Business Plan – Creating Your Mission and Vision
Published February 8, 2009 | 
But what about the terms that are often used interchangeably, there is a vast difference between a mission and vision, and while the two concepts play-off of one another they work in very different ways.
Mission is the purpose or reason for the existence of your business and it is a general heading or direction. A mission is what you stand for, should be timeless and it should rarely, if ever, change and it should always stand the test of time in that there is no end to the mission.
A vision is a specific future destination or a dream with a deadline, and having said that the vision should change over time. The vision must say “yes” to some ideas and “no” to others, since it’s about what the future might be, could be, and shouldn’t be, example: “To put a man on the moon before the end of the 1960’s.”
Mission is about preserving the core of which provides continuity and stability, like a fixed stake in the ground or the horizon limiting possibilities, and acting conservatively, while the vision is about stimulating progress, urging continual change, compelling constant movement, expanding possibilities, and revolutionary change.
To build your mission remember, a mission statement should be somewhat timeless and it should apply not only today but possibly even twenty to fifty years from now, and it should put forth a general direction or heading stating what it is that you stand for. In essence, a mission can never really be achieved as it should be on going, and if it can be achieved if completed, then it is a vision not your mission, and you should think of your mission as your true north heading on your compass. Microsoft’s mission is simple as “Help entrepreneurs realize their full potential”.
To build your vision, ask yourself: What big goal do you want to try to achieve in five years from now? What does success look like in five years? In five years from now, how should your business be different than it is now, and using your own metrics of success what approach to accomplish and five years for you to consider yourself successful? Microsoft’s vision is as simple as “a computer in every home running Microsoft software”.
Ten Questions a Business Plan Must Answer
Published February 5, 2009 | 
What does the business stand for now and what will it be in the future?
- This question addresses the questions of mission and vision for the business.
- It should not only address what the business is but also what the business is not.
What does success look like?
- This is about goal setting. If you don’t know what success looks like the new can never find it.
- Goals should be set for specific time frames.
- Ask yourself: What do I have to accomplish by the end of this year to achieve my definition of success?
What do you make?
- Every business must create value and ultimately make something.
- This is about the basic value proposition of the business.
How do you make it?
- This question is about your craft, systems, and way of doing business.
- It addresses your inputs, processes, and outputs of the business.
How do you sell it?
- While making something is about the creation of value this question is about marketing or capturing value.
- Many entrepreneurs are great at creating value but many failed to capture hit by dropping the ball when it comes to marketing execution.
- As management author Peter Drucker wrote, “There are only two functions of business: Innovation and Marketing.”
Who are the customers?
- This question addresses the people that the business service.
- Most successful small businesses operate in turbulent and uncertain markets catering to small niches of customers that a big business does not want to serve.
- By doing this they are able to stay off the competitive radar screen of the big companies that can’t afford to take huge gambles on such uncertain market segments.
What can you or business contributed to the world that no one else can?
- This is about the understanding of what your “one big idea” is.
- It involves a deep passion, understanding of what you can be the best in the world at, and a sufficient economic engine to drive it.
Who will manage the business and how?
- Who are the people who will operate and grow the business and how will they be organized? This speaks to the organizational structure of the business, as well as, the legal structuring.
- Having a great idea is never enough. Greater ideas are common, but the people who can successfully implement are rare.
How are profits generated and where do they come from?
- At the end of the day, the business must be profitable or it is not a business.
- You should be well versed in the revenue and cost drivers that make business profitable.
- Without profits the company cannot grow and will never be anything more than just a lifestyle business.
What stands in the way of success and how will you overcome it?
- This is about your future story, the enemy and how you overcome it and ultimately win.
- Up until now, you have been addressing questions that concern your business model which is essentially your business in the vacuum.
- But sooner or later, your business will confront internal forces or external competitors that will potentially keep you from achieving your goals.
- Dealing with this reality is, in essence, your strategy.