statement of purpose for a business plan

9 Examples: How to Write a Purpose Statement

By Status.net Editorial Team on September 30, 2023 — 15 minutes to read

• Key Elements of a Purpose Statement Part 1
• How to Write a Purpose Statement Step-by-Step Part 2
• Identifying Your Goals Part 3
• Defining Your Audience Part 4
• Outlining Your Methods Part 5
• Stating the Expected Outcomes Part 6
• Purpose Statement Example for a Research Paper Part 7
• Purpose Statement Example For Personal Goals Part 8
• Purpose Statement Example For Business Objectives Part 9
• Purpose Statement Example For an Essay Part 10
• Purpose Statement Example For a Proposal Part 11
• Purpose Statement Example For a Report Part 12
• Purpose Statement Example For a Project Part 13
• Purpose Statement Templates Part 14

A purpose statement is a vital component of any project, as it sets the tone for the entire piece of work. It tells the reader what the project is about, why it’s important, and what the writer hopes to achieve.

Part 1 Key Elements of a Purpose Statement

When writing a purpose statement, there are several key elements that you should keep in mind. These elements will help you to create a clear, concise, and effective statement that accurately reflects your goals and objectives.

1. The Problem or Opportunity

The first element of a purpose statement is the problem or opportunity that you are addressing. This should be a clear and specific description of the issue that you are trying to solve or the opportunity that you are pursuing.

2. The Target Audience

The second element is the target audience for your purpose statement. This should be a clear and specific description of the group of people who will benefit from your work.

3. The Solution

The third element is the solution that you are proposing. This should be a clear and specific description of the action that you will take to address the problem or pursue the opportunity.

4. The Benefits

The fourth element is the benefits that your solution will provide. This should be a clear and specific description of the positive outcomes that your work will achieve.

5. The Action Plan

The fifth element is the action plan that you will follow to implement your solution. This should be a clear and specific description of the steps that you will take to achieve your goals.

Part 2 How to Write a Purpose Statement Step-by-Step

Writing a purpose statement is an essential part of any research project. It helps to clarify the purpose of your study and provides direction for your research. Here are some steps to follow when writing a purpose statement:

• Start with a clear research question: The first step in writing a purpose statement is to have a clear research question. This question should be specific and focused on the topic you want to research.
• Identify the scope of your study: Once you have a clear research question, you need to identify the scope of your study. This involves determining what you will and will not include in your research.
• Define your research objectives: Your research objectives should be specific, measurable, achievable, relevant, and time-bound. They should also be aligned with your research question and the scope of your study.
• Determine your research design: Your research design will depend on the nature of your research question and the scope of your study. You may choose to use a qualitative, quantitative, or mixed-methods approach.
• Write your purpose statement: Your purpose statement should be a clear and concise statement that summarizes the purpose of your study. It should include your research question, the scope of your study, your research objectives, and your research design.

Research question: What are the effects of social media on teenage mental health?

Scope of study: This study will focus on teenagers aged 13-18 in the United States.

Research objectives: To determine the prevalence of social media use among teenagers, to identify the types of social media used by teenagers, to explore the relationship between social media use and mental health, and to provide recommendations for parents, educators, and mental health professionals.

Research design: This study will use a mixed-methods approach, including a survey and interviews with teenagers and mental health professionals.

Purpose statement: The purpose of this study is to examine the effects of social media on teenage mental health among teenagers aged 13-18 in the United States. The study will use a mixed-methods approach, including a survey and interviews with teenagers and mental health professionals. The research objectives are to determine the prevalence of social media use among teenagers, to identify the types of social media used by teenagers, to explore the relationship between social media use and mental health, and to provide recommendations for parents, educators, and mental health professionals.

Part 3 Section 1: Identifying Your Goals

Before you start writing your purpose statement, it’s important to identify your goals. To do this, ask yourself the following questions:

• What do I want to achieve?
• What problem do I want to solve?
• What impact do I want to make?

Once you have a clear idea of your goals, you can start crafting your purpose statement. Your purpose statement should be a clear and concise statement that outlines the purpose of your work.

For example, if you’re writing a purpose statement for a business, your statement might look something like this:

“Our purpose is to provide high-quality products and services that improve the lives of our customers and contribute to the growth and success of our company.”

If you’re writing a purpose statement for a non-profit organization, your statement might look something like this:

“Our purpose is to improve the lives of underserved communities by providing access to education, healthcare, and other essential services.”

Remember, your purpose statement should be specific, measurable, and achievable. It should also be aligned with your values and goals, and it should inspire and motivate you to take action.

Part 4 Section 2: Defining Your Audience

Once you have established the purpose of your statement, it’s important to consider who your audience is. The audience for your purpose statement will depend on the context in which it will be used. For example, if you’re writing a purpose statement for a research paper, your audience will likely be your professor or academic peers. If you’re writing a purpose statement for a business proposal, your audience may be potential investors or clients.

Defining your audience is important because it will help you tailor your purpose statement to the specific needs and interests of your readers. You want to make sure that your statement is clear, concise, and relevant to your audience.

To define your audience, consider the following questions:

• Who will be reading your purpose statement?
• What is their level of knowledge or expertise on the topic?
• What are their needs and interests?
• What do they hope to gain from reading your purpose statement?

Once you have a clear understanding of your audience, you can begin to craft your purpose statement with their needs and interests in mind. This will help ensure that your statement is effective in communicating your goals and objectives to your readers.

For example, if you’re writing a purpose statement for a research paper on the effects of climate change on agriculture, your audience may be fellow researchers in the field of environmental science. In this case, you would want to make sure that your purpose statement is written in a way that is clear and concise, using technical language that is familiar to your audience.

Or, if you’re writing a purpose statement for a business proposal to potential investors, your audience may be less familiar with the technical aspects of your project. In this case, you would want to make sure that your purpose statement is written in a way that is easy to understand, using clear and concise language that highlights the benefits of your proposal.

The key to defining your audience is to put yourself in their shoes and consider what they need and want from your purpose statement.

Part 5 Section 3: Outlining Your Methods

After you have identified the purpose of your statement, it is time to outline your methods. This section should describe how you plan to achieve your goal and the steps you will take to get there. Here are a few tips to help you outline your methods effectively:

• Start with a general overview: Begin by providing a brief overview of the methods you plan to use. This will give your readers a sense of what to expect in the following paragraphs.
• Break down your methods: Break your methods down into smaller, more manageable steps. This will make it easier for you to stay organized and for your readers to follow along.
• Use bullet points: Bullet points can help you organize your ideas and make your methods easier to read. Use them to list the steps you will take to achieve your goal.
• Be specific: Make sure you are specific about the methods you plan to use. This will help your readers understand exactly what you are doing and why.
• Provide examples: Use examples to illustrate your methods. This will make it easier for your readers to understand what you are trying to accomplish.

Part 6 Section 4: Stating the Expected Outcomes

After defining the problem and the purpose of your research, it’s time to state the expected outcomes. This is where you describe what you hope to achieve by conducting your research. The expected outcomes should be specific and measurable, so you can determine if you have achieved your goals.

It’s important to be realistic when stating your expected outcomes. Don’t make exaggerated or false claims, and don’t promise something that you can’t deliver. Your expected outcomes should be based on your research question and the purpose of your study.

Here are some examples of expected outcomes:

• To identify the factors that contribute to employee turnover in the company.
• To develop a new marketing strategy that will increase sales by 20% within the next year.
• To evaluate the effectiveness of a new training program for improving customer service.
• To determine the impact of social media on consumer behavior.

When stating your expected outcomes, make sure they align with your research question and purpose statement. This will help you stay focused on your goals and ensure that your research is relevant and meaningful.

In addition to stating your expected outcomes, you should also describe how you will measure them. This could involve collecting data through surveys, interviews, or experiments, or analyzing existing data from sources such as government reports or industry publications.

Part 7 Purpose Statement Example for a Research Paper

If you are writing a research paper, your purpose statement should clearly state the objective of your study. Here is an example of a purpose statement for a research paper:

The purpose of this study is to investigate the effects of social media on the mental health of teenagers in the United States.

This purpose statement clearly states the objective of the study and provides a specific focus for the research.

Part 8 Purpose Statement Example For Personal Goals

When writing a purpose statement for your personal goals, it’s important to clearly define what you want to achieve and why. Here’s a template that can help you get started:

“I want to [goal] so that [reason]. I will achieve this by [action].”

Example: “I want to lose 10 pounds so that I can feel more confident in my body. I will achieve this by going to the gym three times a week and cutting out sugary snacks.”

Remember to be specific and realistic when setting your goals and actions, and to regularly review and adjust your purpose statement as needed.

Part 9 Purpose Statement Example For Business Objectives

If you’re writing a purpose statement for a business objective, this template can help you get started:

[Objective] [Action verb] [Target audience] [Outcome or benefit]

Here’s an example using this template:

Increase online sales by creating a more user-friendly website for millennial shoppers.

This purpose statement is clear and concise. It identifies the objective (increase online sales), the action verb (creating), the target audience (millennial shoppers), and the outcome or benefit (a more user-friendly website).

Part 10 Purpose Statement Example For an Essay

“The purpose of this essay is to examine the causes and consequences of climate change, with a focus on the role of human activities, and to propose solutions that can mitigate its impact on the environment and future generations.”

This purpose statement clearly states the subject of the essay (climate change), what aspects will be explored (causes, consequences, human activities), and the intended outcome (proposing solutions). It provides a clear roadmap for the reader and sets the direction for the essay.

Part 11 Purpose Statement Example For a Proposal

“The purpose of this proposal is to secure funding and support for the establishment of a community garden in [Location], aimed at promoting sustainable urban agriculture, fostering community engagement, and improving local access to fresh, healthy produce.”

Why this purpose statement is effective:

• The subject of the proposal is clear: the establishment of a community garden.
• The specific goals of the project are outlined: promoting sustainable urban agriculture, fostering community engagement, and improving local access to fresh produce.
• The overall objective of the proposal is evident: securing funding and support.

Part 12 Purpose Statement Example For a Report

“The purpose of this report is to analyze current market trends in the electric vehicle (EV) industry, assess consumer preferences and buying behaviors, and provide strategic recommendations to guide [Company Name] in entering this growing market segment.”

• The subject of the report is provided: market trends in the electric vehicle industry.
• The specific goals of the report are analysis of market trends, assessment of consumer preferences, and strategic recommendations.
• The overall objective of the report is clear: providing guidance for the company’s entry into the EV market.

Part 13 Purpose Statement Example For a Project

“The purpose of this project is to design and implement a new employee wellness program that promotes physical and mental wellbeing in the workplace.”

This purpose statement clearly outlines the objective of the project, which is to create a new employee wellness program. The program is designed to promote physical and mental wellbeing in the workplace, which is a key concern for many employers. By implementing this program, the company aims to improve employee health, reduce absenteeism, and increase productivity. The purpose statement is concise and specific, providing a clear direction for the project team to follow. It highlights the importance of the project and its potential benefits for the company and its employees.

Part 14 Purpose Statement Templates

When writing a purpose statement, it can be helpful to use a template to ensure that you cover all the necessary components:

Template 1: To [action] [target audience] in order to [outcome]

This template is a straightforward way to outline your purpose statement. Simply fill in the blanks with the appropriate information:

• The purpose of […] is
• To [action]: What action do you want to take?
• [Target audience]: Who is your target audience?
• In order to [outcome]: What outcome do you hope to achieve?

For example:

• The purpose of our marketing campaign is to increase brand awareness among young adults in urban areas, in order to drive sales and revenue growth.
• The purpose of our employee training program is to improve customer service skills among our frontline staff, in order to enhance customer satisfaction and loyalty.
• The purpose of our new product launch is to expand our market share in the healthcare industry, by offering a unique solution to the needs of elderly patients with chronic conditions.

Template 2: This [project/product] is designed to [action] [target audience] by [method] in order to [outcome].

This template is useful for purpose statements that involve a specific project or product. Fill in the blanks with the appropriate information:

• This [project/product]: What is your project or product?
• Is designed to [action]: What action do you want to take?
• By [method]: What method will you use to achieve your goal?
• This app is designed to provide personalized nutrition advice to athletes by analyzing their training data in order to optimize performance.

Frequently Asked Questions

What are the key elements of a purpose statement.

A purpose statement should clearly communicate the main goal or objective of your writing. It should be concise and specific, providing a clear direction for your work. The key elements of a purpose statement include the topic or subject matter, the intended audience, and the overall goal or objective of your writing.

How can a purpose statement benefit your writing?

A purpose statement can help you stay focused and on track when writing. It can also help you to avoid going off-topic or getting bogged down in unnecessary details. By clearly identifying the main goal or objective of your writing, a purpose statement can help you to stay organized and ensure that your writing is effective and impactful.

What are some common mistakes to avoid when writing a purpose statement?

One common mistake is being too vague or general in your purpose statement. Another mistake is making your purpose statement too long or complex, which can make it difficult to understand. Additionally, it’s important to avoid including unnecessary information or details that are not directly relevant to your main goal or objective.

How can you tailor your purpose statement to your audience?

When writing a purpose statement, it’s important to consider your audience and their needs. You should tailor your purpose statement to your audience by using language and terminology that they will understand. You should also consider their level of knowledge or expertise on the subject matter and adjust your purpose statement accordingly.

What are some effective templates for writing a purpose statement?

There are many effective templates for writing a purpose statement, but one common approach is to use the following structure: “The purpose of this writing is to [insert goal or objective] for [insert audience] regarding [insert topic or subject matter].”

Can you provide examples of successful purpose statements?

• “The purpose of this report is to provide an analysis of the current market trends and make recommendations for future growth strategies for our company.”
• “The purpose of this essay is to explore the impact of social media on modern communication and its implications for society.”
• “The purpose of this proposal is to secure funding for a new community center that will provide educational and recreational opportunities for local residents.”
• 20 Inspiring Examples: How to Write a Personal Mission Statement
• 5 Examples: How to Write a Letter of Employment
• 6 Example Emails: How to Ask for a Letter of Recommendation
• 2 Templates and Examples: Individual Development Plan
• 5 Effective Examples: How to Write a Two-Week Notice
• 3 Examples: Job Application Email (with Tips)

• The Grossman Group Difference
• Internal Communications
• Leadership Communication
• Change Management
• Organizational Culture Change
• Resource Center
• Heart First Giveaway
• Case Studies

How to Write a Purpose Statement That Serves Its Purpose (With 10 Examples)

If you had 5 minutes – or better yet, 5 seconds, could you describe WHY your organization exists? Would your colleagues describe it in the same way? And more importantly, would they FEEL a strong connection to the company's purpose?

Companies with a clear business purpose statement, and that use their purpose statement to connect with employees, customers, and key stakeholders at a deeper level, have an edge.

Why Company Purpose Matters Even More Today

It’s not a new concept: we tend to feel a bit better going to work or buying a product or service when we know there’s a greater reason for being behind it. It’s often a deciding factor between choosing one brand or company over another. What is new, though, is that the world we live and work in today calls for even more of a spotlight on purpose.

According to a 2021 McKinsey study , nearly 70% of employees are reflecting on purpose because of the pandemic. And, based on a PwC survey , 83% of employees rated “meaning in day-to-day work” as important to them. This has a downstream impact on hiring, morale, retention, and performance.

Your purpose statement is the foundation for how you can attract and retain talent, differentiate your culture, accelerate performance in a competitive, crowded marketplace, and re-energize employees who may be fatigued, apathetic, or skeptical.

The same McKinsey study found that employees who say that they live their purpose at work are:

• 6.5 times more likely to report higher resilience,
• 4 times more likely to report better health,
• 6 times more likely to want to stay at the company, and
• 1.5 times more likely to go above and beyond to contribute to the company (which is the employee engagement outcome many leaders and teams try to achieve).

For these reasons and more, our team believes that every organization should have a purpose statement and should know how to use it to tell your story on the inside and out for business impact so employees, customers, investors, shareholders, potential employees, and customers, and your many other stakeholders and partners see that they have a place in your company’s purpose.

What the Purpose Statement Is

A company purpose statement is its reason for being. It should answer these questions: Why do we exist beyond making money? What would the world lose if we didn’t exist? It goes beyond who you are and what you do. It’s your why and the impact your organization has on others.

Here are six characteristics of great purpose statements:

• Articulate the movement they’re ultimately championing and/or why the company is on the journey they are
• Are grand and aspirational while also believable
• Are differentiated so when viewed together with the mission, vision, and values of your company they are unique to your organization
• Are specific and create clarity, so they mean something to your company
• Are memorable and repeatable
• Have a tone and content that reflects the culture of the organization and fits them like a glove

Done right, company purpose statements are an important aspect of decision-making inside an organization so that it’s consistent with the company’s purpose.

10 Company Purpose Statement Examples

Here are 10 purpose statement examples across a variety of industries with a few thoughts on what makes them strong:

• AT&T: We create connection. This is both aspirational and ties to the company and its products and services over the years – which makes it believable. While it isn’t specific to a product, it creates clarity about what the company sees as its ultimate reason for being – to create connection. This is what we mean by “fitting like a glove”.
• Charles Schwab Corporation: To champion every client's goals with passion and integrity. It speaks to the larger reason for being a company in the financial services industry. It is specific to the movement it focuses on (championing clients’ goals) and it reflects the culture of the organization (passion and integrity). It’s both aspirational and believable.
• CVS Health: Bringing our heart to every moment of your health™ This captures the essence of the company’s focus around people’s lives and health. It’s memorable and repeatable and is used as a tagline. It ties in its brand as well (the heart), which also speaks to company culture and its intended service experience.
• Kellogg’s: Creating better days and a place at the table for everyone through our trusted food brands. You see the statement, company name, think of the products, and know that they go hand in hand. It speaks to the movement the company is championing (better days and a place at the table for everyone). It is grand and aspirational while also being believable. It’s specific and speaks to its industry (trusted food brand).
• Ford Motor Company: To help build a better world, where every person is free to move and pursue their dreams. This is grand and aspirational as well as entirely believable. If you run the screen of “what would be at risk if the company didn’t exist?” the mind goes to images of people not being able to get to their jobs, school, to travel, and be where they want to be. In reading this purpose statement, you learn quite a bit about the company and what it stands for (build a better world, be free to move, help people pursue their dreams).
• Virgin Atlantic: Everyone can take on the world. It speaks to the culture of the company, is easy to remember, and is memorable. It’s aspirational and yet feels believable in the sense that its products and services actually help people “take on the world”. There’s a swagger to this phrase that exudes confidence, feels empowering, and feels right at home with the brand. When you see this purpose statement and think about the company and what it’s all about, you can see (and almost feel) how they belong together.
• McDonald’s: To feed and foster communities. It’s memorable, repeatable, and naturally ties to the business it is in. It also signals in a believable way that its aspirations go beyond food and are also about building communities.
• NIKE: To move the world forward through the power of sport. It’s clear, easy to remember, and specific to the business. You know the industry right away which helps differentiate them (power of sport). It’s aspirational (moving the world forward) and also believable. When you read the purpose statement, you can visualize the essence of the company and its products that help people move.
• Novartis: To reimagine medicine to improve and extend people's lives. It’s specific to the industry (healthcare) and speaks to why the company exists (reimagine medicine) and its higher level reason for being (improve and extend people’s lives). It’s clear and easy to remember.
• Kroger: To feed the human spirit™ This speaks to its industry and focus as a business (food). It’s easy to remember and repeat, reading like a slogan. It’s also aspirational in that it speaks to feeding more than the “person” but also the “human spirit”.

How a Purpose Statement Fits Into Your Company’s Mission, Vision, and Values

Purpose is one of several elements of your organization’s DNA that make your company uniquely you. Together, these define who you are as a company and what you stand for. They serve as your North Star for your business – what you do, why you do it, and how you do it.

• Purpose statement: An organization’s reason for being (beyond making a profit) and how the products/services benefit people. It answers the questions for your customers and employees: why do we exist and what would the world lose if we didn’t exist? It has an external focus and remains constant over time. Purpose statements could be centered on society, customers, or community. All the other elements of the DNA tie back to the purpose statement.
• Mission statement: The mission states what the company will do to realize its business purpose. It comes from the perspective of inside the organization. The key elements to the mission statement are that it states the type of business/work you do today, is forward-looking, and speaks to your capabilities. It focuses on what you do and how you do it. A mission statement guides decision-making and informs business strategy, and it could evolve over time while your organization’s purpose remains the same.
• Vision statement: Paints a picture of what our company’s future looks like if we’re successful. It answers the question. It’s a statement of where the organization is heading. It’s future-oriented and aspirational. It’s also connected to the hearts and minds of people and captures hopes and dreams.
• Values and behaviors: These make up the desired ways of work (or culture) that employees need to live to advance the purpose, mission, and vision. Values describe the principles that are expected of employees, and behaviors are the tangible, observable, measurable elements that can be implemented. Both values and behaviors are intended to help employees know what’s expected of them and to guide how they show up at work. They define the company’s culture and personality, and answer the question: What does our company look like in action? Values and behaviors can happen in pockets but are aspirational for others.

Put another way…

• The purpose GUIDES you.
• The mission FOCUSES you.
• The vision INSPIRES you.
• The values ALIGN you.
• The behaviors MEASURE you.

These elements of a company’s DNA form a strategic framework that helps employees know what matters most for the organization, and how day-to-day business plans and tasks fit into the larger whole and greater good. It’s also an important way for employees to see how their sense of purpose fits (or doesn’t) with the place they work.

It’s like a stack of jigsaw puzzle pieces that fit together to form a cohesive picture for everyone to see and share in common.

How to Know When You Need to Update Your Purpose Statement

Because the purpose statement guides your company, it’s important to regularly calibrate between your purpose statement and changing dynamics to ensure they stay connected in all the right ways. Here are some defining moments in a company that signal when it’s time to review your purpose statement and determine whether it’s time to update it:

• New CEO / leadership team: With new leadership comes new perspective on the business. It’s a time when leaders are evaluating the business, weighing options, and setting new directions for the company that will make an impact. It’s important to also evaluate the purpose statement of the company and line it up.
• Merger and/or acquisition: This is a major change to your company that warrants a calibration to your purpose statement (and mission, vision, and values) as new entities, teams, products, and services are at play. It’s a good time to evaluate whether the purpose statement remains true to the company in its new state. At a minimum, it’s critical to drive awareness of your company’s purpose with employees, customers, and other stakeholders so they fully understand and appreciate it.
• New strategy: Purpose statements and company strategy must go hand in hand so if your company has a new strategy (or is working on a new strategy ), check that the purpose statement is still consistent and relevant.
• Significant transformation: Congruency between the company’s purpose and actions is essential. When big changes are happening in a company it’s key to calibrate so the transformation efforts continue to sync and support the company’s purpose and strategic direction. And, if the transformation is changing direction for a company, then the purpose statement (and mission, vision, and values) may need to evolve.
• Recruitment, retention issues, or other people-related issues: More than ever, employees want to work for companies that share a common sense of purpose and values. If your organization is struggling to recruit and retain employees, check your purpose statement and see if it’s as relevant and compelling as it needs to be.
• Heightened competition: Employees, customers, and investors look for differentiation and companies with an edge. Your purpose statement says a lot about your company – who you are, what you stand for, why you exist, and what’s at risk if you’re not there. When competition is fierce, it’s time to look at your purpose statement to see if it defines you accurately, speaks to your aspirations, and helps you stand out.
• Annual strategic planning: Make it a habit to check your purpose statement (along with your vision, mission, and values) annually in the context of your company’s strategic planning, so the most important elements of your organization guide decision-making for key priorities and plans for the year. It’s the ultimate litmus test to see that priorities and plans support your company’s purpose statement (and overall DNA). And, if they don’t line up, to have strategic conversations about what’s changing and why and whether it warrants updating your purpose statement.

How to Write a Purpose Statement

Apply these principles as you consider your approach to developing your company’s purpose statement:

• Make it a strategic business exercise – that sets the direction for your vision, mission, values, and strategy and is the foundation for how people know you as a company. Keep it from being a word-smithing exercise.
• Be intentional – Dig deep to understand the origin of the company and follow that thread through to who you are today, and why you will continue to exist in the future.
• Let leaders set the tone and involve others with purpose – The purpose statement should be shaped by the leadership team and key influencers in the company and then vetted and fine-tuned with employees so that they have shared meaning and ownership. This is bigger than any one person or team writing the purpose statement.
• Iterate – Work a smart process and let the process work so as people’s thinking evolves, the purpose statement captures it.
• Connect to your culture – Let the essence of your culture come through in how you describe the essence of your company.
• Go beyond the ordinary – If you lined up your purpose statement with others in your industry (or even other industries), check that it stands out from the rest.
• Have a plan – This is how you’re going to create the purpose statement and what you’ll do to introduce it to your key stakeholders inside and outside the company.

Steps to Writing Your Purpose Statement

Whether creating a purpose statement from scratch or refreshing an existing one, follow these steps to guide you. How you approach writing your purpose statement may vary depending on where you are as an organization, your starting point, and your culture.

• Intake Compare your current purpose statement with how your organization shows up in internal and external artifacts to see what’s consistent and what’s not. Ask: What’s similar and what’s different that we should consider for the new purpose statement?
• Develop Your Roadmap Determine your plan of action to get to a purpose statement that your organization is fully aligned around. Ask: What are the key steps and milestones to drive toward?
• Identify Your Stakeholders and Engagement Plan Map your plan for who and how you’ll engage people from across your organization in the process. Consider who your champions will be, who will be hands-on in co-creation, and who you want to involve along the way to preview or test concepts. If there are many stakeholders, consider a working group or committee of representatives to advance the work in a more manageable way. And then involve others to preview and test the committee’s work. Ask: When the purpose statement is drafted, who do we need to have on board so they support it and what’s the best way to get those people involved?
• Conduct Stakeholder Listening Based on your engagement plan, hold listening sessions with key stakeholders to understand their thoughts on the business and how that translates to the company’s purpose. Summarize what you’re hearing. Ask: What are the common themes and where are there different points of view that warrant more conversation and alignment?
• Co-create the Purpose Statement Gather all the key stakeholders to co-create the purpose statement together in a hands-on, interactive way. Have a facilitator lead the session and leverage all the work done in Steps 1 through 4. You can walk out with a solid draft of the purpose statement that the group is aligned around and that’s ready to test drive with others.  Ask: Do we have a purpose statement that we all understand, believe in, and can champion?
• Test the Purpose Statement Involve other stakeholders for input and buy-in. Get the draft purpose statement in front of employee groups and see what they say. You can also have key groups of leaders and working group members test drive the purpose statement with their teams. Ask: What resonates, where is further clarification needed, and in what ways do we see this purpose statement being lived in the company?
• Discuss and Refine the Purpose Statement Use the learnings as fodder for discussion with your core working group and champions about what changes to make in the purpose statement and to inform your communications before you revise and finalize the purpose statement. Ask: What feedback warrants changes to the purpose statement? What concepts will require more communication to help people understand?

