crafted its mission statement around the possibilities it presented through its product.

A mission statement is a simple and brief description that encompasses the purpose of a company defining its culture, goals, and values. It helps customers, employees, and investors have a clear vision of the company's top priorities. A good mission statement can also motivate employees and help them stay focused, as well as reassure investors of the company's future.

Nike. " What is Nike's Mission? "

Walmart. " History ."

Starbucks. " Message from Starbucks ceo: A Revitalized Mission for Our Limitless Future ."

Tesla. " About Tesla ."

JP Morgan. " About Us ."

Microsoft. " About Us. "

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Mission statement examples: 16 of the best to inspire you

• 15 Jun 2021

More than just a planning exercise, a mission statement focuses your leadership team, inspires employees, and communicates your core values to the larger world.

All in a single sentence. Magic.

A mission statement is one of the most important documents in your company’s arsenal, but it’s also one of the most difficult to craft. We’ve gathered 16 of the best company mission statement examples to help get your creativity flowing.

Level up with a mission statement video:  Deliver your mission statement with the most engaging communication medium — video. Turn your company’s mission statement into a video with Biteable. Start with a brandable  mission statement video template  and let Biteable’s smart editing features do all the heavy lifting for you.

Create videos that drive action

Activate your audience with impactful, on-brand videos. Create them simply and collaboratively with Biteable.

What is a mission statement?

A mission statement sums up the core of who your company is and why it exists. It’s  raison d’etre , if you want to get fancy and speak a little French.

Company mission statements are typically short and sweet, only a sentence or two. And the best mission statements are anything but boring.

When done right, your company’s mission statement acts as a powerful driver that informs every aspect of your organization, from daily operations, to customer loyalty, to employee satisfaction. When done wrong, a mission statement is just another line of jargon everyone pretty much ignores.

Take the Starbucks company mission statement as an example:  To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

Starbucks could have said:  To challenge the predominant infrastructure of coffee culture and develop a network of coffeehouses in every major market.

Did your eyes glaze over on that second one? Ours too. While technically true, our made-up example of a company mission statement is full of dreaded corporate-speak. It belongs deep in the bowels of a strategic plan, not as it’s headline.

On the other hand, the real Starbucks mission statement makes us want to be a part of it all. And even more than that, it conveys a sense of the beating heart behind the company.

The best mission statements do just this — clearly convey a company’s reason for existing, in language that is exceedingly human.

Mission statements vs. vision statements — what’s the diff?

It’s easy to confuse vision statements and mission statements. But there are a few important differences.

A vision statement is aspirational. It outlines where your company strives to be in the future — whether that is one year from now or ten. In contrast, a mission statement spells out where your company is right now.

Think of your company’s vision statement as a long-term goal post. The end point towards which you are working. If your vision statement is a goal post, then your mission statement is what drives you toward that goal post.

Why your company mission statement is important

You’ll probably write your company mission statement during your strategic planning because it’s a valuable tool that helps your leadership team make big-picture decisions. Chances are, you’ll even look at examples of other company mission statements to help you craft your own.

But the purpose of a mission statement goes far beyond strategic planning.

Consumers value mission-driven companies

It’s no secret that today’s consumer values a company with, well, values. These values don’t have to be centered around saving the world. But they do need to be clear, focused, and genuine.

A 2020 study  by global communications agency Zeno Group found that if consumers think a company has a strong purpose, they are:

• 4 times  more likely to purchase from the company
• 4.5 times  more likely to recommend the company to family and friends
• 6 times  more likely to defend the company in the wake of public criticism

Think about this in terms of your personal life. The more you connect with a person, the more likely you are to invite them over for coffee, introduce them to your other friends, and come to their defense. The same is true for the companies we buy from.

We humans value connection and a shared sense of purpose. All things equal, your company’s mission statement can be a powerful differentiator.

Employees want a sense of purpose

Just as your company mission statement makes an impact on consumer sentiment, the same can be said about employee sentiment.

According to a recent Gallup poll  Gen Z and millennials (who make up nearly half of the full-time workforce in the US) value belonging to a company with a strong moral compass. They appreciate ethical leadership, and they want to know that their own work has a positive impact on the world at large.

The more effectively human resources and the rest of the leadership team communicates the company’s mission to rank and file employees, the better.

But it doesn’t stop there. It is equally important to put your money where your mouth is, so to speak. If your company mission places value on the environment, do you give your employees opportunities to act upon these values in their everyday work life?

The most effective company mission statements are clear and actionable, from the products a company makes all the way down to the food in the employee cafeteria.

How to write an effective mission statement without a lot of headache

Understanding mission statements is one thing. Actually sitting down to write your company’s own mission statement is quite another.

But if you take the time to do it right, the process is a really useful exercise. Think of this as a chance to clarify and fine tune your purpose so you can point the company in the right direction for years to come.

Brainstorming your company mission statement

To get started, gather your leadership team and brainstorm answers to these four questions. If you are the solo founder of a fledgling company, gather key stakeholders or a handful of your professional mentors instead.

Aim for a short paragraph on each question.

