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    How to Define Your Business Mission and Goals

    March 4, 2024

    How to Define Your Business Mission and Goals
    7:08

    By setting your small business mission and goals, you’re giving voice to your small business vision. Here is a step-by-step guide to help you identify your goals, purpose, and business mission.

     

    Defining your business mission and purpose is an important step in creating a business plan. It helps you clarify your business's purpose and direction, and it can serve as a roadmap for achieving success. Here are some questions to ask yourself and steps to follow when defining your business mission and purpose.    

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    Identify your business' unique value proposition. 

    Question: What makes your business unique?

    Question: How does your product or service meet the needs of your customers in a way that your competitors don't? 

    Consider what you offer that is novel or innovative. Think about how you will distinguish yourself against peers. (Need a little help? Check out SCORE’s free guide for identifying your core value proposition.) 

     

    Define your target audience.

    Question: Who are the customers you'll be targeting with your products or services?  

    Consider demographics, location, and needs when identifying your target audience. 

     

    Clarify your business' purpose. 

    Question: Why does your business exist?

    Question: What need or problem are you trying to solve?  

    Your business' purpose should be more than just making a profit — it should be about making a positive impact on your customers, your community, or the world.

     

    Define your core values.  

    Question: What are the guiding principles that will inform how you operate your business? 

    These could include things like honesty, integrity, innovation, or sustainability. 

     

    Create a mission statement.  

    Question: What is your purpose?

    Question: What are you seeking to achieve with your small business?

    A mission statement is a brief statement that encapsulates your business' purpose, target audience, and core values. It should be clear, concise, and memorable.

     

    By following these steps, you can define your business mission and purpose, which will help inform your goals.

     


    Example Mission and Purpose Statement  

    Here is an example of a mission, purpose, and goals for a small bakery in Albuquerque, New Mexico, owned and operated by a Latinx family.

     

     

     

     
     

    EXAMPLE MISSION AND PURPOSE STATEMENT

     
     

    Mission:

    To provide delicious, high-quality baked goods using traditional Hispanic recipes and locally sourced ingredients, while also supporting and giving back to our local community.

     
         
     

    Purpose:

    Our bakery exists to bring joy and satisfaction to our customers through our delicious baked goods, while also making a positive impact on our community by using locally sourced ingredients and supporting local nonprofit organizations. We are dedicated to using our business as a way to give back and make a difference in Albuquerque.

     
         
     

    Mission- and Purpose-Aligned SMART Goals: 

    • Increase customer loyalty by 10% within the next six months by implementing a loyalty rewards program that rewards customers for their support of our business and our community.
       
    • Launch a community partnership program within the next year that donates a portion of our profits to local nonprofit organizations that support the Hispanic community in Albuquerque.

    • Increase our social media following by 25% within the next six months through regular social media engagement and contests that highlight our commitment to our community. 


     
         

     

    These goals are specific, measurable, achievable, relevant, and time-bound (SMART). They outline specific actions and objectives for the bakery to achieve over the next year, and they are aligned with the mission of providing delicious, high-quality baked goods while also supporting and giving back to the local community.

     


    Curious About How to Create SMART Goals for Your Business? 

    SMART goals are specific, measurable, achievable, relevant, and time-bound goals that can help you achieve your business objectives. Here's how to write SMART goals for your business plan:

    Be specific about what you want to achieve.  

    It's not enough to say, "I want to make more money." That's too vague. Instead, try something like, "I want to increase revenue by 10% within the next six months." This gives you a clear target to aim for. 

    Make sure your goal is measurable.  

    How will you know when you've achieved your goal? By setting measurable benchmarks, you can track your progress and see if you're on track to reach your goal. In the examples above, we're measuring progress by aiming for a percentage of increased revenue. 

    Ensure your goal is achievable.  

    There's no point in setting a goal that's completely out of reach. Make sure your goal is realistic given your current resources and constraints.

    Make sure your goal is relevant.  

    Is your goal aligned with your business' overall mission and objectives? If not, it might not be the best goal to focus on. 

    Set a deadline.  

    Giving yourself a timeline will help you stay focused and motivated to work toward your goal. In the example above, we've set a deadline of six months. 

     

    Example Goals 

    Your goals should be deeper reflections of your mission and vision. Returning to the family-run bakery in Albuquerque, let’s take a look at some sample goals. 

     

     

     

     
     

    EXAMPLE GOALS

     
     
    • Annual goal:
      Increase revenue by 15% within the next year by expanding our product line to include savory sandwiches and salads, as measured by the number of new menu items added and total sales. 

    • 1st quarter goal:
      Launch our catering services and generate $5,000 in catering revenue within the next three months, as measured by the number of catering contracts signed and total catering revenue. 

    • 2nd quarter goal:
      Increase customer loyalty by 10% within the next three months by implementing a loyalty rewards program, as measured by the number of loyalty program enrollments and repeat customer visits. 

    • 3rd quarter goal:
      Increase our social media following by 25% within the next three months through regular social media engagement and contests, as measured by the number of followers and engagement on our social media accounts. 

    • 4th quarter goal:
      Launch an online store and generate $10,000 in online sales within the next three months, as measured by the number of online orders and total online sales.
     
         

     

    These SMART goals are specific, measurable, achievable, relevant, and time bound. They outline specific actions and objectives for the bakery to achieve over the year, while also including clear metrics for measuring progress towards these goals.

     

    By following these guidelines, you can create a clear mission and purpose statement and identify actionable goals that will help you achieve success in your business. Happy goal setting! 

     


     

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