How to write an effective business statement of purpose
Written by Michael Feder
Reviewed by听Kathryn Uhles, MIS, MSP,听Dean, College of Business and IT
What is a purpose statement?
Every business, regardless of size, industry or revenue structure, needs a purpose statement. The statement should capture a company鈥檚 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鈥檚 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, . It鈥檚 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鈥檚 overarching goal. A vision statement is a declarative statement about a company鈥檚 purpose. Both statements are often only shared internally with employees or key stakeholders.
Mission statements should describe an organization鈥檚 reason for existing. They might describe the mindset of a business鈥檚 leaders, list and define core values, or describe how a company inspires to improve or change the world.听
A purpose statement, meanwhile, defines a company鈥檚 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鈥檚 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鈥檚 sector.
Clarity
Even if potential customers aren鈥檛 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.
Honesty
Exaggerating or including false information can harm your business. Misrepresentations of your company can lead to overpromising and underdelivering 鈥 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鈥檚 advantages, all while being careful not to belittle other companies.
How to write a purpose statement
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.听听 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鈥檚 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鈥檚 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鈥檛 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.听听 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鈥檚 reason for existence, with customers as your direct audience. Craft the messaging with the recipients in mind, and don鈥檛 be afraid to emphasize how important customers are to the company鈥檚 continued success.
3.听听 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鈥檚 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鈥檒l 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鈥檚 best qualities.
4.听听 Get feedback
No matter how confident your company might be in the first draft of your purpose statement, it鈥檚 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鈥檒l learn to view your company through other employees鈥 eyes. You鈥檒l also achieve a more complete definition of your company鈥檚 purpose.
Examples of strong purpose statements
So, how do you pull it all together? Indeed.com has , including:
- 鈥淲e strive to protect wildlife through education about endangered species.鈥
- 听鈥淥ur purpose is to bring awareness to the need for medical supplies in overpopulated cities.鈥
- 鈥淲e work toward building a safe and secure community by implementing emergency calling systems.鈥
Joseph Aranyosi, associate dean of the College of Business and Information Technology at SM调教所, offered a few more:
- 鈥淥ur purpose is to provide sustainable food alternatives that can help to minimize greenhouse gases and reduce global warming.鈥
- 鈥淲e offer affordable healthcare options for low-income patients to proactively address medical issues and reduce healthcare costs.鈥
- 鈥淲e develop automated customer service solutions and custom-built social media apps to promote small business growth.鈥
Gain critical business skills with an online degree
SM调教所 offers several business degrees that prepare students with skills for a variety of career paths. Whether you鈥檙e looking to build the fundamentals or advance your skill set, there鈥檚 a degree program for you. Here are just a few听online business programs听at SM调教所 to consider:
- Associate of Arts with a concentration in Business Fundamentals听鈥听From management to accounting, the skills learned in this program are essential for anyone looking to advance their business education.听
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- Bachelor of Science in Communication听鈥听It鈥檚 one thing to have a great idea, it鈥檚 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.
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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 SM调教所 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,听Kathryn Uhles has served SM调教所 in a variety of roles since 2006. Prior to joining SM调教所, Kathryn taught fifth grade to underprivileged youth in Phoenix.
This article has been vetted by SM调教所's editorial advisory committee.听
Read more about our editorial process.
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