• Why does our company exist?
• What value do our products or services bring to consumers?
• What core beliefs guide our work?
• What makes our company different, better, or more inspiring than our competitors?

After you brainstorm answers to these questions, review your answers and highlight the concepts that are central to your company. You might also pick a few company mission statement examples from businesses you admire and use those to help guide you.

If this brainstorming discussion took place with a group of people, now’s the time to send one or two individuals off to winnow the answers down to a couple of sentences.

Task this pair with writing several drafts of a mission statement, so the final decision makers have choices to work with.

This group process might seem cumbersome, but remember, your company mission statement is a core document. It should reflect the thought processes of as many stakeholders as possible.

Finalizing your work

After you land on a mission statement, do one final check to make sure it meets these criteria:

Plausibility:  Your mission statement is big-picture, but it should ultimately tie back to your everyday business operations. At least in a broad sense.

Readability:  No corporate speak or jargon. Avoid unnecessarily big words or complex sentences. Keep it simple.

• Voice:  Now isn’t the time to be dry and boring. Use language that’s active and compelling. Your mission statement should reflect the unique voice and culture of your company.

Pro-tip:  Give your mission statement more reach by creating both a text and video version. The video can be simple, just an eye-catching background, animated text, and a soundtrack.

Include your mission statement video as part of hiring announcements or other  HR video communications . Or send it over to your marketing team to use as a Facebook cover, website content, and more.

Company mission statement examples: 16 of the best

How do other leading companies tackle their mission statements? We searched far and wide for the best company mission statement examples.

1. Starbucks: Inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

The Seattle-based coffee giant originated in 1971 and has since become ubiquitous around the world.

Starbucks mission statement :   Inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

Why it works:  We touched on the Starbucks mission statement earlier, but we’ll elaborate more here. We included this example of the Starbucks company mission statement because it works well for two reasons: it’s ambitious without being overreaching, and it uses down-to-earth language.

Inspiring and nurturing the human spirit isn’t directly related to coffee. But considering the role the company played in reviving coffee house culture in the US, the human spirit and a sense of community doesn’t seem like too big of a stretch. The second part of the statement is exceedingly tangible. It paints a small-scale picture of the company and its work.

2. Honest Company: Meaningful transparency and thoughtful design. We’re on a mission to change the world, one product at a time.

Honest Company made headlines when it went public in mid-2021, with founder Jessica Alba as the youngest-ever Latina to list a company on the New York Stock Exchange.

Honest Company mission statement :   Meaningful transparency and thoughtful design. We’re on a mission to change the world, one product at a time.

Why it works:  As a company committed to creating “clean” baby products, a mission of meaningful transparency and thoughtful design is two-fold. It’s a necessary part of their business practices, and it also speaks to consumers looking for a higher standard in their products.

Being on a “mission to change the world” might be a bit of a stretch. But considering the  baby products market  is projected to be worth $88.72 billion US dollars worldwide by 2026, maybe it isn’t such a huge stretch after all.

3. Patagonia: We’re in business to save our home planet

The outdoor apparel and equipment company is known for its social and environmental activism.

Patagonia mission statement :   We’re in business to save our home planet.

Why it works:  Patagonia is often used as a good company mission statement example, and for a reason. Although it’s wildly lofty, the company really does put their money where their mouth is.

Patagonia originally began as a scrappy company specializing in steel pitons for rock climbing. But when the founders realized their gear damaged the rock face they so loved, they pivoted to low-impact aluminum chocks.

From the moment Patagonia pivoted to aluminum chocks, it became an environment-first company with far-reaching efforts built into every aspect of their business practices.

4. Microsoft: To empower every person and every organization on the planet to achieve more

The software giant is currently valued at  approaching $2 trillion .

Microsoft mission statement :   To empower every person and every organization on the planet to achieve more.

Why it works:  Notice, Microsoft’s company mission statement makes no mention of software, or PCs, or technology at any level.

This isn’t to say the company is focused on something other than tech. But by concentrating on the “why” not the “what” of the business, this mission statement example remains flexible and agile. No matter where the market moves, Microsoft aims to increase productivity with it’s products.

5. Square: Everyone should be able to participate and thrive in the economy.

Square’s point-of-sale and online payment platforms came out on top during the pandemic. But even before that time, the company was a leader in POS products.

Square mission statement :   Everyone should be able to participate and thrive in the economy.

Why it works:  The company’s extended mission statement goes on to say: No one should be left out of the economy because the cost is too great or the technology too complex.

Similar to Microsoft’s mission statement, Square leaves room for agility here. It aims to produce simple, low-cost payment products, regardless of where the market takes it. We also appreciate Square’s focus on who the company serves and why.

6. Pinterest: Bring everyone the inspiration to create a life they love.

Ah, Pinterest. Inspiration central for crafters everywhere, but also a valuable tool for businesses looking for new marketing platforms.

Pinterest mission statement :   Bring everyone the inspiration to create a life they love.

Why it works:  More than the words it uses, we appreciate how Pinterest discusses the ways its mission evolved along with the company.