Key Learnings from Developing Purpose Statements

We’ve worked with many clients to create their purpose statement (and their mission, vision, and values as well). Here are four things to keep in mind:

• The process is as important as the statement – How you engage people and bring them along on the journey is just as important as what the final words are of your company’s purpose statement. You need a purpose statement that will guide the company – and its people – for years to come and that requires involvement from people.
• Involve skeptics – Some may think of this work as a word-smithing activity or that culminates in posters that no one ever reads. To those people, we say … let’s get you involved in this process so we can make sure that doesn’t happen. Build a plan that is skeptic-proof. I’ve heard from many leaders as they go through this process that they were skeptical about this work at first and then became the biggest advocates of the purpose statement they created and the process that was taken to build it.
• Avoid shortcuts that may cause shortcomings – On paper, a purpose statement is just a few words but getting a room full of people (let alone a whole company) to align around the meaning behind the words looks easier than it is. We believe in a “go slow to go fast” approach that by working a smart process you’ll get to a better outcome faster and that will have lasting power. Watch out for shortcuts that can cause shortcomings – for example, skipping listening or testing may save a few days, but you lose out on important insights and cut people out of being involved who could have become champions.
• Embrace input – It can be nerve-wracking to draft a purpose statement and then take it to pockets of the organization for input not knowing if it will be liked or overhauled. However, it’s better to bring people along on the journey and get input before things are finalized for prime time. In addition, when people are engaged earlier, they tend to be more positive. We worked with a client to preview their company’s DNA (including the purpose statement) with more than 1,000 people. The reception was extremely positive and where there was feedback, it was hugely helpful. Most importantly, when it came time to roll out the final content, people were on board and ready to champion it because they had been a part of the process.

You’ve Crafted Your Purpose Statement – Now What?

Having a clear purpose statement is a big step to celebrate. It’s also just the beginning as you think about how to embed it into the organization. Consider these next steps:

• Define your terms – A purpose statement is just a few words, but every single word matters and needs to mean something. Have specific definitions for each word so people in your organization know what it means and use the terms consistently.
• Align the rest of the strategy to the purpose statement – The purpose statement anchors many other components of your company’s strategic framework so everything needs to ladder back to it, including the mission, vision, values, culture, business plans and priorities, and KPIs and metrics. Identify where there are connections to make and/or disconnects to address. Create a strategic framework that shows visually how all the pieces connect together.
• Plan the rollout and activation – Have a plan for how to communicate the company’s purpose across the organization. Think of it in terms of launching, activating, and sustaining so you can embed the purpose in how people think and work. Make it part of the everyday storytelling inside and outside the company. This takes time, consistency across voices and channels, and purposeful communication.

Case Study: A Purpose-Driven Function

We worked recently with a large function in a global organization through these steps. The function originally needed help to roll out and embed their new strategy to its 7,500 employees, but early on it became clear that before employees could align around a strategy, they first needed to come together with one shared purpose. Working these steps led to many defining moments, including:

• During discovery, an employee survey led to useful insights that guided the leadership team’s focus and helped them address some opportunities, and it served as a follow-up loop for communicating the purpose and strategy.
• Leader listening uncovered a wide range of perspectives on the organization’s purpose and path forward. This was critical to uncover early on, so the work to follow could bridge the gaps and bring the leaders together as one aligned team.
• The process of co-creating the purpose statement worked. It got some grumbles at first. “Really, we need to break up into groups and do flip chart exercises?” Yes... and did they ever rise to the occasion. In a few short hours, the group co-created a purpose statement and started using it in the same meeting to make some critical business decisions. It was an instant payoff and the leadership team knew it. They later described that as a defining moment for their leadership team and their company.
• Leaders played an active role in talking about the purpose statement with their teams and ensuring a common understanding of the meaning of each element of the purpose.
• Next-level leaders (directors and above in this case) became immersed in their purpose, mission, vision, values, and strategy at an offsite meeting where every moment of the day was designed purposefully to bring the company’s DNA to life in ways that made it real, relevant, and actionable for them, so they could take the same experience and energy back to their teams to get them grounded in it.
• The purpose statement took on a life of its own as leaders enrolled their teams in it. They held rallies, decorated their sites with signage, gave employees swag, made it part of everyday conversation, and even got teams writing songs about the purpose statement. It took hold because people got inspired and excited about it.

To learn how we helped another organization define its new DNA following a merger of equals, check out this case study .

Final Thoughts

Be purposeful when creating your company’s purpose statement so that it’s strategic, you have organizational buy-in, and it’s tied to business goals for the best outcome. Follow these steps so that your organization has a purpose statement that effortlessly describes why you exist and guides your company for the future in a way that sets you apart, and that employees, customers, and other key stakeholders know and believe in.  

As you reflect on your company’s purpose statement, would it benefit from being updated?

—Kate Bushnell

This quick guide covers a methodology you can use to co-create your purpose statement and maximize leader and employee buy-in. Download Maximizing Strategy Development & Rollout with Top Leaders   today!

Comments on this post

Other posts you might be interested in, 4 steps to harness the power of purpose and drive business transformation – guest blogger, tapestry's jennifer leemann, 4 ways leaders can take control of the great resignation, show you care: 4 must-have strategies to build feedback channels in your organization, subscribe to the leadercommunicator blog.

Get new blog posts delivered directly to your inbox.

Small Business Trends

30 mission statement examples and how to write one for your business.

There’s even a template to follow at the end that’ll help you write your company mission statement in no time at all. By crafting a compelling mission statement, you can articulate your business’s purpose, values, and direction, setting the foundation for your company’s success and differentiation in the competitive market.

Table of Contents

30 Amazing Mission Statement Examples

Tesla’s mission statement reflects the company’s focus on sustainability and its commitment to driving change in the energy sector. It inspires stakeholders to work towards a shared goal of creating a more sustainable future.

Amazon’s mission statement emphasizes its focus on the customer and reflects the company’s commitment to innovation and technology. It communicates the company’s purpose in a memorable way.

The Walt Disney Company

Microsoft’s mission statement emphasizes its focus on innovation and technology, while also reflecting its commitment to helping people and organizations achieve their goals.

Ben & Jerry’s

“To make, distribute and sell the finest quality all-natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment.”

General Electric

General Electric’s mission statement reflects its commitment to innovation and technology, while also emphasizing its focus on improving people’s lives. It communicates the company’s values and purpose in a memorable and inspiring way.

Procter & Gamble

Southwest airlines.

Southwest Airlines’ mission statement reflects its commitment to providing affordable and friendly air travel. It communicates the company’s values and purpose in a memorable and inspiring way.

“To connect the world through the most innovative, reliable, and secure payment network – enabling individuals, businesses, and economies to thrive.”

Apple’s mission statement reflects its focus on innovation and technology, while also emphasizing its commitment to improving people’s lives. It communicates the company’s values and purpose in a memorable and inspiring way.

American Express

Universal health services, inc..

Universal Health Services, Inc.’s mission statement reflects its commitment to providing quality healthcare services that meet the needs of patients, physicians, purchasers, employees, and investors. It communicates the company’s values and purpose in

What is a Mission Statement?

Why your company’s mission statement is so important.

Just like a mission statement, a business needs to establish a process for putting down plans on paper to make sure they are carried out. Creating a one-page marketing plan and even conducting a SWOT analysis are all part of this process. If you establish these disciplines early, you will continue to improve your business and better chance of ensuring the success of your business.

How to Write a Good Mission Statement

A company mission statement should be crafted with your target audience in mind. Consider who your company serves and what problem you’re solving for them. Your mission statement should be clear and concise, using language that resonates with your target audience.

Common Mistakes to Avoid Writing Your Company’s Mission Statement

One common mistake when writing a company’s mission statement is being too broad or generic. A mission statement that is too general or lacks specificity may fail to communicate the unique value proposition of the company, and may not inspire or motivate stakeholders.

Benefits of Having a Mission Statement

Challenges of developing a mission statement, mission statements vs. vision statements.

Mission and vision statements are essential components of any company’s identity and strategic direction. While both are designed to guide decision-making and communicate the company’s values and goals, there are distinct differences between the two. Here are some key differences between mission statements and vision statements:

Use this Mission Statement Template to Create Your Own

The first step in creating a mission statement is to define your company’s purpose. This includes what your company does, why it exists, and the impact it seeks to have on the world. A clear understanding of your purpose is essential for crafting an effective mission statement.

After drafting your mission statement, review it carefully and seek feedback from stakeholders. Revise and refine as necessary, ensuring that it accurately reflects your company’s purpose, target audience, and values. A well-crafted mission statement is an essential tool for communicating your company’s identity and inspiring stakeholders to work towards a shared goal.

The Template in Action

Integrating your mission statement into business operations, start writing your mission statement today.

A compelling mission statement is a defining piece of a business plan, articulating the company’s purpose, values, and goals. It sets the direction for the organization, guides decision-making processes, and communicates its purpose to stakeholders.

Remember that a mission statement is a dynamic expression of your company’s ethos, and revisiting and refining it over time can ensure its continued relevance and effectiveness in guiding your business toward a bright and prosperous future.

You are using an outdated browser. Please upgrade your browser to improve your experience.

Health & Nursing

Courses and certificates.

• Bachelor's Degrees
• View all Business Bachelor's Degrees
• Business Management – B.S. Business Administration
• Healthcare Administration – B.S.
• Human Resource Management – B.S. Business Administration
• Information Technology Management – B.S. Business Administration
• Marketing – B.S. Business Administration
• Accounting – B.S. Business Administration
• Finance – B.S.
• Supply Chain and Operations Management – B.S.
• Communications – B.S.
• User Experience Design – B.S.
• Accelerated Information Technology Bachelor's and Master's Degree (from the School of Technology)
• Health Information Management – B.S. (from the Leavitt School of Health)

Master's Degrees

• View all Business Master's Degrees
• Master of Business Administration (MBA)
• MBA Information Technology Management
• MBA Healthcare Management
• Management and Leadership – M.S.
• Accounting – M.S.
• Marketing – M.S.
• Human Resource Management – M.S.
• Master of Healthcare Administration (from the Leavitt School of Health)
• Data Analytics – M.S. (from the School of Technology)
• Information Technology Management – M.S. (from the School of Technology)
• Education Technology and Instructional Design – M.Ed. (from the School of Education)

Certificates

• Supply Chain
• Accounting Fundamentals
• Digital Marketing and E-Commerce
• View all Business Degrees

Bachelor's Preparing For Licensure

• View all Education Bachelor's Degrees
• Elementary Education – B.A.
• Special Education and Elementary Education (Dual Licensure) – B.A.
• Special Education (Mild-to-Moderate) – B.A.
• Mathematics Education (Middle Grades) – B.S.
• Mathematics Education (Secondary)– B.S.
• Science Education (Middle Grades) – B.S.
• Science Education (Secondary Chemistry) – B.S.
• Science Education (Secondary Physics) – B.S.
• Science Education (Secondary Biological Sciences) – B.S.
• Science Education (Secondary Earth Science)– B.S.
• View all Education Degrees

Bachelor of Arts in Education Degrees

• Educational Studies – B.A.

Master of Science in Education Degrees

• View all Education Master's Degrees
• Curriculum and Instruction – M.S.
• Educational Leadership – M.S.
• Education Technology and Instructional Design – M.Ed.

Master's Preparing for Licensure

• Teaching, Elementary Education – M.A.
• Teaching, English Education (Secondary) – M.A.
• Teaching, Mathematics Education (Middle Grades) – M.A.
• Teaching, Mathematics Education (Secondary) – M.A.
• Teaching, Science Education (Secondary) – M.A.
• Teaching, Special Education (K-12) – M.A.

Licensure Information

• State Teaching Licensure Information

Master's Degrees for Teachers

• Mathematics Education (K-6) – M.A.
• Mathematics Education (Middle Grade) – M.A.
• Mathematics Education (Secondary) – M.A.
• English Language Learning (PreK-12) – M.A.
• Endorsement Preparation Program, English Language Learning (PreK-12)
• Science Education (Middle Grades) – M.A.
• Science Education (Secondary Chemistry) – M.A.
• Science Education (Secondary Physics) – M.A.
• Science Education (Secondary Biological Sciences) – M.A.
• Science Education (Secondary Earth Science)– M.A.
• View all Technology Bachelor's Degrees
• Cloud Computing – B.S.
• Computer Science – B.S.
• Cybersecurity and Information Assurance – B.S.
• Data Analytics – B.S.
• Information Technology – B.S.
• Network Engineering and Security – B.S.
• Software Engineering – B.S.
• Accelerated Information Technology Bachelor's and Master's Degree
• Information Technology Management – B.S. Business Administration (from the School of Business)
• User Experience Design – B.S. (from the School of Business)
• View all Technology Master's Degrees
• Cybersecurity and Information Assurance – M.S.
• Data Analytics – M.S.
• Information Technology Management – M.S.
• MBA Information Technology Management (from the School of Business)
• Full Stack Engineering
• Web Application Deployment and Support
• Front End Web Development
• Back End Web Development

3rd Party Certifications

• IT Certifications Included in WGU Degrees
• View all Technology Degrees
• View all Health & Nursing Bachelor's Degrees
• Nursing (RN-to-BSN online) – B.S.
• Nursing (Prelicensure) – B.S. (Available in select states)
• Health Information Management – B.S.
• Health and Human Services – B.S.
• Psychology – B.S.
• Health Science – B.S.
• Public Health – B.S.
• Healthcare Administration – B.S. (from the School of Business)
• View all Nursing Post-Master's Certificates
• Nursing Education—Post-Master's Certificate
• Nursing Leadership and Management—Post-Master's Certificate
• Family Nurse Practitioner—Post-Master's Certificate
• Psychiatric Mental Health Nurse Practitioner —Post-Master's Certificate
• View all Health & Nursing Degrees
• View all Nursing & Health Master's Degrees
• Nursing – Education (BSN-to-MSN Program) – M.S.
• Nursing – Leadership and Management (BSN-to-MSN Program) – M.S.
• Nursing – Nursing Informatics (BSN-to-MSN Program) – M.S.
• Nursing – Family Nurse Practitioner (BSN-to-MSN Program) – M.S. (Available in select states)
• Nursing – Psychiatric Mental Health Nurse Practitioner (BSN-to-MSN Program) – M.S. (Available in select states)
• Nursing – Education (RN-to-MSN Program) – M.S.
• Nursing – Leadership and Management (RN-to-MSN Program) – M.S.
• Nursing – Nursing Informatics (RN-to-MSN Program) – M.S.
• Master of Healthcare Administration
• Master of Public Health
• MBA Healthcare Management (from the School of Business)
• Business Leadership (with the School of Business)
• Supply Chain (with the School of Business)
• Accounting Fundamentals (with the School of Business)
• Digital Marketing and E-Commerce (with the School of Business)
• Back End Web Development (with the School of Technology)
• Front End Web Development (with the School of Technology)
• Web Application Deployment and Support (with the School of Technology)
• Full Stack Engineering (with the School of Technology)
• Single Courses
• Course Bundles

Apply for Admission

Admission requirements.

• New Students
• WGU Returning Graduates
• WGU Readmission
• Enrollment Checklist
• Accessibility
• Accommodation Request
• School of Education Admission Requirements
• School of Business Admission Requirements
• School of Technology Admission Requirements
• Leavitt School of Health Admission Requirements

Additional Requirements

• Computer Requirements
• No Standardized Testing
• Clinical and Student Teaching Information

Transferring

• FAQs about Transferring
• Transfer to WGU
• Transferrable Certifications
• Request WGU Transcripts
• International Transfer Credit
• Tuition and Fees
• Financial Aid
• Scholarships

Other Ways to Pay for School

• Tuition—School of Business
• Tuition—School of Education
• Tuition—School of Technology
• Tuition—Leavitt School of Health
• Your Financial Obligations
• Tuition Comparison
• Applying for Financial Aid
• State Grants
• Consumer Information Guide
• Responsible Borrowing Initiative
• Higher Education Relief Fund

FAFSA Support

• Net Price Calculator
• FAFSA Simplification
• See All Scholarships
• Military Scholarships
• State Scholarships
• Scholarship FAQs

Payment Options

• Payment Plans
• Corporate Reimbursement
• Current Student Hardship Assistance
• Military Tuition Assistance

WGU Experience

• How You'll Learn
• Scheduling/Assessments
• Accreditation
• Student Support/Faculty
• Military Students
• Part-Time Options
• Virtual Military Education Resource Center
• Student Outcomes
• Return on Investment
• Students and Gradutes
• Career Growth
• Student Resources
• Communities
• Testimonials
• Career Guides
• Skills Guides
• Online Degrees
• All Degrees
• Explore Your Options

Admissions & Transfers

• Admissions Overview

Tuition & Financial Aid

Student Success

• Prospective Students
• Current Students
• Military and Veterans
• Commencement
• Careers at WGU
• Advancement & Giving
• Partnering with WGU

How to Develop Your Company’s Purpose Statement

• See More Tags

If you aspire to lead or start a company, you’ll play a crucial role in driving its vision, goals, and plan for success. A purpose statement establishes the foundation you need to do that effectively.

While some degree programs touch on the topic of purpose statements, you might not realize how this concept can apply to your future career . 

Here’s how you can take the skills you’ve learned from your business degree and use them while writing an effective company purpose statement. 

What is a Purpose Statement?

The first step to understanding a purpose statement is to distinguish it from a mission statement because each plays a different role in your business plan .

Mission Statement vs. Purpose Statement

A purpose statement is a single statement that defines the reason your company exists—beyond simply making a profit. It also illustrates how your product or service positively impacts the people you serve. Once your purpose is established, you’ll need a series of goals to drive that purpose. That’s where the mission statement comes in.

First and foremost, a mission statement is actionable. It explains the path you need to take to reach your purpose. So, while a purpose statement is focused on the future, a mission statement is rooted in the present.

Unlike a company mission, your company purpose isn’t something that can be completed or checked off a list. A purpose statement illustrates the ongoing pursuit to push your company forward.

What Does a Purpose Statement Do?

A purpose statement sets expectations, both internally (for leadership and employees) and externally (for customers and investors). It acts as your company’s blueprint for the future and helps guide all the decisions you make—from how you manufacture your products to the words you use in your marketing.

Your purpose also influences your customer. In fact, 63% of global consumers prefer to purchase products and services from companies that stand for a purpose, according to recent research.

The study found that companies that stand for something bigger than what they sell, communicate their purpose, and demonstrate commitment are more likely to attract consumers and influence purchasing decisions.  

Leaders around the world are taking note of the rise of purpose-driven companies , too. Lise Kingo, CEO and executive director of the UN Global Compact, stated, “The idea of business as an agent of change and a purveyor of positive values is gaining traction and legitimacy around the world. With a growing number of companies taking steps to be more responsible in how they treat employees, communities, and the planet, we are seeing business emerge as a real player and solution-provider in the quest to put our world on a better course.”

Beyond attracting customers and increasing your bottom line, clarifying your company purpose is important for these reasons:   

1. Distinguishes Your Business from Competitors

One important role of your purpose statement is to define what makes your company unique. After all, your competitors might be able to replicate your product or service, but they’d be hard pressed to duplicate your unique purpose.

People can be genuinely inspired if your company has a solid purpose. When customers and employees understand what drives your passion and ignites your purpose, they’re more likely to get on board with it.  

2. Helps Meet Goals

A strong purpose statement sets a path for how your company will move forward, which will help you see and set clear goals. These goals should go beyond financial performance; they should also measure how your purpose is progressing toward the social impact you’re trying to make.

3. Informs Company Culture

A recent employee survey by Harvard Business Review found that only 28% of employees felt connected to their company’s purpose, and 34% thought they were contributing to their company’s success. According to the article, a lack of purpose among employees can create a negative company culture where employees feel unmotivated and unaligned.

So how do you avoid this?

Creating a purpose-driven culture starts with clear communication between employees and leadership—as well as listening and being open to feedback. When everyone understands and supports the company's purpose, it creates a united front where everyone from the top down is working toward the same goals.

Furthermore, multiple studies show a purpose-driven culture is a positive one. This is because employees feel more engaged and motivated when they can connect the work they do with how it contributes to the organization’s purpose .

How Do I Write a Purpose Statement?

Creating a company purpose statement is no small task. It requires a deep understanding of why your company exists and where it hopes to go in the future. If you’re still feeling stuck, here are some steps to take as you're developing your company's purpose.

Step #1: Define what you do.

But more specifically, lay out what your company does to solve a particular problem for your customers.

Step #2: Pinpoint your passion.

Think about what inspires the work you do. For example, are you passionate about creating sustainable products? Do you strive to be the most innovative? Are you focused on serving local communities?

Step #3: List your values.

Understanding the things your company is passionate about will help you come up with specific values that align with your purpose. Those values might include things like sustainability, innovation, integrity, quality, etc.

Step #4: Create a draft.

Once you’ve defined what you do and why you do it, take pen to paper and start drafting ideas for your purpose statement.

As you’re writing, make sure your purpose statement is:

• Short (about 1-2 sentences)
• Easy to understand
• Aspirational (but not vague)

Step #5: Get feedback.

Ask others in your organization to review what you’ve written and consider their feedback as you hone your purpose statement.  

Step #6: Leave room for growth.

Keep in mind that a purpose statement is a constant work in progress, and changes will happen as your business evolves.

Examples of Effective Purpose Statements

Use these company purpose statements to draw inspiration from:

• Southwest Airlines lets its personality shine through in its purpose statement: “Connect people to what's important in their lives through friendly, reliable, and low-cost air travel.”
• Kellogg’s and Coke keep it short and sweet: “Nourishing families so they can flourish and thrive.” – Kellogg’s,  “Refresh the world. Make a difference.” – Coke
• If you’re looking for an example of an empowering purpose statement, here’s Dove’s: “Discovering the value of 'real' beauty and improving self-esteem worldwide.”
• Both The Red Cross and Whole Foods have purpose statements that make an emotional connection: “Our deepest purpose as an organization is helping support the health, well-being, and healing of both people—customers, Team Members, and business organizations in general—and the planet.” – Whole Foods, “To protect life and health and to ensure respect for the human being .” – The Red Cross
• Crayola and Lego lean on their ability to inspire: “Encouraging children to be creative, and enabling parents to inspire them.” – Crayola, “To inspire and develop the builders of tomorrow.” - Lego

Now that you know what a company purpose statement is, why it’s important, and how to develop your own, you’ll be ready to put this important business skill into practice in your own organization.

Ready to Start Your Journey?

HEALTH & NURSING

Recommended Articles

Take a look at other articles from WGU. Our articles feature information on a wide variety of subjects, written with the help of subject matter experts and researchers who are well-versed in their industries. This allows us to provide articles with interesting, relevant, and accurate information. 

{{item.date}}

{{item.preTitleTag}}

{{item.title}}

The university, for students.

• Student Portal
• Alumni Services

Most Visited Links

• Business Programs
• Student Experience
• Diversity, Equity, and Inclusion
• Student Communities

The Poetry of Purpose: Inspirational Purpose Statement Examples

Discover what an effective purpose statement is, read insightful purpose statement examples, and learn how to drive your career, projects, or business.

Start using Motion today

• Replace all the tools you use to be productive and organized, with one simple app
• Get a personalized schedule each day, without manual planning
• Make your team 30% more efficient by eliminating manual planning

Directing a business, a project, or even your own career can be an uphill battle if you lack a central point of focus and purpose.

What do you hold onto when priorities seem muddled? How do you lead your team toward shared goals? How do you assure clients that you’re on the same page as them?

That’s what a well-crafted and clearly defined purpose statement is for.

Whether you’re drafting a purpose statement for personal development, a project, or a business, this guide is made for you. Dive in to get a sharper understanding of what a purpose statement is and how to write one — plus, inspiration from insightful examples.

What are purpose statements?

A purpose statement or vision statement explains your “why.” It helps others understand why you do what you do.

However, a purpose statement isn’t just about setting goals or making plans — it’s also about giving those goals and plans real meaning. It’s what adds  soul  to the process.

There are three main kinds of purpose statements: personal (for you), project (for a specific task), and business (for a company). Each of these is crafted to address the unique needs, challenges, and aspirations of its particular area, but they all share the same aim: to bring about clarity, direction, and motivation.

Personal purpose statement

A personal purpose statement highlights what drives you, your goals, and what you truly care about. It covers not only where you want to go but also why you want to go there and the principles you’ll honor along the way.

A personal purpose statement has transformative power, bringing clarity to the chaos, direction amid distractions, and an unwavering foundation when life’s storms hit.

A helpful tip to help you craft your purpose statement is to reflect on moments in the past when you felt most fulfilled or when you made a difference, no matter how small.

With a personal vision statement, every choice and step you take is anchored to something bigger. Crafting one can improve your quality of life, filling your days with purpose, depth, and contentment.

Project purpose statement

A project purpose statement includes a clear declaration of the intent and goals of a project. It provides detailed information about the project objectives, the method that will be used to achieve them, and the values the project aspires to uphold.

Clearly defined objectives lay out the expected outcome of the project. Whether it’s the development of a new software solution or the unveiling of a new product line, these objectives need to be communicated so everyone involved has a clear understanding of what to aim for.

The method, or the plan of action, is where the  project scope  is defined. The scope outlines the specific steps, the extent of the work to be done, and the limits of the project. Defining the project scope helps manage expectations and ensures that resources are used efficiently and the project remains on track.

