There are over 30 million different small businesses in America, and many more that are being started each day. While many new small businesses are being created, many are also failing. Nearly 50% of small businesses fail within the first year according to data from the Bureau of Labor Statistics. A few of the most common reasons that small businesses fail are lack of capital, poor management, and inadequate business planning. On some occasions, the amount of capital cannot be prevented, but poor management and inadequate business planning can be. The best way to prevent these issues is to have a clear and meaningful mission statement that provides the business with structure and goals that everyone can reach towards. Listed below are four reasons why small businesses should still create mission statements.
A defined mission statement will remind employees why the company exists in the first place. The mission statement helps draw everyone back to the foundation of the company and focuses on the big picture, instead of getting caught up in the day-to-day tasks.
Small businesses are constantly changing as they grow, develop, and hire new employees. Many people have a hard time adjusting to change, but if it is put in positive lighting through your mission statement, the employee will understand be more likely to see change as an opportunity for growth rather than a burden.
Provides a Baseline
The mission statement allows everyone in the company to understand the company culture and purpose. Whether a person is a CEO or a new hire, they will know the framework of how the company is working. The mission statement will help employees to create common boundaries the bounce between.
Having a mission statement will help when trying to determine the success of the company, and the success of individuals. It will help to guide evaluations and constructive feedback. Knowing how to measure success and progress towards goals can really strengthen the overall company.
Starting a small business is exciting and everyone wants to succeed. In order for a business to have the best chance of thriving, a strong mission statement should be developed in the early stages of the creation of the company.