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What is a Vision Statement?
  1. Glossary/

What is a Vision Statement?

·541 words·3 mins·
Ben Schmidt
Author
I am going to help you build the impossible.

In the corporate world, vision statements are often mocked as empty platitudes. They are usually framed on a wall and ignored by everyone who actually does the work. However, for a startup founder, a Vision Statement is a critical piece of infrastructure. It is not poetry. It is physics.

A Vision Statement is a declaration of an organization’s objectives, intended to guide its internal decision-making. It describes the future world you are trying to build. If the startup succeeds, what does the world look like ten years from now?

Without a clear vision, a startup is just a group of people working hard. With a vision, it becomes a movement. It provides the gravitational pull that aligns your product roadmap, your hiring strategy, and your fundraising narrative.

Mission vs. Vision

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Founders constantly confuse the mission with the vision. You must separate them to have clarity.

  • The Mission is the vehicle. It describes what you do every day. It is about the present.
  • The Vision is the destination. It describes where you are going. It is about the future.

For example, Microsoft’s original vision was “A computer on every desk and in every home.” That was a specific picture of the future. It did not talk about software or coding. It talked about the result of the work. If you confuse the two, your team will struggle to distinguish between the daily grind and the ultimate goal.

The North Star

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The primary function of a vision statement is to act as a tiebreaker for difficult decisions. In a startup, you will face endless opportunities to pivot, partner, or expand.

If you have a clear vision, you can look at an opportunity and ask a simple question. Does this get us closer to that future world?

If your vision is to decarbonize the energy grid, and you are offered a profitable contract to optimize oil drilling software, the vision gives you the permission to say no. Without that North Star, you are liable to chase short-term revenue that takes you off course from your long-term destination.

Missionaries vs. Mercenaries

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The most practical application of a vision statement is in recruiting. You cannot pay top talent as much as the tech giants can. You have to offer them something else. You have to offer them meaning.

A strong vision statement acts as a filter. It attracts “missionaries” and repels “mercenaries.”

  • Mercenaries are there for the paycheck. They will leave when things get hard or when a better offer comes along.
  • Missionaries are there for the vision. They want to build the future you described. They will work through the weekends and stick with you during the down rounds because they are emotionally invested in the outcome.

The Gap Analysis

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A good vision statement creates a gap. It highlights the massive distance between where you are today and where you want to be.

Many founders are afraid of this gap. It feels daunting. It triggers imposter syndrome. However, that gap is necessary. It creates tension. That tension is the energy source that drives the startup forward. If your vision is too small or too easily achievable, it will not generate the velocity required to escape the gravity of the status quo.