Values serve as the ethical cornerstone of a project. They set the guiding principles for decision-making so that the project upholds its integrity in the face of challenges.

One of the main benefits of a project purpose statement is its ability to bring clarity and alignment, which increases team engagement. In fact,  78% of adults  are more likely to want to work for a company that leads with purpose. A project purpose statement ensures all involved stakeholders are on the same page, which is essential for building trust and motivating team members.

Business purpose statement

A business purpose statement defines a company’s core values, goals, and mission. It goes beyond profit margins and product lines to capture the overarching ethos and culture that the business champions.

A business purpose statement is instrumental in integrating  strategies for team collaboration . Having a clear vision and values ensures that everyone in the company, regardless of their position, shares the same objectives. This unified approach fosters a more cohesive, efficient, and motivated work environment in which everyone feels they are contributing to a shared goal.

Moreover, when a company is clear about its purpose, this resonates with customers. Notably,  71% of consumers  prefer to buy from a company with a strong purpose.

‎Purpose statement vs. value statement vs. mission statement

“Purpose statement,” “value statement,” and “mission statement” are common buzzwords in the workplace. But how do they differ? Let’s take a quick look at each of them, using the golden arches of McDonald’s as our guide.

Purpose statement

A purpose statement addresses the reason a company exists. It is the driving force for what a company hopes to ultimately achieve. McDonald’s  purpose  is “to feed and foster communities,” which emphasizes its commitment to not just serving food but also positively impacting communities.

Mission statement

A mission statement is about the present moment and how the company operates day-to-day to fulfill its purpose. It’s more specific and action-oriented than the purpose statement.  McDonald’s mission , “Making delicious feel-good moments easy for everyone,” shows that its daily objective is to provide enjoyable and convenient meals.

Value statement

A value statement articulates the principles and beliefs that guide a company’s actions and decisions. It represents the company’s core ethics.

Here is McDonald’s value statement:

Serve:  We put our guests and people first.

Inclusion:  We open our doors to everyone.

Integrity:  We do the right thing.

Community:  We are good neighbors.

Family:  We get better together.

These values outline the principles that dictate how Mcdonald’s conducts business and interacts with stakeholders.

Purpose statement examples

Ever stumbled upon a phrase or slogan from a brand that made you nod in agreement or even see the company in a new light?

That’s the power of an inspirational purpose statement. Looking at purpose statement examples is like window shopping for ideas and inspirations. It can guide you in finding your own words and direction.

Moreover, reading the purpose statements of businesses you admire can help you consider your own priorities and goals.

Personal purpose statements

A personal purpose statement offers a clear view of what fuels your passion and shapes your choices. Merging this clarity into your work can lead to more meaningful experiences and connections.

Here are some examples:

• “I am committed to maximizing my daily output and making the most of my day doing productive tasks.”
• “Building bridges, not walls, in teamwork is my mantra; I believe in harnessing collective strength through collaboration.”
• “Every challenge is a stepping stone, and I aim to achieve success by facing every obstacle head-on.”
• “Clear, open, and effective communication is the foundation of all my interactions, as I value clarity and mutual respect.”
• “I prioritize meaningful relationships, nurturing trust, understanding, and growth in every personal and professional connection.”

Why are personal purpose statements effective?

These statements provide clear direction and intent. They’re concise yet powerful because they convey the individual’s core values and principles in each respective domain.

Project purpose statements

A project purpose statement explains the core objectives and values of your initiative. It paves the way for more structured, impactful, and meaningful outcomes.

Here are some guidelines for writing your statement:

• Productivity:  “Our goal is to work smarter and boost our daily output by 20% by optimizing existing workflows.”
• Delivery:  “We aim to deliver our products on time, making sure 95% of our orders get to our clients when promised.”
• Time management:  “With meticulous planning and execution, we will reduce turnaround time by 15%.”
• Teamwork/collaboration:  “Our project should include the contributions of every team member, leading to a collective achievement of our goals.”
• Innovation:  “To drive forward-thinking solutions in the 21st century, we will push the boundaries of what’s possible and encourage continuous improvement.”

Why are project purpose statements effective?

When employees understand a project’s value, they feel a heightened sense of purpose and are more committed.

Business purpose statements

A well-written business purpose statement inspires trust, loyalty, and motivation within not just the team but also customers.  Sixty-three percent of employees  say that they feel motivated in companies that clearly define and communicate value to customers.

‎Take a look at these real-world examples:

• Satisfying customers:  Amazon’s vision is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.”
• Business values:  Patagonia believes in “building the best product, causing no unnecessary harm, and using business to inspire and implement solutions to the environmental crisis.”
• Taking care of employees:  Starbucks promises “to nurture and inspire the human spirit — one person, one cup, and one neighborhood at a time.”
• Commercial success:  Apple aims “to bring the best user experience to its customers through its innovative hardware, software, and services.”
• Innovation:  Tesla, the pioneer of electric vehicles, is on a mission “to accelerate the world’s transition to sustainable energy.”

Why are purpose statements effective?

Purpose statements like these resonate deeply with both employees and consumers. With  66%  of consumers factoring in a business’s purpose during purchase decisions, clear objectives and values hold great sway.

‎How to utilize purpose statements

While crafting a powerful purpose statement is important, you need to weave it into the very fabric of your organization to maximize its impact. It’s not enough to simply have a purpose statement — the real magic happens when it’s applied and practiced daily.

As we dive deeper into this section, we’ll explore practical ways to breathe life into your purpose statement and make it a tangible force that drives your business.

Using personal purpose statements

Personal purpose statements can give you daily motivation and guidance in the workplace. Here are some strategies you can implement to integrate your personal purpose statement into your professional life:

1. Mindful morning rituals

Win the morning, win the day.

Start your day off by reflecting on your purpose statement. Use Motion to set a recurring reminder each morning, prompting you to read and meditate on your statement. This practice will help set the tone for the day and align you with your core purpose.

2. Task prioritization

Every task carries its own weight and significance. So move the ones that align most closely with your purpose statement to the top of your to-do list.

Motion can help you automatically prioritize your daily tasks based on your goals so you’re consistently focused on what matters most to you.

3. Reflective reviews

At the end of the week, use Motion to track and review the progress you’ve made. This is an easy way to reflect on your accomplishments and assess how they fit into your personal purpose statement. It not only gives you a sense of achievement but also provides insights into areas that need improvement.

Using project purpose statements

Having a well-defined project purpose statement and integrating it into the way you manage your teams, tasks, and workflows can help you stay aligned with your core purpose.

Seventy percent of employees  say that their sense of purpose is defined by their work. This makes an effective project purpose statement essential for getting your team on board and improving their sense of purpose.

Here are some strategies you can use to integrate a purpose statement into your projects:

1. Frequent reiteration

At the beginning of each meeting or brainstorming session, revisit the project’s purpose statement. A brief reminder can keep everyone focused and on track.

2. Visual displays

Incorporate your purpose statement into project documentation, dashboards, or even as a pinned note in a collaboration tool.

For example, Motion lets you attach documents, spreadsheets, pictures, and more to a project or task. Having your project purpose statement visible can serve as a constant touchstone on which to base your decision-making.

3. Communication alignment

Leverage communication tools, like Motion, to announce your purpose statement and gather feedback.

‎Open and public communication ensures that everyone understands and buys into the purpose, fostering a collective commitment.

Using business purpose statements

Implementing an effective business purpose statement means aligning all employees, directing the company, and sharing the vision with clients and potential customers.

Consider the following strategies to integrate your business’ purpose statement:

1. Employee onboarding and training

From day one, introduce new hires to the company’s purpose statement. Make it a central part of their onboarding orientation.

‎Use Motion’s meeting assistant to schedule regular training sessions with the team. Doing this can help emphasize your business purpose statement’s significance and help everyone uphold it.

2. Marketing and branding

Your external communications, whether advertising, PR, or social media, should reflect your purpose statement. This not only attracts customers that agree with it but also reinforces your commitment to it. Once it’s out in the open, there’s an added responsibility to consistently deliver on it.

3. Regular feedback

Set aside times during quarterly or annual reviews to revisit the purpose statement. Encourage feedback on how well it’s being integrated, and identify where improvements can be made. This process helps refine its application over time.

Motion helps you realize your purpose

A strong, clear, and tailored purpose is essential to have at every level.

With tools like Motion, you can ensure that your purpose statement comes to life in your everyday life and professional life, projects, and every aspect of your business.

If you can remember your priorities, integrate them into your actions, and communicate them clearly, your purpose statement can be your true North Star.

At Motion, our purpose is to empower individuals like you to navigate the complexities of life with confidence and clarity. We believe that everyone has the potential to achieve greatness, and it starts with harnessing the power of productivity.

Put your purpose statement into action by signing up for our  7-day free trial .

Related articles

The Secrets to Effective Sprint Planning

13 Time Management Techniques to Boost Your Productivity

Understand Project Blockers & How to Transform Them Into Success

Put motion to the test., tech and media companies are talking about motion.

• QUICK LINKS
• How to enroll
• Career services

How to write an effective business statement of purpose

Written by Michael Feder

Reviewed by  Kathryn Uhles , MIS, MSP, Dean, College of Business and IT

In this article

What is a purpose statement, how to write a purpose statement.

• Explore business programs

Every business, regardless of size, industry or revenue structure, needs a purpose statement. The statement should capture a company’s purpose, vision and values and summarize its main goal in one or two sentences.

A purpose statement is a single, concise, declarative statement that identifies why a company exists. It is shared with customers and helps inform business decisions by outlining a business’s direction and how it aims to inspire and positively impact others.

Just like social capital , a purpose statement can cultivate goodwill with customers. People may prefer buying from, or partnering with, companies that maintain a high moral standard . It’s important for companies to maintain those high standards, both for customer visibility and to drive operations forward.

Purpose statement vs. mission statement vs. vision statement

A mission statement, vision statement and purpose statement sound similar, but they actually fulfill different roles. A mission statement best describes a company’s overarching goal. A vision statement is a declarative statement about a company’s purpose. Both statements are often only shared internally with employees or key stakeholders.

Mission statements should describe an organization’s reason for existing. They might describe the mindset of a business’s leaders, list and define core values, or describe how a company inspires to improve or change the world. 

A purpose statement, meanwhile, defines a company’s purpose as a means to direct activities. It is meant to be shared not only internally but also with potential customers or brand participants.

To this end, purpose statements should address customers and connect what the business does with whom it does it for. Consider this a person-first version of the mission statement, with customers at the center of a business’s objectives.

What makes a purpose statement effective?

Several elements go into writing an effective purpose statement. When creating one for your company, make sure you prioritize elements like clarity, honesty and an understanding of your business’s sector.

Even if potential customers aren’t familiar with your brand, they should be able to understand what you do just by reading your statement. Make it concise, use active verbs and eliminate unnecessary details so you can focus on your main, customer-focused goals.

Exaggerating or including false information can harm your business. Misrepresentations of your company can lead to overpromising and underdelivering — two of the quickest ways to alienate customers.

For best results, be transparent and accurate.

Positioning

An honest purpose statement should also highlight what makes your company stand out from the competition. This element requires an understanding of your industry and a strong competitive analysis.

Try to help potential customers choose your business over the competition by highlighting your organization’s advantages, all while being careful not to belittle other companies.

When writing a purpose statement for your organization, address your target audience while emphasizing elements that make your company different from the rest. You will need to decide who writes and contributes, and who can provide feedback about how the statement resonates with employees.

1.   Decide who will write the purpose statement

First and foremost, decide who will write the statement. This may not be easy, particularly for companies with large marketing departments and multiple executives. Some companies might have several employees who want to write or contribute. In other cases, it might be difficult to find anyone to volunteer.

For best results, make sure someone with a business background writes your organization’s purpose statement. Ideally, this person should have a business degree that included course content in operations, communication and business management.

The best purpose statements are sometimes written by employees with a master’s degree in business. These individuals can leverage executive-level business leadership and administration skills to create something that resonates with all company representatives.

If your company can’t agree on one person, consider making the statement a collaborative effort. Schedule a meeting or two when everyone can share their thoughts. You can use the ideas to form the initial draft before distributing it throughout the company for feedback.

2.   Address your audience

Your purpose statement should be all about your audience. Keep it directed toward your potential customers and describe the elements of your organization that might appeal to them.

This is an opportunity to describe your company’s reason for existence, with customers as your direct audience. Craft the messaging with the recipients in mind, and don’t be afraid to emphasize how important customers are to the company’s continued success.

3.   Consider what makes your company stand out

Your company is unique no matter how many other competitors might be in your field. Your statement should highlight your company’s unique features as compared to every other company operating in your sector and should align with your overall business plan.

Focus on the goods and services that make you a better fit for customers than other providers. To do this, you’ll need consider everything that makes your company stand out. This step is vital when starting a new business since it will help you focus on your organization’s best qualities.

4.   Get feedback

No matter how confident your company might be in the first draft of your purpose statement, it’s still a great idea to get feedback. Give internal employees the chance to read the statement, and remain open to what they have to say about it.

Getting feedback while drafting your purpose statement can help you gain a fresh perspective on your business. You’ll learn to view your company through other employees’ eyes. You’ll also achieve a more complete definition of your company’s purpose.

Examples of strong purpose statements

So, how do you pull it all together? Indeed.com has some examples , including:

• “We strive to protect wildlife through education about endangered species.”
•  “Our purpose is to bring awareness to the need for medical supplies in overpopulated cities.”
• “We work toward building a safe and secure community by implementing emergency calling systems.”

Joseph Aranyosi, associate dean of the College of Business and Information Technology at University of Phoenix, offered a few more:

• “Our purpose is to provide sustainable food alternatives that can help to minimize greenhouse gases and reduce global warming.”
• “We offer affordable healthcare options for low-income patients to proactively address medical issues and reduce healthcare costs.”
• “We develop automated customer service solutions and custom-built social media apps to promote small business growth.”

Gain critical business skills with an online degree

University of Phoenix offers several business degrees that prepare students with skills for a variety of career paths. Whether you’re looking to build the fundamentals or advance your skill set, there’s a degree program for you. Here are just a few online business programs at University of Phoenix to consider:

• Associate of Arts with a concentration in Business Fundamentals   —   From management to accounting, the skills learned in this program are essential for anyone looking to advance their business education. 
• Bachelor of Science in Accounting   —   Businesses around the world rely on skilled accountants to manage their finances and make profitable business decisions.
• Bachelor of Science in Business   —   Knowledge of the ins and outs of running a business can spell the difference between success and failure in a competitive business world. 
• Bachelor of Science in Communication   —   It’s one thing to have a great idea, it’s another to properly communicate that idea to a large audience. Develop skills to be a media relations specialist, copywriter and more in this degree program.
• Master of Business Administration   —   Advance your business skills beyond the fundamentals and prepare yourself for higher leadership roles. This degree program can prepare graduates for careers as business managers, operations directors and more.
• Master of Management   —   Take your understanding of business organization and management to an advanced level. This degree program is perfect for those with experience in the workforce who are looking to take on greater leadership roles. 
• Doctor of Business Administration   —   Expand your understanding of organizations, work environments and industry. This program invites participants to delve into cutting-edge research in the field of business and develop skills for solving complex organizational problems. 

ABOUT THE AUTHOR

A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at University of Phoenix where he covers a variety of topics ranging from healthcare to IT.

ABOUT THE REVIEWER

Currently Dean of the College of Business and Information Technology,  Kathryn Uhles has served University of Phoenix in a variety of roles since 2006. Prior to joining University of Phoenix, Kathryn taught fifth grade to underprivileged youth in Phoenix.

This article has been vetted by University of Phoenix's editorial advisory committee.  Read more about our editorial process.

Read more articles like this:                                                                                                                                                

5 Reasons Why Donkeys Displace Unicorns as the Best Opportunities for Jobseekers

Career support.

March 29, 2023 • 6 minutes

What is a City Manager? Salary, Job Description & More

May 31, 2022 • 8 Minutes

Accountancy vs. Accounting: Key Differences | University of Phoenix

Online degrees.

December 17, 2021 • 6 Minutes

Search the site:

• WordPress Retainers
• Enterprise Development
• Maintenance & Support

The Essentials of Writing a Powerful Business Purpose Statement

Businesses today share fundamental corporate and social commitments. They seek to inspire the community, attract talent, and out-originate competition. And more and more of them have a purpose that goes beyond profit.

Crafting your Business Purpose Statement is a pivotal step in the early stages of identifying your enterprise’s core values and objectives. It’s the single line that encapsulates the very reason for your company’s existence, serving as a testament to your branding efforts.

A business’s purpose statement mirrors the connection between your core products and services and the positive impact they have on people’s lives. This statement acts as a compass for your company’s daily decisions, guiding your go-to-market strategies and initiatives.

In this article, we have prepared a few tips to help you write a powerful business purpose statement as well as practical guidelines on how to craft it well.

The Differences between Purpose, Mission, and Vision

Before we walk you through the specifics, we would like to make some important distinctions. Namely the differences between vision, mission, and purpose.

• A vision statement describes what your business is looking forward to and working towards. It’s the what of your organization.
• A mission statement outlines the process of turning your vision into a reality. It’s the how of your company.
• A purpose statement sets your reason for doing what you do. The why of your venture’s existence.

The three types of statements reflect different aspects of your organization’s operations and differ in the questions they answer. However, they are closely related plans of action that can help you deliver what your company is ultimately fighting for.

Without further ado, let’s get into the nitty-gritty of how to make your brand stand out with a strong and well-defined purpose statement.

1. It Should Inspire and Show Personality

Defining your purpose statement is a process. Adding the right words to correctly depict the reason for your company’s existence is a bit harder than you may imagine. The answer to your business’s “why” may seem obvious to you, but the key is to ground it in reality and communicate it to your audience successfully.

Start by reflecting on how your company came to be – the reason for creating it, the challenges you’ve overcome, the lessons you’ve learnt and the values you’ve adopted.

If you are an emerging entrepreneur with a completely new venture you can also apply this approach, but in a more personal context. Look back at the significant turning point that prompted you to become a business owner.

If you’re an established business with a long history of success, you can acknowledge the milestones of your firm’s growth. You can identify and define your business heritage and pin-point the specific characteristics of your brand that made it stand out all these years.

Make sure your purpose statement doesn’t include buzzwords or jargon. Use simple and clear language to directly communicate what your company’s here to accomplish.

2. It Should Play a Role with an Outcome

Since your purpose statement answers your company’s why it should set the outcome of what your business ultimately wishes to achieve and see out there.

Start your research by talking to your leadership. Ask them various questions and summarize the recurring themes.

Here are some examples:

• Why are you in this business?
• What do you like the most about working in the company?
• What image do you think the company conveys to the outside world?
• How do you feel about this image? What do you like and dislike about it?
• What specific challenges does the company solve?
• What do you think the purpose of the company is?
• What makes this business different from competitors’?
• Who are the target customers?
• What do you think they value most about this company?
• How do you think the company’s products and services reach their business goals? Do you think it’s effective? Would you say they reflect the business’s purpose?
• What are five words you would describe the company and its culture with?
• What underlying principles and philosophies shaped your responses to the previous questions?

Make sure you involve every leadership member . Think carefully about what you want to ask them. Form clear questions and take detailed notes.

Word your company’s purpose in a way that inspires room for thoughts while directly underlining your organization’s value proposition.

3. It Should Be Short, Yet Powerful

Your business purpose should be credible and easy to remember, especially by your employees. They are your most important resource and every one of them can influence how your organization is represented outside your office walls.

Your employees provide an essential link between you and your customers. Their energy can be a powerful asset to ensure that the entire organization leads with purpose. If they are happy, motivated and find a sense of fulfilment, they can be strong ambassadors of everything your brand stands for.

To find out how your employees feel about the purpose of your company you can ask them questions like:

• What inspired you to apply to this company?
• What do you like the most about working there? What makes you feel proud about it?
• How do you think the company’s products/services help customers?
• In what ways do you identify yourself with the company?
• What do you think is the company’s purpose? How would you put it in a few words?
• Do you think the purpose is reflected in the company culture?

Being in sync with your employees can help you make your business more agile and more responsive to challenges.

Always remember that your employees bring to light your purpose. The better it sticks in their minds the more natural it will be for them to communicate through their work.

4. It Should Create Space for Innovation and Growth

You’ve reflected back on how your organization has matured. You’ve sought and gained employee and leadership insights. Now, it’s important to identify the events and trends that can affect the social, political, economic and technological contexts that your brand operates in.

Maintaining a clear understanding of the present and the ability to anticipate and study future trends can set you apart. Align your Business Purpose Statement with real-world contexts to give it tangible meaning. This clarity allows you to understand opportunities more deeply, challenge the usual way of doing things, find the best solutions, and build on ideas. Hence, a compelling purpose statement may sometimes be wrestling with conflicting tensions all for the sake of fostering innovation and growth.

Purpose statements that fall into this category include:

With this statement, Workday showcases that there’s a possibility of instilling the human aspect into software and that it’s what they strive for.

With this statement, JetBlue deals with the tension that there are no boundaries to great customer experience.

5. It Should Be Aspirational and Precise

Your purpose statement should give a sort of tingle – a burst of inspiration and excitement. It should make your company want to strive to grow, to innovate, and to set an example. So, adding a pinch of emotion helps everyone involved to embrace it as their own.

The purpose of your business should reflect rational reasons for which it can supercharge your brand, culture, and business strategy as well as your organization’s ethics. Simply stating something, doesn’t make it come to life. Hence, a meaningful purpose statement should be able to influence a good purpose in practice. It should be aspirational and precise, expanding your organization’s opportunities for growth.

A vague example goes like this: “To make the world a better place”. A good example is more like this:

Additionally, your purpose statement can have a general or a social focus. Some companies have a more general statement, which doesn’t necessarily involve a social or environmental aspect.

An example of this is Airbnb’s statement:

It’s precise and showcases the company’s commitment to helping people travel like locals and experience a sense of community they wouldn’t be able to find in a hotel

This doesn’t mean that Airbnb doesn’t care about social or environmental issues. It simply means that it’s not at the very core of their existence.

To show you the difference, a business with a good social purpose is Patagonia:

6. It Should Evolve with Time

Purpose isn’t something that can be achieved once and for all. Companies grow, the business and social contexts change and your purpose statement should stretch along with these. It should always push your team further and it should set the stage for an inexhaustible series of new goals.

Let’s take Tesla as an example. Their original statement was:

But their current statement is:

The change from transportation to energy reflects also the shift in Tesla’s priority from an electric vehicle company to developing technology that makes sustainable energy more accessible.

Benefits of a Powerful Purpose Statement

Your company’s purpose statement establishes your business´s unique and inimitable attributes. It provides your brand with a competitive advantage and it acts as a guide for overcoming unprecedented challenges. It sets the tone that moves your organization forward, but it’s meaningless if not backed by solid and measurable commitments.

We hope our guide can help you create a defined and powerful business purpose statement for your organization. In fact, we would love to see what you’ve crafted, so don’t hesitate to share it with us in the comments below.

Realizing Your Business Idea

DevriX is a full-service WordPress development agency. We are not only offering web development services but rather an expert team of specialists that can advise you through every step of building your online presence.

Team DevriX

This article is crafted by DevriX's seasoned marketing team, boasting over four decades of collective expertise in crafting sophisticated marketing funnels, devising comprehensive content frameworks and pillars, implementing engaging email campaigns, and creating impactful social media content designed for scalability.

Our marketing experts specialize in the complete spectrum of inbound marketing strategies. As an accredited HubSpot Agency Partner and a Semrush Partner, we engage in meticulous research, blending our extensive experience with the unique insights of our highly skilled team.

We set benchmarks in content creation by incorporating cutting-edge marketing trends, leveraging in-depth industry research, and utilizing state-of-the-art AI tools for data segmentation and captivating content hooks. Our proficiency extends across a diverse range of sectors, including working with SMEs, Fortune 1000 companies, global B2B brands, major publishing entities, WooCommerce platforms, business directories, and affiliate networks.

Purpose Statement: All You Need to Know

Every organization in the world knows “what” they do, most know “how” to do it, but only a few know “why” they do what they do. This “why” isn’t about profit maximization. It’s the reason for the organization’s existence.

See also: Mission Statement

What is a Purpose Statement

A purpose statement is one that clearly explains this “why” and its impact on human, societal, or environmental goals. It addresses the question – “What would the world lose if the company disappeared?” in the most believable, authentic, and inspiring words.

The simplest and most popular definition of a purpose statement is “A higher-order reason for an organization’s existence that goes beyond making money and adds value to society.” [1]

Why having a purpose is important

At its best, a purpose can act as a North Star, a guiding light that allows everyone in the organization from the leadership to the newest employee to understand what they must accomplish and serves as a filter for daily decisions.

In an organization with a well-defined purpose statement, every employee understands the “Why” behind the organization’s existence, defines it in the same way, and more importantly, feels a strong connection to that purpose.

While this might sound theoretical, its real-world implications are profound.

A study by Korn Ferry titled “People on a mission” found that organizations that took the challenging steps of defining their core purpose not only saw strong bottom-line results but also transformed all aspects of their business.

The study revealed such companies posted compounded annual growth rates (CAGR) of 9.85% compared to 2.4% for the whole S&P 500 Consumer Sector [2].

A purpose can also strongly influence an organization’s ability to attract and retain talent and customers. However, it has less effect on suppliers, prices, and other legal aspects:

Elon Musk’s companies, Tesla, and SpaceX, though very different in terms of what they do, exemplify the role of a well-defined purpose in shaping success.

As quoted by Mr. Musk, “Putting in long hours for a corporation is hard. Putting in long hours for a cause is easy.” This statement is well supported by the fact that Tesla and SpaceX have consistently ranked among the top choices for engineering talent in the US [3].

Post-pandemic, the significance of a company’s purpose has grown even more pronounced and had a downstream impact on hiring, morale, retention, and performance of employees.

According to a 2021 McKinsey study [4], nearly 70% of employees are reflecting on purpose because of the pandemic. The same study also found that employees who said they live their purpose at work were:

• Six and a half times more likely to report higher resilience.
• Four times more likely to report better health.
• Six times more likely to want to stay at the company.
• One and a half times more likely to go above and beyond for the company’s success.

