What’s the Difference and Why Does It Matter?

Who would have ever thought that something so philosophical could be so consequential? I thought creating a mission statement and vision statement for my business would be easy enough: a little brainstorming, a few buzzwords and call it a day, right?

I soon realized that these two statements, once fully formed and formally adopted, had enormous implications. They had the power to shape our brand identity, to provide motivation for our employees and to direct our decision-making at critical junctures. I’d underestimated the task.

Moreover, I wasn’t crystal clear on the difference between the two statement types, mission vs. vision. If you’re not either, here’s the essential breakdown.

Related: 5 Top Tips for Crafting Mission and Vision Statements with Meaning

Mission and vision: What’s the difference?

Mission statement: A concise statement of fact describing what a business does, who it serves and why it exists.

Vision statement: An aspirational statement describing what a business wants to achieve in the future.

As an example, consider what a small coffee shop might define as its mission and vision:

• Mission statement: We are a small café offering high-quality coffees and teas to our customers in a warm, welcoming and friendly environment.
• Vision statement: Our goal is to be the go-to place for coffee and tea lovers in our community. We want to be known for our wide selection of high-quality coffees and teas from all over the globe, our friendly and knowledgeable staff and our commitment to sustainable practices.

Note that the variables described in the coffee shop’s mission statement are firmly under the business’s direct control. The ultimate success or failure of the mission hinges on little more than good management practices.

Fulfillment of the vision, however, requires more than expert management. The coffee shop’s vision statement suggests that an entire community should be formed, with the coffee shop at its center. It will be a community of shared values and expectations. More than just the owner, the coffee shop’s employees, its suppliers, its neighbors and certainly its customers must all play their part in bringing about this desired vision: It’s the go-to place in our community…friendly and knowledgeable…committed to sustainable practices.

A business’s vision statement is broad, daring and aspirational, and in my opinion, the writing of your vision statement logically precedes the writing of your mission statement.

Find out where you want to go before you map out your plan to get there.

Related: Stop Rewriting Your Corporate Strategy and Mission Statement — Here’s How to Start Living It

Writing your vision statement

Crafting and sharing your vision statement allows your employees and customers to share in your dream. Don’t underestimate your returns here. When your team and customers share the same dream, new value is created on many fronts. More employees go the extra mile. More customers interact with and evangelize your brand. They’ll pull you up when you’re feeling down. When it comes to writing your vision statement, my advice is to take your time and do it right.

Here are some tips:

1. Start with a clear and concise statement that speaks to your higher-level ideals, the “why” behind what you are doing

• Ex. I want to reduce human suffering (pharmaceutical, hospital or medical research company)
• Ex. I want people to be safe on the road and to enjoy reliable transportation (auto repair business, tire shop, auto parts business)
• Ex. I want the U.S. military to remain second to none for decades to come (military supplier or contracting company)

Having trouble? Try asking yourself this simple question: What impact do I want my business to have on the world?

2. Don’t hide your passion

Find a way to write your passion into your vision statement! If you’re not passionate about your vision, convincing others to share your excitement will be difficult. Consider the following statements and notice how word choice and ideation play a role in evoking passion

Bring inspiration and innovation to every athlete in the world. –Nike

We’re in business to save our home planet. –Patagonia

To become the world’s most loved, most flown and most profitable airline. –Southwest Airlines

3. Prepare for the long haul

The vision statement you craft will resonate throughout your life and career. It’s what you want to be talking about when you interact with journalists, bloggers and podcasters. When you speak at industry events, you will be sharing your vision statement with other business leaders and potential customers. When you tell stories about your business in simple conversations, it will all trace back to the initial “why” behind what you’re doing. This “why” must be captured by your vision statement.

Writing your mission statement

Now that you have a vision statement that you like, let’s think about how your business functions in the here and now. Your mission is the foundation that will allow you to build towards your vision. Here are some tips to help you craft the perfect mission statement:

1. Identify your core values

List the fundamental values that your company upholds. What principles are most important to you? Consider aspects like integrity, quality, innovation, customer focus, sustainability or community involvement.

2. Define the business scope

Clarify what your business does and who it serves. What products or services do you offer, and who benefits from them? Your mission statement should define your target market and the value you provide them.

3. Make it clear and concise and avoid jargon

A mission statement should be brief and to the point. Aim for a sentence or two that encapsulates your company’s essence. It should be memorable and easy to understand. Keep your language simple and free of industry jargon. Avoid vague or overused phrases that lack substance. In many cases, less is more:

To spread ideas. –TED

To connect the world’s professionals to make them more productive and successful. –LinkedIn

To organize the world’s information and make it universally accessible and useful. –Google

4. Review and refine

Draft a version and then review and refine it. Share it with others who know your business and ask for feedback. It may take several iterations to get it right.

5. Put it into action

When you’re done creating your mission statement, incorporate it into your business operations. Share it on your website, in marketing materials and with your employees. Use it as a guide for decision-making.

Bottom line: Your mission statement should not be an empty promise but a reflection of how you operate your business.

Related: I’ve Built 22 Companies in 89 Countries — Here’s Why a Clear Mission Is the Ultimate Growth Hack

Use the mission and vision statement to bring your business to life

It’s not the money. The money is great, don’t get me wrong, but for me, the richest reward of entrepreneurship comes in the form of creativity, the chance to breathe life into something new. The right mission statement will serve as your blueprint for the work ahead, while the right vision statement will impress upon your soul and the souls of others the worthiness of the cause at hand.

In case you’re wondering, here are the mission and vision statements that my team and I eventually came up with for our business compliance and entity formation firm:

Our mission: To provide you with experts and a scalable platform that empowers you to offer Business Filings and Tax Registration services to your clients.

Our vision: To be the driving force behind business success — empowering professionals to expand their impact and entrepreneurs to turn their visions into reality through trusted expertise, innovation and partnership.

Who would have ever thought that something so philosophical could be so consequential? I thought creating a mission statement and vision statement for my business would be easy enough: a little brainstorming, a few buzzwords and call it a day, right?

I soon realized that these two statements, once fully formed and formally adopted, had enormous implications. They had the power to shape our brand identity, to provide motivation for our employees and to direct our decision-making at critical junctures. I’d underestimated the task.