According to Pinterest, the platform was originally conceived as “a tool to help people collect the things they were passionate about online.” It quickly became clear that people most enjoy using the site to get inspiration from others. And with this, Pinterest’s current mission was born.

7. Target: Help all families discover the joy of everyday life

Fun fact: According to Target’s website, 75% of the US population lives within 10 miles of a store. And why not? Everyone loves a trip to good old Target.

Target mission statement :   Help all families discover the joy of everyday life.

Why it works:  This company mission statement example is equal parts broad and super-specific, depending on how you look at it.

It speaks to Target’s affordable products, geared toward everyday people. But this mission statement can also easily extend to the company’s focus on community giving, corporate responsibility, and creating a positive employee experience.

8. Southwest Airlines: Connect people to what’s important in their lives through friendly, reliable, and low-cost air travel

The smallest of the “big four” US airlines, Southwest is known for its friendly crew and affordable ticket prices.

Southwest Airlines mission statement :   Connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.

Why it works:  Maybe you can chalk it up to the company’s southern roots, but Southwest consistently ranks high for customer service. Its mission of connecting people to what’s important in their lives touches on this value.

Southwest sees itself as doing more than just moving people from point A to point B.

9. Spotify: To unlock the potential of human creativity — by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it

The Swedish audio streaming platform currently has 356 million users across 178 markets.

Spotify mission statement :   To unlock the potential of human creativity — by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it.

Why it works:  We included this example because, technically speaking, this is a mission statement and a vision statement combined into one.

When you write your mission statement, it’s important not to confuse the two. But for marketing purposes, wrapping a mission statement and a vision statement up into one shiny package sometimes works very well.

10. Google: Organize the world’s information and make it universally accessible and useful

This one needs no introduction. After all, to Google is officially listed in Merriam-Webster as a transitive verb. If that isn’t a sign of a powerful company, we don’t know what is.

Google mission statement :   Organize the world’s information and make it universally accessible and useful.

Why it works:  Google’s effectiveness is centered around its algorithms. At its heart, an algorithm is a system for organizing information. So Google pretty much nailed it here.

We also appreciate the focus on making information “universally accessible and useful.” Google is arguably the most powerful search engine in the world, yet it’s simple enough for anyone to use. Universally accessible and useful sums that up nicely.

11. Nike: Bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete

The Oregon-based footwear, apparel, and sports equipment company was founded in 1964 and is now synonymous with athletics.

Nike mission statement :   Bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.

Why it works:  We admit, we like the asterisk more than we like the actual mission statement. Nike outfits some of the biggest names in professional sports, but its mission specifies “if you have a body, you are an athlete.” The word “inclusion” doesn’t appear in the company’s mission statement, but it says it — and then some — in so many words.

12. CVS: Helping people on their path to better health

Founded as a drugstore in 1963 by brothers Stanley and Sidney Goldstein and partner Ralph Hoagland, CVS bills itself as a “health care innovation company that is reinventing pharmacy.”

CVS mission statement :   Helping people on their path to better health.

Why it works:  This isn’t one of the most inventive examples of a company mission statement, and it also seems somewhat obvious for a drugstore. But CVS embodies its mission in some pretty bold ways. In 2014, it became the  first national pharmacy in the US  to stop selling cigarettes and tobacco products.

13. Harley Davidson: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul

Harley-Davidson was founded in Milwaukee in 1903, and it remains one of the most popular motorcycle brands.

Harley Davidson mission statement :   More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul.

Why it works:  Harley-Davidson is known not only for its iconic design and distinctive engine sound, but also for the unique subculture of Harley riders.

Although Harley enthusiasts might balk at the idea, the company is as much a lifestyle brand as it is a motorcycle manufacturer. And that lifestyle delivers just what is promised in the company’s mission statement: adventure and freedom. And a whole lot of leather.

14. Dove: Help women everywhere develop a positive relationship with the way they look, helping them raise their self-esteem and realize their full potential

What started as a single product — the Dove Beauty Bar — grew into a major line of personal care products used by women around the world.

Dove mission statement :   Help women everywhere develop a positive relationship with the way they look, helping them raise their self-esteem and realize their full potential.

Why it works:  The company’s mission statement combines seamlessly with their vision statement, which says, “We believe beauty should be a source of confidence, and not anxiety.”

Dove delivers on this promise with its far-reaching body positivity campaigns, research initiatives, and self-esteem projects.

15. Livestrong: Which everyday cancer problem will we fix today?

Livestrong is a nonprofit organization that supports people living with or affected by cancer.

Livestrong mission statement :   Which everyday cancer problem will we fix today?

Why it works:  Because selling products and services to consumers isn’t part of the equation, nonprofit mission statements differ from those of their for-profit counterparts. But we included Livestrong here, because it has such a unique mission statement.

Very few mission statements are in the form of a question. This was very intentional on the part of Livestrong. As the company puts it on their mission page, “We have a Mission Question, not a Mission Statement, because we believe that we can only achieve the best solutions through asking the right questions.”

16. TED: Spread ideas.

The media company solicits keynote-style talks from some of the best minds and makes these available, for free, via video and through their podcast,

Ted mission statement :   Spread ideas.