In another PwC survey [5], 83% of the employees rated “meaning in day-to-day work” as important.

Elements of a good purpose statement

Before we define the elements of a purpose statement, it is important to distinguish between a company’s Purpose, Vision, Mission, Values, and Positioning.

Starting with the Purpose, an organization’s Vision, Mission, Values, and Positioning can be imagined as layers with each influencing the other as shown:

Many organizations use the terms Purpose and Mission interchangeably; However, the purpose defines the “why” while the mission is a big, bold step that is part of the ‘how’.

Purpose statements vary from being vague (e.g., Kroger’s “To feed the human spirit” [6]) to grandiose (e.g., Intel’s “create world-changing technology that improves the life of every person on the planet” [7]) to boring (e.g., Decathlon’s “to be useful for people” [8]).

A well-crafted purpose statement must represent the organization’s aspirations and send clear signals about what the company stands for. Creating one is as much a creative act as a strategic one.

A Harvard study analyzed 66 purpose statements from leading organizations around the world and gathered insights from senior leaders and employees. The learnings were used to develop a diagnostic framework that helps craft the best purpose statement for an organization based on its specific situation [9].

Known as the “SABRE” framework, it is based on five dimensions – four dimensions of content (i.e., what the purpose means) and one dimension of statement formulation (i.e., how the purpose statement itself is worded):

Must address a Societal cause

At a foundational level, a purpose statement must address a specific, pressing human, societal, or environmental need that the organization seeks to address or alleviate. However, not all organizations directly address such needs by virtue of their operations.

General-purpose companies, such as Microsoft or Airbnb, do not have a direct social or environmental impact due to their day-to-day operations, whereas social-purpose companies, such as Tesla, prioritize addressing social or environmental issues as a core mission alongside profitability.

Purpose statement for general-purpose organizations

Regardless of their type, an organization can still incorporate elements of societal impact into its purpose statement.

For example, Microsoft defines its purpose as “to empower every person and organization on the planet to achieve more” [10] which goes to show that even when a company is not directly involved in a societal cause, its purpose can still include elements of societal aspects.

Microsoft’s purpose can manifest itself in both ways, general purpose (its cloud computing business) as well as social purpose (X-Box adaptive controller for disabled kids, Office accessibility tools, AI for the visually impaired etc.).

Similarly, Airbnb’s purpose statement – ‘create a world where anyone can belong anywhere’ [11] is both grounded in everyday experience and stretches to an incredibly ambitious goal that seeks to break down barriers caused by cultural, geographical, and racial differences.

Airbnb went a step further to introduce the “Open Homes” program [12] which has helped countless people with temporary housing in times of natural calamities and crisis – a classic example of a social purpose manifestation.

Purpose statement for social-purpose organizations

It is easier to include the societal element in the purpose statement of companies that have a social purpose built into their core operations.

Tesla is a classic example. Its purpose statement is simple yet very powerful – “Accelerating the world’s transition to sustainable energy” [13].

This conveys huge environmental ambition and directly relates to what Tesla does – develop products that are not only sustainable but far superior to fossil-fuel alternatives, which might one day put an end to the era of fossil-fuel transport on the planet.

Must be Authentic

Stakeholders, both internal and external, look for companies in which they can place their trust. An organization’s stated purpose must accurately and honestly reflect its true aims. Otherwise, it can erode confidence and credibility in the eyes of these stakeholders.

ExxonMobil, for example, states its purpose as “Fueling the world safely and responsibly” [14]. However, the company downplayed the adverse impact of climate change for decades despite the knowledge of its causes and dangers since the 70s [15] [16].

Exxon has since been one of the prime targets of activists and politicians angered by the oil industry’s efforts to block action on climate change. Similarly, Philip Morris International’s purpose statement (which it changed in 2016) is “to deliver a smoke-free future”, but in 2022 alone, it shipped over 621 billion cigarettes [17].

Authenticity is also crucial to maintaining employee motivation and engagement. When employees perceive a mismatch between the stated purpose and the daily realities of organizational life, it can lead to disenchantment and, ultimately, the decision to quit.

For example, Volkswagen’s values include “sustainability and community: for the future. for everyone” [18]. However, when the group was hit by the Dieselgate emission scandal, its employee satisfaction took a significant hit.

Before the scandal broke, VW was rated the best in almost every dimension of workplace satisfaction when compared to peers such as BMW, Mercedes, and its own subsidiary, Audi.

When news of its emissions testing misconduct emerged, those positive numbers tanked, and VW was rated worst in 12 out of 13 dimensions of an employment survey [19].

Leaders can identify gaps between a company’s stated purpose and its actual direction by including questions related to the purpose statement in regular employee surveys.

Companies that misrepresent themself in their purpose statement also end up disappointing customers and investors which can give rise to accusations of purpose-washing, dilute brand value and damage reputation [20].

Must be Believable

A good purpose statement must be believable in the sense that it must be within the power of the organization to allocate resources and assess progress towards fulfilling that purpose.

Statements that are too grandiose, such as a small NGO claiming to “eliminate hunger in the world” or vague statements such as “to help make the world better” often fail the believability test and end up being uninspiring. Stakeholders then end up asking “But how?”.

For example, AT&T’s statement – “Connecting people to greater possibility – with expertise, simplicity, and inspiration” [21] scores high on the believability dimension as it aligns perfectly with AT&T’s operations in wireless communication and is well within the means of its resources.

Must be relevant to Beneficiaries

A clear purpose statement can not only clarify but also inspire desired behaviors toward its beneficiaries. But to do that, it must clearly indicate who the beneficiaries are – the segment of society (or the environment) it intends to benefit.

In a 2020 survey by PwC that covered over 2,000 CEOs, more than half the respondents (51%) failed to mention any beneficiaries (the who) in their purpose statements [22].

Statements that fail to mention beneficiaries remain all but abstract.

For example, statements such as “to improve profit, sustainable growth, and long-term stability” and “improve health and well-being” could potentially create confusion as to whose health are we talking about — is it customers, employees, the public, or another group?

A good way to avoid this is to put the beneficiaries at the forefront of the statement and reference how the organization benefits them.

For example, S&P Global’s purpose statement – “We accelerate progress in the world by providing intelligence that is essential for companies, governments and individuals to make decisions with conviction” clearly communicates the role of S&P along with the section of stakeholders it intends to serve [23].

Must be Engaging

This is the dimension of a purpose statement that lays emphasis on how it is worded.

Great purpose statements are engaging and inspiring and appeal to the heart as much as to the mind. They are crisp, impactful, and leave a lasting impression on memory. In contrast, when statements are too long, they become unclear and lose their grip on people’s attention.

For example, compare Mastercard’s:

“We work to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible, Connecting everyone to Priceless possibilities” [24]

with that of Bank of America’s:

“To help make financial lives better through the power of every connection.” [25]

While Mastercard’s statement is detailed and lays emphasis on inclusivity, safety, and accessibility, it is also lengthy and less likely to be remembered. In contrast, Bank of America’s purpose statement is concise, powerfully conveys its intent, and leaves its mark in the memory.

While there are no definite guidelines as to how a purpose statement must be worded, the following guidelines come in handy:

• A purpose statement must be inspiring – It must be aspirational, inspirational, and even poetic and must reveal the “engine” that keeps a company running.
• Must be as short and sweet as possible to aid memorability. (For example, Google’s short yet powerful – “To organize the world’s information”)
• Must have an outcome (For example, Barbie’s “To inspire the limitless potential in every girl”)
• Must create tension – a great purpose statement must unite conflicting intentions that create a space for continuous innovation and growth. For example, IKEA’s “To create a better everyday life for the many people” [26] conveys the company’s goal to make durable, sustainably made furniture (which can be expensive) but at the lowest possible cost.
• Must strike a balance between aspiration and precision. It must be aspirational but not vague, precise but not limiting and must leave room for a company to grow. For example, Lego’s “To inspire and develop the builders of tomorrow” [27]
• It should be systemic and rational but also emotional; it should resonate with members of the organization and inform their decision-making.

A purpose statement can evolve with time

Companies are not static. There are many examples of successful companies that reinvented their business. Samsung started as a company trading dried fish and groceries while Nokia started as a pulp mill.

As a company grows or the context around it changes, its purpose may need to be reframed.

For example, Tesla changed its purpose statement from “we exist to accelerate the planet’s transition to sustainable transport ” to “we exist to accelerate the planet’s transition to sustainable energy .”

Tesla’s offerings today expand beyond cars into products such as solar roofs, power-wall batteries that power homes during outages, and megapacks that stabilize renewable energy electric grids during peak power demand.

Additionally, with the shift towards stakeholder capitalism, companies are forced to redefine what success looks like and how to achieve it. With the change in the traditional mindset of maximizing value for shareholders to maximizing it for all stakeholders, companies are increasingly finding their very purpose questioned.

For example, British Petroleum (BP) has been an energy company involved in extractive industries since its founding. In 2020, BP changed its purpose to reflect its commitment to become a net-zero carbon emitter. Its purpose statement changed from “Making energy more” to “reimagining energy for people and planet” [28].

Delivering value with purpose: The 5P framework

Companies that live by their purpose radiate authenticity and do well by doing good. Leaders allocate capital and resources with purpose in mind while employees use purpose as a guiding star for decision-making. Customers, suppliers, partners, and investors in such companies recognize their value proposition.

But developing such dynamics can be hard. It requires leaders to embed purpose throughout the organization.

McKinsey & Company has proposed a five-step framework that companies can use to make purpose real, steer clear of potential vulnerabilities, and help unlock meaningful value [29]:

Called the 5Ps framework, it consists of five critical elements:

1. Portfolio strategy and products

Demonstrating purpose in the products and services requires a two-step process. First, the business portfolio must align with the company’s purpose. Second, a company must fill out its businesses with products and services that match its chosen portfolio and winnow out those that don’t.

While most companies will not have the choice of starting from a clean slate in terms of the industries and sectors, almost all can identify ways to reshape their business mix in an active, purposeful way.

For example, BP has reimagined what an energy company can be. It not only exited its petrochemicals businesses but also announced plans to shrink its legacy oil & gas businesses by 40% by 2030.

BP is on the path to scale up its low-carbon energy businesses such as bioenergy, hydrogen, and electric-vehicle charging, and to put itself on a path to become a net-zero carbon emitter by 2050 or sooner [30].

Google’s parent company, Alphabet prioritizes “freedom and focus” and in line with it, google restricts Play Store apps that promote gambling and those that offer personal loans with excessive annual percentage rates.

Likewise, toy companies are genuinely embracing diversity, equity and inclusion by learning and collaborating with identity-based communities to improve products. Mattel, the company that manufactures Barbie now offers dolls in a wide variety of body sizes, skin tones, hair textures, and ability status [31].

2. People and culture

As every purpose is about human beings, a company’s employees and its stakeholders serve as sources of strength and a hard check against inauthenticity. An organization’s purpose must align at critical points with its people and culture.

This process starts with hiring. As changing people can be hard, managers must actively screen for individuals who share values that align with the company’s purpose. Human resource decisions must be grounded in purpose and must drive people’s development and career pathways.

Mindsets and behaviors linked to company purpose must be well-articulated and “role-modeled”. Aligning with purpose is not about management saying some nice words and calling it a day. Unless it is reflected in key performance indicators (KPI), benefits are limited.

People want purpose and meaning from their work. Organizations that can genuinely satisfy this need are the ones with the most engaged employees. Passionate employees radiate enthusiasm to customers and communities alike.

Studies have shown that organizations with engaged employees achieve earnings-per-share growth that is more than four times that of their competitors [32].

3. Processes and systems

This element addresses the “how” of the business model: the operational initiatives and governance mechanisms that an organization depends upon to realize its purpose.

While some aspects of these elements are dictated by regulations and industry standards, an organization must go beyond to be the best and set an example. Embedding purpose into a company’s processes and systems requires looking beyond a firm’s four walls.

For example, Patagonia, whose purpose is “to save our home planet”, does not stop at being carbon-neutral in its own processes. Acknowledging that the bulk of its emissions (95%) comes from its supply chain and materials manufacturing, Patagonia has stood up and taken responsibility for all of it.

It holds itself accountable by setting ambitious goals across the company and its network of partners in alignment with a set of standards based on its Science Based Target Initiative (SBTi) [33].

4. Performance metrics

As only that which gets measured gets managed, it is crucial to measure purpose. This means identifying the KPIs attached to a company’s purpose, tracking them over time, and incenting employees to meet purpose targets.

Since purpose expresses what a company stands for and aspires to be, purpose metrics should extend beyond the day-to-day operations to include allocation decisions such as capital expenditures and M&A, as well as company-wide transformation initiatives.

Organizations are increasingly adopting such practices. For example, a global study that looked at the prevalence of ESG-linked pay for executives found that 38% of the listed firms followed the practice in 2021 compared to just 1% in 2011 [34].

Companies can use a range of KPIs and tools but, because every purpose is unique to an organization, off-the-shelf solutions are seldom as effective as the ones that are carefully tailored.

Companies can also go beyond monetary incentives to encourage community outreach by celebrating offices and employees who contribute measurably to the organization’s mission. Behavioral economics principles can be used to “nudge” for positive behavior, such as energy saving or waste reduction.

Sometimes, simply showing employees and other stakeholders how the organization is progressing along metrics such as diversity or sustainability reinforces the purpose and helps build momentum for more.

5. Positions and communication

A company’s purpose must be hardwired into its positions, communications, and external engagement. Artificial expressions of purpose ring false, and stakeholders recognize inauthenticity.

Sadly, In the rush to stand for something, organizations have risked putting the purpose ‘story’ ahead of the purpose plan and actions. When ‘purpose promise’ does not match the ‘purpose experience’, organizations face a real risk of reputational damage.

For example, when McDonald’s launched ‘McPlant’, its meat-free burger, critics were quick to point out McDonald’s inaction on sustainability issues and the lack of a clear link between the launch of ‘McPlant’ and its current sustainability plan.

McDonald’s has been years behind competitors like White Castle and Burger King in fully introducing plant-based burger options [35].

Purpose-washing: The dangers and how to avoid it

Companies today are in a rush to match their core purpose with the values of society, such as inclusion, fairness, and respect and have become more outspoken about environmental and social issues.

Customers, employees, investors, and communities are increasingly expecting businesses to express a clear and public position on issues that matter to them.

Unfortunately, such highly visible pledges of purpose commitment have, paradoxically, also resulted in public concern and backlash. 56% of people now believe that purpose-driven marketing is a way for firms to promote their goods, rather than a real commitment to solve social or environmental problems [36].

What is purpose-washing

When an organization’s purpose statement is communicated to external stakeholders, a lack of perceived authenticity can easily escalate into accusations of purpose-washing – a term that combines the concepts of greenwashing and woke-washing.

Greenwashing refers to companies portraying themselves as environmentally conscious even though their actions do not align with their claims. Woke-washing is an accusation that arises when companies claim to care about socio-political issues, but stakeholders believe they do not.

In both cases, claims that are based on a broader purpose that goes beyond economic profit maximization are not perceived as consistent with actions.

Examples of companies accused of purpose-washing

The below table gives an overview of companies in different industries that have faced accusations of purpose-washing for varied reasons:

Source: Purpose-washing: What it is, and how to avoid it, King’s Business School [36]

Numerous companies across industries have come under fire for misalignment between their stated purposes and actual behavior for a variety of reasons and to different degrees.

Staying clear of purpose-washing

In addition to the obvious ethical concerns, negative consequences of purpose-washing include a decrease in trust, damaged reputation, and substantive financial losses. When organizations take a public stance based on their purpose, they join a broader public conversation on the topic.

According to research by Paul A. Argenti, professor of corporate communication at Dartmouth College’s Tuck School of Business [45], there are three considerations that managers must bear in mind when they speak in public or take a stand on matters related to their purpose:

Does the issue align with the organization’s strategy?

An organization’s strategy is based in part on the company’s mission and values. If there is a misalignment with the issue being spoken out on, such statements will be viewed as inauthentic.

Can the organization meaningfully influence the issue?

If the organization does not have the expertise and resources to make a difference or is not willing to commit financial resources towards the cause, then the organization risks being seen as hypocritical or being accused of “woke-washing.”

Will the constituencies agree with speaking out?

Every organization works with constituencies – distinct groups or entities that have a stake or interest in the organization’s decisions and actions. (e.g., customers, investors, employees, etc.). If the key constituencies agree with the position taken by the organization, then the risk of disrupting future business is greatly reduced. However, when these constituencies disagree, it becomes crucial to discuss and carefully weigh the position based on relative importance to business.

If a company meets all the above conditions, it can join or even initiate a public conversation around its purpose without the risk of being accused of purpose-washing. However, if only two of the conditions are met, it is better to wait and join the debate later rather than acting as a conversation starter.

When just one condition is met, it is critical to keep track of the situation and determine

whether and when it is suitable to voice a stance. If none of the conditions are met, the company should refrain from commenting on the matter.

Initiating effective purpose-driven campaigns

Once an organization decides to take a public stance, three guiding principles are important.

First, it must carefully consider how to communicate its commitment in a meaningful manner. It is insufficient to merely issue campaigns and merchandise relating to their purpose as the perception of authenticity relies strongly on stakeholders correctly interpreting the alignment of the stated purpose with the company’s practice.

Second, the stance must be unambiguous. Research indicates that staying neutral and thus not taking a clear stance, can lead to a lack of perceived authenticity [46]. While striving for fair representation is vital, it is also critical that a company’s stance is clear, well-thought-out and displays a real commitment to its principles.

Finally, the message must be consistent for it enhances authenticity.

Thus, purpose can be a source of powerful competitive advantage, but only when it is genuine and infused into an organization’s business model.

Read also: Mission Statement

1. “The Power Of Purpose: The 7 Elements Of A Great Purpose Statement (Part 1)”. Forbes, https://www.forbes.com/sites/afdhelaziz/2020/02/18/the-power-of-purpose-the-7-elements-of-a-great-purpose-statement/?sh=1470a4473fad . Accessed 08 Apr 2024.

2. “People on a mission”. Korn Ferry Institute, https://www.kornferry.com/content/dam/kornferry/docs/article-migration/Korn_Ferry_People_on_a_Mission_1219.pdf . Accessed 08 Apr 2024.

3. “The 20 employers engineering students most want to work for”. Business Insider, https://www.businessinsider.in/policy/economy/news/the-20-employers-engineering-students-most-want-to-work-for/slidelist/93758602.cms . Accessed 08 Apr 2024.

4. “The search for purpose at work”. McKinsey & Company, https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-search-for-purpose-at-work . Accessed 08 Apr 2024.

5. “Putting Purpose to Work: A study of purpose in the workplace”. PwC, https://www.pwc.com/us/en/purpose-workplace-study.html . Accessed 08 Apr 2024.

6. “Our Purpose”. Kroger, https://www.thekrogerco.com/about-kroger/ . Accessed 08 Apr 2024.

7. “General Information about Intel Corporation: What Are Intel’s Purpose, Commitments, Values, Vision, and Brand?”. Intel, https://www.intel.com/content/www/us/en/support/articles/000015119/programs.html . Accessed 08 Apr 2024.

8. “About us”. Decathlon, https://sustainability.decathlon.com/about-decathlon . Accessed 08 Apr 2024.

9. “What Makes a Great Corporate Purpose Statement”. Harvard Business Review, https://hbr.org/2023/09/what-makes-a-great-corporate-purpose-statement . Accessed 07 Apr 2024.

10. “What we value”. Microsoft, https://www.microsoft.com/en-us/about/values . Accessed 07 Apr 2024.

11. “Airbnb 2019 Business Update”. Airbnb, https://news.airbnb.com/airbnb-2019-business-update/ . Accessed 07 Apr 2024.

12. “Airbnb’s Open Homes platform hopes to house 100,000 displaced people”. The Spaces, https://thespaces.com/airbnbs-open-homes-platform-hopes-to-house-100000-displaced-people/ . Accessed 07 Apr 2024.

13. “About”. Tesla, https://www.tesla.com/about . Accessed 07 Apr 2024.

14. “Who we are”. Exxon Mobil, https://corporate.exxonmobil.com/who-we-are . Accessed 07 Apr 2024.

15. “Exxon’s Climate Denial History: A Timeline”. Greenpeace, https://www.greenpeace.org/usa/fighting-climate-chaos/exxon-and-the-oil-industry-knew-about-climate-crisis/exxons-climate-denial-history-a-timeline/ . Accessed 07 Apr 2024.

16. “ExxonMobil loses bid to nix climate change lawsuit”. The Associated Press, https://apnews.com/article/climate-environment-darren-woods-lawsuits-9650332ea94d2ee22eb415e80b142134 . Accessed 07 Apr 2024.

17. “Is PMI Really Creating a ‘Smoke-Free Future’?”. Exposetobacco.org, https://exposetobacco.org/news/pmi-smoke-free-future/ . Accessed 08 Apr 2024.

18. “Our Values and Actions”. Volkswagen, https://www.vw.com/en/our-values-and-actions.html . Accessed 08 Apr 2024.

19. “How Volkswagen Rallied Its Employees After Its Emissions Scandal (At Least For Now)”. Forbes, https://www.forbes.com/sites/karstenstrauss/2017/07/26/how-volkswagen-rallied-its-employees-after-its-emissions-scandal-at-least-for-now/ . Accessed 07 Apr 2024.

20. “The Evolution Of Purpose Wash And How To Avoid It”. CEO Today, https://www.ceotodaymagazine.com/2020/12/the-evolution-of-purpose-wash-and-how-to-avoid-it/ . Accessed 07 Apr 2024.

21. “Our Purpose”. AT&T, https://about.att.com/pages/corporate-profile . Accessed 07 Apr 2024.

22. “Why corporate purpose statements often miss their mark”. PwC, https://www.strategy-business.com/article/Why-corporate-purpose-statements-often-miss-their-mark . Accessed 08 Apr 2024.

23. “We are S&P Global.”. S&P Global, https://www.spglobal.com/en/who-we-are/ . Accessed 08 Apr 2024.

24. “About Mastercard”. Mastercard, https://www.mastercard.us/en-us/vision/who-we-are.html . Accessed 08 Apr 2024.

25. “Our company”. Bank of America, https://about.bankofamerica.com/en/our-company . Accessed 08 Apr 2024.

26. “The IKEA vision and values”. IKEA, https://www.ikea.com/gb/en/this-is-ikea/about-us/the-ikea-vision-and-values-pub9aa779d0 . Accessed 08 Apr 2024.

27. “Purpose”. Kirkbi, https://www.kirkbi.com/about/purpose/ . Accessed 08 Apr 2024.

28. “Presentation – Bernard Looney”. BP, https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/2q-strategy-2020-bernard-looney-strategy-overview.pdf . Accessed 08 Apr 2024.

29. “More than a mission statement: How the 5Ps embed purpose to deliver value”. McKinsey & Company, https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/more-than-a-mission-statement-how-the-5ps-embed-purpose-to-deliver-value . Accessed 08 Apr 2024.

30. “Insight: Inside BP’s plan to reset renewables as oil and gas boom”. Reuters, https://www.reuters.com/business/sustainable-business/inside-bps-plan-reset-renewables-oil-gas-boom-2023-03-07/ . Accessed 08 Apr 2024.

31. “She’s a Barbie girl, in a new world”. Mashable, https://mashable.com/feature/barbie-diverse-inclusive . Accessed 08 Apr 2024.

32. “The Power Of Purpose: The Business Case For Purpose (All The Data You Were Looking For Pt 2)”. Forbes, https://www.forbes.com/sites/afdhelaziz/2020/03/07/the-power-of-purpose-the-business-case-for-purpose-all-the-data-you-were-looking-for-pt-2/ . Accessed 08 Apr 2024.

33. “The Climate Crisis Is Our Business”. Patagonia, https://www.patagonia.com/climate-goals/ . Accessed 08 Apr 2024.

34. “Executive Compensation Tied to ESG Performance: International Evidence”. SHIRA COHEN, IGOR KADACH, GAIZKA ORMAZABAL, STEFAN REICHELSTEIN, https://onlinelibrary.wiley.com/doi/full/10.1111/1475-679X.12481 . Accessed 08 Apr 2024.

35. “Hold the beef: McDonald’s avoids the bold step it must take to cut emissions”. Guardian, https://www.theguardian.com/environment/2021/dec/10/mcdonalds-emissions-beef-burgers . Accessed 08 Apr 2024.

36. “Purpose-washing: What it is, and how to avoid it”. KING’S BUSINESS SCHOOL, https://www.kcl.ac.uk/business/assets/research/literature-review-purpose-washing.pdf . Accessed 08 Apr 2024.

37. “Munroe Bergdorf accuses L’Oréal of racial hypocrisy”. The Guardian, https://www.theguardian.com/fashion/2020/jun/02/munroe-bergdorf-accuses-loreal-of-racial-hypocrisy . Accessed 07 Apr 2024.

38. “H&M Apologizes for ‘Monkey’ Image Featuring Black Child”. The New York Times, https://www.nytimes.com/2018/01/08/business/hm-monkey.html . Accessed 06 Apr 2024.

39. “What Was the Dieselgate Scandal?”. International Environmental Technology, https://www.envirotech-online.com/news/air-monitoring/6/international-environmental-technology/what-was-the-dieselgate-scandal/59471 . Accessed 06 Apr 2024.

40. “This article is more than 5 years old Stonewall and Primark criticised for Pride T-shirts made in Turkey”. The Guardian, https://www.theguardian.com/world/2018/aug/02/stonewall-and-primark-criticised-pride-t-shirts-made-in-turkey-lgbt-rights . Accessed 08 Apr 2024.

41. “The Starbucks Anti-Pride Controversy, Explained”. Bon Appetit, https://www.bonappetit.com/story/starbucks-anti-pride-controversy . Accessed 08 Apr 2024.

42. “6 months later: Activist marketing takeaways from Nike, Ben & Jerry’s calls for racial justice”. Marketing Dive, https://www.marketingdive.com/news/6-months-later-activist-marketing-takeaways-from-nike-ben-jerrys/591421/ . Accessed 08 Apr 2024.

43. “Why Audi’s Super Bowl Ad Failed”. Forbes, https://www.forbes.com/sites/jeffkauflin/2017/02/06/why-audis-super-bowl-ad-failed/ . Accessed 08 Apr 2024.

