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E-Myth – “Why most small businesses don’t work & what to do about it”

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Part Time CFO | Why Are Mission and Vision Statements Important

 

The reason why mission statements and vision statements are important says part time CFO. Is because they can help an entrepreneur remember what is most important in their business. As well as help staff understands what is most important in their business.

It’s an important way that business owners and shareholders are going to be able to build the culture they want in their business. And it’s going to help everybody focus on the values that are most important to the business owner as well.

Is often States reasons why the business is different than the competition. And can explain what is unique about them, whether it’s their customer service, their quality of products, the fact that they are doing it in a way that no other businesses and their industry is doing it.

Often, business owners had a reason why they wanted to open a business in this industry in the first place. Part time CFO says that the reason why, can start to help formulate the mission and vision statements that they will use.

Also, business owners are often driven by prophets. And like to include that in their mission and vision statements. This is an incredibly good idea. That puts the importance on making money. Because that’s ultimately what’s the business is designed to do. And if they’re not making money, they can’t achieve their objectives.

Therefore, they reverse engineer their mission statement, by saying by making money, they’re going to be able to help their clients by doing what they do. Part time CFO says that when they create a mission statement this way. It can also help their clients understand why their price points are what they are. Because most customers understand that businesses require money to achieve their goals.

However, this is not the only way that an entrepreneur can create a mission and vision statement. Often, they need to keep in mind what problem their customers are solving by purchasing their products or services.

This might be very easy to ascertain says part time CFO. Or maybe it’s more difficult depending on what business and what industry it is. For a plumber, the problem is usually very easy to figure out. A client is calling a plumber because their Plumbing is broken. A grocery store is also easy, their clients buy food because they need to feed themselves and their families.

However other businesses might have multiple problems that they are solving. And in that case, business owners need to consider what problem is the most common one. Or the one that they are most passionate about service. Then, the mission statement will be one sentence about how they’re going to accomplish that goal.

The vision statements on the other hand is very similar. The only difference is that it’s going to contain measurables. All business owners understand that goals need to be measurable and have a time limit in order to be attainable. So that’s going to be encapsulated in the vision statement in a single sentence.

When business owners do this, their mission statement and their vision statement will be very powerful reminders of what they are doing in their business and how they are achieving it.

Part Time CFO | Why Are Mission and Vision Statements Important

Business owners may have spent a lot of time and consideration creating their mission and vision statement says part time CFO. But then, they promptly forgot about it. Either because they didn’t understand its importance. Or, it was lengthy, convoluted, and hard to actually remember. Or they might not have created one at all.

If a business owner does not use its mission statement and vision statement. Or if they didn’t create one at all. They may be impacting their business in ways that they don’t even know about. These are important statements, that’s can help an entrepreneur remember why they wanted to open their own business in the first place. How they are different than their competition, and how they are going to achieve their goals.

When business owners take the time to create an effective mission statement and vision statement. Part time CFO says that they will be one sentence long. And be very impactful. A business owner can remind themselves of why they are doing what they are doing and how they are different by reading these statements. But the power in them is not by reading them alone. It’s by sharing them.

Business owners need to communicate this with their staff. And not just their high-level managers, or their senior staff members. Part time CFO says that an entrepreneur needs to build a company culture that will help them accomplish their goals. By communicating this to all staff members on a very regular basis.

Buy a regular basis, this doesn’t mean business owners should mention it at the beginning of every month, or just when an entrepreneur hires that staff member. It needs to be consistently communicated daily if not more in order to be effective.

A great strategy is for a business owner to communicate this at the beginning of every shift, or every day. To write it in every single room of their business. And at every staff meeting, every staff training and every staff function.

Creating the culture they need in order to grow the business they want takes great communication and repetition. They need to repeat it enough that not only did they remember it’s without prompting. But it’s their staff who can repeat it, and understands exactly what that means. It’s not left open to interpretation. And it can help the staff members figure out what they need to do as an employee, to help accomplish those goals.

By creating this effective vision and mission statements. Business owners can have a very powerful tool. The great thing is, that their vision statement will contain measurables with a timeline. In that timeline, a business owner can figure out if they have in fact accomplish their goals.

Or if a business owner needs to get back to the drawing board, and figure out why they weren’t able to achieve that goal. And what their next and new goal is. To help them continue to grow a successful business.