Why it works:  This is another company mission statement example that makes the rounds on the best-of lists. You can almost imagine the lengthy thought process that transpired as TED execs winnowed their mission statement down to just two words. Two words! But that’s all they need.

This mission statement doesn’t say they are “creating opportunities for…” or “gathering the brightest minds to…” They do all of these things as well. But at the very core of the organization, their mission is to spread ideas.

In those two words, they say it all.

FAQs about company mission statements

These company mission statement examples are just a sample of what’s possible when a company really takes the time to craft a thoughtful mission statement. To help you write yours, here are answers to some of the most frequently asked questions about mission statements.

What should a company mission statement include?

A company mission statement should include one or two strong, well-written sentences that talk about why a company exists, the value it brings to its customers, the core beliefs that drive its work, and what sets it apart from other companies doing similar work.

What are the 3 parts of a mission statement?

The three parts of a mission statement are:

• Mission and purpose:  the main reason a company exists. Its purpose in a broad sense.
• Values:  the core values that drive everyday decisions and behavior in the company.
• Goals:  what the company hopes to achieve by sticking close to its mission and values.

What is a strong mission statement?

A strong mission statement is short and actionable. The strongest company mission statements are written in accessible language (no corporate speak) that reflects a company’s unique culture and voice. A good mission statement is lofty, but also ties back to a company’s everyday business practices.

What is Coca Cola’s mission statement?

Coca Cola’s mission statement is  “to refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference.”

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How to Write Your Mission Statement Summing up your business's mission helps you focus on the steps you need to take to succeed. Here's how to create a mission statement that's uniquely yours.

Oct 30, 2003

A mission statement is a key tool that can be as important as your business plan . It captures, in a few succinct sentences, the essence of your business's goals and the philosophies underlying them. Equally important, the mission statement signals what your business is all about to your customers, employees, suppliers and the community.

The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community.

"Mission statement help clarify what business you are in, your goals and your objectives," says Rhonda Abrams, author of The Successful Business Plan: Secrets and Strategies .

Your mission statement should reflect your business' special niche. However, studying other companies' statements can fuel your creativity. One sample mission statement Abrams developed:

"AAA Inc. is a spunky, imaginative food products and service company aimed at offering high-quality, moderately priced, occasionally unusual foods using only natural ingredients. We view ourselves as partners with our customers, our employees, our community and our environment. We aim to become a regionally recognized brand name, capitalizing on the sustained interest in Southwestern and Mexican food. Our goal is moderate growth, annual profitability and maintaining our sense of humor."

Or consider the statement one entrepreneur developed for her consulting business: "ABC Enterprises is a company devoted to developing human potential. Our mission is to help people create innovative solutions and make informed choices to improve their lives. We motivate and encourage others to achieve their own personal and professional fulfillment. Our motto is: Together, we believe that the best in each of us enriches all of us."

The Write Words To come up with a statement that encompasses the major elements of your business, start with the right questions. Business plan consultant David Tucker says the most important question is, What business are you in? Since you have already gone through the steps of creating your niche, answering this question should be easy for you.

Answering the following questions will help you to create a verbal picture of your business's mission:

• Why are you in business? What do you want for yourself, your family and your customers? Think about the spark that ignited your decision to start a business. What will keep it burning?
• Who are your customers? What can you do for them that will enrich their lives and contribute to their success--now and in the future?
• What image of your business do you want to convey? Customers, suppliers, employees and the public will all have perceptions of your company. How will you create the desired picture?
• What is the nature of your products and services? What factors determine pricing and quality? Consider how these relate to the reasons for your business's existence. How will all this change over time?
• What level of service do you provide? Most companies believe they offer "the best service available," but do your customers agree? Don't be vague; define what makes your service so extraordinary.
• What roles do you and your employees play? Wise captains develop a leadership style that organizes, challenges and recognizes employees.
• What kind of relationships will you maintain with suppliers? Every business is in partnership with its suppliers. When you succeed, so do they.
• How do you differ from your competitors? Many entrepreneurs forget they are pursuing the same dollars as their competitors. What do you do better, cheaper or faster than other competitors? How can you use competitors' weaknesses to your advantage?
• How will you use technology, capital, processes, products and services to reach your goals? A description of your strategy will keep your energies focused on your goals.
• What underlying philosophies or values guided your responses to the previous questions? Some businesses choose to list these separately. Writing them down clarifies the "why" behind your mission.

Putting It All Together Like anything with lasting value, crafting a mission statement requires time, thought and planning. However, the effort is well worth it. In fact, most start-up entrepreneurs discover that the process of crafting the mission statement is as beneficial as the final statement itself. Going through the process will help you solidify the reason for what you are doing and clarify the motivations behind your business.

