A company’s mission, vision and values set the direction of the company.

These may sound like things that only large companies need (or have the time to do) but you will quickly find, without an overall North Star and guiding direction, you can get lost quickly. Especially in the constantly changing environment of a new venture, these are essential.

• Vision Statement. A vision statement describes the organization as it would appear in a future successful state. When developing a vision statement, try to answer this question: If the organization were to achieve all of its strategic goals, what would it look like 10 years from now? An effective vision statement is inspirational and aspirational. It creates a mental image of the future state that the organization wishes to achieve. A vision statement should challenge and inspire employees.
• Mission Statement. A mission statement explains the company’s reason for existence. It describes the company what it does and its overall intention. The mission statement supports the vision and serves to communicate purpose and direction to employees, customers, vendors and other stakeholders.
• Values. A values statement describes what the organization believes in and how it will behave. Values create a compass for the company and its employees. This compass guides decision-making and establishes a standard that actions can be assessed against. A values statement defines the deeply held beliefs and principles of the organizational culture.

Establishing a company’s mission, vision and values are critical to setting the direction of a company.