The purpose of the vision is two-fold. First, it shows the vision of the business to prospective investors. Second, it shows the vision of the management of the business to potential employees, creditors and customers. It should be a statement that makes clear both the company’s goals and the way in which the business will achieve them.
How does the vision get created? There are several approaches that an investor can take. Some are more common than others. However, some can be more effective. Here are four:
* Develop a draft or statement of vision for your business. It can be as elaborate or as minimal as you want. It should be well-written and well-defined. However, even a brief statement is better than no statement at all.
* Draft a contract that spells out how much money you will invest in the vision. You should include in the contract the amount you will commit to the vision. It will also give details on what your management company will do. It might also give details on what the vision will look like. In the contract, be sure to spell out the date the vision is created. Then, explain to the investors what will happen if they do not agree with the vision.
* Write up a vision statement for the vision. A vision statement has the benefit of being written for an investor. It does not have the disadvantage of being a vision for the company itself. The vision statement gives details on how the vision will be achieved, and how the vision will be seen by both the company and its creditors and shareholders. This is important because the vision statement helps set expectations among the parties. when the vision is drawn up, it helps ensure the vision gets into the vision.
* Have a meeting to discuss the vision with a number of people. Get the advice of a management company about the vision. This will help the company communicate its vision more clearly to the investors. and to the employees.
* Write up a contract with investors about the vision. Make sure that there is a clause in the contract that describes what happens if the vision fails. in terms of financing, management fees and other charges against the vision.
* Have the vision reviewed by someone who is not related to the company or the vision. This person will look at the vision closely. If the vision is flawed, the review will help the vision writer come up with a better vision.
* Set up a board of directors to oversee the vision. They should be people with a good knowledge of the business. If you cannot find qualified people, at least have the management contract stipulates that the director must have an MBA from an accredited institution.
* How is the vision to be funded? The vision statement can set up a way to raise the capital for the vision. the vision by using a special loan that allows you to borrow from the company. or another entity that finances the vision.
* What happens if the vision does not get funded? If the vision fails, explain to the company in the vision document that failure of the vision does not mean the vision is a failure. That is a bad outcome.
* Be sure that the vision gets into the vision as clearly as possible. The vision is just that – the vision. It is only as successful as the people involved in its creation.