44. “How M&M’s Became the Latest Flash Point in the Culture Wars”. Time, https://time.com/6249551/m-m-candy-mascots-culture-wars/ . Accessed 08 Apr 2024.

45. “When Should Your Company Speak Up About a Social Issue?”. Harvard Business Review, https://hbr.org/2020/10/when-should-your-company-speak-up-about-a-social-issue . Accessed 08 Apr 2024.

46. “Woke brand activism authenticity or the lack of it”. Abas Mirzaei, Dean Wilkie and Helen Siuki , https://www.researchgate.net/publication/355082665_Woke_brand_activism_authenticity_or_the_lack_of_it . Accessed 07 Apr 2024.

47. “Your Corporate Purpose Changed. Has Your Strategy Kept Up?”. Harvard Business Review, https://hbr.org/2022/07/your-corporate-purpose-changed-has-your-strategy-kept-up . Accessed 07 Apr 2024.

• Strategy Map: All You Need to Know
• Vision Statement
• Mission Statement for Success

Leave a Comment Cancel reply

Save my name and email in this browser for the next time I comment.

• Scroll to top

•   / Sign Up

Business Purpose Definition, Examples and 12-Step Guide

This tool helps you define your Business Purpose, the critical strategic objectives that will orient your entire innovation project. Nailing your business purpose is critical – else, you will be missing that guiding North Star.

Get the Full Package for FREE & OpenSource

• Get instant access to this model including a full presentation, related tools and instructions!
• You will equally get instant access to all 50+ UNITE Innovation & Transformation Models!
• Completely FREE and OpenSource!

Table of Contents

The ability to adapt, innovate, and strategize effectively has become the cornerstone of success. From dynamic local startups to expansive global enterprises, the imperative remains the same: to cultivate the mission and vision required to thrive amidst constant change. As the business environment continues its metamorphosis, one undeniable truth takes centre stage – the journey of digital innovation and transformation is not a mere event but an ongoing expedition that demands insightful strategic planning.

A business purpose serves as the North Star, guiding organizations through the complexities of the modern landscape. It encapsulates the fundamental “ why ” behind an organization’s existence and defines its role in society. A well-crafted purpose aligns the business goals with societal needs, fostering a sense of direction and significance. It becomes the driving force that propels innovation, shapes strategies, and rallies employees and stakeholders around a shared mission.

In this article, we embark on an exploration that delves into the vital significance of crafting a purpose statement that resonates harmoniously with your business objectives. This statement becomes more than just a guiding principle; it evolves into a strategic linchpin that reinforces your overarching planning endeavours. In our journey through these insights, we aim to illuminate how this purpose statement interweaves seamlessly with elements like business strategy , innovation, the concept of “ jobs to be done ,” and valuable tools like the Business Model Canvas . Together, these components create a holistic framework that navigates the complex waters of contemporary business dynamics, propelling your enterprise toward a future of not just resilience, but enduring prosperity.

What is Business Purpose?

The business purpose also known as organizational purpose or company purpose , is the core rationale behind the establishment of your company, condensed into a concise statement, often just a sentence or two. This statement can be tailored to a specific industry or broad enough to encompass supplementary and prospective business endeavours. It’s essential to discern the business purpose from your company’s vision or mission to fully comprehend its significance.

Human motivation is intricately woven into the collective aspirations of the groups we associate with. The key query lies in the alignment between these shared objectives and each individual’s personal sense of purpose.

In the context of innovative teams, the essential factor is intrinsic motivation, driven by the desire to effect tangible positive changes in the world. Such teams flourish within organizations that share a business purpose. Hence, the optimal functioning of an innovation endeavour and the cultivation of a team culture that is personally gratifying and globally impactful necessitate the synchronization of individual and collective aims.

The term “ purpose ” encapsulates an organization’s highest-level goal. For innovation teams, this might range from a straightforward objective like “Discover an optimal solution for our customer’s needs ” to an audacious aspiration like Google’s “ Massive Transformative Purpose (MTP) “, of making information universally accessible and valuable.

The purpose essentially forms the nucleus of an organization’s existence. The purpose of an organization ideally reflects the sum of the individual meanings of its members. Each individual within the organization should discern their personal significance reflected in this overarching purpose. The organization’s efficacy is inherently compromised if its members lack a personal connection to its purpose.

Beyond the internal scope, the concept of meaning profoundly impacts how your organization is perceived externally. In today’s market, customers increasingly inquire about the driving purpose behind a company and whether it resonates with the right mindset. This customer curiosity stems from their search for alignment between the company’s purpose and their own sense of significance. Both employees and customers are becoming progressively discerning of organizations that claim noble purposes while adhering to self-serving approaches.

People are now asking what implications your organization and product have for society or even the world as a whole. Being attentive to what really matters to employees and customers will lead to an organization that is continually asking itself, “Am I still relevant?” This is a question that is absolutely necessary in times of exponential change.

Business purpose encompasses several key aspects:

• Mission: The company’s mission statement articulates its purpose succinctly. It outlines the core activities, values, and goals that drive the organization’s operations.
• Values: These are the guiding principles and ethical beliefs that shape the company’s behaviour and culture. Values help establish the moral compass for decision-making and interactions within the organization.
• Long-Term Vision: A well-defined purpose includes a long-term vision that describes the desired future state the company aims to achieve. This vision provides direction and inspiration for employees and stakeholders.
• Social Impact: Business purpose considers the positive impact the company strives to make on society, whether through its products, services, sustainability efforts, community involvement, or other initiatives.
• Stakeholder Consideration: A purpose-driven organization recognizes the importance of addressing the needs and interests of all stakeholders, including employees, customers, investors, suppliers, and the broader community.
• Differentiation: Business purpose can set a company apart from its competitors by offering a unique value proposition that resonates with customers and stakeholders.
• Employee Engagement: Clearly defined purpose can foster employee engagement and motivation by providing a sense of meaning and alignment with their personal values.
• Adaptability: A strong purpose can guide the organization through changes and challenges, helping it adapt while staying true to its core identity.

1- Crafting a Mission Statement in Business Purpose

Crafting a mission statement within a business purpose requires careful consideration and clarity. A mission statement succinctly communicates your organization’s core activities, values, and goals. Here are steps to guide you through the process:

• Reflect on Core Activities: Begin by reflecting on what your organization does. Identify the primary products, services, or solutions you offer. Consider how these offerings provide value to customers or address specific needs.
• Define Your Values: Your mission statement should align with your organization’s core values. Identify the guiding principles and ethical beliefs that shape your company’s behavior and decisions.
• Articulate Goals: Outline the specific goals your organization aims to achieve. These could be related to growth, innovation, customer satisfaction, or any other key objectives.
• Be Concise: Keep your mission statement concise and to the point. Aim for a few sentences that capture the essence of your organization’s purpose.
• Address “Why” and “How”: While your business purpose answers the “Why” of your existence, your mission statement can touch on the “How.” Explain how your organization plans to achieve its purpose through its core activities.
• Consider Stakeholders: Think about how your mission statement resonates with various stakeholders, including employees, customers, and investors. It should convey a clear and compelling message to all.
• Inspire and Motivate: Craft a mission statement that inspires both internal and external audiences. It should motivate your team and communicate the value you bring to customers.
• Avoid Generic Language: While your mission statement should be concise, avoid using generic or clichéd language. Make sure it uniquely reflects your organization’s identity.
• Review and Revise: Once you draft your mission statement, review it carefully. Ensure it accurately represents your organization’s purpose, values, and goals. Revise as needed for clarity and impact.
• Share for Feedback: Share your mission statement with colleagues, stakeholders, and external parties. Gather feedback to ensure that it resonates and effectively communicates your organization’s essence.
• Align with Business Strategy: Your mission statement should align with your overall business strategy. It should guide your decision-making and strategic direction.
• Capture Essence: Like your business purpose, your mission statement should capture the core essence of your organization’s reason for being. It should be a guiding light for your actions and endeavours.

Distinguishing between a mission statement and a vision statement reveals subtle distinctions. Our perspective is that a vision statement tends to cast a more outward gaze. It signifies the potential societal impact that a company’s endeavours can generate.

On the other hand, a mission statement outlines those actions, at least broadly. A company’s mission should seamlessly align with its values, purpose, and vision, all while pledging to undertake specific measures. Gaining insight from various vision statement examples can prove beneficial.

The most famous recognized mission statement is Google’s: “To organize the world’s information and make it universally accessible and useful.” The correlation between Google’s products, services, and its mission is palpable. The organization behind TED Talks embodies a succinct mission statement, yet it resonates seamlessly with their output: “ Spread ideas .”

The American Red Cross’s mission statement beautifully encapsulates hope and altruism: “To prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors.” Examining company websites serves as a facile means to explore how they articulate their mission. Such insights shed light on industry and consumer priorities.

Purpose statements, visions, missions : these foundational documents epitomize the roadmap a company treads upon. They galvanize and harness a company’s resources, guiding them cohesively toward a shared objective.

Values are built upon the foundation of an organization’s purpose and assume a pivotal role in steering behaviours. They serve as a navigational tool for actions, even amid uncertain circumstances. Especially within the realm of innovation teams, where autonomy is abundant, values emerge as guiding tenets for conduct. As an illustration, if your team upholds the value of financial responsibility, there’s no necessity for a specific policy against costly first-class flights; team members are naturally inclined toward budget-friendly choices to conserve resources.

It plays a pivotal role in shaping an organization’s identity, culture, and actions. They are the fundamental principles and ethical beliefs that guide how the company operates, interacts with stakeholders, and makes decisions. Here’s more information about the significance and impact of values within an organization:

• Foundation of Culture: Values define collective beliefs, attitudes, and behaviours that shape the work environment and interactions among employees.
• Behavioural Guidelines: Values act as behavioural guidelines, providing a framework for decision-making and aligning actions with ethical standards.
• Consistency: Values foster consistency by promoting uniformity in actions and decisions across the organization.
• Ethical Framework: Values establish an ethical framework that ensures integrity and adherence to ethical standards in all interactions.
• Decision-Making: Values act as a moral compass, guiding employees’ decisions to align with organizational principles.
• Employee Engagement: Clear values contribute to employee engagement, creating a stronger connection between employees and the company’s mission.
• Attraction and Retention: Values attract like-minded individuals and play a role in retaining employees who align with the company’s principles.
• Reputation: Values influence an organization’s reputation, enhancing trust and standing through ethical behaviour.
• Differentiation: Values differentiate the company by showcasing its unique approach and priorities, resonating with customers seeking alignment.
• Long-Term Sustainability: Values contribute to sustainability by building lasting relationships with stakeholders and fostering trust.
• Cultural Alignment: Values promote alignment among diverse teams, creating a sense of unity and shared purpose.
• Continuous Improvement: Values drive commitment to continuous improvement, fostering adaptation and growth in changing environments.

Values extend a more explicit framework for actions compared to purpose. They translate our all-encompassing worldview into actionable principles that navigate behaviour. This hierarchy extends to vision —the team’s long-term aspiration, encompassing achievements envisioned for the next five to ten years. Goals, positioned at a more tactical level, function as the means to realize the vision and span from weeks to years. Additionally, our vision and goals dictate the strategic assets and capabilities a company invests in.

3- Crafting a Vision Statement

Crafting a vision statement is a forward-looking endeavour that paints a picture of your organization’s desired future. A well-crafted vision statement encapsulates your aspirations and guides your strategic direction. Here’s how to create an impactful vision statement:

• Envision Success: Imagine what your organization looks like in the future, typically five to ten years ahead. Visualize the achievements, impact, and growth you aim to realize.
• Be Inspirational: A vision statement should inspire and motivate. Use language that evokes enthusiasm and excitement among your team and stakeholders.
• Relate to Purpose: Align your vision statement with your business purpose. Ensure it reflects how your organization plans to fulfill its purpose and make a positive impact.
• Stay Realistic: While aspirational, your vision statement should also be realistic and achievable. It should stretch your organization’s capabilities without becoming unattainable.
• Focus on Outcomes: Highlight the outcomes and changes your organization seeks to create. Describe the improvements you want to bring to your industry, community, or the world.
• Embrace Innovation: If innovation is a core value, express it in your vision statement. Emphasize how you plan to innovate and lead in your field.
• Consider Stakeholders: Craft a vision statement that resonates with stakeholders, from employees to customers to investors. It should reflect their interests and aspirations.
• Be Timeless: Aim for a vision statement that remains relevant over time. While specific goals and strategies may evolve, the overarching vision should endure.
• Link to Strategy: Ensure your vision aligns with your business strategy. It should provide guidance for decision-making and strategic planning.
• Make it Memorable: Craft a statement that’s easy to remember and repeat. A memorable vision statement becomes ingrained in your team’s mindset.
• Test for Alignment: Share your vision statement with various stakeholders and gather feedback. Ensure it resonates with their expectations and aligns with your organization’s identity.
• Revise and Refine: Crafting a vision statement might involve several iterations. Revise and refine until you capture the essence of your organization’s future aspirations.

Business News Daily says that a company’s vision statement should explain the “Why” of a business purpose. In other words, what is the company’s plan for remaking the world?

Every business purpose ought to be crafted in collaboration with its corresponding vision statement. The strength of business purposes is inherently linked to the moral core that supports them. We hold that a company’s presence should be validated by the positive impact generated by the products and services it offers. Effectively, values operate as a social compact within a team, fostering collective engagement in shaping core values. There are no inherently incorrect values; instead, values are tailored to harmonize with the specific requirements of distinct cultural environments .

4- Social Impact in Business Purpose

Business purpose that incorporates a focus on social impact goes beyond financial success to contribute positively to society. This approach acknowledges the role of businesses in addressing social and environmental challenges. Here’s how social impact intersects with business purpose :

• Purposeful Direction: A business with a social impact purpose is driven by a commitment to create meaningful and positive changes in the world. This purpose guides the company’s strategies, decisions, and actions.
• Aligned Initiatives: Socially responsible businesses align their initiatives, products, and services with societal needs. They seek to provide solutions that improve lives, address issues, and contribute to the greater good.
• Sustainable Practices: Businesses with a social impact purpose often adopt sustainable practices to minimize their environmental footprint. They consider the long-term consequences of their operations on the planet.
• Community Engagement: Socially conscious companies actively engage with local communities through initiatives, partnerships, and support. They strive to make a positive impact on the areas where they operate.
• Ethical Standards: Social impact businesses uphold high ethical standards in their interactions with employees, customers, suppliers, and other stakeholders. They prioritize fairness, transparency, and responsible practices.
• Employee Fulfillment: A purpose that emphasizes social impact can enhance employee engagement and satisfaction. Employees are motivated by contributing to a larger cause beyond profit.
• Stakeholder Alignment: Businesses focused on social impact resonate with stakeholders who share similar values. Customers, investors, and partners are drawn to organizations that prioritize social responsibility.
• Innovative Solutions: A social impact purpose encourages innovation to address societal challenges. Companies develop products and services that tackle pressing issues in creative and effective ways.
• Reporting and Transparency: Social impact businesses often report on their efforts and progress, demonstrating accountability to stakeholders and showing the tangible results of their initiatives.
• Long-Term Vision: A commitment to social impact involves a long-term perspective. Businesses aim for sustainable growth that benefits society over time, contributing to a better future.
• Reputation and Trust: Organizations with a strong social impact purpose build a positive reputation and earn the trust of stakeholders. This trust translates into brand loyalty and enduring relationships.
• Global Contribution: Socially conscious businesses recognize that their impact extends beyond borders. They may engage in global initiatives to address widespread issues and contribute to international causes.

5- Stakeholder Consideration in Business Purpose

A purpose-driven business recognizes the importance of its stakeholders and their diverse interests. Stakeholder consideration involves understanding and addressing the needs, expectations, and impacts of various groups that are influenced by the company’s actions. Here’s how stakeholder consideration is integral to a meaningful business purpose :

• Holistic Approach : A purpose-driven business takes a holistic view of its stakeholders, considering not only shareholders but also employees, customers, suppliers, local communities, regulators, and more.
• Needs and Expectations : Understanding stakeholder needs and expectations is crucial. A purposeful business aligns its actions with what matters most to its stakeholders.
• Responsiveness : Businesses with stakeholder consideration are responsive to feedback and concerns. They engage in open communication and adapt their strategies based on stakeholder input.
• Ethical Accountability : Purpose-driven companies uphold ethical standards in their interactions with stakeholders. They prioritize transparency, honesty, and fairness in all engagements.
• Win-Win Mindset : A business purpose that takes stakeholders into account and aims for outcomes that benefit both the company and its stakeholders. This fosters positive relationships and long-term sustainability.
• Social Responsibility : Purposeful businesses recognize their social responsibility to the communities they operate in. They engage in activities that contribute positively to local well-being and development.
• Employee Well-Being : Employees are significant stakeholders. A business purpose that considers employees’ well-being fosters a positive work environment, job satisfaction, and talent retention.
• Customer Focus : Understanding customer needs and preferences is essential. A purpose-driven business delivers products and services that align with customer expectations, building trust and loyalty.
• Environmental Impact: Stakeholder consideration extends to environmental impact. Purposeful businesses adopt eco-friendly practices to reduce negative effects on the environment.
• Innovation Collaboration: Businesses that consider stakeholders collaborate with them on innovative solutions. Stakeholders often provide valuable insights that drive the creation of products and services that meet their needs.
• Regulatory Compliance: Purpose-driven companies ensure compliance with regulations and standards that impact their stakeholders. This builds trust and demonstrates a commitment to responsible practices.
• Long-Term Relationships : Businesses that prioritize stakeholder consideration build strong and lasting relationships. These relationships contribute to the company’s reputation and success over time.

6- Differentiation in business purpose

A strong business purpose is key to differentiation. It helps create a unique position in the market that resonates with customers and stakeholders. Guided by this purpose, companies develop offerings that stand out, going beyond price-focused competition.

Porter’s generic strategies highlight Differentiation, as a strong purpose enhances differentiation strategy. For instance, a purpose centered on sustainability can be integrated through eco-friendly offerings that attract environmentally-conscious customers.

By embedding differentiation into its purpose, a company strives to stand out in the market and build a distinct brand image. This purpose-driven differentiation involves:

• Distinct Identity: A differentiated business purpose gives a company a clear identity that separates it from competitors. It showcases the company’s unique values, goals, and aspirations, creating a strong impression.
• Customer Connection: A purpose that resonates with customers on a personal level fosters a deeper connection. It goes beyond products or services, addressing customer needs and desires at a fundamental level.
• Innovation: A purpose that emphasizes innovation sets the stage for novel solutions. It encourages the company to constantly evolve and create products or services that address challenges in creative ways.
• Long-Term Sustainability: Purpose-driven differentiation contributes to long-term sustainability. When customers align with a company’s purpose, they are more likely to remain loyal, even in the face of short-term market shifts.
• Employee Engagement: Differentiation in purpose creates an engaging environment for employees. They become part of a meaningful journey, working towards a unique mission that sets their company apart.
• Brand Loyalty: A distinct business purpose cultivates brand loyalty. Customers who connect with the purpose are more likely to remain loyal and become advocates for the brand.
• Market Resilience: Purpose-driven differentiation helps a company weather market changes. Customers who identify with the purpose are less likely to switch to competitors, providing stability even in turbulent times.
• Strategic Direction: A differentiated purpose serves as a North Star for decision-making. It guides strategic choices that align with the company’s unique identity and resonates with stakeholders.

7- Employee Engagement in business strategy

Employee engagement within a business purpose signifies creating a work environment where employees feel deeply connected to the company’s mission, values, and goals. It goes beyond job satisfaction and involves fostering a sense of purpose, ownership, and commitment among employees. When employee engagement is aligned with the business purpose, several key benefits emerge:

• Aligned Efforts: Engaged employees understand and embrace the business purpose . They align their efforts with the company’s overarching goals, working together towards a common mission.
• Shared Identity: A strong business purpose creates a sense of identity and belonging among employees. Engaged employees see themselves as integral parts of a meaningful journey, leading to a more cohesive and united team.
• Intrinsic Motivation: Engaged employees are intrinsically motivated. They find meaning and satisfaction in contributing to a purpose they believe in, which leads to higher job enthusiasm and motivation.
• Higher Performance: Engaged employees consistently perform at their best. Their dedication and sense of ownership drive them to excel in their roles, positively impacting overall company performance.
• Innovation: When employees feel engaged with the business purpose , they are more likely to think creatively and contribute innovative ideas that align with the company’s mission.
• Improved Collaboration: Engaged employees are more likely to collaborate effectively. They share knowledge, ideas, and support, fostering a collaborative work environment.
• Higher Retention: Employees who feel engaged are more likely to stay with the company. They are invested in the purpose and values, leading to lower turnover rates.
• Enhanced Adaptability: Engaged employees are more adaptable to change. They are willing to embrace new strategies and directions that align with the business purpose .
• Positive Culture: A business purpose that resonates with employees contributes to a positive company culture. Engaged employees embody the purpose, of influencing others and promoting a sense of positivity.
• Employee Advocacy: Engaged employees become advocates for the company. They speak positively about the organization, both internally and externally, contributing to a strong employer brand.
• Customer Satisfaction: Engaged employees provide better customer service. Their commitment to the business purpose translates into delivering superior experiences to customers.
• Long-Term Growth: Engaged employees are more likely to invest in their professional growth within the company. They see a future aligned with the purpose and are more committed to their career development.

8- Adaptability for business purposes

Adaptability within a business purpose involves crafting a purpose that enables the organization to respond effectively to changes, challenges, and evolving market dynamics. An adaptable business purpose recognizes that the world is constantly changing and seeks to remain relevant and impactful despite uncertainties. Here’s how adaptability is integrated into a business purpose:

• Change Readiness: An adaptable business purpose acknowledges that change is inevitable. It emphasizes the need to be prepared and proactive in responding to shifts in the industry, technology, and customer preferences.
• Future-Focused: An adaptable purpose is forward-thinking, anticipating trends and developments that might impact the business. It ensures the company is poised to capitalize on emerging opportunities and mitigate potential risks.
• Continuous Improvement: An adaptable purpose values ongoing improvement. It encourages a culture of learning, experimentation, and innovation to refine products, services, and processes over time.
• Resilience: An adaptable purpose builds resilience in the face of setbacks. It fosters the mindset that challenges are opportunities for growth and learning, rather than insurmountable obstacles.
• Customer-Centricity: An adaptable purpose centers around customer needs and preferences. It encourages the organization to evolve and tailor offerings to stay aligned with changing customer expectations.
• Flexibility: An adaptable purpose allows for flexibility in strategies and approaches. It acknowledges that the path to achieving the purpose might require adjustments and pivots based on new information.
• Agility: An adaptable purpose promotes organizational agility. It encourages the ability to quickly respond to changes, make decisions, and reallocate resources as needed.
• Inclusive Decision-Making: An adaptable purpose involves diverse stakeholders in decision-making. It recognizes that different perspectives enhance the ability to navigate uncertainty effectively.
• Scenario Planning: An adaptable purpose incorporates scenario planning to anticipate various future scenarios. This helps the organization be better prepared to handle different outcomes.
• Employee Empowerment: An adaptable purpose empowers employees to contribute to change initiatives. It fosters a culture where employees feel comfortable suggesting improvements and driving innovation.
• Open Communication: An adaptable purpose emphasizes transparent and open communication. This facilitates the exchange of information and ideas, helping the organization navigate change more effectively.
• Long-Term Vision: An adaptable purpose maintains a long-term vision while being flexible in short-term strategies. It provides a sense of direction while allowing adjustments to achieve that vision.

Benefits of Creating Business Purpose

Creating a business purpose offers a range of benefits that can positively impact your organization, its stakeholders, and the broader community. Here are some key advantages:

• Clear Direction: A well-defined purpose provides a clear sense of direction for your organization. It helps align everyone’s efforts toward a common goal, reducing ambiguity and enhancing focus.
• Inspiration and Motivation: A compelling purpose inspires employees, customers, and stakeholders. It fosters a sense of motivation and passion, driving increased engagement and commitment.
• Differentiation: A distinct purpose sets you apart from competitors. It helps you stand out by offering a unique value proposition that resonates with customers and stakeholders.
• Employee Engagement: A meaningful purpose gives employees a sense of meaning and fulfillment in their work. It enhances job satisfaction, morale, and overall well-being.
• Strategic Decision-Making: A clear purpose guides strategic decisions. It ensures that every choice, from product development to partnerships, is aligned with your core identity and values.
• Cohesive Culture: A purpose-driven organization often develops a strong and cohesive company culture. It creates a shared sense of identity and values among employees.
• Customer Loyalty: When customers resonate with your purpose, they’re more likely to become loyal advocates. They feel a deeper connection to your brand beyond just products or services.
• Innovation: A purpose can fuel innovation by inspiring creative solutions to address challenges that align with your purpose. It encourages thinking outside the box.
• Community Impact: A purpose that focuses on social responsibility and positive impact contributes to the well-being of local communities and the broader society.
• Attracting Talent: A purpose-driven organization attracts like-minded individuals who align with your values. It helps you recruit and retain employees who share your vision.
• Long-Term Sustainability: Organizations with a clear purpose tend to have a longer-term perspective. They prioritize sustainability and responsible practices.
• Positive Reputation: A purpose that aligns with positive societal impact enhances your reputation. It builds trust and goodwill among customers, partners, and stakeholders.
• Adaptability: A strong purpose can guide your organization through changes and challenges. It helps you adapt while staying true to your core identity.
• Measurable Goals: Your purpose can guide the setting of measurable goals that reflect your desired impact. It provides a framework for tracking progress.
• Overall Alignment: A well-crafted purpose aligns your organization’s various elements, from mission and values to strategy and operations, creating a harmonious whole.

And a profound impact of thoroughly comprehending your business purpose is the ability to articulate your intentions clearly. Purpose statements play a pivotal role in charting the company’s trajectory by highlighting priorities and forging a guided path ahead. Furthermore, purpose statements steer managerial decisions in alignment with the business’s aspirations.

