What Is a Mission Statement?

Textbook Definition

A mission statement is a brief declaration of an organization's present purpose, identifying what it does, whom it serves, and why, and serving as a standard for evaluating products, services, and decisions.

In Plain English

It is one plain sentence that says what your business does, who it is for, and why it exists, today. Learning how to write a mission statement is mostly learning to leave the product list out.

Why Do Good Operators End Up With a Crowded Shelf?

Skilled owners can produce nearly anything, and when it all sells, no signal ever says stop. A product that brings in money feels like a winner even if it keeps none of it, and even if it eats the hours your best product needs. Over time the business fills up with side items and the core waits.

A mission statement gives you a sentence to check. It is different from a vision, and vision versus mission is worth getting straight: the vision names a destination, the mission names a purpose. Used as a filter, the mission is the first test every product must pass. It also belongs near the top of your plan's company description.

Signs you have this problem:

  • Your description of the business is a list of products.
  • You add an item whenever a customer asks for it.
  • Some products bring in money but keep almost none after costs.
  • Your best-selling item runs out while staff work on side items.
  • Your team checks with you before every new request because there is no rule to follow.
  • You cannot explain your business to a stranger in one breath.
A product that sells is not automatically a product that belongs. Without a sentence to check, you will never know the difference.

What It Looks Like When Nothing Tells You to Stop

From the Fabled Forest · Chapter 3

Beatrix, a bee who runs a honey business, was told by the almanac's binder that she got one line. Hers ran fifty-eight words: three sizes of honey, comb, candles, wraps, balm, cakes, mugs, pollen, and free tours. Her five-year picture was clear. Her shelf did not match it. Juniper, her helper, opened the ledger: honey kept 600 coins a month, comb and candles kept 60 each, and five side products kept about nothing while eating four of every ten of Juniper's hours. Thirty customers were on a waiting list for candles.

Doctor Owl explained that the vision says where you are going, while the mission says what you are for along the way. Beatrix's first try just listed the shelf again. Then Mrs. Owl-Willow asked what she would tell a bee hatched that morning. Beatrix thought about the meadow, the dated jars, and the Sunday visitors who wanted to know where their food came from, and wrote one twenty-eight-word sentence.

She then tested each product with two questions: does it fit, and does it pay for its hours? Honey, comb, candles, and tours stayed. Cakes and mugs went. Balm, wraps, and pollen fit but were paused until the candle list cleared. Within two weeks Juniper had filled eleven of the thirty candle orders and had her hours back.

Beatrix's story is Chapter 3 of Strategy for Small Businesses, Book 6 of Dr. Paul's Fabled Forest Business School Series.

How to Write a Mission Statement in 4 Steps

No poster language. One sentence your newest employee could repeat back.

  1. Write one sentence: what you do, for whom, and why.

    Aim for thirty words or fewer. Before you write, find out from a handful of customers why they choose you. Their reasons often name the "why" better than you can. Most business plan templates give the mission its own line near the top for this reason.

  2. Try it on a total stranger to your business.

    If they cannot say it back in their own words, simplify it. Beatrix's test was a bee hatched that morning.

  3. Run every product through two questions.

    Does it fit the mission? Does it earn back the hours and money it uses? Passing both means it stays. Fitting without paying means it is paused. Not fitting means it stops.

  4. Use it on the next new request.

    Post the two questions where requests come in. When a customer asks for something new, check it before you agree. That habit is the start of real strategic focus.

Dr. Paul's Insight

The most common mistake Dr. Paul sees is writing a mission, then agreeing to every request as before. If the sentence never changes a single decision, it is just wall art. Notice too that the mission is only the first test: a product can fit perfectly and still not earn its hours this year. Write the mission after you have a vision statement, so the place and the reason point the same way.

Sample: Beatrix's Two-Question Shelf Test

Here is how Beatrix sorted her shelf against her new mission. Copy the layout and run your own products through it.

Business: Beatrix Forest HoneyOwner: Beatrix
Honey, three sizesFits. Keeps 600 coins a month. Stays.
Comb and candlesFits. Keep 60 coins a month each, and 30 customers waiting for candles. Stay.
Sunday toursFits. Free, but visitors leave with a jar. Stay.
Honey cakes and mugsDo not fit. Cakes offered to the waffle shop instead. Stop.
Balm, wraps, pollenFit, but keep about nothing and take hours. Paused until the candle list is empty.

Illustration from the book. "Paused" is not "no." It means "not this year, and here is why."

Watch: Mission and Values in Your Business Plan

Two short business plan tips from Dr. Paul: why your mission should never be a secret, and why your business values deserve a clear place in the plan.

Business Plan Writer's Tip #16 for Columbus, OH.: Your Mission Should Not Be TOP SECRET

Dr. Paul Borosky, DBA, MBA. (2:44)

Business Plan Writer's Tip #18 for Indianapolis, IN.: Business Values… Never Met Him

Dr. Paul Borosky, DBA, MBA. (3:02)

Read a Passage From Chapter 3

Chapter 3 · Mission Statement

Nine Products, No Sentence: A Bee’s One Line

Beatrix took the slip, and turned it to the last clean corner, and wrote it down before it could get away.

Beatrix Forest Honey makes honest honey from one forest meadow, and the wax that comes with it, for creatures who want to know where their food comes from.

She read it once to herself and once aloud. Juniper put down the ledger. Moss said, from the end of the table, “That’s us.”

“Well,” said Beatrix, and her crown went very slowly back to its proper angle. “Well… that’s the bee’s buzz.”

Read what happens when Beatrix holds her shelf up to that line in Strategy for Small Businesses, Book 6 of Dr. Paul's Fabled Forest Business School Series.

Get the Book on Amazon →

Mission Statement Questions Owners Ask

What should a mission statement include?
Three parts: what the business does, who it does it for, and why. Leave out the product list and the slogans. One sentence of about thirty words or fewer is enough.
What is the difference between a vision and a mission statement?
The vision describes where the business is going, usually five years out. The mission describes the purpose the business serves each day while it travels toward that picture.
How do I know how to write a mission statement that is not generic?
Before writing a word, ask several customers what makes them choose you. Their answers usually hold the specific "why" that makes the sentence yours. Then test it on a stranger.
Should I drop products that do not fit my mission?
Products that do not fit should usually stop. Products that fit but do not pay for their time can be paused rather than dropped. The mission is the first test, and profit for the hours spent is the second.

Written by Dr. Paul Borosky, DBA, MBA, business consultant and author of Dr. Paul's Fabled Forest Business School Series. Want help writing a mission that actually guides your decisions? See growth plan and consulting options.

This page is for general educational purposes only. It is not legal, financial, or other professional advice. Dollar figures are illustrations. The Fabled Forest and its characters are fictional. For decisions about your own business, consult a qualified professional.