Business Models 101: Long Term Goals, Mission and Strategy

In this part we will discuss the Long Term Goal, Mission and Strategy, which are essential so that your company keeps the right direction.

I have to repeat it on every page but starting something on your own, creating value for you, your family and the world is a totally recommendable thing to do. You want to create your company. This is GREAT. The world has been made by people like you. Entrepreneurs. Self-Made Men, Creators, Builders people that believed an obstacle is just another great challenge to overcome, to solve and put behind them as an achievement. 

Long Term GOAL, Mission, Strategy

Creating your company for the short term might be the case for some of you but most will want to build something that will create for them a LASTING revenue stream.

So you should have long term goal. To define long term goal in a coherent and logical manner, it is good to define first what we call the Mission of your company. Because from the mission flows the targets, strategies, business plan, business models, etc.... 

A mission statement define what your company's purpose in life is. Making the world a better place, producing the best cupcake eating experience ever, making everyone want to use excel, bring water to Africa..

The mission statement defines the greater purpose.

A mission statement should hold in a few lines only. It should be simple, without numbers, easy to read and understandable  for anybody.

Then, from your mission statement, you can define targets, goals. From these targets you define strategies to reach these targets.

A mission statement is not quantifiable, targets are quantifiable. They are based on numbers (sales amount, number of customers, number of happy customers, number of cupcakes sold, ...) and from these numbers your can define a strategy to reach them.

"Make the world a healthy, happy and sweet place to live" could be the mission statement of cupcake factory that make cupcakes that do not make people fat but makes them happy.

long term goals

To define your Strategy you should ask the following questions

Is there growth in our business?

How shall it be achieved (organic, inorganic, …) ?

What are the capital requirements for the growth?

How can we raise this capital if needed?  

What actions do I have to take?

These questions should be asked and the answers put into your business plan and strategy.

Previous: Cost Structure

Next: the Competition

 

Download the template of your business model from here.

 

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