“We intend to have success,” of course every manager says. But what steps will be taken to further that success? Answering the following questions as you develop clear goals for your business:

• What constitutes your ultimate Business Intention? What pinnacle achievement do you ultimately seek?
• What fuels your motivation? (elaborating on the legacy you aim to leave behind)
• What is your Vision? (illustrating the destination you aspire to reach)
• What encompass your key objectives? (outlining tangible targets you aspire to accomplish)
• How are your actions synchronized with your business purpose? Does your company’s purpose statement resonate with how the business generates revenue?

In the world of digital transformation, businesses usually define their intentions in a few specific ways. Consider these examples:

• Leveraging new technology
• Preparing to unleash innovations
• Recreating your value proposition
• Developing new products

Business Purpose Examples

• Google: Google’s purpose emphasizes the democratization of information. Their aim is to organize the vast amount of information available online and make it universally accessible and useful. This purpose underlies their search engine, but it also guides their development of various tools, technologies, and services that empower people with knowledge.
• Tesla: Tesla’s purpose is centred around sustainability and reducing dependence on fossil fuels. By accelerating the transition to sustainable energy, they’re not only creating electric vehicles but also pushing for advancements in energy storage and solar power, contributing to a cleaner future.
• Patagonia: Patagonia’s purpose goes beyond profitability. They aim to produce high-quality products while minimizing environmental harm. Their commitment to environmental activism and encouraging responsible consumption is a testament to their purpose.
• Warby Parker: Warby Parker’s purpose combines affordability with social consciousness. By offering affordable eyewear and following a “buy a pair, give a pair” model, they’re addressing both the accessibility of eyewear and making a positive impact in underserved communities.
• Airbnb: Airbnb’s purpose focuses on fostering connections and a sense of belonging. Their platform allows people to experience local culture while providing hosts an opportunity to earn income. This sense of community aligns with their purpose of enabling people to belong anywhere.

Integration of Business Model Canvas and Business Purpose

The Business Model Canvas is a powerful tool that complements and interacts with a company’s business purpose. It provides a visual framework for understanding how various components of a business work together to create and deliver value to customers, while the business purpose defines the fundamental reason for the company’s existence. These two elements are intricately connected, with each informing and influencing the other.

Your download is now available!

You can now access the complete Business Model Canvas Package, including a full presentation, related models and instructions for use.

The UNITE Business Model Canvas

A clear business purpose serves as the North Star that guides decisions made across the Business Model Canvas . It shapes the key building blocks of the canvas, including customer segments , value propositions , channels , customer relationships, and more. For instance, a purpose-driven company aiming to provide eco-friendly products will reflect this commitment in its customer segments and value propositions, tailoring its canvas to cater to environmentally conscious consumers.

And, Business Strategy outlines how a company plans to achieve its goals, and these goals should be directly linked to the overarching purpose. A purpose-driven organization’s strategy might involve sustainable sourcing, ethical production, and responsible marketing practices. These strategies then influence components of the Business Model Canvas, such as key partnerships, resources, and revenue streams.

Furthermore, the business goals set within the business strategy act as milestones that reflect the realization of the business purpose. These goals, whether they involve market share growth, societal impact, or financial success, guide the operational choices captured in the Business Model Canvas. The canvas, in turn, provides a tangible way to visualize how these goals translate into actionable components, enabling the alignment of resources, processes, and activities toward achieving the desired outcomes.

Adding to this framework, the “Jobs to be Done ” concept addresses the fundamental needs that products or services fulfill. Integrating this approach enhances the alignment between canvas components and purpose. This integration not only enhances customer-centricity but also strengthens the alignment between canvas components and the overarching business purpose .

Finding Your Business Purpose

Finding your business purpose is a transformative process that involves deep introspection and strategic exploration. It’s about discovering the fundamental reason for your organization’s existence and the positive impact it aspires to make.

What problem do you want to solve? Do you want to spread brilliant ideas all over the globe, like TED ?, Make transportation as reliable as running water, like Uber? Or help humankind reach its potential, like the non-profit organization AIESEC? Or do you just want to build a more fuel-efficient car? If you said the latter, your team has a purpose. If you’re more drawn to the former, you have a Massive Transformative Purpose (MTP).

The UNITE Business Intentions

The UNITE Business Intentions model underscores the vital significance of aligning a company’s business purpose with broader societal and environmental considerations. This approach places a strong emphasis on integrating ethical and responsible practices into the core of a business’s purpose. It serves as your compass for defining your Business Intention – the pivotal strategic goals that will guide your entire innovation project. Precisely articulating your business intentions is of utmost importance; otherwise, you risk losing that essential guiding North Star. You can download it now.

You can now access the complete Business Intentions Package, including a full presentation, related models and instructions for use.

A Massive Transformative Purpose (MTP) triggers a fundamental shift in perspective by addressing a global issue, aiming to contribute to its resolution and create a distinct, potentially improved future. Echoing the words of Peter Diamandis, “Find something you would die for, and live for it.” An MTP holds the potential to foster exponential growth by instilling an entirely new mindset and facilitating customers in aligning their personal significance with your purpose. Indeed, in their book “ Exponential Organizations ,” Salim Ismail, Michael Malone, and Yuri van Geest contend, “An exponential organization simply doesn’t work if not driven by a Massive Transformative Purpose.”

Every decision-making process is subjected to daily scrutiny to ensure it authentically represents the organization’s essence. However, even the purpose itself requires periodic examination. Thus, even an MTP is subject to constructive evaluation from time to time, to gauge its continued relevance. As serial entrepreneur Marc Degen, a contributor to this book aptly phrases it:

“Change is standard, so you better accept what’s happening, adapt, and enjoy the ride!” Marc Degen

Your company should possess a single, well-defined purpose statement that serves as a guiding force, influencing collective decisions. This statement elucidates the underlying reason for the company’s existence.

It’s pivotal to distinguish the business purpose , and this differentiation from your company’s vision or mission holds significance. While the latter terms are indispensable for your business’s triumph, they carry distinct legal implications from the business purpose.

Steps of Creating a Business Purpose

Developing a meaningful business purpose is a deliberate and strategic undertaking that extends beyond the creation of a simple declaration. It demands a profound grasp of your organization’s values, ambitions, and its position within the larger scope. An intricately crafted purpose acts as a navigational guide, steering your strategic choices, igniting inventive thinking, and nurturing a collective identity among stakeholders. The following table of steps outlines a systematic approach to crafting a purpose that genuinely connects with your organization and those it serves:

Thinking Through a Business Purpose Statement

In the ever-evolving landscape of business, the question of whether to prioritize stability or adaptability becomes crucial. Is your organization more inclined towards being a stable entity or does it lean towards embracing change and innovation? Does your structure foster a culture of continuous learning or does it value permanence and security above all? Moreover, how does your organization perceive change – as a necessary part of growth or as a potential threat to the established order?

Regardless of where your organization currently stands, the imperative for all is to reassess operational approaches, organizational structures, and the business environment that cultivates change. It’s vital to create a business ecosystem where change isn’t seen as disruptive but as a catalyst for progress. A successful company’s purpose transcends profit-seeking and shareholder interests; it encompasses a broader vision that speaks to societal needs and positive impact.

Deliberating upon a business purpose statement involves a thoughtful contemplation aimed at distilling the essence of your organization’s reason for existence. This process goes beyond mere words and delves into the core values, aspirations, and impact your business seeks to make. A well-crafted purpose statement serves as a beacon, guiding your actions, shaping your identity, and resonating with stakeholders. Below are the key considerations to navigate this introspective journey:

• Reflect on Values: Begin by reflecting on the core values that underpin your organization. Identify the principles that guide your decisions, define your culture, and differentiate you from others.
• Clarify Aspirations: Consider the long-term aspirations of your business. Envision the positive changes you aim to bring to your industry, community, or the world at large.
• Align with Impact: Think about the impact you wish to create through your products, services, or initiatives. How do you intend to improve lives, solve problems, or contribute positively to society?
• Engage Stakeholders: Involve your stakeholders in the process. Understand their expectations, concerns, and what they value most about your organization.
• Embrace Uniqueness: Embrace what sets your organization apart. How does your uniqueness contribute to the greater good? How can you leverage it for a meaningful purpose?
• Unify Passion and Expertise: Explore the intersection of your team’s passion and expertise. How can these strengths be harnessed to fulfill a purpose that aligns with your values?
• Visualize Impact: Envision the world or industry as it would be if your purpose were fully realized. What positive changes would you witness?
• Craft Concisely: Condense your insights into a concise statement that captures the essence of your purpose. Make it emotionally resonant, impactful, and reflective of your values and aspirations.
• Test for Resonance: Share the statement with diverse stakeholders and gather their feedback. Does it resonate with them? Does it capture the essence of your organization’s identity?
• Ensure Alignment: Ensure that the purpose statement aligns with your organization’s goals, actions, and intended impact. It should serve as a touchstone for decisions and initiatives.
• Foster Commitment: Communicate the purpose statement widely within your organization. Cultivate a sense of commitment and ownership among employees, encouraging them to embody the purpose.
• Evolve and Adapt: Recognize that your purpose statement can evolve as your organization grows and circumstances change. Regularly review it to ensure alignment with your trajectory and values.

A common pitfall to avoid is viewing innovation and digital transformation as destinations themselves. These terms have been echoing since the early days of the dot-com era (and crash!), It’s imperative to steer clear of the common mistake many businesses make: understanding that innovation and transformation are means to an end, not ends in themselves. The same principle holds true for technology. All of these are tools employed to achieve a comprehensive Business Intention.

To change requires a belief in one’s own ability to be able to carry out that very change. Large corporations often feel that they lag behind start-ups on aspects related to innovation, for example, speed, agility, costs, etc. But the more we have worked with clients and compared large organizations to start-ups, the more we are convinced that scale if properly exploited , can actually be an advantage, not a liability for innovation.

Sizeable enterprises possess a multitude of assets and capabilities in their core and distinct domains, empowering them to stand out in the market and scale innovations beyond the scope of any startup. It’s our collective responsibility to help them uncover and leverage these strengths. While large organizations may appear rigid today, it’s important to recognize that this rigidity isn’t inherent but rather a product of design. If an organization seeks different outcomes, it must alter its design. This transformation is entirely achievable

Final Thoughts

That’s a lot. But then again, writing a company’s governing documents is a task not to be taken lightly.

If you’d like help in understanding how your business purpose is or isn’t setting you up for success, we’d love to talk to you. We’ll help connect people who understand business purposes at work to you so your vision and intentions are clear.

You’ll find contact information elsewhere on our website.

The UNITE Business Model Framework: A Framework for Innovation Success

Register For Your FREE 
Innovation WorkShop Seat Now!

Learn how to overcome the 90% failure rate in innovation from a master innovator and best-selling author.

Expert tactics to boost your innovation odds.

Insights on capturing customer needs for innovation.

Tools that turn your ideas into triumphs.

First name *

Last name *

Professional E-mail *

I want to be kept up-to-date and accept the privacy statement *

By signing up, you agree to receive news and accept the privacy statement (mandatory)

Verify your e-mail address now by entering the 6-digit code we’ve just sent to your inbox

Don't receive Code? Resend code

Last one step

Help us better understand our innovation Show members

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Seniority * Please Select Junior Consultant Senior Consultant Manager Senior Manager Director VP SVP Partner CXO Board Member

Areas of interest * Innovation Digital Transformation Culture & Organization IT Strategy & Bus. Alignment Customer Experience

Discover the largest library of innovation & transformation tools on the entire Internet!

LOG IN VIA E-MAIL

Forgot password?

New to Digital Leadership? Create your account

Thanks, We’ve Received Your Updated Details

Learn how to overcome the 90% failure rate in innovation from a master innovator & bestselling author!

Your e-mail address: * Your first name: *

One Last Step..

Help us better understand the UNITE community

Free guide to improve your innovation success rate*

Our 35-page comprehensive innovation guide covers the key areas why innovation fails. While it cannot cover all the solutions (that would take books to fill), it provides you with a convenient starting point for your analysis and provides further resources and links to the corresponding UNITE models, ultimately allowing you to work towards a doubling and tripling your chances of success.

Get access to the UNITE Models now!

Discover the largest library of innovation & transformation tools on the internet!

Choose Your Password *

Confirm Your Password *

Already have an account? Log in

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bhutan Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland State of Palestine Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United States United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Editable UNITE models (PowerPoint) included

Most of our models and canvases are designed to be applied! 


To help you personalize them to your exact business requirements, you can download fully editable versions of the UNITE models available (PowerPoint format)!

They are straightforward to work with, and you can directly incorporate them into your presentations as you need…thus saving countless hours of replication!

PS: did you know that you are also getting hi-res print-ready versions for your workshops?

Monthly live webinars

Each month we host our exclusive, invitation-only webinar series where one of our industry-leading experts updates our members on the latest news, progress and concepts around business strategy, innovation and digital transformation, as well as other related topics. 



You will receive the book in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

Bi-weekly live group Q&A sessions

These sessions are your opportunity to bring any questions or challenges you’re facing and receive expert guidance on the spot. 


Come and be a part of engaging discussions where your unique concerns are heard and addressed.

1x personal coaching session / month

If you are occasionally looking for a sparring partner or you need limited support, then this option will be ideal for you. Coaching sessions are 1-2 hours where we can discuss any challenge or opportunity you are currently facing.

If you need a few more hours outside of this provision, then these could be billed transparently.

Unlimited video call support! – it’s like always making the right decision!

We believe support shouldn’t be limited. Because we typically find that the occasional hour just doesn’t cut it – particularly if you and your team are in the midst of a large and complex project.

Your time with Stefan is therefore unlimited (fair usage applies) – in his function as coach and sparring partner. That does mean that you will still have to do the work – we cannot take that off you, unless you hire us as consultants. But you will get valuable strategic insight and direction to make sure you are always focusing your efforts where they will lead to the best results.

One personal coaching session / month 
+ unlimited support via e-mail & WhatsApp

We believe support shouldn’t be limited. If you generally know what you are doing but want a sparring partner to frequently raise questions to, this is the perfect choice!

In addition to your monthly 1-1 live coaching sessions with Stefan, you will also get unlimited support from him via email and WhatsApp messaging (fair usage applies). This not only allows you to get valuable strategic direction in your calls, but also gives you instant access to expert help as you work through your plans each month.



The fact that support is text-based means that we can speed up our responses to you while keeping the overall cost of support down.

Welcome gift of our book 
 “How to Create Innovation” 
 (digital + physical editions)*

As a welcome gift, you will receive the both the digital and physical version of our book “How to Create Innovation”, which covers numerous relevant resources and provides additional deep dives into our UNITE models and concepts.


The print version will be shipped out to you on sign-up. The digital version will be emailed to you, and comes in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

1x major workshop or 2x smaller workshops / month

1x major or 2x smaller workshops based on the UNITE models.

• Topics covered: almost any challenge under the header of #strategy, #innovation or #transformation, leveraging the UNITE models.
• Hands-On Learning: solve your challenges while learning the practical application of the UNITE models and walk away with concrete plans and tools to take your next steps.
• Industry thought leadership: facilitated by Stefan, the founder of Digital Leadership and the main author of the UNITE models, ensuring top-tier guidance and knowledge sharing.
• Collaborative approach: engage in interactive sessions that foster collaboration, idea exchange, and real-time problem-solving among peers and industry leaders.
• Continuous Improvement: Regular workshops ensure ongoing development in your organization staying ahead of industry trends and customer needs.

Access all of our UNITE models, 
 (incl. editable & print versions)

All of our Professional plans offer full access to the following:

• 6x UNITE model package downloads are included per month, if you need something in addition to these however, please let us know!
• Hi-res, print-ready versions you can use in your workshops
• Fully editable PowerPoint versions where applicable – personalize to your needs.
• Exclusive access to our vault of never-before-published strategic materials. We have much more to share – a lot of our concepts have never been published!

Exclusive access to our private UNITE community (upcoming)

We are currently in the process of launching our brand new community., we are designing our community to specifically help you:.

• Get answers to questions (“How do I …”)
• Share leading practices & knowledge
• Jointly develop new models
• Network amongst a highly qualified group of peers

Please, select the reason

Cancelling your plan will deactivate your plan after the current billing period ends. You will not be charged further, but also won’t be able to access [exclusive features/services].

• Cost-related issues
• Unsatisfied with the service
• Features I need are missing
• Switching to a different service
• Other (Please specify)

Book Your Initial Blueprint Session Now

Simply fill out the below form and book in a time for our initial session that works for you. This initial session is free, no strings attached, and is where we can discuss your Blueprint needs more in-depth before moving forward.

Stefan F. Dieffenbacher

Founder of digital leadership.

Adam D. Wisniewski

Partner for it strategy & business alignment.

Get in touch with Digital Leadership

Speak to our team today to find the best solution for your business to grow and scale.

We are here to support you across the entire lifecycle in all topics related to #digital, #innovation, #transformation and #marketing!

Stefan F. Dieffenbacher Founder of Digital Leadership

Contact Us!

Contact form, contact details, book a call.

Title, first name & last name * Email address * Phone number Please let us know how we can best support you! *

By clicking “Send”, I agree to Terms of Service and Privacy Policy.

Let’s have a conversation!

“Please be invited to reach out! We are happy to help and look forward to a first meeting!”

+41 (0) 44 562 42 24

[email protected]

Schedule Your Call With Our Team

Find a time on our calender that best suits you !

Founder and CEO of Digital Leadership

SCHEDULE YOUR INITIAL CALL

A Quick Survey!

What is the main challenge you're currently facing in your business?

You Want To Drive Change?

Let’s find the best solution for your business to grow and scale sustainably!

Let’s kick start it!

We will uncover your current business situation and goals and provide you with a bespoke solution that helps you drastically grow your business working with us.

Stefan F. Dieffenbacher, M.B.A.

Feedback about our consulting that we are proud of

Read the reviews and make sure that this is not a waste of time, but a super effective tool.

You want to drive change?

Schedule your free business assessment call with our founder.

On this call, we will uncover your current business situation and goals and talk about how to drive change and solve your need.

Choose the meeting type that applies to your needs and schedule a time to meet with someone from our team. We look forward to speaking with you soon!

Schedule Your Free Business Assessment

Schedule Your Free Business Assessment Call With Adam D. Wisniewski

Welcome to our scheduling page.

Let’s Design your Customer Experience Blueprint !

In a uniquely designed 60 or 90 minute session* , we will …

• > identify where to start with near-certainty
• > define what approach it takes to create success in your organization

Based on the Blueprinting session, you will receive a tailored blueprint that aligns with your objectives, vision and goals, ensuring that your initiative is a success from start to finish.

In this session, you will be working together with Patrick Zimmermann, Associate Partner for Customer Experience

Let’s Design your Culture & Org-Change Blueprint !

In this session, you will be working together with Dr. Andreas Rein, Partner at Digital Leadership for Culture & Org Change

Let’s Design your Innovation Blueprint !

In this session, you will be working together with Sascha Martini, Partner at Digital Leadership for Innovation and Digital Transformation

Let’s Design your Transformation Blueprint !

In this session, you will be working together with Stefan F. Dieffenbacher, Founder of Digital Leadership Stefan is a global thought leader in the innovation space

Let’s Design your IT Strategy & Business Alignment Blueprint !

In this session, you will be working together with Adam D. Wisniewski, Partner for IT Strategy & Business Alignment

Patrick Zimmermann

Sascha Martini

Dr. Andreas Rein

Write a personalized review! Log in

Create Review

How to Write a Business Purpose Statement

by Danielle Smyth

Published on 22 Jan 2019

A business purpose statement is an essential part of forming a new business. In some states, it is even a legally required aspect of your business filing. Whether mandatory or not, having a business purpose statement can help you to identify your mission, define your goals and ultimately find the success you crave.

Writing a business purpose statement comes down to answering one important question: why is your company in business?

What Does Business Purpose Mean?

Business purpose differs from mission or vision in that it illustrates the organization’s impact on customers. The purpose of your company is to provide a certain service or product to your clients. The statement of purpose should, therefore, illustrate how you will improve the lives of those you serve. Not only is a business purpose statement a good thing to have, but it can also provide a competitive advantage over companies without such a statement. Also, the purpose can be used as a guide to dictate company actions. If a certain decision does not align with the business’s statement of purpose, it shouldn’t be acted on.

To write a business purpose statement, you need to be able to answer one important question: why is your company in business? If you are forming an LLC, it is required by law that you provide a statement of purpose. For many other business structures, it is still advisable that you have a documented statement of this kind, whether required or not.

A business purpose statement should be short, at just one to a few sentences. While it should be specific to the type of work you plan to do, you should also leave some room for ambiguity to provide your company room to grow and develop over time. Depending on your jurisdiction, statements that are too vague may not be accepted for business filing purposes.

Vision vs. Mission vs. Purpose

Mission, vision, purpose – what’s the difference? Your mission statement should define your company’s objective and its approach to reach these goals. Vision, on the other hand, describes your business’s goals for the future and outlines how you will get there. Meanwhile, a statement of purpose explains the type of work you do and how it will benefit your customers. These distinctions are minor, but it’s important to have a clearly defined vision, mission and purpose as a business owner.

How to Write a Business Mission Statement

To write an effective business mission statement, you must be able to articulate your company’s strategy. A mission statement should concisely answer four questions, as follows:

• What does my company do? 
• How do we do it? 
• Who do we provide this service for? 
• What value do we provide? 

Even if you are a solo entrepreneur or run a small, seemingly self-explanatory business, you should develop a mission statement to provide a framework for running your company.

• Testimonials

Brand Strategy

• Brand Support
• Mergers & Acquisitions
• News and Updates
• Verbal Identity
• Visual Identity
• 10 Minutes On Brand
• In Conversation
• The Debrief

How To Write a Purpose Statement That Actually Matters

by Idoia Gkikas 6 min read

P P urpose-focused, purpose-led, purpose-driven ... For years, companies have stretched and stuffed purpose statements to where they've lost their, well ... purpose.

It’s a shame. Because a succinct, emotionally resonant purpose statement defines why your brand exists beyond making money. Get that right and you've got the goods for inspiration — even in the toughest of times, for the duration of your company.

Still, not everyone sees eye to eye on purpose statements. Some people think they're critical to success. Others think they're played-out gimmicks to avoid.

At Focus Lab, we’re mainly in the first camp — “mainly” because a purpose statement alone cannot and will not carry the weight of your entire brand. But we’ve learned that brands with a clear purpose win out, time and again, in ways both tangible and intangible, from effective messaging to employee engagement to business strategy execution. In fact, the first three statements we write for our clients are purpose, mission, and vision. Together, these messages are a manifesto on your brand’s place in the world, and how you aspire to operate within it.

Over more than a decade of branding projects, we’ve learned how to identify purpose statements gone wrong — and how to get them right.

What’s the Purpose of Purpose?

In the B2B tech world — the world in which Focus Lab works — purpose can be a hard sell. Who cares why the company exists? Customers have a problem, you sell a solution. Leave the woo-woo stuff to your life coach.

Valid point. All companies exist to make money. It’d be naïve to say otherwise. But, like it or not, the days of “we make shit, we sell shit, and everything else is bullshit” are long gone. Companies are powered by their employees and fueled by their customers — real people, bombarded with brands that promise to help them achieve their hopes and avoid their fears.

This is your opportunity to hit a high note in the cacophony. When part of a thoughtfully orchestrated brand identity, a purpose statement helps your brand:

• Inspire and motivate employees and stakeholders.
• Differentiate the company from competitors.
• Attract and retain customers and clients who share the company’s values and mission.
• Guide strategic planning and decision-making, which can help the company stay true to its vision.

Sounds great, but here’s where things get tricky.

How Not to Write a Purpose Statement

Because purpose is so powerful, it's vulnerable to bloat and buzzwordery. This happens when a purpose statement is warped into a tagline or a hashtag — a symptom of branding confused for marketing .

To explain: Brand, branding, and marketing are related, but not synonymous. Your brand comprises the intangibles — feelings, memories, associations, comparisons. It lives in your customers’ minds. Branding (or, roughly, your brand identity) is the system that guides your external presentation to the world — elements like your logo, color palette, voice and tone, and so on. Branding leads your customers to have the feelings and associations you want them to have toward your brand. Marketing is the strategy for pushing these inputs to the outside world. “ Brand is the pull, marketing is the push. ”

As a statement, your purpose is part of your branding. However, when purpose is approached like marketing, the statement will likely have one or more of these red flags:

• It mentions stakeholders and/or customers.
• It mentions profits.
• It mentions products or features.
• It’s too specific/time sensitive.
• It’s too vague/abstract.
• It’s too long (>15 words).
• It’s a string of corporate buzzwords.
• No one outside of the C-suite knows, remembers, or believes it.

Your customers may latch onto your purpose, but that’s not why you write it. Purpose can’t have a price tag. For all that’s at stake, there must be no strings attached.

Purpose can’t have a price tag.

How To Write a Brand Purpose Statement

If you don’t have one, or you’ve realized that your current one could use a critical eye, these best practices can help your statement get on track.

• Be comfortable with common language. Purpose is about heart, not style. You know what Focus Lab’s purpose statement is? “To help unlock the potential of the people around us.” This statement isn’t unique, but our interpretation and execution of it is. It doesn’t shoulder the weight of our entire brand experience; it informs it — from our logomark (which, in fact, symbolizes unlocking potential) to our benefits package.
• Write something you actually live out. Stress-test your statement. Does it apply to customer service? Products and services? Employee benefits? Business strategy and execution? Visual and verbal expressions? If not, you have two options: Revise the statement to align with your business, or revise your business to align with your statement.
• Invite everyone. Your brand has the potential to positively impact everyone around you. Include all people and your statement will inspire and endure. Save any mention of customers, revenue, or stakeholders for your mission statement.
• Be brave enough to say eight words that mean something instead of 20 words that sound good. Brevity is bravery. Let your purpose statement do one job. There are countless other touchpoints that will tell the rest of your story.

When it's time to put pen to paper, be selective about who’s involved. Call on those who are close to the people side of operations — typically HR and customer service, client-facing teams, new hires that have just gone through the onboarding experience, sometimes founders and executives. We don’t recommend involving marketing teams for the reasons cited above. If possible, engage an outside party to corral inputs, impart objectivity, and uncover potential where you might not see it. A brand agency is, of course, one option, but a brand communications specialist or organizational consultant are suitable, too.

