What Is A Purpose Statement? (And How To Write One)

Updated 11 October 2022

Having a statement of purpose is an important aspect of a company's goals and keeps the workforce on the right track in terms of operations and milestones. It embodies the ethos of a brand and you can disseminate it throughout all areas of the organisation, so all staff can work with the same purpose. Knowing how to write one and what the process entails can be an invaluable skill for you to implement. In this article, we look at what a purpose statement is and discuss its use in business.

What is a purpose statement?

A purpose statement, or a position statement, is a single sentence that encompasses the overall aim of a company. You typically tailor this letter to address a specific demographic, such as customers, patients or other groups the company wants to address. It is a holistic idea that is utilised throughout a business, outlining the reason and justification for the company's existence.

This can guide many business decisions, from a company's code of conduct to the demographics they intend to serve. This statement is also a useful tool for businesses to bring their goals into focus for both themselves, their staff and their client base. It's an excellent way for a company to define their missions, goals and objectives.

Understanding a mission and a value statement

Here's a look at what mission and value statements are to provide an understanding of how they differ from a statement of purpose:

What is a mission statement?

Mission statements focus on the big picture, including aspirational goals and the core values of a company. Purpose statements are all about the customer and how the brand can help, but a mission statement is an outline for staff. Mission statements are useful because they guide employees towards the long-term goals of a company by helping them understand their overall function within a business. It's not unusual for a mission statement to include a business's core values and its advantages over competitors to motivate the workforce and keep them engaged.

What is a value statement?

Value statements help businesses outline the culture and ethos they work towards. It can help create a set of overarching principles that can guide certain business decisions and the overall direction of a company. A value statement is likely to incorporate the priorities of that company - from exceptional customer service to fostering a more diverse workforce.

How can you use a purpose statement?

This statement is incredibly useful to a company as it helps outline its function, focus, aspirations and goals. It is also useful for customers, companies or a workforce and can benefit them in the following ways:

Improve employee morale and drive

Having a team of workers that understand their roles within a company can dramatically improve their morale, drive and motivation. A purpose statement can inform members of staff about what the business does for their customers, including the benefits they bring. This can justify the work that staff do for a company and increase their motivation. Because staff know they're making a difference for customers, they're more likely to care about the work they do.

Help achieve company goals and milestones

Defining the purpose of your company can help with goals or milestones that a business is working towards, which can help improve and maintain employee focus. You can use this throughout the entire company, ensuring new employees and senior managers work towards the same goals. Essentially, it is a unifying idea that keeps all members of staff informed of the primary driving force behind a brand, which can improve the productivity of that business.

Encourage company loyalty

When a member of staff feels like they're part of a successful team, they're more likely to feel loyal towards the company that employs them. They understand their overall role in the business, so are more likely to celebrate company success. When used alongside a value statement, purpose statements can encourage employees to adopt the core values of the company and further align themselves with the business.

Help the company stand out from competitors

A purpose statement is an excellent way to show your prospective and existing clients how you differ from the competition. This can justify a company's place in the market, which strengthens the brand and emboldens staff. From putting the customer first to pushing for environmentally friendly products, a purpose statement can help a business showcase its individuality to investors, customers and staff alike.

How do you write a purpose statement?

Below are some steps you can take to write your own statement:

1. Speak with the workforce

Try to incorporate the ideas and insights of the people working at the organisation from the bottom to the top. This helps you incorporate as many meaningful perspectives about the company as possible and ensures the purpose statement is an accurate reflection of the business. A good idea is to form a committee or workshop to share ideas with all members of staff and encourage them to offer their opinions. This empowers staff and makes them feel heard.

2. Think about why the company exists

Considering the foundation of the company is a good way to gauge why it exists. This can help you identify its relevance in the current market and grow a purpose statement from that. Think about what the business does for its clients or audience to determine how it benefits them. This is usually a suitable area to contemplate a few things about the business. If you sell a product, consider what benefits it offers the customers and what makes your brand unique in the market. Knowing this can help you focus on what to include in your statement.

3. Understand who the company serves

A purpose statement incorporates the business's core audience - whether it's customers, clients or a captivated audience. So take the time to think about who your company serves, to create a statement that reflects that. Knowing what benefits you can bring to your audience can help you create a meaningful purpose statement. Consider the goals, interests, challenges and risks that your customers face and how your company addresses these concerns.

4. Outline what your business offers

You already know the products or services that your business provides its customers, but looking beyond the features of your offerings can help you see what value you truly provide. For example, a computer offers more than just a way to access the Internet - it's a way to learn new skills, find friends and explore new hobbies. Think about your services or products on a personal level to find out what you offer your audience.

5. Think about what makes you stand out from the competition

Being able to highlight what makes your business unique when compared to others can help you create a meaningful purpose statement. You want to consider what competitors offer and how your services or products differ. Consider the following questions:

Are your services or products different? In what way?
Is your audience different from that of your competitors?
Are you solving a problem that no other company is?
In what ways does your service or product enrich or improve your clients' lives?
What do you offer clients that the competition doesn't?

Once you've thought about the answers to these questions, you're better prepared to create an accurate purpose statement that reflects your brand.

6. Work with useful keywords

Keywords are an excellent way to anchor your purpose statement using meaningful terms and phrases. This encourages you to keep the purpose statement relevant, motivational and tailored to the needs, wants and motivations of the company. Outlining the keywords associated with your brand can also be useful in a variety of other areas, for example, marketing.

7. Create a final draft of the purpose statement

Once you've spoken with colleagues, considered your audience and taken time to dig into the core values of your company, it's time to create a final draft for your purpose statement. Collaborate with other professionals, either within your company or outside of it, to make it as refined as possible. Showcase this draft to all members of staff to reinforce the company's overall purpose.

Examples of purpose statements

To help you create your own purpose statement, we have provided several examples below:

‘Our purpose is to bring families together when they play our board games'.
‘Our purpose is to encourage healthier lifestyles by educating people about good food'.
‘Our purpose is to make it easier for people who need help with reading or writing to receive a proper education through our resources'.
‘Our purpose is to help individuals who are having car trouble in a friendly, cost-effective way'.
‘Our purpose is to provide our customers with the best quality clothes at affordable prices'.

What Is A Purpose Statement? (And How To Write One)