Here are some tips to make your mission statement the best it can be:

• Involve those connected to your business. Even if you are a sole proprietor, it helps to get at least one other person's ideas for your mission statement. Other people can help you see strengths, weaknesses and voids you might miss. if you have no partners or investors to include, consider knowledgeable family members and close friends, employees or accountants. Be sure, however, to pick only positive, supportive people who truly want to see you succeed.
• Set aside several hours--a full day, if possible--to work on your statement. Mission statements are short--typically more than one sentence but rarely exceeding a page. Still, writing one is not a short process. It takes time to come up with language that simultaneously describes an organization's heart and soul and serves as an inspirational beacon to everyone involved in the business.
• Plan a date. Set aside time to meet with the people who'll be helping you. Write a list of topics to discuss or think about. Find a quiet, comfortable place away from phones and interruptions.
• Be prepared. If you have several people involved, be equipped with refreshments, extra lists of topics, paper and pencils. Because not everyone understand what a mission statement is about, explain its meaning and purpose before you begin.
• Brainstorm. Consider every idea, no matter how silly it sounds. Stimulate ideas by looking at sample mission statements and thinking about or discussing the questions in the previous section. If you're working with a group, use a flip chart to record responses so everyone can see them. Once you've finished brainstorming, ask everyone to write individual mission statements for your business. Read the statement, select the best bits and pieces, and fit them together.
• Use "radiant words." Once you have the basic idea in writing, polish the language of your mission statement. "Every word counts," says Abrams. The statement should create dynamic, visual images and inspire action. Use offbeat, colorful verbs and adjectives to spice up your statements. Don't hesitate to drop in words like "kaleidoscope," "sizzle," "cheer," "outrageous" and "marvel" to add zest. If you want customers to boast about your goods and services, say so--along with the reasons why. Some businesses include a glossary that defines the terms used in the statement.

Once your mission statement is complete, start spreading the word! You need to convey your mission statement to others inside and outside the business to tell everyone you know where you are going and why. Post it in your office, where you, employees and visitors can see it every day. Print it on company materials, such as brochures and your business plan or even on the back of your business cards.

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BUSINESS STRATEGIES

How to write a mission statement in 5 steps

• Joanna Kramer
• Feb 19, 2019

A mission statement is one of the most powerful tools you have for leading your business or organization to success. The trick is knowing how to craft the perfect one, before you start posting it around your office or on your business website . There are a few tips and tricks to nailing exactly the right wording to articulate your vision and values - to yourself, to your employees, and to your target audience. Let’s jump in and review what makes an effective mission statement and how to write one for your business or organization regardless of whether you're just starting your business or scaling. Plus, we’ve included seven excellent mission statement examples at the end for your very own inspiration.

What is a mission statement?

Let’s start with the basics. You’ve probably heard that a mission statement is the lifeblood of your business. But what really is it? A mission statement takes the ‘why’ of what you do and consolidates it into about one to two sentences (and no, a run-on sentence that’s the length of a paragraph does not qualify). This abbreviated expression of your values and purpose helps everyone who encounters your work to immediately understand what you’re all about (much like your elevator pitch ). It's different from an executive summary but still important to your business. And it serves to remind you and your employees why you continue walking in the door each morning.

A strong mission statement will contain four key elements:

Inspiration

Plausibility

Specificity

As in, readers will walk away understanding the value your works adds to the world or to their lives, feeling inspired to join your mission, convinced that your goal is achievable, and crystal clear on the nature of your business or organization. Once these four components are present, you’ve got yourself a mission statement that is dressed to impress.

Why your business needs a mission statement

The mission statement ingredients sound all well and good, but why exactly is it important for you to adopt one? There are both inward and outward-facing reasons. Internally, it acts as a guiding statement to frame all of your strategic business decisions. It’s easy to reference every time you need a reminder of the values you embody as a company, or the vision you are pursuing. Furthermore, it becomes an important contributor to workplace morale, serving up a dose of inspiration every time your declared purpose starts fading behind administrative emails and fundraising campaigns. Those are the moments when you write your mission statement down on a little sticky note and post it on your computer screen.

Externally, this expression is a critical figure in the landscape of brand identity . Readers will associate your tone and register key words you select, and values you highlight with the larger persona of your company. The mission statement, then, communicates to outsiders who you are, and what you will do to guarantee quality business to your clients. In its concise form, its task is to explain how to foster a connection with the curious minds viewing its several sentences, and explain why yours should be the right business or organization for them to choose.

How to write a mission statement for your business in 5 steps

1. Ask yourself three fundamental questions

2. Hold a brainstorming session

3. Narrow down your choices

4. Refine your words into sentences

5. Review what you've written

01. Ask yourself three fundamental questions

What does your business do? How does it do it? And why? With the first question, evaluate your response through the lenses of your customers or beneficiaries, your employees, and - of course - yourself. When relevant, you can widen the perspectives to also define what your business does for your community, or even for the world. The exercise of answering these three questions will help you tease out your purpose, clarify the value you offer, and reconnect to your motivating passion.

02. Hold a brainstorming session

Either by yourself or with your team, throw around words and phrases that convey the answers you generated in the previous step. Of course, we know each of those questions could give way to an essay - sometimes even a book. Yet, here, brevity comes above all. Try instead for “snapshot words” that capture the sentiment of your business’ value and purpose. Don’t hold back here: All ideas are acceptable at this point, and you never know when a phrase that’s slightly off can spark the suggestion of the phrase that’s exactly right.