Will your brand fall apart without a purpose statement? Nah. Not that it’s not important, but again, purpose is just one piece of your brand’s puzzle. Sometimes, your brand needs space to grow into it. A commonly cited statistic is that most companies undergo a rebrand every 7-10 years, making that a logical time to reflect on why your company exists. Still, we do encourage you to dedicate time to explore your brand’s reason for existing.

This is an exercise that requires you to write from your heart, not your bottom line. It isn’t easy. But when you discover those eight words that are timeless and true, there will be a sense of rightness to their existence — and confidence in their endurance.

Photos by Annie Spratt , Jamie Street and Talia Cohen on Unsplash

Never miss a post.

Sign up for our occasional newsletter. No spam. Unsubscribe at any time.

Read what's next.

The Power of Collaboration

From Facebook to Meta: The Power of a Rename

• Sources of Business Finance
• Small Business Loans
• Small Business Grants
• Crowdfunding Sites
• How to Get a Business Loan
• Small Business Insurance Providers
• Best Factoring Companies
• Types of Bank Accounts
• Best Banks for Small Business
• Best Business Bank Accounts
• Open a Business Bank Account
• Bank Accounts for Small Businesses
• Free Business Checking Accounts
• Best Business Credit Cards
• Get a Business Credit Card
• Business Credit Cards for Bad Credit
• Build Business Credit Fast
• Business Loan Eligibility Criteria
• Small-Business Bookkeeping Basics
• How to Set Financial Goals
• Business Loan Calculators
• How to Calculate ROI
• Calculate Net Income
• Calculate Working Capital
• Calculate Operating Income
• Calculate Net Present Value (NPV)
• Calculate Payroll Tax

How to Write a Business Plan in 9 Steps (+ Template and Examples)

Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

• The business goals
• Methods to achieve the goals
• Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

• How do you want to reach your target audience?
• How do you plan to retain your customers?
• What is/are your pricing plans?
• What is your budget for marketing?

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

• A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
• Contain your Mission Statement which explains what the main objective or focus of your business is.
• Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
• The Team. Basic information about your company’s leadership team and employees
• Business Concept. A solid description of what your business does.
• Target Market. The customers you plan to sell to.
• Marketing Strategy. Your plans on reaching and selling to your customers
• Current Financial State. Brief information about what revenue your business currently generates.
• Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

• Who is your target audience?
• What sector or industry are you in?
• What are your products and services?
• What is the future of your industry?
• Is your company scaleable?
• Who are the owners and leaders of your company? What are their backgrounds and experience levels?
• What is the motivation for starting your company?
• What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

• What products and services you will provide
• Geographical markets and locations your company have a presence
• What you need to run your business
• Who your target audience or customers are
• Who will service your customers
• Your company’s purpose, mission, and vision
• Information about your company’s founders
• Who the founders are
• Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

• Who are you targeting? (The answer is not everyone)
• What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
• How does your product or service overcome that pain point?
• Where is the location of your business?
• What products, equipment, and services do you need to run your business?
• How is your company’s product or service different from your competition in the eyes of your customers?
• How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

The company description or overview section contains three elements: mission statement, history, and objectives.

• Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

• Founding Date
• Major Milestones
• Location(s)
• Flagship Products or Services
• Number of Employees
• Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

• Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

• Your target market’s needs or pain points
• The existing solutions for their pain points
• Geographic Location
• Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

• Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
• Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
• Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
• Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

• Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
• Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
• Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
• Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
• Market Share Potential: Does your business stand a good chance of taking a good share of the market?
• Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
• Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
• Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

• Is your product or service of superior quality?
• What additional features do you offer that your competitors do not offer?
• Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

• What are your successful competitors doing?
• Why is what they are doing working?
• Can your business do it better?
• What are the weaknesses of your successful competitors?
• What are they not doing well?
• Can your business turn its weaknesses into strengths?
• How good is your competitors’ customer service?
• Where do your competitors invest in advertising?
• What sales and pricing strategies are they using?
• What marketing strategies are they using?
• What kind of press coverage do they get?
• What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

• Who are the key leaders?
• What experiences, skills, and educational backgrounds do you expect your key leaders to have?
• Do your key leaders have industry experience?
• What positions will they fill and what duties will they perform in those positions?
• What level of authority do the key leaders have and what are their responsibilities?
• What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

• A detailed explanation that clearly shows how your product or service works.
• The pricing model for your product or service.
• Your business’ sales and distribution strategy.
• The ideal customers that want your product or service.
• The benefits of your products and services.
• Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
• Plans for filling the orders you receive
• If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

• Unique features
• Translating the unique features into benefits
• The emotional, psychological, and practical payoffs to attract customers
• Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

• Upsells, cross-sells, and down-sells
• Time between purchases
• Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

• The creation of new or existing products and services.
• The sources for the raw materials or components you need for production.
• Assembling the products
• Maintaining quality control
• Supply-chain logistics (receiving the raw materials and delivering the finished products)
• The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

• Are your products existing on the market or are they still in the development stage?
• What is your timeline for adding new products and services to the market?
• What are the positives that make your products and services different from your competitors?
• Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
• Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
• How much does it cost to produce your products or services? How much do you plan to sell it for?
• What is the price for your products and services compared to your competitors? Is pricing an issue?
• What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
• What is your plan for acquiring your products? Are you involved in the production of your products or services?
• Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
• Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
• How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

• What are the unique features or benefits that you offer that your competitors lack?
• What are your customers’ primary needs and wants?
• Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
• How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

Was This Article Helpful?

Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

15 Mission Statement Examples For Your Business

Updated: May 31, 2024, 8:28pm

Table of Contents

What is a mission statement, examples of mission statements, bottom line, frequently asked questions.

When buying new shoes, choosing a birthday gift or deciding what podcast to listen to, most of us reach for the same brands over and over. Why? Because in addition to offering quality products, they also have a compelling story that resonates with us and feels meaningful. That’s the power behind a strong mission statement—the ability to influence consumers to support certain brands because they feel a connection. We’re looking at some of the best mission statements and why they work so well.

A brand is the sum of how a product or business is perceived by those who experience it: customers, employees, investors and media. Creating a mission statement that explains the purpose of your business allows you to shape that perception and provide an almost instant connection. A mission statement not only explains what your company does, but also the why behind it.

How Do You Write a Mission Statement?

When creating an outline for your mission statement, there are four steps to follow, each of which will help you craft the strongest, clearest statement for sharing the “why” behind your business.

1. Explain what your business does In simple terms, write down exactly what your business does, offers or provides. Include how you solve a problem and why you bring value.

2. Describe how you do it Sourcing local supplies? Capturing customers’ demographics accurately? The next step is to list out your business processes and what makes them stand out from the competition.

3. Capture your why Think about why you started your business in the first place, and what impact you hope to make. Customers want to know the backstory for a brand and why they should feel swayed to support it.

4. Bring everything together Taking everything from the first three steps, find the common threads and link everything together. You want to have the most concise mission statement possible, so drop anything that feels out of place or doesn’t add value. There’s no hard and fast rule about the length of a mission statement, but sticking with one memorable phrase or sentence is usually the best option.

“To inspire, educate and outfit for a lifetime of outdoor adventure and stewardship.”

Recreational Equipment Incorporated (REI) is known for not only its high-quality outdoor products, but also for being a steward of the environment. The customer-centric co-op sums up its values and addresses its target audience, while also sharing what it sells.

2. American Express

“To become essential to our customers by providing differentiated products and services to help them achieve their aspirations.”

With a wide range of potential and current customers, American Express manages to help everyone feel included in its mission statement. It is offering products and services for all, no matter what your income level, elite status or dreams may be.

“To keep human connection at the heart of commerce.”

Etsy is all about less automation and more personalization. The global marketplace for creative products seeks to offer unique items and services that buyers can’t find anywhere else. Via its mission statement, the company is speaking directly to consumers who are seeking a personal experience.

4. audiochuck

“Creating top-of-the-line content that drives advocacy and change.”

With thousands of podcasts to choose from, having a mission that goes above and beyond profit is a smart way to differentiate yourself. The audiochuck brand shares that it is not only offering high-quality content, but that it also seeks to make a difference in the world.

5. Life is Good

“To spread the power of optimism.”

With its signature logo splashed all over shirts and hats, Life is Good wants its goals to be heard loud and clear. The quick phrase is all about spreading positivity, as evidenced not only through its mission statement, but also by the fun phrases and graphics that accompany its products.

“To inspire and develop the builders of tomorrow.”

With such a simple concept—small bricks that join together to form creations—LEGO wants its customers to know that it understands what they are hoping for. Building is for everyone and it is going to keep offering products that provoke imagination for builders of all ages.

7. Dunkin’ Donuts

“We strive to keep you at your best, and we remain loyal to you, your tastes and your time. That’s what America runs on.”

Consistency is key, especially when it comes to food and beverages. Dunkin’ makes it clear that it knows how people want their products to taste, how fast they need a coffee and that you can count on it to deliver on both counts.

8. Norwegian Cruise Line

“Provide exceptional vacation experiences, delivered by passionate team members committed to world-class hospitality and innovation.”

When investing in travel, consumers love knowing they will receive heightened service and extraordinary adventures. Norwegian’s mission statement assures travelers that they will get more than their money’s worth on an NCL cruise, and that it will be an experience like no other.

9. No Kid Hungry

“We believe that every child in the United States needs—and deserves—healthy food in order to grow and thrive.”

No Kid Hungry is straight and to the point, and that is exactly why its mission statement works so well. “They believe that every child deserves access to healthy food? I do too!” Speaking directly to people’s beliefs makes them all the more likely to click on the donation button.

“Spread ideas, foster community and create impact.”

TED smartly integrates several keywords that instantly draw people in and motivate them to learn more about the company. It is directing its statement towards people who are curious to discover, hope to connect with other like-minded individuals and activate change.

11. The Hartford

“Underwriting human achievement.”

With an excellent play on words, the property and casualty insurance group establishes what it does, both literally and figuratively. The Hartford wants its customers to achieve greatness, and it is here to support them through both services and loyalty.

12. Warby Parker

“To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.”

Want cool glasses at a great price? Also want to support a business that is socially conscious? Warby Parker checks both boxes with a mission statement that sums up its desire to be a profitable business that offers customers quality products while simultaneously seeking to do good.

“To offer 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.”

IKEA’s mission statement doesn’t bother with lofty goals or veiled innuendos. It offers completely honest, transparent verbiage that outlines exactly what it does and whom it does it for.

“Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.”

Honda makes it crystal clear that it is a global company, offering products for everyone, no matter where they live. It also wants you to know that it understands that high quality doesn’t always necessarily mean high prices, so you should definitely consider it when looking for your next vehicle.

15. LG Electronics

“We wish to maintain our hard-earned reputation for bringing added value to the lives of consumers.”

LG wants customers to know two things right away: it has a solid reputation and its products add value to your life. Sharing a mission statement that manages to brag a little while offering peace of mind at the same time is a wise strategy to help the company stand out.

Mission statements are an important part of a business’s strategic planning process, as they provide a summation of the “why” behind a brand. When sitting down to create one, companies need to be thoughtful not only about what they include, but also about what they don’t mention. With more choices than ever, consumers desperately want to feel a connection with the business they are supporting. The best mission statements help establish that connection by sharing why they exist and how their offerings can help.

What is a mission statement?

A mission statement uses anywhere from a few words to a full paragraph to describe not only what your company does, but also why and how. It provides a way to connect quickly and authentically with customers, employees, investors and the media.

How do you write a mission statement?

When writing a mission statement, start by writing down what your business does, as well as your why and your how. Narrow the focus as much as possible to get rid of the extra fluff that isn’t necessary and doesn’t help draw attention.

How is a brand’s mission statement different from its values?

Mission statements focus on explaining the “why,” while a brand’s values describe what the business believes in and stands for.

Should a mission statement be included in an executive summary?

The executive summary is found at the start of the business plan, and one of its first components should be the mission statement, where you provide a few sentences on what the company’s purpose is. Read our guide for some assistance in creating a comprehensive executive summary for your business plan .

• Best LLC Services
• Best Registered Agent Services
• Best Trademark Registration Services
• Top LegalZoom Competitors
• Best Business Loans
• Best Business Plan Software
• ZenBusiness Review
• LegalZoom LLC Review
• Northwest Registered Agent Review
• Rocket Lawyer Review
• Inc. Authority Review
• Rocket Lawyer vs. LegalZoom
• Bizee Review (Formerly Incfile)
• Swyft Filings Review
• Harbor Compliance Review
• Sole Proprietorship vs. LLC
• LLC vs. Corporation
• LLC vs. S Corp
• LLP vs. LLC
• DBA vs. LLC
• LegalZoom vs. Incfile
• LegalZoom vs. ZenBusiness
• LegalZoom vs. Rocket Lawyer
• ZenBusiness vs. Incfile
• How To Start A Business
• How to Set Up an LLC
• How to Get a Business License
• LLC Operating Agreement Template
• 501(c)(3) Application Guide
• What is a Business License?
• What is an LLC?
• What is an S Corp?
• What is a C Corp?
• What is a DBA?
• What is a Sole Proprietorship?
• What is a Registered Agent?
• How to Dissolve an LLC
• How to File a DBA
• What Are Articles Of Incorporation?
• Types Of Business Ownership

Next Up In Company Formation

• Best Online Legal Services
• How To Write A Business Plan
• Member-Managed LLC Vs. Manager-Managed LLC
• Starting An S-Corp
• LLC Vs. C Corp
• How Much Does It Cost To Start An LLC?

What Is SNMP? Simple Network Management Protocol Explained

What Is A Single-Member LLC? Definition, Pros And Cons

What Is Penetration Testing? Definition & Best Practices

What Is Network Access Control (NAC)?

What Is Network Segmentation?

How To Start A Business In Louisiana (2024 Guide)

Laura is a freelance writer specializing in small business, ecommerce and lifestyle content. As a small business owner, she is passionate about supporting other entrepreneurs and sharing information that will help them thrive. Her work has been featured on Angi, Scary Mommy and Cubby.

Our work is reader-supported, meaning that we may earn a commission from the products and services mentioned.

How to Answer the LLC Purpose Statement (with Examples)

• Last Updated: March 27, 2023
• By: StartUp 101

Advertising Disclosure

An LLC purpose statement describes the reason for forming the business.  This description typically only needs to be a sentence or two and briefly explains what type of business the LLC is in.  It is important to note that a purpose statement is legally distinct from your company’s vision or mission statement.  While your overall vision can be based on an abstract goal, your statement can be specific to your industry or general enough to allow your company to conduct any business activities legally permitted in the state.   

Related: How to form an LLC

In most states, you only need a general-purpose statement in the  Articles of Organization . In contrast, other states require a specific purpose statement about the primary business activities of the LLC.  In states that need only a general purpose statement, declaring the business activities may be as simple as checking a box on the formation documents.

Some states (including Alaska, Arkansas, Mississippi, Georgia, Louisiana, New Hampshire, and New Mexico) use  NAICS  (North American Industry Classification System) codes instead of requiring a written business purpose.  These codes are the classifications used by government agencies to identify industries and business activities  

Why does an LLC need a purpose statement?

Including a purpose statement in your LLC formation documents can be important if legal action is brought against the entity.  A court may examine the purpose statement to determine whether you, as the owner, are personally liable.  Courts may determine that a business with an unclear or unstated purpose is merely an alter ego and may seek to enforce monetary judgments against the business owner as an individual.

Another important reason to exercise care when declaring a business purpose is that your company’s future existence may depend on it.  An LLC member could petition the court to  dissolve the company  if it becomes unlikely that the LLC can reasonably fulfill the stated purpose.  This issue may arise if there are not adequate provisions regarding your business activities and if your contracts and agreements are silent on dispute resolution among LLC members.  

For both of these reasons, carefully consider the language in the LLC operating agreement  for a well-stated business purpose and other related provisions, in addition to the purpose declared on the formation documents.  

Examples of an LLC Business Purpose Statement

In most states, a general purpose is usually sufficient. However, if you are creating a Professional Limited Liability Company (PLLC) (which is basically an LLC for businesses that require a state license, such as an accountant, locksmith, etc.), a more specific purpose statement explaining the type of professional services the PLLC will provide will be needed. Some examples of general and specific statements are below. 

Related:  What is a Professional Limited Liability Company?

General  

If your state allows for a general business purpose statement, the following are some examples of what this may look like:  

“The purpose of Business Name LLC, is to operate and conduct all lawful business activities legally permitted in the state of A.”

“The purpose for which XYZ, LLC, is formed is for the transaction of any and all lawful purposes for which a limited liability company may be organized under the laws of the state of A.”  

Specific 

If your state requires a specific purpose to be declared when forming an LLC, you can simply state your primary activities in a sentence or two.  Below are some examples of what your specific purpose may look like: 

“The purpose of XYZ, LLC, is to purchase, sell, hold, own, and operate real estate within the state of A, and all other legal acts permitted by limited liability companies in the state of A.”  

“XYZ, LLC, seeks to engage in the activity of construction, property acquisition, and the sale and transfer of real property, and all other legal acts permitted by limited liability companies in the state of A.”  

While this type of statement should be specific to the type of work you anticipate, it should also be ambiguous enough to allow for your LLC’s purpose to develop or grow over time.  However, it should be noted that you can change your purpose statement at any time by filing an amendment.  You may not necessarily need to formally change your statement if you leave room for several other activities, as in the examples above.  

Relevant Articles: 

Piercing the Veil of an LLC-Personally liability as the owner of an LLC:  https://www.baylor.edu/content/services/document.php/140022.pdf

Can you change the business purpose of an LLC?

In any case, the answer is yes, however the process differs between states and operating agreement structure.

In some states where the purpose was been specified in the original formation documents such as the Articles of Organization, Certificate of Formation, etc., then an amendment will need to be made with the state.

If the business purpose was indicated in the LLC Operating Agreement, the Operating Agreement will need to be updated and accepted by the members.

I know it says you don’t need to collect sales tax for online orders going out of state in Illinois, so does that mean you need to use it for online in state?

What kind of seller’s permit is needed for selling crafts online in Ohio?

How Hard Is It To Get a Trucking Business Loan?

What is Workers’ Compensation Insurance?

How to Register for a Seller’s Permit

What Are The Articles Of Organization?

Can I Start a Business if I Signed a Non-Compete Agreement?

What Is Business Vehicle Insurance?

What is a Multi-Member LLC?

Popular Questions

See more start-up questions

Popular Business Ideas

See more business ideas

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Form An LLC

Business ideas, common start-up questions, get in touch.

Contact Form

Mailing Address: PO Box 2571 Carbondale, IL 62901

Rules and regulations for starting a business change frequently. While we do our best to keep this information fully up-to-date, its very difficult to stay on top of the changes for every state. Also, this site is for informational purposes only and does not provide legal or tax advice.

Additionally, Startup101 may earn a small commission from products or services mentioned on this site.

Disclaimer | Privacy

© 2017 – 2024 StartUp101 LLC – All Rights Reserved.

Some (but not all) of the links on StartUp101.com  are affiliate links. This means that a special tracking code is used and that we may make a small commission on the sale of an item if you purchase through one of these links. The price of the item is the same for you whether it is an affiliate link or not, and using affiliate links helps us to maintain this website.

StartUp101.com  is also a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to  Amazon.com .

Our mission is to help businesses start and promoting inferior products and services doesn’t serve that mission. We keep the opinions fair and balanced and not let the commissions influence our opinions.

Statements of Purpose for Businesses

• Small Business
• Business Technology & Customer Support
• Market Businesses on the Internet
• ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
• ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
• ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

The Importance of Setting Goals for a Business

List of objectives when starting a business, policy statement guidelines.

• Objectives in Awareness Advertising
• What Is a Statement of Purpose for a Restaurant?

A statement of purpose is an integral component of your small business's overall strategic operation plan. This document contains your company's core philosophy and values, from which you measure the worth of all business decisions and strategies. Crafting an understandable and attainable statement of purpose helps you and your management team to create policies and measure the success of your company as a whole.

Statement of Purpose Definition

The statement of purpose for your small business defines your company's core goals and purpose. According to Web Marketing Today, an Internet marketing website, the statement also forms the basis for your small business's brand and the promises your company intends to make to consumers. A statement of purpose isn't as broad as a mission statement, which seeks to incorporate business strategies and procedures into the document. Instead, a statement of purpose focuses primarily on the short message that will guide your company in formulating its business practices and procedures, without spelling out what those methods will look like when your business opens its doors.

Avoid Vague Statements

Just because your small business's statement of purpose doesn't include your company's plans for business operations, doesn't mean you should be vague in crafting its language. Your company's statement of purpose shouldn't simply be "make money." The statement of purpose should describe the way in which your small business wants to become successful while carving out a place in the local business community. Focusing the statement with specific language can help your management team come up with strategies and methods to accomplish the goals your statement of purpose sets.

Think About Customer Need

Thinking about the needs your small business is fulfilling for customers can help you craft a statement of purpose that positions your company strategically, as opposed to functionally, according to Web Marketing Today. This allows your mission statement to transcend just creating products and instead focus on providing services for customers. A statement of purpose focused on function allows your business the flexibility to meet consumer needs regardless of the products your company currently offers for sale.

Creating Attainable Goals

An unattainable ideal, including the pursuit of perfection, doesn't make for a good statement of purpose because your employees and management team can't adequately judge if its practices are working towards that goal. It's perfectly acceptable to create a lofty goal for your small business, but this goal should also be within the realm of possibility. This allows your management personnel to gauge the worthiness of proposed business plans and the success of current business strategies.

• Web Marketing Today: Building Your Brand
• Cambridge Rindge & Latin School Research Guide: Writing a Statement of Purpose

Jonathan Lister has been a writer and content marketer since 2003. His latest book publication, "Bullet, a Demos City Novel" is forthcoming from J Taylor Publishing in June 2014. He holds a Bachelor of Arts in English from Shippensburg University and a Master of Fine Arts in writing and poetics from Naropa University.

Related Articles

Example of a corporate web strategy statement, the advantages of having a mission statement, how important is having a philosophy to a corporation, 9 characteristics of an effective mission statement, business strategies of companies, what information should be on a mission statement, what is the business difference between objectives & goals, what is a creative strategy statement, importance of mission vision in organizational strategy, most popular.

• 1 Example of a Corporate Web Strategy Statement
• 2 The Advantages of Having a Mission Statement
• 3 How Important Is Having a Philosophy to a Corporation?
• 4 9 Characteristics of an Effective Mission Statement

• Search Search Please fill out this field.

What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One CURRENT ARTICLE
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

• Terms of Service
• Editorial Policy
• Privacy Policy

Popular Searches

Your previous searches, recently visited pages.

Content added to Red Folder

Removed from Red Folder

Management Tools

Purpose, Mission, and Vision Statements

Purpose, Mission, and Vision Statements explain why a company exists, how it plans to achieve its goals, and what the business will ultimately achieve.

• January 31, 2023

What Are Purpose, Mission, and Vision Statements?

A Purpose Statement is an explanation of the company’s motivations and reasons for being, and why it works the way it does.

A Mission Statement is a definition of the company’s business, who it serves, what it does, its objectives, and its approach to reaching those objectives.

A Vision Statement is a description of the desired future state of the company. An effective vision inspires the team, showing them how success will look and feel.

Usage and satisfaction among survey respondents

How are purpose, mission, and vision statements implemented.

Typically, senior leaders will write the company’s Purpose, Mission, and Vision Statements with inputs from the broader organization. The development process usually begins by clarifying the purpose, then defining the mission, and then painting the vision. This requires leaders to:

• Clearly identify the corporate culture, values, strategy, and view of the future by interviewing employees, suppliers, and customers
• Address the commitment the firm has to its key stakeholders, including customers, employees, shareholders, and communities
• Ensure that the objectives are measurable, the approach is actionable, and the vision is achievable
• Communicate the message in clear, simple, and precise language
• Develop buy-in and support throughout the organization

Related Topics

Corporate Values Statements

Cultural Transformation

Strategic Planning

What Are Common Uses of Purpose, Mission, and Vision Statements?

Purpose, Mission, and Vision Statements are used both internally and externally.

They are used internally to:

• Guide management’s thinking on strategic issues, especially during times of significant change
• Help define performance standards
• Inspire employees to work more productively by providing focus and common goals
• Guide employee decision making
• Help establish a framework for ethical behavior

They are used externally to:

• Enlist external support
• Create closer linkages and better communication with customers, suppliers, and alliance partners
• Serve as a public relations tool

Abrahams, Jeffrey. 101 Mission Statements from Top Companies: Plus Guidelines for Writing Your Own Mission Statement. Ten Speed Press, 2007

Blount, Sally, and Paul Leinwand. “Why Are We Here?” Harvard Business Review , November/December 2019.

Collins, Jim, and Jerry I. Porras. “Building Your Company’s Vision.” Harvard Business Review , September/October 1996, pp. 65–77.

Kirkpatrick, Shelley A. Build a Better Vision Statement: Extending Research with Practical Advice. Lexington Books, 2016.

Knowles, Jonathan B., Tom Hunsaker, Hannah Grove, and Alison James. “What Is the Purpose of Your Purpose?” Harvard Business Review, March/April 2022.

Kotter, John P., and James L. Heskett. Corporate Culture and Performance . 1992. Reprint. Free Press, 2011.

Nanus, Burt. Visionary Leadership. Jossey-Bass, 1995.

Quinn, Robert E., and Anjan V Thakor. The Economics of Higher Purpose: Eight Counterintuitive Steps for Creating A Purpose-Driven Organization , Berrett-Koehler Publishers, 2019.

Raynor, Michael E. “That Vision Thing: Do We Need It?” Long Range Planning, June 1998, pp. 368–376.

Management Tools & Trends 2023

On the 30th anniversary of our survey, managers seem surprisingly upbeat.

• Behavior Change
• Management Tools & Trends
• People and Organization

How We've Helped Clients

People and organization a video game company levels up with a new operating model, people and organization a global manufacturer's reorganization restores high profits, sales and marketing food co. jump-starts growth with return to core brands, ready to talk.

We work with ambitious leaders who want to define the future, not hide from it. Together, we achieve extraordinary outcomes.

