Entrepreneurs are told time and time again about the importance of having a clear and compelling vision for their business. But, what exactly goes into a vision and how should it be used?
An entrepreneur’s vision should include three main elements. First, the vision includes a mission statement, which should (in 25 words or less) define the product/service the business produces, the market for which it is produced and any specific and unique aspects of the business that will give it a competitive advantage (such as technology, customer orientation and so forth). This should become your quick answer to the question, “Tell me about your business.”
Second, the vision goes beyond the more objective description in the statement of mission to include the core values and principles that the entrepreneur intends to use to guide the business. It is through the pursuit of the new venture within the entrepreneur’s moral framework that he begins to address the purpose of his work. More specifically, this can be shaped by the opportunities he pursues, the people with whom he chooses to do business, whom he hires, decisions he makes about products and markets, decisions about whether and how fast to grow, the corporate culture he builds and his engagement with the community as a leader and/or citizen. Each action we take shapes our character. These actions become habits — good or bad. The moral principles we bring to our business will become the seeds of the shared culture the business will have as it grows.
Finally, the vision also incorporates the entrepreneur’s aspirations of what outcomes are hoped for from the venture. An entrepreneur’s definition of success can go well beyond profit maximization to include a whole range of other factors, including employment in the community, ability to create balance with family responsibilities, bringing a needed service or product to the market, or creating a certain work environment for employees that is not available in other businesses.
Initially a clear and compelling vision is critical to keep you focused. We often get tempted to pursue more opportunities than we can effectively handle. It is also an essential part of attracting employees, investors, suppliers and customers.
As your business grows, your vision becomes a compass to guide decision making both from a strategic and from an ethical perspective. It helps create order and meaning out of the chaos that so often part of a growing venture.
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