03. Narrow down your choices

Either through a group voting process or by soliciting the feedback of a few people you trust, whittle down the list you generated in step two. At the end of this step, you should emerge with a curated list of your favorite words and phrases that are fitting and truly reflect your brand.

04. Refine your words into sentences

Set aside a few hours, a quiet area, and put on your best ‘eureka moment’ playlist. It’s time to start massaging your list of chosen words and phrases into one to two complete sentences, keeping in mind all the key elements we reviewed earlier. Check in frequently with those four criteria to ensure you’re on the right track. Finally, remember to write in the present tense. This an active proclamation of what you do - not what you hope to do someday.

05. Review what you’ve written

The editing stage is best done with fresh eyes, after you’ve had some time away from your first draft. Notice points where you can tighten the phrasing, or make your wording even more precise. Run through potential future developments for your business. Will the statement you’re crafting now stand the test of time and an evolving business strategy? Take care to build some of this flexibility into your final version (without losing sight of the specificity, of course). Lastly, cut out the fluff. Big words that sound fancy but don’t add much value or clarity for your readers should be directed straight to the trash can. What survives your editing annotations will be the strong, durable, and exact material that quality missions statement examples are made of.

Where to display your mission statement

Once you have your mission statement polished and gleaming, it’s time to debut it to your colleagues and target audience . Find a place to print and proudly display it in your workplace so you and all of your team members can look to it as a source of guidance whenever a big decision is in front of you, or you need an inspirational boost.

Additionally, your new mission statement should appear across all of your marketing and promotional materials, from printed brochures to your beautiful website. Due to its short length, it also makes for an excellent bio lines on your social media channels. It’s a snappy answer to people’s initial question of ‘What is this?!’ after they stumble across your profile - and on the Internet, it’s important to keep information flowing fast to keep a web visitor’s attention engaged. Your mission statement makes your point quickly and succinctly, giving your online traffic a reason to stick around. Now, that’s good for business!

P.S. One little hint from us to you: Keep a note of all places where you feature your mission statement. In the event you update it, you will want to be able to make an easy sweep of your office and your online presence to implement the new edits across the board.

Get inspired by these mission statement examples

Enjoy some of these examples of great mission statements that have hit the ball out of the park with their bold precision:

Amp’d: “To provide people with limb loss/difference resources that allow them to live to their fullest potential.”

Southwest Airlines: The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.

Honest Tea: Honest Tea seeks to create and promote great-tasting, healthy, organic beverages. We strive to grow our business with the same honesty and integrity we use to craft our recipes, with sustainability and great taste for all.

S’well: It’s S’well’s ongoing mission to create products that are both beautiful and eco-friendly, that infuse innovation with inspiration, and that continue to give back to communities in need.

Girl Scouts of the United States of America: Girl Scouting builds girls of courage, confidence, and character, who make the world a better place.

Snap Inc.: Snap Inc. is a camera company. We believe that reinventing the camera represents our greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.

The New York Times: We seek the truth and help people understand the world. This mission is rooted in our belief that great journalism has the power to make each reader’s life richer and more fulfilling, and all of society stronger and more just.

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BUS101: Introduction to Business

The Business Plan

Read this section to see why business plans are essential and what sections should be included.

Mission Statement and Core Values

This portion of the business plan states the company's  mission statement  and  core values . The mission statement describes the purpose or  mission  of your organization - its reason for existence. It tells the reader what the organization is committed to doing. For example, one mission statement reads, "The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit".

Core values are fundamental beliefs about what's important and what is (and isn't) appropriate in conducting company activities. Core values are not about profits, but rather about ideals. They should help guide the behavior of individuals in the organization. Coca-Cola, for example, intends that its core values - leadership, passion, integrity, collaboration, diversity, quality, and accountability - will let employees know what behaviors are (and aren't) acceptable.

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6 Top Mission Statement Examples For Your Business Plan

Free Mission and Vision Statement Templates

Aayushi Mistry

• December 11, 2023

Example 1: A Mission Statement by Hubspot

There’s this notion that to grow a business, you have to be ruthless. But we know there’s a better way to grow. One where what’s good for the bottom line is also good for customers. We believe businesses can grow with a conscience, and succeed with a soul — and that they can do it with inbound. That’s why we’ve created a platform uniting software, education, and community to help businesses grow better every day.

Want to Generate a Mission Statement for your Business?

Craft a strong and purposeful mission statement in minutes with our easy-to-use Free AI Mission Statement Generator .

Hubspot is a company that develops and offers a fully functioning systematic platform for sales, marketing, and CRM management. They also offer the right measures to grow your business through consultations and courses.

Expert’s rating on the mission statement: 4 / 5

• Adding the emotional touch.
• Comparison with the traditional business.
• Clear about what they stand for.
• Clear about what they do.

Some of you might find this statement a little longer than usual. But what’s best is that they managed to add all the values, ethics, and culture with a friendly vocabulary. All of it, in just 4 to 5 sentences. And if you look closely, it’s not so long.