Contact Bain

How can we help you?

• Business inquiry
• Career information
• Press relations
• Partnership request
• Speaker request

Statement of Purpose Examples

When applying for admission to a higher education institution, your reference letters and academic transcripts provide the admissions committee with crucial information about your academic achievements. However, a statement of purpose delves deeper, presenting you in a holistic manner by highlighting what distinguishes you from other applicants and why you’re an ideal fit for their program. Including a well-crafted statement of purpose in your application could be the pivotal factor that secures your spot at your desired institution. In this article, we’ll explore the intricacies of this essential document and offer some statement of purpose examples for reference.

Statement of Purpose Examples & Templates

Statement of purpose examples are illustrative documents often used as a reference by aspiring students and professionals alike. When applying to an educational institution, job, or internship, these statements accompany the main application to provide a comprehensive perspective on the applicant, encompassing not just their academic credentials but also their motivations, experiences, aspirations, and suitability for the program or position . Here are some useful examples to help guide you in crafting your own.

Academic Statement of Purpose Example

An Academic Statement of Purpose (SOP) is a formal document often required by universities or research institutions during the admissions process. It provides insight into an applicant's academic background, motivations for pursuing a particular course or research area, and their long-term goals. This statement serves as a written representation of the candidate's aspirations and suitability for the program, helping the admissions committee assess the applicant's fit and potential contribution to their institution.

Phd Statement of Purpose Example

A PhD Statement of Purpose is a formal document submitted by applicants to graduate schools, primarily to express their intentions, motivations, and qualifications for pursuing a doctoral degree in a specific field. It provides the admissions committee insights into the applicant's academic background, research interests, professional experiences, and aspirations, aiding in evaluating the candidate's suitability for the program. Typically, it's used during the admissions process for PhD programs at universities and institutions.

Statement of Purpose Grad School Example

A Statement of Purpose for Graduate School is a document that outlines an applicant's academic background, professional experiences, research interests, and future goals as they apply to a specific graduate program. It serves as a written testament of an individual's motivation and suitability for advanced study, offering the admissions committee insight into the candidate's fit for the program. Typically submitted as part of a graduate school application, this statement provides context for the applicant's achievements and aspirations, helping universities evaluate their potential for success in their chosen field of study.

Statement of Purpose Example

A statement of purpose example provides the reader with a clear and concise framework of how to effectively communicate their intentions, goals, and motivations for pursuing a particular course, program, or position. By analyzing a well-crafted example, the reader can discern the essential components, structure, and tone appropriate for their intended audience, thus aiding in the creation of a compelling and personalized narrative. Furthermore, such examples can offer insights into the specific experiences, achievements, or aspirations that can be highlighted, ensuring that the statement not only fulfills its basic requirements but also stands out in a competitive pool. This statement of purpose example is available in Word and PDF.

What Is a Statement of Purpose?

A statement of purpose is a crucial component of both academic and professional applications. It serves as a detailed narrative that presents an applicant’s motivations, aspirations, qualifications, and suitability for a specific program, role, or institution. This document goes beyond merely listing educational backgrounds and interests; it delves deeply into the applicant’s unique experiences, achievements, and any relevant professional endeavors that reinforce their candidacy. In an academic context, the SOP offers insights into the applicant’s passion for their chosen field and their aspirations within the program and their future career.

Meanwhile, in a professional setting, it can highlight one’s drive, career trajectory, and alignment with a particular role or organization. Given its importance, it’s paramount to note that institutions and companies might have distinct guidelines for these statements. Therefore, before drafting, it’s essential to review any provided instructions to ensure alignment with the desired length and content expectations.

Why Is a Statement of Purpose Important?

As already mentioned, a statement of purpose sets you apart from the other applicants. If you are all applying to the same program, chances are you have pretty much the same qualifications. A statement of purpose is more personal. It gives you the opportunity to explain why you are the ideal candidate. Here is what your statement of purpose tells the admissions committee:

• Your inspiration: Why are you applying to this particular program? Why have you chosen this institution as the place where you will pursue the program?
• Your background: How have your experiences prepared you to pursue this program? What are your plans if you get accepted?

Subject: Statement of Purpose – [Your Full Name]

Dear [Recipient’s Full Name],

I am writing to express my strong interest in [Applying for the position, Admission in the academic program, Grant Application, etc.] at [Name of the University/Company/Organization]. I believe my academic background, professional experiences, and personal skills make me a strong candidate for this [Job/Program/Opportunity].

I am a [Your Current Occupation, or Status like Student, Job Title, etc.] with a major in [Your Major or Area of Study/Expertise]. Throughout my academic journey and professional career, I have developed a deep interest in [The specific field/area that you are applying for]. My interest in [this field] was triggered by [mention an experience, event, or aspect that sparked your interest in this field]. Since then, I have been committed to deepen my knowledge and skills in this domain.

At [Your current university/organization/job], I [describe a project or responsibility you undertook, emphasizing the skills you used or developed and any significant achievements]. This experience not only enhanced my knowledge in the area of [specific field/area] but also equipped me with the practical skills necessary to excel in a professional setting.

One of the most impactful experiences during my academic/professional journey was when I [describe another significant project or role and the impact it had on you]. This reinforced my passion for [specific field] and my commitment to contributing meaningfully to this field.

In addition to my academic/professional experiences, I have also honed essential skills such as [mention a set of soft skills, e.g., leadership, teamwork, communication, problem-solving, etc.]. I believe these skills will be beneficial in contributing to [the university/organization/company] and will further assist me in achieving my long-term career goals.

As for my future aspirations, I aim to [mention your long-term goals and how you plan to achieve them]. I am confident that being a part of [university/organization/company] will provide me with the right mentorship and learning environment to make significant strides towards these goals.

I am particularly attracted to [university/company/organization] because of [mention specific features, resources, or opportunities offered by the institution that attract you]. I believe that with its [mention specifics such as curriculum, culture, approach, reputation, etc.], I can grow both professionally and personally.

In conclusion, I am excited about the prospect of joining [the university/company/organization] and am eager to contribute my knowledge, skills, and enthusiasm to your prestigious [institution/company/organization]. I am confident that this [job/program/opportunity] will be a stepping stone to fulfill my career goals and aspirations. I look forward to the possibility of discussing my application with you further.

Thank you for considering my application.

Sincerely, [Your Full Name] [Your Contact Information]

Statement of Purpose Example for Graduate School

Dear Admissions Committee,

I was standing over the open hood of my grandfather’s Series 490 Chevrolet when I realized that I wanted to commit my life to Mechanical Engineering. Watching the jumble of parts I did not yet understand and realizing they made the car move intrigued me beyond anything I had ever experienced until then. Since then, I have dedicated my academic and social pursuits to becoming an engineer.

I joined Berkley High School in 2025 and maintained a 4.0 GPA during my four years there. I took on advanced Math, Science, and Engineering classes, clearing them with high scores. Outside of school, I worked weekends and holidays at O’Neal Motor Works, where I continued to learn more about cars.

Getting into MIT has been a lifelong dream, and I believe it will help me realize my fullest potential as an aspiring engineer. Besides being the best engineering school in the country, it has a comprehensive research program that will quest my thirst for information and discovery.

As an engineer, I plan to focus on developing intelligent, environmental-friendly, and renewable auto parts. I believe engineering should be used to preserve the earth and move us toward development. If I am chosen to join your program, I will pursue this plan fearlessly.

Statement of Purpose Writing Service

Subject: Statement of Purpose for [Your Full Name]

My name is [Your Full Name], a [current role or position] at [current company/university/organization], and I am writing to express my interest in [apply for a job, pursuing a particular course of study, joining a particular organization, etc.]. With a deep passion for [specific field of interest], it is my ambition to [explain what you wish to achieve].

I am motivated to [apply for this job/course/etc.] due to [explain your reasons and how it aligns with your goals]. My passion for [specific field of interest] was ignited during [mention a particular event or experience]. This led me to pursue my [degree, career, or other relevant achievements] in [specific field], which further solidified my interest and resolve.

During my tenure at [past or present job, academic institution, or volunteer experience], I [provide specific examples of your responsibilities and accomplishments]. These experiences not only refined my skills in [mention specific skills] but also provided a practical exposure that underscored the importance of [explain what you learned or how it impacted you].

Furthermore, I have also been involved in [additional activities such as research projects, volunteer work, etc.], where I [explain what you did and what you achieved]. I believe these experiences have prepared me well for [the position or course you are applying for] by [explain how your past experiences make you a good fit].

What particularly attracts me to [the position/course/organization you are applying for] is [mention specific aspects that attracted you]. I am impressed by [mention something specific about the position/course/organization that impressed you], and I believe that [how you think you can contribute or benefit].

My long-term goal is to [explain your long-term goal], and I am convinced that [the position/course/organization] will provide an excellent stepping stone towards achieving this objective. I bring with me [specific qualities, traits, or experiences] and a strong commitment to [explain your commitment in relation to the position/course/organization].

In conclusion, I am eager to contribute my skills and experiences to [the position/course/organization] and grow both professionally and personally. I am confident that my background, passion, and dedication make me a strong candidate, and I am excited about the possibility of bringing my unique contributions to your esteemed [team/department/university/organization].

Thank you very much for considering my application. I look forward to the opportunity to further discuss how my background and skills would make me a valuable addition to your [team/department/university/organization].

Statement of Purpose for Editing Service

[Your Name] [Your Address] [City, State, Zip] [Your Email] [Today’s Date]

Subject: Request for Professional Editing Service

Dear [Editor’s Full Name or Editing Company’s Name],

I am writing this letter to express my interest in employing your professional editing services for [Type of Document – Manuscript, Thesis, Dissertation, Essay, etc.] entitled “[Title of Your Work]”.

I have chosen [Editor’s Name or Editing Company’s Name] specifically because [provide reason(s) why you have selected them – their reputation, a recommendation, their specialist knowledge in your subject area, etc.] I am confident that your professional assistance will significantly enhance the quality of my work.

The main objectives I wish to achieve through this editing service are as follows:

• Clarity: Ensuring the [document/essay/report/thesis, etc.] is clear and unambiguous.
• Consistency: Checking that the style and tone remain consistent throughout the [document/essay/report/thesis, etc.]
• Accuracy: Correcting any grammatical, punctuation, and spelling errors.
• Structure: Ensuring the content is logically organized.
• Syntax and Language: Enhancing the sentence construction and improving the vocabulary used.

The [Type of Document] is about [Briefly describe the content or the subject of the document. This helps the editor understand what your work is about and how best to approach it.]

The [Type of Document] is approximately [Number of Words or Pages in Your Document] and is intended for [Describe the intended audience of your work, e.g., general public, academics, professionals in your field, etc.]

The timeline I am working within for this editing service is [Your Preferred Timeline or Deadline]. I believe this timeframe will be sufficient for your team to thoroughly review my work.

Enclosed with this letter are [Specify what you’re sending along with the request – e.g., part of the manuscript, table of contents, style guide, etc.]

I kindly request a quotation for your services based on the requirements stated above. Also, please provide details about your terms of service, confidentiality agreement, and any other necessary protocols or procedures.

I look forward to a favorable reply and a rewarding collaboration with [Editor’s Name or Editing Company’s Name]. I am confident that your expertise will greatly improve the quality and impact of my [Type of Document].

Thank you for considering my request.

Best regards,

[Your Name] [Your Contact Information]

Statement of Purpose for MBA

[Your Full Name] [Your Mailing Address] [City, State, ZIP] [Your Email Address] [Today’s Date]

[Recipient’s Full Name] [Recipient’s Title] [University/College Name] [University/College Mailing Address] [City, State, ZIP]

I hope this letter finds you well. My name is [Your Full Name], and I am writing to express my sincere interest in the Master of Business Administration (MBA) program at [University/College Name]. With a deep passion for [mention your specific interest areas in business, such as finance, entrepreneurship, marketing, etc.] and a profound interest in [mention any specialized aspects of the MBA program that attracted you, like strategic management, international business, digital transformation, etc.], I believe that an MBA degree from your esteemed institution will provide an unparalleled boost to my career.

Over the years, I have developed a strong inclination toward the business field through my experiences in [mention your past job roles, internship roles, projects, etc.]. I graduated from [Your Undergraduate University] with a degree in [Your Undergraduate Major], where I not only honed my understanding of [mention any relevant courses or skills related to business], but also developed an interest in [mention a specific aspect of your undergraduate study that sparked your interest in business].

My professional journey began at [Your First Job/Internship Company], where I worked as [Your First Job Title]. Here, I [mention any significant contributions or achievements you made during your job role that demonstrate your skills and strengths]. Following this, I joined [Your Second Job/Internship Company], where I took on the role of [Your Second Job Title]. In this position, I [mention what responsibilities you undertook, the projects you worked on, and what you achieved during your tenure]. These experiences solidified my interest in the business field and underscored the importance of an MBA degree to advance my career.

However, I have always believed in the continuous expansion of knowledge, and so, after [number of years in your profession], I have decided to further enhance my skills and broaden my global perspective through your MBA program. I am particularly attracted to [mention specific resources, opportunities, or aspects of the MBA program at the university/college that you find appealing, like faculty, curriculum, case study approach, etc.]. Moreover, the diverse and international cohort of the MBA program at [University/College Name] will give me the opportunity to learn from various perspectives, which I am incredibly excited about.

Upon graduation, my goal is to [describe your short-term and long-term career goals. Be specific and realistic about what you want to achieve after obtaining your MBA degree]. I am confident that your program will equip me with the comprehensive understanding and practical skills necessary to achieve these goals.

I look forward to the opportunity to contribute to your prestigious program and am excited about the possibilities that lie ahead. Thank you for considering my application. I am eager to further discuss my candidacy and am available at your earliest convenience.

Yours sincerely, [Your Full Name]

Statement of Purpose for PHD

[Your Full Name] [Your Current Address] [City, State, Zip] [Your Email Address] [Today’s Date]

Admissions Office [University Name] [University Address] [City, State, Zip]

Dear Members of the Admissions Committee,

I am writing to apply for the Ph.D. program in [Specific Field of Study] at [University Name]. With an unwavering dedication to research and a commitment to the advancement of [Field of Study], my academic and professional experiences have provided a strong foundation for my Ph.D. journey.

Growing up in [Your Hometown/Country], I was [a relevant childhood experience that led to your interest in your chosen field]. From then on, I was certain that I wanted to contribute to [the field of study/its specific area]. My desire to pursue advanced research in this field has only grown stronger with time, prompting me to apply for a Ph.D. program.

As an undergraduate at [Undergraduate University Name], I studied [Major] and undertook projects in [Specific Areas]. My academic performance resulted in [Honors/Awards/Recognitions]. My interest in [Field of Study] was sparked due to [Specific Events/Projects]. I believe that these experiences have given me a broad understanding of the field and its various nuances.

Following my undergraduate studies, I pursued a Master’s degree in [Field] at [University Name]. My thesis, “[Thesis Title]”, focused on [brief explanation about your thesis]. This research experience, under the guidance of [Advisor’s Name], allowed me to delve deep into [specific topic] and solidified my resolve to further my research in this area.

In terms of professional experience, I worked as [Job Title] at [Company Name] for [Number of Years], where I [explain briefly about your job role and any specific accomplishments]. This professional stint enhanced my practical understanding of [Field of Study] and enabled me to apply the theoretical knowledge gained during my academic years.

The reasons why I am particularly interested in [University Name] include [mention specific faculty members, resources, or research areas that drew you to the institution]. I am keen to work with [Professor’s Name] given their outstanding work in [Specific Area]. I believe that joining your esteemed program will allow me to collaborate with top-notch faculty and fellow students, further expanding my knowledge and research capabilities.

Going forward, my research goal for the Ph.D. program at [University Name] is to [Describe the proposed research plan, potential research question(s), and possible implications of the intended research]. I am confident that my academic background and passion for research make me a suitable candidate to achieve these objectives.

Lastly, I want to express that my dedication to [Field of Study] extends beyond personal aspiration. I aim to leverage my research and contribute significantly to our understanding of [Specific Area]. I am excited about the opportunities that a Ph.D. from [University Name] will offer and look forward to potentially contributing to your academic community.

Thank you for considering my application. I hope for the opportunity to further discuss my suitability for the Ph.D. program during an interview.

[Your Full Name]

Social Work Statement of Purpose

[Your Name] [Your Address] [City, State, ZIP] [Your Email] [Today’s Date]

[Admissions Committee or Name of the person (if known)] [University or Organization’s Name] [University or Organization’s Address] [City, State, ZIP]

Dear [Admissions Committee or Name of the person],

I am writing to express my interest in applying for the [specific Social Work program’s name] at [University or Organization’s name]. With my extensive background in [mention relevant work, academic background, or personal experience], I believe that I am well-equipped to contribute meaningfully to your prestigious program.

Ever since I was [a specific age or event], I have been deeply moved by the potential of social work to transform individuals and communities. My passion for social work was sparked by [describe an event, person, or experience that influenced your interest in social work]. This experience left an indelible mark on me, and it has motivated me to devote my professional life to helping others.

My academic studies in [your major or related field] at [your University or College’s name] provided a strong foundation in [mention specific skills, theories, or areas of knowledge that are relevant to social work]. Notably, my coursework in [specific courses or projects] has allowed me to explore [describe what you have learned or achieved]. I graduated [mention graduation year] with a GPA of [your GPA], which I believe reflects my commitment to academic excellence and continuous learning.

In addition to my academic achievements, I have honed my practical skills through [describe any internships, volunteer experiences, or work experiences relevant to social work]. For instance, during my tenure at [organization’s name], I was able to [mention a specific achievement or experience and how it contributed to your development as a social work professional].

I am particularly drawn to the [specific Social Work program’s name] at [University or Organization’s name] because of its commitment to [mention a specific aspect of the program that appeals to you – this could be their teaching philosophy, the research interests of the faculty, the structure of the program, opportunities for fieldwork, etc.]. I am confident that this program will equip me with the advanced skills and knowledge needed to make a significant impact in the field of social work.

In the long term, I aspire to [describe your career goals and how this program will help you achieve them]. I am eager to bring my unique perspectives and experiences to your program, and I am convinced that I will add value to my classmates’ learning experiences and the broader academic community.

Thank you for considering my application. I look forward to the possibility of contributing to [University or Organization’s name] and to the many communities that your graduates serve.

Sincerely, [Your Full Name]

Business Statement of Purpose

[Your Name] [Your Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Today’s Date]

[Recipient’s Name] [Recipient’s Position] [Recipient’s Company Name] [Recipient’s Address] [City, State, ZIP Code]

Subject: Statement of Purpose for [Business Name]

Dear [Recipient’s Name],

I am writing to express my intention to [state the specific purpose such as establish, expand, or collaborate on] [business name]. I am [Your Name], [Your Role/Position] at [Your Current Organization/Company Name or mention if you’re an entrepreneur or a startup founder].

The business industry I wish to penetrate is [Industry name] and my business will [describe briefly what your business will do]. Having meticulously studied the market trends, customer needs, and competition in [target location], I have observed a viable opportunity for [describe the unique selling proposition or key differentiators of your business].

With the rise in [mention the trends or needs that your business is capitalizing on], our proposed solution is to [mention how your business plans to serve this need or capitalize on this trend]. The proposed name for our business is [Business Name], reflecting our core values and commitment to [describe what the business name represents].

Our target market primarily comprises [describe your target audience, their age, gender, profession, interests, etc.]. The demand for our services/products is influenced by factors such as [mention factors like seasonality, market trends, economic performance, etc.].

The purpose of this venture is not solely profit-oriented. We aim to contribute to the [industry name] industry by [describe how you aim to contribute to the industry or solve a particular problem in the industry]. We also strive to create employment opportunities and foster an innovative and inclusive work environment.

Our short-term goals include [mention short-term goals]. In the long run, we envision [mention long-term goals]. Our financial projections indicate that [give an overview of financial projections].

To turn this vision into a reality, we are seeking [mention what you’re seeking – could be support, partnership, investment, etc.] from your esteemed [organization/company]. We strongly believe that your [mention what the recipient can offer e.g. expertise, network, financial resources, etc.] can significantly contribute to the success of our business.

Attached is a comprehensive business plan which further details our vision, operational plan, marketing strategy, competitive analysis, and financial projections. I would be glad to provide any additional information you might need or meet in person to discuss the proposal in more detail.

Thank you for considering our proposal. I look forward to the possibility of working together to make [Business Name] a success.

[Your Name] [Your Position] [Your Contact Information]

Statement of Purpose Outline Template

• Introduction 1.1 Briefly introduce yourself: [Your Name, Your Profession or Current Status] 1.2 Indicate why you are writing this statement of purpose: [Specific Purpose, e.g. applying for a job, graduate program, research grant, etc.] 1.3 Highlight what motivated you towards this opportunity: [Short Narrative or Incident that Sparked your Interest]
• Background 2.1 Detail your educational background: [Your Schools, Major(s), Relevant Courses, Academic Achievements] 2.2 Discuss your professional background if applicable: [Your Previous Job Titles, Workplaces, Duties, Achievements] 2.3 Any additional skills or experiences that make you a strong candidate: [Certifications, Languages, Soft/Hard Skills]
• Your Interest 3.1 Elaborate on your specific interest in this opportunity: [What About this Job/Program/Grant Attracts You] 3.2 Discuss how this opportunity aligns with your future goals: [Your Career Goals, Long-Term Vision] 3.3 Talk about the specific components of the opportunity that resonate with you: [Any Specific Course, Research Area, Job Responsibility etc.]
• Why You? 4.1 Discuss why you believe you are a good fit: [Your Unique Traits, Skills, Experiences] 4.2 Highlight how you can contribute to the job/program/institution: [What You Can Bring to the Table] 4.3 Share any accomplishments or experiences that exemplify your suitability: [Specific Achievements or Experiences that Prove Your Point]
• Your Plan and Vision 5.1 Detail your short-term goals if you get the opportunity: [What You Plan to Achieve/Contribute in the Immediate Future] 5.2 Discuss your long-term vision relating to this opportunity: [Your Long-Term Goals, Where You See Yourself] 5.3 Talk about how you plan to achieve these goals: [Specific Steps or Strategies]
• Closing 6.1 Summarize why you believe you’re the best fit for the opportunity: [Recap of Your Main Points] 6.2 Express your enthusiasm for the potential to join the program/job/institution: [Personal Statement on Your Excitement] 6.3 Thank the reader for their consideration and time: [Gratitude Statement]

Please Note: Each section should be written in a coherent and logical manner, ensuring a smooth transition between the sections. Remember to keep the overall tone professional and make sure to proofread the statement for clarity, grammar, and punctuation. Ensure the statement authentically represents your goals, experiences, and personality.

Before You Begin

You only have one opportunity to impress the admissions committee, which means you should get your statement of purpose right the first time. To do this, you must start preparing early by:

• Researching the institution to which you are applying (through the school website) and familiarizing yourself with their vision, mission, and values.
• Going through the statement of purpose requirements and instructions and noting down the recommended length, content, and due date.
• Contacting the appropriate school authority to ask for clarification on the instructions you don’t understand.
• Identifying possible mentors from the school faculty page and contacting them.
• Begin working on your statement of purpose 6 to 8 weeks before the due date so you can write, edit, and re-edit it until it is perfect.
• Preparing a list of the qualifications and experiences you will highlight in your statement.
• Making copies of all relevant documentation.

How to Write a Statement of Purpose

A statement of purpose holds the same format as an academic structure. The information should be presented in an easy-to-follow manner and divided into the following segments:

Introduction

The introduction should capture the reader’s attention and convince them to keep reading. It should briefly introduce you to them and layout the basis of what you will cover in the body.

The body should go into detail about the preview provided in the introduction. Try to focus on 2 or 3 experiences and explain how they have informed your decision to join the program. As you outline these points, address the following four elements:

• Your interest in the program and institution
• Your academic preparation and professional experience (e.g., internships)
• Your qualities, strengths, and weaknesses
• Your career plans

Remember to be specific, providing examples where they apply.

Lastly, your conclusion should summarize everything you have written and tie it in with the impact joining the institution will have on your personal and professional life. It should also leave the reader intrigued and wanting to learn more about you.

Statement of Purpose Do’s & Don’ts

• Start early
• Maintain notes of the experiences and achievements you will use in your statement.
• Provide a summary of your achievements
• Be specific to the program and institution
• Write honestly
• Avoid grammatical and spelling errors
• Present an image of yourself with which you are comfortable
• Be interesting, passionate, and unique
• Elaborate possible areas of concern such as a failed test
• Proofread, edit, and re-write your statement until you are satisfied with the draft.
• Have two or three people read your statement
• Read your statement before the interview so you remember the content.

Don’t:

• Overlook the statement of purpose
• Let someone else write it for you
• Wait too long to start writing it
• Highlight achievements that are not relevant to your application
• Go off-topic
• Be too general in a statement being sent to a particular institution.

The typical statement of purpose is between 500 to 1,000 words long. However, many institutions provide specific instructions about the preferred length of the statement of purpose. Check the provided requirements and adhere to them.

Technically, no. Your statement of purpose is part of your application which has your name. However, you can include your name if the program instructions call for it.

It is not necessary to sign the statement of purpose because it will be attached to your application letter, which will bear your signature. Nonetheless, there is no law against it.

Some things you should keep out of your statement of purpose include: Contractions (mustn’t, shouldn’t, isn’t, don’t) Slang and colloquial expressions that are not used in formal writing. Statements you would not repeat in a one-on-one interview Exaggerated accounts of your role during an internship program Controversial opinions (unless they are directly related to your area of study)

Final Thoughts

A statement of purpose is a personal essay that should set you apart from the crowd of applicants. It should offer a view of your full range of achievements and experience, explaining how getting into the school will help you achieve your dreams. Finally, it should be entirely about you, to the point, and written per the school’s instructions.

How did our templates helped you today?

Opps what went wrong, related posts.

Block Letter Format: Rules (with Examples)

Restaurant Apology Letter to Customers

Proof of Residency (Tennessee)

California Proof of Residency (CA)

Proof of Residency Texas

Proof of Residency Ohio

Proof of Residency VA (Virginia)

Proof of Residency GA (Georgia)

Thank you for your feedback.