Mads Jensen describes a startup's Identity, made up of its purpose, mission and vision, as the why, who and what behind its strategy, and explains how a strong Identity drives positioning, customer focus and roadmaps.
- Identity is a startup's reason to exist: the why, who and what that underpins strategy, but not the how.
- Purpose is why the company exists, forever, and should be something the founders are passionate about.
- Mission is a finite SMART objective, such as securing three specific lighthouse accounts before the end of the year.
- Vision describes the future and the company's contribution to it.
- A well-crafted Identity drives positioning, the Ideal Customer Profile and company and product roadmaps, and helps attract talent, investors and customers.
Small teams can conquer the world. And startup founders have a magic weapon that can help them marshall their stakeholders into a formidable force.
No – I am not talking about venture capital.
I am talking about the simple concept of Identity.
Identity – three building blogs that define your startup
The Identity of a startup is its reason to exist. It is the expression of the big questions we all must answer if we aspire to greatness.
It is the why, who and what (but not the how) that underpins your strategy.
In essence, Identity has three components:
- Purpose – Why you exist. Forever.
- Mission – SMART ambition. Finite.
- Vision – The future + your contribution.
Let’s unpack.
Purpose – the thing your startup exists to do
E.g.
- Help all sales teams beat their sales targets.
- Enable automotive manufacturers to use 3D printing.
- Help utility companies make energy that is 100% sustainable.
Whatever it is, make sure it is something you are passionate about. Because this is the thing that should motivate you and your team to work 120% 24/7 for the next many years. At least until you’ve made your own little “ding in the universe”.
Mission – your Specific, Measurable, Achievable, Relevant and Time-bound (SMART) objective
E.g.
- Secure three specific lighthouse accounts as reference customers before the end of the year.
- Land a man on the Moon and returning him safely to Earth before the decade is out.
(NASA’s annual budget in the 60s was about $50bn in today’s money. They could take on a big mission).
Vision – your aspiration for the future and the role you look to play in it
To continue the example from above:
- A decade from now, our rocket technology will have enabled humankind to become a multi-planetary species.
- A decade from now, our software has enabled automotive manufacturers to make all cars using 100% recycled material.
The power of a strong Identity
Taken together, these three building blocks form the Identity of your company.
- They drive your positioning statement.
- They determine your Ideal Customer Profile.
- They set the direction for your company and product roadmaps.
And crafted well, they will help you inspire talent, investors and customers to join your rebellion.
In turn, this means that you can serve your purpose and execute your mission. All so you can deliver on your vision for a brighter future.
Frequently Asked Questions
What is the difference between a startup's purpose, mission and vision?
Purpose is why the company exists and does not end. Mission is a specific, measurable, achievable, relevant and time-bound objective. Vision is the future the company aspires to and the role it plans to play in it.
What is an example of a good startup mission?
The post gives securing three specific lighthouse accounts as reference customers before the end of the year, and NASA's goal of landing a man on the Moon and returning him safely to Earth before the decade was out.
Why does a startup's Identity matter in practice?
It drives the positioning statement, determines the Ideal Customer Profile and sets direction for company and product roadmaps, and it helps inspire talent, investors and customers to join.