Example 2: A Mission Statement by Microsoft

Empower every person and organization on the planet to achieve more.

Microsoft Corporation is an American multinational technology company. It develops, manufactures, licenses key supports, and sells computer software, consumer electronics, personal computers, and related services.

Expert’s rating on the mission statement: 5 / 5

• It is the simplest and boldest mission statement .
• Very clear in communicating the value and ethics.
• It has a tinge of empowering emotion. It makes you want to know and have Microsoft right away.
• Most importantly, it is a one-liner with the best use of vocabulary. Hence, easy to remember.

Example 3: A Mission Statement from Tesla

To accelerate the world’s transition to sustainable energy.

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s current products include electric cars, battery energy storage from home to grid-scale, solar panels, and solar roof tiles, as well as other related products and services.

• You can already sense the speed and change in the mission statement.
• You can relate the statement to the founder, Elon Musk .
• Clear about what they want to accomplish
• Short, simple, and catchy enough for you to never forget it.

Example 4: A Mission Statement by Asos

To become the number 1 fashion destination for 20-somethings globally.

ASOS plc is a British online fashion and cosmetic retailer. The company was founded in 2000 in London, primarily aimed at young adults. The website sells over 850 brands as well as its own range of clothing and accessories, and ships to all 196 countries from fulfillment centers in the UK, Subcontinent, and Europe.

Their ambition, their service, and their target audience, everything put together in one sentence. The statement can’t get clearer than this!

Example 5: A Mission Statement by Disney

To be one of the world’s leading producers and providers of entertainment and information, using its portfolio of brands to differentiate its content, services and consumer products.

The Walt Disney Company , commonly known as Disney, is an American diversified multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.

Expert’s rating on the mission statement: 3 / 5

• The mission statement is longer than required.
• It is not relevant to the grand and creative world of Disney.
• It has no emotional touch.
• It is clear what they do and offers.

Example 6: A Mission Statement by Sony

To be a company that inspires and fulfills your curiosity.

Sony Corporation is a Japanese multinational conglomerate corporation headquartered in Konan, Minato, Tokyo.

• It is not relevant to the grand, colorful sets of Sony
• Unclear with what they do and offer.

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About the Author

Since childhood, I was in awe of the magic that words bring. But while studying computer science in college, my world turned upside down. I found my calling in being a copywriter and I plunged into a world of words. Since then, there is no looking back. Even today, nothing excites me to find out the wonders the words can bring!

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How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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Gold pocket watch of richest man on Titanic fetches record-breaking £1.2m

Amount paid for businessman John Jacob Astor’s watch is highest ever for Titanic memorabilia, auctioneers say

A gold pocket watch that was recovered from the body of the richest man on the Titanic has sold for a record-breaking £1.2m.

The watch was sold on Saturday to a private collector in the US at Henry Aldridge & Son in Devizes, Wiltshire, for the highest amount ever for Titanic memorabilia, the auctioneers said.

The original owner of the watch, businessman John Jacob Astor, went down with the ship in 1912 at the age of 47, after seeing his new wife, Madeleine, on to a lifeboat.

The previous highest amount paid for Titanic artefacts was £1.1m for a violin that was played as the ship sank – which sold at the same auction house in 2013, according to the auctioneers.

A spokesperson for the auctioneers said the £1.2m was inclusive of fees and taxes paid by the buyer.

The case for the violin was sold at the same auction as the pocket watch on Saturday for £360,000 including fees and taxes.

Auctioneer Andrew Aldridge told the PA news agency that the prices fetched by the Titanic memorabilia at the sale were “absolutely incredible”.

He said: “They reflect not only the importance of the artefacts themselves and their rarity but they also show the enduring appeal and fascination with the Titanic story.

“112 years later, we are still talking about the ship and the passengers and the crew.

“The thing with the Titanic story, it’s effectively a large ship hits an iceberg with a tragic loss of life, but more importantly is 2,200 stories.

“2,200 subplots, every man, woman and child had a story to tell and then the memorabilia tells those stories today.”

Rather than try his luck with another safety vessel, impeccably dressed Astor, who was a prominent member of the wealthy Astor family, was last seen smoking a cigarette and chatting with a fellow passenger.

His body was recovered from the Atlantic Ocean seven days later and his exquisite 14-carat gold Waltham pocket watch, engraved JJA, was found.

Aldridge said: “Astor is well known as the richest passenger [on] board the RMS Titanic and was thought to be among the richest people in the world at that time, with a net worth of roughly $87m – equivalent to several billion dollars today.

“At 11.40pm on 14 April 1912, the Titanic hit an iceberg and started to take on water.

“At first, Astor did not believe the ship was in any serious danger, but later it was apparent she was sinking and the captain had started an evacuation after midnight, so he helped his wife into lifeboat 4.”

Madeleine Astor survived, and her husband’s body was recovered on 22 April not far from the sinking.

The watch was passed by Astor’s son Vincent to the son of his father’s executive secretary, William Dobbyn.

• The Titanic
• The Observer

More on this story

Pocket watch of business magnate who died in Titanic sinking to be auctioned

Unsinkable: Titanic Untold review – story of disaster told through government inquiry

Fascists’ feasts and grated rat: exhibition of vintage menus serves up slice of history

Oysters and ice-cream: menu for dinner on Titanic sold for £83,000

Titanic salvage plan scrapped after Titan implosion killed mission head

Why the world remains gripped by Titanic fever

Billionaires and the Titanic: the allure of extreme expeditions

‘She has stories to tell’: digital scan of Titanic wreck could reveal its secrets

Haunting new footage of Titanic wreckage to be released

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The US is now allowed to seize Russian state assets. How would that work?

Calling it “a good day for world peace,” President Joe Biden signed into law the $95 billion war aid measure that includes assistance for Ukraine, Israel, Taiwan and other allies, marking an end to the long, painful battle with Republicans in Congress.

President Joe Biden speaks before signing a $95 billion Ukraine aid package that also includes support for Israel, Taiwan, and other allies, in the State Dining Room of the White House, Wednesday, April 24, 2024, in Washington. (AP Photo/Evan Vucci)

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White House national security adviser Jake Sullivan speaks during a press briefing at the White House, Wednesday, April 24, 2024, in Washington. (AP Photo/Evan Vucci)

WASHINGTON (AP) — The big U.S. aid package for Ukraine and other allies that President Joe Biden signed Wednesday also allows the administration to seize Russian state assets located in the U.S. and use them for the benefit of Kyiv.

That could mean another $5 billion in assistance for Ukraine, coming from Russian Central Bank holdings that have already been frozen in the United States. The seizures would be carried out under provisions of the REPO Act, short for the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act, that were incorporated into the aid bill.

But it’s not likely the U.S. will seize the assets without agreement from other members of the Group of Seven nations and the European Union.

WHAT IS THE DIFFERENCE BETWEEN FREEZING AND SEIZING?

The U.S. and its allies immediately froze $300 billion in Russian foreign holdings at the start of Moscow’s invasion of Ukraine. That money has been sitting untapped — most of it in European Union nations — as the war grinds on. But roughly $5 billion of it is located in the U.S.

The frozen assets are immobilized and can’t be accessed by Moscow — but they still belong to Russia. While governments can generally freeze property without difficulty, turning that property into forfeited assets that can be sold for the benefit of Ukraine requires an extra layer of judicial procedure, including a legal basis and adjudication in a court.

For more than a year, officials from multiple countries have debated the legality of confiscating the money and sending it to Ukraine.

HOW QUICKLY COULD THIS HAPPEN?

The new U.S. law requires the president and Treasury Department to start locating Russian assets in the U.S. within 90 days and to report back to Congress within 180 days. A month after that period, the president will be allowed to “seize, confiscate, transfer, or vest” any Russian state sovereign assets, including any interest, within U.S. jurisdictions.

But the U.S. wants to keep consulting with global allies and act together, which is likely to slow down the process.

National security adviser Jake Sullivan said Wednesday the issue would be an important topic when leaders of the G7 countries meet in Italy in June, adding that “the ideal is that we all move together.”

WHAT CAN THE US DO WITH THE MONEY?

Biden is given leeway to determine how the money can be spent for the benefit of Ukraine — but he must confer with other G7 members before acting.

The legislation states that “any effort by the United States to confiscate and repurpose Russian sovereign assets” should be done alongside international allies, including the G7, the 27-member European Union and other nations as part of a coordinated effort.

Policymakers, including Treasury Secretary Janet Yellen, have said the U.S. is not likely to act without the support of G7 allies.

Yellen said after the passage of the bill that “Congress took an important step in that effort with the passage of the REPO Act, and I will continue intensive discussions with our G7 partners in the weeks ahead on a collective path forward,” Yellen said.

WILL EUROPE ALSO SEIZE RUSSIAN ASSETS?

The European Union already has begun to set aside windfall profits generated from frozen Russian central bank assets. The bloc estimates the interest on that money could provide around 3 billion euros ($3.3 billion) each year.

“The Russians will not be very happy. The amount of money, 3 billion per year, is not extraordinary, but it is not negligible,” EU foreign policy chief Josep Borrell told reporters in March .

Still, some European leaders have expressed hesitation about moving forward with a plan to formally seize Russia’s assets in Europe.

European Central Bank President Christine Lagarde said at a Council on Foreign Relations event earlier this month that confiscating Russian assets “is something that needs to be looked at very carefully” and could “start breaking the international legal order.”

WHAT ARE THE RISKS?

Critics of the REPO Act say the weaponization of global finance against Russia could harm the U.S. dollar’s standing as the world’s dominant currency.

To confiscate Russia’s assets could prompt nations like China — the biggest holder of U.S. Treasuries — to determine it is not safe to keep their reserves in U.S. dollars.

The conservative Heritage Foundation has criticized Russian asset seizure for, among other things, undermining the dollar-denominated global finance system, saying “it would expose an already fragile economy to unintended consequences and risks for which the United States is unprepared.”

Russian authorities have warned that the new law will undermine the global financial system.